Core Insights - SSR Mining (SSRM) and AngloGold Ashanti PLC (AU) are prominent players in the gold mining sector, benefiting from a 31.7% increase in gold prices this year due to safe-haven demand and central bank purchases [1][2] SSR Mining Overview - SSR Mining operates in the USA, Türkiye, Canada, and Argentina, and became the third-largest gold producer in the U.S. after acquiring the Cripple Creek & Victor mine [3][4] - The CC&V mine is projected to produce approximately 170,000 ounces of gold annually, contributing to SSRM's total expected production of 320,000-380,000 ounces in 2025 [4] - As of March 31, 2025, SSR Mining had $319.6 million in cash and a debt-to-capital ratio of 0.08, indicating a strong financial position [5] - Operations at the Çöpler mine in Türkiye are currently suspended due to a heap leach failure, leading to significant care and maintenance costs [6][7] - SSRM's projected all-in sustaining cost (AISC) for 2025 is $1,890-$1,950 per payable ounce, reflecting a 3% increase at the midpoint [8] AngloGold Ashanti Overview - AngloGold Ashanti has a diverse portfolio across Africa, the Americas, and Australia, recently acquiring Centamin, which adds a potential 500,000 ounces of annual production from the Sukari mine [9][10] - The company reported a 22% year-over-year increase in gold production to 720,000 ounces, with a projected output of 2.9-3.225 million ounces for 2025 [10][12] - AngloGold ended Q1 2025 with $3 billion in liquidity and a debt-to-capital ratio of 0.19, showcasing a solid financial foundation [12] - The company is focused on a Full Asset Potential program to mitigate inflation impacts, with AISC projected between $1,580 and $1,705 per ounce for 2025, indicating a 2% year-over-year increase [13][18] - AngloGold has implemented a new dividend policy aimed at returning 50% of annual free cash flow, enhancing its attractiveness to income-focused investors [27] Comparative Analysis - Year-to-date, SSRM stock has increased by 84.5%, while AU stock has risen by 125% [21] - SSRM trades at a forward earnings multiple of 7.29X, lower than its five-year median, whereas AU trades at 10.49X, higher than its five-year median [22] - AngloGold offers a dividend yield of 0.96% with a payout ratio of 18.55%, while SSRM currently does not pay dividends [23][27] - AngloGold Ashanti is viewed as a more compelling investment choice due to its lower cost structure, stronger price performance, and robust growth pipeline compared to SSR Mining [28][29]

Core Viewpoint - Dundee Precious Metals Inc. has agreed to acquire Adriatic Metals plc for an implied equity value of approximately $1.3 billion, which will enhance DPM's asset portfolio and production capabilities through the acquisition of the Vareš operation in Bosnia and Herzegovina [1][3][6] Strategic Rationale - The acquisition of Vareš is expected to create a premier mining business with a strong growth profile and high-quality development pipeline [2][3] - Vareš will significantly increase DPM's mine life and provide near-term production growth, cash flow diversification, and a prospective land package [4][6] - The transaction is anticipated to unlock further value for shareholders of both companies and benefit local communities [4][6] Vareš Overview - Vareš is a high-grade precious metals underground mine with an initial operating life of 15 years and a prospective land package of 4,400 hectares [5][7] - The mine is expected to ramp up production to 425,000 gold equivalent ounces by 2027 [6] Technical Report Highlights - The independent technical report prepared for Vareš indicates a mineral reserve of 9.5 million tonnes with an average gold equivalent grade of 9.21 grams per tonne [10][11] - The life of mine operating costs are projected at $1,050 million, with an all-in sustaining cost of $893 per gold ounce [10][11] Financial Metrics - The base case NPV5% for Vareš is estimated at $1.6 billion, with projected post-tax cash flow of $2.1 billion over the initial mine life [11][12] - Initial capital expenditures for the project are estimated at $76 million, with sustaining capital of $143 million over the life of the mine [12] Transaction Summary - Under the terms of the transaction, Adriatic shareholders will receive 0.1590 DPM shares and 93 pence in cash for each Adriatic share, valuing each Adriatic share at £2.68 [13][14] - Post-transaction, DPM shareholders are expected to own approximately 75% of the enlarged issued share capital [16][18] Closing Conditions - The transaction is subject to approval from Adriatic shareholders, court approval, and regulatory approvals, including from the Bosnian Competition Council [17][18]