Goldcorp, Teck Chile Mine Deal Lifts All Parties -- Market Talk
DOW JONES & COMPANY, INC. 2:07 PM ET 08/27/15
Symbol Last Price Change
GG 13.45up +0.34 (+2.59%)
NGD 2.065down +0.115 (+5.9%)
QUOTES AS OF 03:49:04 PM ET 08/27/2015
14:07 EDT - Goldcorp's(GG) (GG, G.T) plan to buy New Gold's(NGD) minority stake in a Chilean mining project called El Morro so it can combine it with Teck's (TCK, TCK.B.T) nearby Relincho project is giving a big boost to all three miners. The deal will enable GG and TCK to invest far less than previously envisioned in a promising asset -- $3.5B versus more than $8B for the two standalone projects -- while giving NGD more balance sheet flexibility. GMP says the deal "makes a lot of sense to us -- capital efficiency, strengthening the future of the project with district consolidation and working around challenges," adding "This is the kind of approach that in our view the market should reward." Investors are doing just that. NGD was recently up 12% in Toronto at C$2.91. GG was up 2.4% at C$17.88 while beaten up TCK was up a whopping 20% to C$8.84. (carolyn.m.king@wsj.com; @CarolynKing1)
(END) Dow Jones Newswires
08-27-151407ET
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ANTS suck!