Great Bear Resources Sees Canaccord Bump Price Target To Buyout Figure Of $29

On December 8th, Kinross (TSX: K) announced it would be acquiring Great Bear Resources (TSXV: GBR) for C$29 per share, a roughly 31% premium to the then-current stock price, implying a valuation of C$1.8 billion. Great Bear shareholders are able to choose between receiving either C$29 in cash or 3.8564 Kinross shares per Great Bear share. The C$1.8 billion consideration is subject to a maximum cash consideration of C$1.4 million or roughly 75% of the total consideration.

Great Bear Resources currently has 6 analysts covering the stock with an average 12-month price target of C$29, after 3 analysts raised their price target to the buyout price. Out of the 6 analysts, 3 have buy ratings and the other 3 have hold ratings. The street high sits at C$40 from Mackie Research while the lowest 12-month price target sits at C$22.

In Canaccord’s update after the news, they raised their 12-month price target to C$29 from C$27 while downgrading them to a hold rating from a speculative buy rating, saying that the timing of the transaction was in-line with their expectations.

Canaccord has largely speculated that a larger gold producer would give a bid for Great Bear Resources given “the Tier 1 potential of the Dixie project.” With their first thought being Barrick Gold since its recent property options within the camp.

With that being said, Canaccord does not foresee Barrick Gold coming in with a higher bid for the company, given their “no to low premium acquisitions.” This coupled with Barrick’s recent M&A spree, makes Canaccord believe that any sort of competitive bid from Barrick to be unlikely.

Lastly, Canaccord believes that Kinross’ understanding of Great Bear Resources assets to be “significantly advanced,” and further comments that they believe that with Kinross’ balance sheet and expertise, Canaccord’s own estimates will most likely turn out to be conservative.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Curaleaf: Canccord Slashes Price Target, Anticipates Headwinds For 2022

Earlier this month, Curaleaf Holdings, Inc. (CSE: CURA reported its fourth quarter and full year...

Monday, March 14, 2022, 09:27:00 AM

Verano: Canaccord Drops Price Target After Revenue Miss

On November 16th, Verano Holdings (CSE: VRNO) announced its third quarter financial results. The company...

Thursday, November 18, 2021, 11:44:00 AM

Beyond Meat Sees Analysts Slash Price Targets

Beyond Meat, Inc. (Nasdaq: BYND) recently reported its third quarter results for the period ending...

Sunday, November 20, 2022, 11:12:00 AM

Sundial Growers: Canaccord Raises Price Target Due To Strong Balance Sheet

Sundial Growers (NASDAQ: SNDL) reported its second quarter financial results on August 12. The company...

Tuesday, August 17, 2021, 03:35:00 PM

Sundial Growers: Fourth Quarter Consensus Earnings Estimates

Sundial Growers (NASDAQ: SNDL) announced that they will be reporting their fourth quarter and year...

Tuesday, March 16, 2021, 11:46:00 AM