Evolution Mining Bolsters Copper Pipeline with $213 Million Acquisition
Gold mining valuations remain broadly in line with historical averages, according to RBC. At current spot gold prices, its royalty coverage trades at 1.69x P/NAV, slightly below its 1-year and 3-year averages of 1.73x and 1.79x, respectively.
Meanwhile, senior producers are generating attractive forward 12-month free cash flow-to-enterprise value (FCF/EV) yields of 7.0%, reflecting continued cash generation despite elevated gold prices.
In other news, Evolution Mining is expanding its copper growth pipeline through the acquisition of Carnaby Resources for A$213 million.
The company agreed to offer 0.0682 Evolution shares for each Carnaby share and valuing the transaction at A$0.77 per share, representing a 60% premium to Carnaby's last closing price and a 31% premium to its 30-day volume-weighted average price (VWAP).