Topic: Growth Stocks

The Stock Pickers Digest Hotline – Friday, September 5, 2008

Article Excerpt

IAMGOLD CORP., $5.93, symbol IMG on Toronto, has made an all cash offer of 1.20 euros ($1.84 Cdn) a share for Paris-based royalty company Euro Resources, symbol EUR on Toronto. The offer values Euro Resources at about 75 million euros ($114.8 million Cdn). IAMGold could fully fund the purchase from its $140 million cash on hand. Euro Resources holds a royalty on production from IAMGold’s Rosebel gold mine in Suriname (formerly Dutch Guiana). Eliminating Euro’s Rosebel royalty will reduce IAMGold’s costs at the mine by $50 U.S. an ounce to about $455 U.S. an ounce. Euro Resources’ main asset is its Rosebel royalty, though it also owns certain mineral rights to the Paul Isnard gold properties in French Guiana. IAMGold currently produces about 950,000 ounces of gold a year from its interests in eight operating gold mines. The company continues to add to reserves at its existing mines, and to take new mines into production. IAMGold is still a buy. CHESAPEAKE ENERGY, $44.34, symbol CHK…