EMR Capital, Farallon, 2 Indonesian investors buy G-Resources’ gold mine for $775m
Tuesday, November 24, 2015
(DealStreetAsia by Vincencia NLS) – Australian private equity group EMR Capital and United States-based private equity manager Farallon Capital Management have joined two Indonesian investors to acquire 95 per cent stake of Hong Kong listed G-Resources-owned mining asset for $775 million.
PT Agincourt Resources, a subsidiary of G-Resources, operates the profitable Martabe gold mine in western Sumatra that began production in 2012, almost a year after gold price hit an all-time high of $1,888 on ounce in September 2011. It has recently fallen to the lowest in almost six years and traded at around $1,075 in the spot market in Asia Monday morning.
“While the mining business has continued to achieve positive financial results … the significant volatility and downward movement in spot gold prices in recent months has directly affected [its] profitability,” G-Resources said in a filing to Hong Kong Exchanges and Clearing.
