March 27, 2023

M&A Report: Metals Funds that Benefit from B2Gold’s C$1.1 billion Acquisition of Sabina

B2Gold to acquire Sabina Gold & Silver

This report provides a summary of Gold & Precious Metal Funds that hold:

  1. The Acquired Company only: Sabina Gold & Silver Corp. (TSX: SBB)
  2. The Acquirer only: B2Gold Corp. (TSX: BTO | NYSE American: BTG | NSX: B2G)
  3. Both the Acquirer and the Acquired Company

B2Gold Corp. (TSX: BTO | NYSE American: BTG | NSX: B2G) announced (on Monday, February 13) that the company will acquire Sabina Gold & Silver Corp. (TSX: SBB) in a deal valued at approximately C$1.1 billion (~US$823.66 million). As part of the deal, which is expected to close in the second quarter of 2023, B2Gold will acquire Sabina’s untapped mineral-heavy Back River Gold District located in Nunavut, Canada.

B2Gold will issue 0.3867 of a common share of B2Gold for each Sabina common share held, representing C$1.87 per Sabina share. The consideration implies a premium of 45% to the 20-day volume weighted average prices (“VWAP”) of each of B2Gold and Sabina on the TSX as of February 10, 2023.

This transaction provides Sabina shareholders with access to a strong, debt-free balance sheet and robust cash flow generation which will serve to fund and optimize the development of the Back River Gold District. It also enhances institutional participation, improves trading liquidity, and provides investors with exposure to a peer-leading dividend yield.

Sabina Gold & Silver Corp. only
B2Gold Corp. only
Sabina Gold & Silver Corp. & B2Gold Corp.
Earth Gold Fund UIAllspring Precious Metals FundCPR Invest – Global Gold Mines
Jupiter Gold & Silver FundAmerican Century Global Gold FundFidelity Select Gold Portfolio
NESTOR Gold FundsAMG Gold, Minen und MetalleiW Commodities & Gold Equities
STABILITAS Silber+WeissmetalleAmundi Gold StockKonwave Sustainable Gold Equities
ASA Gold and Precious Metals LimitedLombard Odier Funds – World Gold Expertise
BAKERSTEEL Precious Metals FundPlaceuro Gold Mines
BlackRock Global Funds World Gold FundStratégie Indice Or
Blackrock Gold & General FundSVS Sanlam Global Gold & Resources Fund
BMO Precious Metals FundTD Precious Metals Fund
CI Gold Corporate ClassVanEck International Investors Gold Fund
CIBC Precious Metals FundVanEck VIP Global Gold Fund
Claresco Or et Metaux Precieux
C-QUADRAT Gold & Resources Fund
Craton Capital Precious Metals Fund
Credit Mutuel CIC Global Gold
DJE Gold & Ressourcen
DMS Charteris Gold and Precious Metals Fund
Edmond de Rothschild Goldsphere
First Eagle Gold Fund
Franklin Gold and Precious Metals (Lux)
Franklin Gold and Precious Metals (USA)
Gabelli Gold Fund
GAMCO Global Gold, Natural Resources & Income Trust
GAMCO Natural Resources, Gold & Income Trust
Incrementum Crypto Gold Fund
Invesco Gold & Special Minerals Fund (USA)
Invesco Gold and Special Metals Fund (Lux)
iW Precious Metal Mining Equities
Konwave Gold Equity Fund
Landolt Investment (Lux) SICAV – Gold
LF Ruffer Gold Fund
Midas Fund Inc.
NBI Precious Metals Fund
NinetyOne Funds Series iii – Global Gold Fund (UK)
NinetyOne Global Gold Fund
OCM Gold Fund
Precious Capital Global Mining & Metals Fund
Precious Metals UltraSector ProFund
Premium Gold and Metal Open Fund
Quilter Investors Precious Metals Equity
RBC Global Precious Metals Fund
Rothschild & Co. Thematic Gold Mines
Rydex Precious Metals Fund
SafePort Gold & Silver Mining Fund
Schroder International Selection Fund Global Gold
Silver Plus Fund
Sprott-Alpina Gold Equity Fund
Sprott-Alpina Gold Equity UCITS Fund
STABILITAS Pacific Gold+Metals
Sun Valley Gold LLC
United Gold & General Fund
Value Intelligence Gold Company Fonds
Zenito Silver and Gold Fund
4 Funds53 Funds11 Funds

Portfolio Holdings Summary

At the time of the most recently recorded asset allocation, 4 funds retained holdings in only the acquired company: Sabina Gold & Silver Corp. (TSX: SBB). Earth Gold Fund UI, Jupiter Gold & Silver Fund, NESTOR Gold Fund, and STABILITAS Silber + Weissmetalle should receive the highest material performance benefit from this acquisition news announcement.

53 gold funds held only B2Gold Corp. (TSX: BTO | NYSE American: BTG | NSX: B2G), and 11 funds held both B2Gold Corp. (TSX: BTO | NYSE American: BTG | NSX: B2G) and Sabina Gold & Silver Corp. (TSX: SBB).

“In advancing gold cycles, mergers and acquisitions amongst gold producers can accelerate. As gold company mergers reduce the total number of portfolio company holdings for gold funds, managers often invest more capital in mid-tier and smaller companies. This results in dynamic price activity for smaller gold producers and exploration companies as the gold cycle advances. At the beginning of 2023, we are in the early stages of this type of gold market cycle.” – Christopher J. Berlet BSc, CFA

_______________________________________ provides prices, performance, and trade information for all the world’s metal ETFs including Precious Metals, Battery Metals, Platinum Group Metals, and Base Metals, and comprehensive fund information, including asset allocations, for Gold & Precious Metals Managed Funds from all investment jurisdictions.

Report prepared by:  Kay Samnani, Analyst supported by Christopher J. Berlet BSc, CFA

Disclaimer: The author of this post may or may not be a shareholder of any of the companies mentioned in this column. None of the companies discussed in the above feature have paid for this content. The writer of this article/post/column/opinion is not an investment advisor, and is neither licensed to nor is making any buy or sell recommendations. For more information about this or any other company, please review their public documents to conduct your own due diligence. To access the disclaimer and other important legal notices, click here.

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