LONDON (Reuters) - Canadian gold miner IAMGold (IMG.TO) is on the look-out for acquisitions and while it is not itself up for sale, its chief executive said on Friday it does represent good value right now.
“We have a seen a reduction in the values (of companies). We are seeing opportunities that we did not see before,” Steve Letwin told Reuters in an interview.
“That does not necessarily mean we are going to jump on one of them, because you have to negotiate and make sure that it works and fits and is accretive. But certainly there seems to be more out there than there was six months ago.”
Letwin, who said he expected gold to top $2,000 an ounce this year or next from its current level of around $1,765, declined to comment on whether or IAMGold had been approached by rival gold miners as a potential takeover target.
He said $12 of the company’s $20 share price represented its exposure to the gold price. “We are a one million-ounce producer at $12 a share and that makes us extremely cheap,” he said.
”It is a very active environment, let me just put it this way.“ I would suggest as these cash positions build these equities continue to lag, it is like pressure building and eventually something will happen.”
The company later said that it was not up for sale.
By 1455 GMT IAMGold’s share price was up 1.6 percent in Toronto at C$21.66.
Letwin, who took over last year as CEO of IAMGold, a mid-tier producer with mines in West Africa and North and South America, had said in August gold equity valuations were too pricey for it to consider any acquisitions.
Reporting by Amanda Cooper; Editing by Dan Lalor and Greg Mahlich