Thank you for your valuable insights !! :) ===============================================================
Hi Sam, It's my pleasure! The following article is along the lines of my recent post to you and encompasses some of WHT's archived presentaion at the Denver Gold Forum 2004. #msg-4151532
Wheaton River, free of takeover threat, plans up to US$500M in acquisitions
By NANCY CARR 2004-09-29 16:29:00
TORONTO (CP) - Freed from the threat of a takeover by the world's largest silver producer, Wheaton River Minerals Ltd. will continue to grow by acquiring gold mines around the world, the company's chairman and chief executive said Wednesday.
"We're looking very much forward to getting on with the process of building our company," Ian Telfer said in a webcast speech at a mining conference in Denver, the day after Coeur d'Alene Mines Corp. conceded it will let its bid for Wheaton expire.
"So it's a great day for us and we can't wait to continue."
Telfer said Wheaton River, created less than three years ago, has about $500 million US to use for acquisitions.
Wheaton shareholders had until Thursday to tender to Coeur's cash-and-shares offer, which valued the Vancouver miner at about $1.5 billion US. But the Idaho-based company said Tuesday evening that it didn't expect to meet the condition that two-thirds of Wheaton River shares be tendered to its offer.
Telfer and Wheaton management had urged shareholders to reject the offer since it was made in May.
At that time, Wheaton was trying to orchestrate a merger with Toronto-based gold miner Iamgold Corp. That combination was voted down by Iamgold shareholders in July, and Iamgold was subsequently taken over by South Africa's Gold Fields Ltd.
"Not that I know all the numbers, but in Canada out of 320 million shares, as of yesterday they (Coeur d'Alene) had 1.6 million shares tendered," Telfer said.
"Some people do wait till the last day, so they could have expected more, but I think that pointed out to them that there wasn't shareholder support for their bid."
Wheaton's takeover war chest includes a $300-million-US financing agreement, $100 million US in cash and $86 million US that the company received Wednesday from its investment in the Alumbrera gold project in Argentina.
Wheaton will target companies or gold projects in the Americas, Australia and Asia that produce 200,000 ounces or more of gold equivalent per year, Telfer said.
"And as far as timing, it's now," said Telfer, noting that the company hasn't made an acquisition since January - a relatively long period of inactivity after making six acquisitions within 18 months prior to that.
"We're bullish on the metal price; if you're bullish on the metal price you should go and do something right now."
Wheaton said it expects 2006 production from all of its mines to increase to about 900,000 gold equivalent ounces at a total cash cost of less than $100 US an ounce.
Current production exceeds 500,000 gold equivalent ounces - over 400,000 ounces of gold and seven million ounces of silver - at a cash cost of less than $50 an ounce.
Since Wheaton's March 2003 acquisition of Alumbrera, the company said it has received cash distributions totalling $132 million US and had a return on the investment of 83 per cent. In addition, Wheaton said its share of the Alumbrera project debt, $91 million US, has been repaid.
Telfer also said a deal to spin off Mexican silver assets "will close for sure" now that Coeur can no longer oppose it.
Wheaton River will own 75 per cent of Silver Wheaton Corp., which will be created by mid-October, after an agreement is finalized for shell company Chap Mercantile Inc. to buy all silver produced at Wheaton's Luismin mine for an upfront payment of $262 million in cash and Chap shares, plus $3.90 US an ounce.
Chap shares (TSXV:CPC) jumped by 20 per cent, rising 13 cents to 78 cents, while Wheaton River (TSX:WRM) closed up five cents at $3.83.
Market Data 
Markets 
AI
