Lundin Gold Inc. is mulling over business expansion with the acquisition after completing its first commercial production.
Fruta del Norte, the company’s only asset in Ecuador, will soon commence for commercial production, according to Chief Executive Officer Ron Hochstein. Low-cost gold mining is expected to produce nearly 300,000 ounces of gold by 2020.
The company’s acquisition plan is backed by its biggest stakeholder, Newcrest Mining Ltd., and its leading owner, Hochstein. To create lucrative stuff for our shareholders will be highly challenging for the company, Hochstein said.
Lundin gold has underscored aligned circles in the targeted mine areas, where the exact center will be a focused product for the company that would help to obtain a large market share. The company will also glance beyond Latin America, steering towards the rest of the world. But, it will preclude regions such as China, Russia, and Central Asian countries.
Simultaneously, the company will aim for organic growth by utilizing additional land in Ecuador, Hochstein added.
Accumulating funding for the acquisition should be trouble-free considering the company’s collaboration with seven banks and private equity investments in Orion Mine Finance. Everyone incorporated with Lundin Gold is very glad for the close expansion and believes if we are doing something great, the resources will be managed.
The company would also welcome a beneficial deal for the takeover, Hochstein said in an interview.
Hochstein thought that Newcrest would be deemed a logical buyer of Lundin if it offered the right value for the family. Newcrest said they are happy with Lundin’s stakes for now.