Red Back Mining Inc. is an
unhedged Vancouver based mineral resource company. Its focus is West Africa where it operates the Chirano Gold Project in
Ghana
Ghana (; tw, Gaana, ee, Gana), officially the Republic of Ghana, is a country in West Africa. It abuts the Gulf of Guinea and the Atlantic Ocean to the south, sharing borders with Ivory Coast in Ghana–Ivory Coast border, the west, Burkina ...
and the Tasiast Gold Mine in
Mauritania.
It has one division, Red Back Mining NL, based in
Perth, Australia
Perth is the capital and largest city of the Australian state of Western Australia. It is the fourth most populous city in Australia and Oceania, with a population of 2.1 million (80% of the state) living in Greater Perth in 2020. Perth is ...
.
While independent it was considered one of Canada's
Largest gold companies
There are different methods by which gold mining companies are ranked. One is by their annual production. Another is by their cash cost per ounce, that is, how much money it costs them to mine the gold. Since gold prices are the same everywhere, ...
with a
market capitalization of
$ 5.8 billion or 3/4 as much as the 10th largest gold mining company in the world however at the time its key mines hadn't yet reached full potential or critical mass.
In May 2010, there was an announcement of a
private placement
Private placement (or non-public offering) is a funding round of securities which are sold not through a public offering, but rather through a private offering, mostly to a small number of chosen investors. Generally, these investors include frie ...
in which one of the world's largest gold mining companies
Kinross Gold Kinross Gold Corporation is a Canadian-based gold and silver mining company founded in 1993 and headquartered in Toronto, Ontario, Canada. Kinross currently operates six active gold mines, and was ranked fifth of the "10 Top Gold-mining Companies" ...
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%.
[
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. Current Red Back shareholders would own 37 percent of Kinross if the offer is accepted. 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.
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. The acquisition price voted on gives Red Back's shareholders 1.778 KGC commons shares.
]
History
In 2003 it was formed after a merger between Red Back Mining NL of Australia and Champion Resources Inc of Canada.
Its flagship mine, Chirano began producing gold in 4th quarter of 2005 through its subsidiary Chirano Gold Mines Limited (CGML).
In August 2007 acquired the Tasiast gold mine from Lundin Mining Corporation for 225 million USD which opened on July 18, 2007.
The Chirano mine produced 30,427 ounces of gold its first year and was scheduled to produce 123,000 ounces in each of the next 8.5 years.
2007 saw a 76% increase in gold production on a rising gold price; acquisitions; and higher probable reserve estimates for its key mines.
In 2009 it failed in its attempt to acquire Moto Goldmines whose key asset was a 70% stake in one of Africa's largest undeveloped gold deposits.
Production in 2010 and 2009
The company produced 342,085 ounces in 2009, a 31% increase over 2008 production, and has set a target of 800,000 oz for 2012. Red Back's 90% share of Chirano and 100% share of Tasiast produced 402,000 ounces of gold equivalent in 2010.
The Tasiast Mine produced 158,660 oz in 2009, 185,000 in 2010 (2010 was previously forecast to be 245-265,000 ounces).
The Chirano Mine produced 185,425 oz in 2009, 240-260,000 oz projected for 2010.[{{cite web, url=http://ca.news.finance.yahoo.com/s/26022010/28/link-f-ccnmatthews-red-reports-record-net-income-109-million-2009.html, archive-url=https://archive.today/20120707003824/http://ca.news.finance.yahoo.com/s/26022010/28/link-f-ccnmatthews-red-reports-record-net-income-109-million-2009.html, url-status=dead, archive-date=2012-07-07, title=Red Back Production to grow to 500,000 oz in 2010, date=2010-02-26]
Main areas of exploration
*Mauritania - Tasiast
*Ghana - Chirano, Bolgatanga (in cooperation with Etruscan Resources
Endeavour Mining is a multinational mining company that owns and operates gold mines in Côte d'Ivoire, Burkina Faso and Senegal. The company is headquartered in London, England, and has cross listed on the London Stock Exchange in the United K ...
Inc.), Ahafo North, Bibiani North, Akyem, Enchi, and Bole.
See also
* Mining industry of Ghana
*Mineral industry of Africa
The mineral industry of Africa is the second-largest mineral industry in the world. Africa is the second largest continent, with 30.37 million square kilometre of land, which implies large quantities of resources. With a population of 1.4 billion ...
References
Gold mining companies of Canada
Companies based in Vancouver