About this episode
Allied Gold (TSX: AAUC; OTCQX: AAUCF) Chairman & CEO Peter Marrone says the company’s C$5.5 billion all-cash sale to Zijin Mining secures what he views as full and fair value, less than two years after Allied’s September 2023 IPO at an approximate C$970 million valuation. Speaking with Kitco Mining at the 35th BMO Global Metals, Mining & Critical Minerals Conference, Marrone said the board set a clear pricing threshold during negotiations. “It has to be in the mid forties,” he said, referring to the per-share level required to support a transaction.Allied rose more than 300% last year on the Toronto Stock Exchange, with the offer coming at a premium to an all-time high. Marrone pointed to recent gold price volatility, noting realized prices in the $3,400–$3,800 range before spot briefly moved above $5,000 per ounce. “There’s a lot of air in between,” he said, describing the risk of sharp swings and the rationale for locking in a cash floor. Allied’s portfolio is anchored by the Sadiola mine in Mali, with more than 10 million ounces of resources, and the Kurmuk project in Ethiopia, expected to produce close to 300,000 ounces annually at roughly $950 per ounce AISC. Shareholders vote in March, with closing anticipated in April.Don’t forget to subscribe to the Kitco Mining & Kitco News YouTube channels to stay up to date on the latest industry news and interviews. Special thanks to our sponsor, First Majestic Silver. To learn more, visit https://firstmajestic.com/00:43 - C$5.5B Allied Gold Takeover Overview02:25 - Why the All-Cash Offer Locks in Value04:19 - Strategic Process and Asian Buyer Engagement07:24 - Deal Timeline and “Mid Forties” Price Target09:06 - Gold Price Volatility and Risk Management11:20 - Jurisdiction Risk and Tier 1 Asset Reality15:14 - Dividend Discipline and Share Buybacks17:24 - Shareholder Vote in March, Closing in April__________________________________________________________________Kitco Mining is dedicated to reporting on the mining industry. Our mandate is to be the top resource for all mining information and news, offering a clear perspective on where the industry is going through breaking news coverage, mining trends, and in-depth reporting, presented with precious, rare earth, base metals, and industry stock prices.Get important precious and base metal updates while on the go with the Kitco Gold LIVE! app - https://applications.kitco.comStay connected with usX - https://x.com/KitcoMiningInstagram - https://www.instagram.com/kitcominingLinkedIn - https://www.linkedin.com/company/kitco-miningFacebook - https://www.facebook.com/KitcoMiningConnect with the Kitco Mining anchorsPaul Harris - https://x.com/paulharrisgold For more in-depth mining coverage, visit us here - https://www.kitco.com/miningDisclaimer: Videos are not trading advice, and the views expressed
