Cash Rich Gold Producers Hunting For Assets
$AU, $AUY, $GOLD, $KGC, $TAHO
Gold producers with cash on hand are on the hunt for cheap mining assets as rising prices drive shares higher.
During a 12-yr Bull Run that ended last year, about $30-B in debt was racked up by companies that mine Gold. Those that minimized borrowing then are in the best position now to scoop up mines from rivals with weaker balance sheets, said executives at the Investing in African Mining Indaba conference in South Africa, the biggest such gathering on the Continent.
Already, $2.7-B in deals have been announced or completed this year within the industry, including Monday’s $1.1-B offer for Rio Alto Mining Ltd. by Tahoe Resources Inc. (NYSE:TAHO). It is an early leg-up on the $10.5-B in deals last year.
“Gold is one of the brighter spots out there in the commodities space today,” head of metals and mining at Standard Bank Group Ltd.(LO:STAN), Africa’s largest lender. “I would expect corporate activity to be reasonably pronounced in gold, not just in Africa but globally. We will see a few transactions, definitely.”
The price of Gold jumped 8.1% last month in the biggest rally since January 2012. Currencies in Europe and Asia are falling, and as policy makers introduce stimulus packages to battle cooling growth, investors are flocking to the precious Yellow metal.
Randgold Resources Ltd., (NASDAQ:GOLD) the best-performing gold-mining company in the past decade, has been “flat out” besieged with offers to buy assets, Chief Executive Officer Mark Bristow said in an interview.
“People are a bit more confident to move from the sidelines into a bidding process,” Srinivasan Venkatakrishnan, CEO of AngloGold Ashanti Ltd.(NYSE:AU), said in an interview Wednesday. The world’s 3rd-largest Gold miner is looking to sell assets or form joint ventures to reduce debt, he said.
Kinross Gold Corp. (NYSE:KGC), Canada’s 3rd-biggest producer, is also optimistic about the opportunity for deals.
Read more Click here / www.trade4x.net
$AU, $AUY, $GOLD, $KGC, $TAHO
Gold producers with cash on hand are on the hunt for cheap mining assets as rising prices drive shares higher.
During a 12-yr Bull Run that ended last year, about $30-B in debt was racked up by companies that mine Gold. Those that minimized borrowing then are in the best position now to scoop up mines from rivals with weaker balance sheets, said executives at the Investing in African Mining Indaba conference in South Africa, the biggest such gathering on the Continent.
Already, $2.7-B in deals have been announced or completed this year within the industry, including Monday’s $1.1-B offer for Rio Alto Mining Ltd. by Tahoe Resources Inc. (NYSE:TAHO). It is an early leg-up on the $10.5-B in deals last year.
“Gold is one of the brighter spots out there in the commodities space today,” head of metals and mining at Standard Bank Group Ltd.(LO:STAN), Africa’s largest lender. “I would expect corporate activity to be reasonably pronounced in gold, not just in Africa but globally. We will see a few transactions, definitely.”
The price of Gold jumped 8.1% last month in the biggest rally since January 2012. Currencies in Europe and Asia are falling, and as policy makers introduce stimulus packages to battle cooling growth, investors are flocking to the precious Yellow metal.
Randgold Resources Ltd., (NASDAQ:GOLD) the best-performing gold-mining company in the past decade, has been “flat out” besieged with offers to buy assets, Chief Executive Officer Mark Bristow said in an interview.
“People are a bit more confident to move from the sidelines into a bidding process,” Srinivasan Venkatakrishnan, CEO of AngloGold Ashanti Ltd.(NYSE:AU), said in an interview Wednesday. The world’s 3rd-largest Gold miner is looking to sell assets or form joint ventures to reduce debt, he said.
Kinross Gold Corp. (NYSE:KGC), Canada’s 3rd-biggest producer, is also optimistic about the opportunity for deals.
Read more Click here / www.trade4x.net
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