According to Pan American Silver's announcement, it has agreed to sell 100% of its interest in the La Arena gold mine in Peru to Jinteng (Singapore) Mining, a subsidiary of Zijin Mining.
The Zhitong Finance App learned that Morgan Stanley released a research report stating that it gave Zijin Mining (02899) an “increased” rating, with a target price of HK$19.6. Despite the company's high costs in Latin America, once the acquisition of new gold mines is completed, Zijin Mining's current gold production will increase by 3.9%. Its mining industry in Peru is facing challenges, but the bank sees this as a positive step towards Zijin's goal of becoming one of the top 3-5 mining companies in the world.
According to the report, according to Pan American Silver's announcement, it has been agreed to sell 100% of its interest in the La Arena gold mine in Peru to Zijin Mining subsidiary Jinteng (Singapore) Mining. The deal involved $245 million in cash advances and another $50 million in contingent payments. Pan American Silver expects the deal to be completed in the third quarter of 2024, pending approval from Peruvian government regulators. Assuming the deal is completed, this will be Zijin Mining's fourth gold project in South America after Colombia, Guyana, and Sulinan.