This report provides a summary of Gold & Precious Metal Funds that hold:
- The Acquired Company only: Sabina Gold & Silver Corp. (TSX: SBB)
- The Acquirer only: B2Gold Corp. (TSX: BTO | NYSE American: BTG | NSX: B2G)
- 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.
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
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MineralFunds.com 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
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