Monday, April 21, 2014

Gold M&A: Barrick Gold - Newmont Mining Merger Talks ABX MUX TNR.v NEM


  As you remember, we were looking for M&A activity in Gold and Commodities to pick up in order to confirm the major Bottom built up last year. Now we have the very important confirmation about that bottom from the industry insiders. Announced deals with Las Bambas - being bought by Chinese companies and these talks about the merger between Barrick Gold and Newmont Mining signify the very important point in the cycle. It is cheaper "to dig" for Gold and Copper on the Exchange than in the ground. Depressed market valuations of the resources represented by the discounted share prices of miners provide the best entry points in the decades for the commodity markets. It is not only our talk any more  - it is the flash news from the top boardrooms in the mining business. It is the money talk by the Insiders. "Don't discount this merger talks in the future!"

Las Bambas Purchase Shows China Is Still in the Hunt for Copper MUX TNR.v LCC.v CU

  "We have narrowed it down from the Wall Street headline: the best Copper projects are going to those who can think about the economic development with the long term view. We have been discussing Las Bambas Sale for quite a while here and other our stories could be coming to fruition now as well. Security of supply is the major issue during the next stage of the Rising Power and Chinese companies are scooping the Globe for the best projects available."

Rumour Mill: "CITIC Buying Into Pascua Lama" - Can Argentina Mining Really Make Its Come Back? TNR.v MUX ABX LCC.v

"Is this rumour too good to be true for the proud people of Argentina? Can Argentina ever make its come back in mining? On the one hand we have still the very strong perception of the high political risk and on another hand we have reports from the ground about the changing environment in the country:"

The Globe And Mail:

Barrick Gold and Newmont Mining still open to merger: source

The world’s two largest gold producers, Barrick Gold Corp. and Newmont Mining Corp. are still interested in merging, a person familiar with the matter said.
The North American-based gold companies had hoped to finalize a deal before Newmont’s annual meeting of shareholders, scheduled for Wednesday April 23, sources familiar with the matter said.
But talks broke down late last week. The Wall Street Journal first reported the news of the breakdown.
Nevertheless, the companies are still open to merger discussions, said one source.
The negotiations come amid a deep slump in the gold industry. The price of the precious metal lost nearly 30 per cent last year, once falling below $1,200 an ounce. It recovered slightly at the beginning of this year but is now trading below $1,300 an ounce.
Barrick, the world’s biggest gold producer, and Newmont, the world’s no. 2, have had to cut costs to deal with lower bullion prices.
Throughout the years, the companies have talked about joining forces in Nevada, where they have both operated for decades.
But plans to merge never came to fruition.
The miners already jointly own the Turquoise Ridge mine in Nevada and have some neighbouring operations in the state. A merged Barrick-Newmont could save millions by combining more of their Nevada operations, analysts have said.
Toronto-based Barrick owns six mines in the state, including its most prolific mine Goldstrike. Colorado-headquartered Newmont owns 18 mines there.
Their last serious merger discussion was after Barrick bought Placer Dome Inc. in 2006. But that fell apart when Newmont wanted to move Barrick’s Toronto headquarters.
Spokesmen for Barrick and Newmont declined comment."

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