TORONTO - Fairfax Financial (TSX:FFH) Holdings (OTC:FRFHF) Limited (TSX: FFH and FFH.U), through its insurance company subsidiaries, has purchased an additional 2 million common shares of Orla Mining Ltd. (TSX: OLA), a move that increases its total holdings to approximately 15.46% of Orla's issued and outstanding common shares. The shares were acquired at a price of $4.65 each, totaling around $9.3M (NYSE:MMM).
Prior to this transaction, Fairfax's insurance subsidiaries already owned 46,611,791 common shares, representing about 14.82% of Orla. The recent acquisition through the Toronto Stock Exchange raises Fairfax's stake by roughly 0.64%, bringing its total to 48,611,791 common shares.
Fairfax has stated that the shares were acquired for investment purposes. The company has indicated that it may engage in discussions with Orla's management or board of directors regarding potential transactions and may alter its investment based on market prices, changes in Orla's operations, business strategy, or significant company transactions.
In line with regulatory requirements, Fairfax will file an early warning report which will be available on the SEDAR+ platform. This report is a standard procedure for transactions exceeding certain thresholds and is meant to provide transparency to the market regarding significant changes in share ownership.
Fairfax Financial Holdings is a holding company known primarily for its operations in property and casualty insurance, reinsurance, and investment management. The acquisition of additional shares in Orla Mining reflects Fairfax's ongoing investment strategy and interest in the mining company's performance and prospects. This information is based on a press release statement from Fairfax Financial Holdings Limited.
InvestingPro Insights
As Fairfax Financial Holdings Limited (TSX: FFH and FFH.U) continues to increase its stake in Orla Mining Ltd., potential investors and current shareholders might be interested in key financial metrics and expert analysis from InvestingPro. Fairfax is trading at a low P/E ratio of 10.94, which might signal an attractive valuation relative to near-term earnings growth. The company's strong operating income margin of 36.47% in the last twelve months as of Q1 2023 underscores its efficiency in generating profits from its operations.
InvestingPro Tips highlight that Fairfax is not only a prominent player in the Insurance industry but also boasts a consistent dividend-paying track record, having maintained dividend payments for 23 consecutive years. With a dividend yield of 3.96% as of the end of 2023, Fairfax offers a compelling income opportunity for investors. Additionally, the company has experienced a significant price uptick with a 49.67% total return over the last three months, suggesting robust short-term performance.
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