China Eyes Australian Gold Reserves with Zijin Mining Group’s Plan to Acquire Norton Gold Fields for $238.8m - Deal Analysis from GlobalData

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China Eyes Australian Gold Reserves with Zijin Mining Group’s Plan to Acquire Norton Gold Fields for $238.8m - Deal Analysis from GlobalData Powered By Docstoc
					          China Eyes Australian Gold Reserves with Zijin Mining
       Group’s Plan to Acquire Norton Gold Fields for $238.8m - Deal
                        Analysis from GlobalData
       Reference Code: GDMM0008M&A                                                                                                                          Publication Date: April 2012


       1         Table of Contents
       1 Table of Contents.................................................................1              1.1     List of Tables
        1.1 List of Tables .................................................................1
        1.2 List of Figures ................................................................1             Table 1:    Deal Companies....................................................... 3
       2 Zijin Mining Group to Acquire Norton Gold Fields ................2                               Table 2:    Financials ................................................................. 3
        2.1 Deal Overview ...............................................................2                Table 3:    Norton Gold Fields Limited – Share Price Information
        2.2 The Deal in Brief............................................................2                            ................................................................................. 3
       3 Acquirer and Acquiree Overview..........................................2                        Table 4:    Financial Advisors .................................................... 3
        3.1 Acquirer Overview and Expected Benefits to Accrue                                             Table 5:    Norton Gold Fields Limited – Financial Information.. 4
              from the Offer ................................................................2            Table 6:    Norton Gold Fields Limited – Financial Ratios ......... 4
        3.2 Acquiree Overview ........................................................3                   Table 7:    Company Valuation Multiples ................................... 4
        3.3 Deal Valuation and Other Details ..................................3                          Table 8:    Acquirer Information ................................................. 4
        3.4 Deal Rationale ...............................................................4               Table 9:    Target Information .................................................... 5
       4 Appendix ..............................................................................5
        4.1 Abbreviations.................................................................5
        4.2 Bibliography...................................................................5
        4.3 GlobalData’s Methodology ............................................5                        1.2     List of Figures
        4.4 Contact Us.....................................................................6              Figure 1: Location of Zijin Mining Group’s Assets ................... 3
        4.5 Disclaimer......................................................................6             Figure 2: Zijin Mining Group’s Net Profit by Metal, for the Year
                                                                                                                    Ended December 31, 2010 ...................................... 3




                                                                                                                                                GDMM0008M&A /Published APR 2012
China Eyes Australian Gold Reserves with Zijin Mining Group’s                                                                                                                     Page 1
Plan to Acquire Norton Gold Fields for $238.8m                                                      © GlobalData. This report is a licensed product and is not to be copied, reproduced,
                                                                                                                                                            shared or resold in any form
                                                                                Although Zijin is a major gold producer in China, it also
                                                                                produces copper and zinc. At the end of 2010, Zijin and its
       2      Zijin Mining Group to Acquire Norton                              subsidiaries (the Group) had 275 exploration rights, which
              Gold Fields                                                       included 43 overseas rights, 63 mining rights, and six overseas
                                                                                                                 2
                                                                                rights, covering a total of 5.7km . The proposed acquisition is
       2.1    Deal Overview                                                     particularly significant as Zijin Mining is the first Chinese
       Acquirer          :        Zijin Mining Group                            company to enter the Australian gold mining industry. In 2012,
                                                                                the company plans to mine over 28 tons of gold.
       Acquiree          :        Norton Gold Fields Ltd
                                                                                Zijin Mining is expected to benefit from the deal: The
       Deal Type         :        Acquisition                                   advantages to accrue are outlined below.
       Deal Status       :        Planned                                       3.1.1     Building a Strong Resource Base
       Date Announced :           April 3, 2012                                 The proposed acquisition will help Zijin Mining Group to build a
       Minimum Deal Value:        $238.80m                                      strong resource base through the addition of proven and
                                                                                p
				
DOCUMENT INFO
Description: Zijin Mining Group Co. Ltd, a metal resource exploration and development company, plans to acquire a majority interest in Norton Gold Fields Limited, a gold exploration company, for approximately AUD229.4m ($238.8m). Zijin Mining Group currently holds a 16.98% share in Norton Gold Fields.
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PARTNER GlobalData
GlobalData is an industry analysis specialist, providing business information products and services. GlobalData’s highly qualified team of analysts, researchers, and solution consultants use proprietary data sources, tools and techniques to gather, analyze and represent the latest and the most reliable information essential for a business to sustain a competitive edge. GlobalData is a UK-based company with presence across North America, Europe and Asia Pacific and has a broad product offering that ranges from interactive databases, reports and custom solutions. It is a comprehensive source of insights and analysis with coverage across the oil & gas, power, alternative energy, nuclear power, petrochemicals, medical equipment and healthcare industries. GlobalData has a broad range of coverage over key market segments. It has a global scope, covering a wide range of countries constituting more than 90% of global revenues in each of the industries it covers. With a large dedicated research and analysis capability, GlobalData employs rigorous primary and secondary research techniques in developing unique data sets and research materials. Its status as an independent research company allows Analysts to conduct trade interviews with key industry players. Access to unique databases of in-house market information further strengthens research and analysis capabilities. Materials are reviewed shaped by an expert panel of leading industry figures and representatives from key players in the relevant industries. Sectors and Geographies Covered GlobalData has a broad range of coverage over key market segments. It has a global scope, covering a wide range of countries constituting more than 90% of global revenues in each of the industries it covers. Research Methodology With a large dedicated research and analysis capability, GlobalData employs rigorous primary and secondary research techniques in developing unique data sets and research materials. Its status as an independent research company allows Analysts to conduct trade interviews with key industry players. Access to unique databases of in-house market information further strengthens research and analysis capabilities. Materials are reviewed shaped by an expert panel of leading industry figures and representatives from key players in the relevant industries.