Gold Mining ETFs in Focus on Endeavour-Teranga Merger Talks

The gold mining space has been buzzing with merger talks. Endeavour Mining is seeking to acquire smaller West African-focused miner Teranga Gold. Endeavour is 24.12% owned by Egypt’s Sawiris family and has been on the acquisition path this year as gold prices have rallied on the back of global stimulus to cushion economies from the fallout of the COVID-19 pandemic.

As a result of the solid run-up in the bullion price, shares of Teranga Gold have gained 87% this year as of Nov 9, giving the company a market capitalization of about C$2.2 billion ($1.7 billion). Endeavour is valued at about C$5.23 billion ($4 billion) in Toronto (see: all the Materials ETFs here).

The potential deal, if completed, would solidify Endeavour’s position as West Africa’s leading gold producer as it would add operating mine — Wahgnion — to its four existing mines in Burkina Faso, namely, Boungou (acquired from SEMAFO), Karma, […]

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