Post says Barrick, others get ready for takeover binge

2008-09-24 09:24 ET - In the News

See In the News (C-ABX) Barrick Gold Corp

The Financial Post reports in its Wednesday edition that investors should get ready for unprecedented wave of merger and acquisition activity in the gold and silver space, according to Blackmont Capital. The Post's Jonathan Ratner quotes analyst Richard Gray as saying in a research note, "While there remain several junior companies with projects that are expected to ultimately be economic under the current gold price, a significant amount of upcoming mergers and acquisitions are likely to be done under the assumption that the gold price will increase in the longer term." He said seniors like Barrick Gold and Newmont Mining are likely looking for immediate production, while Kinross Gold is trying to fill in its growth gap. Meanwhile, names like Goldcorp, Yamana Gold and Agnico-Eagle Mines are seeking to capitalize on strong cash flows. At the same time, mid-tier gold producers such as Eldorado Gold will be trying to pick off geographically strategic development projects, and Iamgold and New Gold will be pursuing stated goals of growth through acquisition. As for the juniors, producer Semafo is seeking more assets, while Jaguar Mining is expected to take advantage of its strong balance sheet.