Red Back Mining

Red Back Mining Inc.
Company typeprivate
IndustryMining
Founded1988
FounderLukas H Lundin
Headquarters
Vancouver
,
Canada
Key people
Lukas H Lundin Chair
Richard Clark Pres & CEO, Dir
Simon Jackson VP
ProductsGold, Nickel, Niobium, Tantalum
RevenueIncrease$318.39 million (2009)
Increase$109.16 million (2009)
Total assetsIncrease$961.13 million[1]
Total equityIncrease$847.37 million (2009)[2]
Number of employees
785 (2009)[3]
ParentKinross Gold
DivisionsRed Back Mining NL
Websitewww.redbackmining.com

Red Back Mining Inc. is an unhedged[4] Vancouver based mineral resource company. Its focus is West Africa where it operates the Chirano Gold Project in Ghana and the Tasiast Gold Mine in Mauritania.[1] It has one division, Red Back Mining NL, based in Perth, Australia. While independent it was considered one of Canada's Largest gold companies with a market capitalization of $ 5.8 billion or 3/4 as much as the 10th largest gold mining company in the world[5] however at the time its key mines hadn't yet reached full potential or critical mass.[1][6][7]

In May 2010, there was an announcement of a private placement in which one of the world's largest gold mining companies Kinross Gold will purchase 9.4% of Red Back's outstanding shares. When the deal is completed Kinross will be the company's largest shareholder next to Fidelity Management which currently owns 6%.[6][8]

On August 3, 2010 an announcement was made by Kinross offering to merge Red Back into Kinross with Kinross paying $7.1 billion for all outstanding shares of Red Back. The price offered was 15% above the current price of Red Back stock. According to Tye W. Burt, Kinross’s President, Red Back has reserves Kinross has the ability to develop.[9]

On September 15, 2010 two thirds of Kinross Gold's shareholders voted in favour of the USD 7.2 billion deal to acquire Red Back Mining (99% of Red Back's shareholders approved the deal). Despite opposition from an advisor to Kinross's Investors (and others who estimate the company is overpaying for Red Back based on reserves estimates), KGC plans to close the deal within days of the approval.[10][11]

Red Back Mining was delisted from the Australian stock exchange in May 2004. Delisted from Tooronto stock exchange in May 2004.[12]

  1. ^ a b c "Red Back Mining Company Snapshot". www.FPinformart.ca. Retrieved 2010-05-01.
  2. ^ "red back mining google finance balance sheet". Retrieved 2010-07-01.
  3. ^ "Company Profile". Retrieved 2010-04-18.
  4. ^ "european mining". 2009-07-20.
  5. ^ Willis, Andrew (2010-04-04). "Red Back Mining has a suitor". The Globe and Mail. Toronto.
  6. ^ a b "600 million dollar private placement to kinross". 2010-05-04. Archived from the original on 2011-09-30.
  7. ^ "Kinross shares fall following Red Back deal". Reuters. 2010-05-05. Retrieved 2023-07-11.
  8. ^ "Red Back Mining shares could rise on Kinross stake". 2010-05-05.[permanent dead link]
  9. ^ "In Canada, a Merger for Miners of Gold". The New York Times. 2010-08-03. ISSN 0362-4331. Retrieved 2023-07-11.
  10. ^ "Kinross Gold Shareholders Approve $7.2 Billion Takeover of Red Back Mining". Bloomberg News. 2010-09-15.
  11. ^ "Shareholders Approve Kinross Gold's Red Back Transaction". 2010-09-15.
  12. ^ "RED BACK MINING NL RBK | deListed Australia". www.delisted.com.au. Retrieved 2023-07-11.