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MAY 6 2023
Barrick Gold’s Mark Bristow is on the hunt for takeovers as rival Newmont tries to push through a mega-deal, forecasting a market rally in his company’s two key commodities.
The pugnacious chief executive of the world’s second-largest gold mining group expects gold and copper prices to rise, lifting mining stocks.
His comments mark a step up in the serial dealmaker’s M&A rhetoric after playing down the need to counter the world’s largest gold company Newmont’s $19.5bn all-share non-binding bid for Australia’s Newcrest.
He added that the group had the “luxury of picking and choosing M&A opportunities” after improving operations following its takeover of Randgold five years ago and a four-year effort to build a strong exploration team.
“Because of our broad footprint of exploration across all prospective tier-one gold and copper jurisdictions, we have our geologists on the front lines. We have a much better understanding of the M&A activity than most of our peers,” he said.
https://www.ft.com/content/db1911e9-ac77-4176-8afc-3c6e266ef027
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There are less than a handful of tier one targets of which Sukari is among.
If Barrick takes the bait, hats off to Mr Horgan for the destruction of Centamin's share price while prepaying all of Mr Bristow's stripping expenses for the next half decade...
Also, hats off to Mr Horgan for keeping Centamin shareholders acquiesced with no exploratory drill results these last 3 quarters, no Doropo PFS and no production growth while sending AISC thru the roof... it takes a special sort of somebody to pull that off
Cowichan, Barrick buying Centamin and Horgan making them more desirable. So is Horgan doing a good or bad job?
So why would Barrick want to buy Centamin or Pharoah Gold Sukari when it is 50% owned by EMRA who contribute zero funds. I think you will find Barrick has already put Pharoah Gold into the too difficult basket.
Now for Horgan destroying the share price.
So what would be your alternative to the decision made to accelerate waste removal or open up the mine to access a number of areas rather than basically nowhere to go when the planned area became unstable?
Am I happy that SP halved certainly not but I would suggest if they continued driving themselves into a cul de sac then we would have been looking at major cut backs with very little return if any from the open pit.
Horgan and his team were in an almost impossible situation damned if you do and damned if you don't. In my opinion the do was the only way to go.
If I am wrong and Barrick do have a go at Pharoah regardless of the 50% ownership then Horgan must have done an excellent job because they will be deemed as a star achiever rather than a problem child.
DASUT - the short answer is Mr Horgan overspent to the degree of gifting Capital Drilling a 30% ROI for the waste moving contract - money that should have been distributed to Centamin shareholders in the form of dividends
So if the shareholders were given dividends, and there was no contractor to take on the work (Egypt is not flush with contractors...for good reasons, like having to employ 8 egyptian staff for exvery expat and so on...), what would you have Horgan do? and how would that wash out in terms of reurns to shareholders, short and long term? Just curious
regards
The Gnome
Cowichan So Centamin gifted a contract to Capital who competed against several other experienced mining contractors who were more expensive.
If Capital have to date earned 30% ROI then they must be doing an extremely efficient job with minimal equipment down time so that would I hope mean Sukari are benefitting from the efficiency.
Has Capital allowed for adequate depreciation and demobilisation I have no idea? Has Capital allowed enough for component repairs/replacement over the life of the contract I have no idea?
Will the low equipment down time continue?
Will the ROI at the end of the contract be 30% who knows?
I ask what would you have suggested to be the alternative when Capital were the most competitive bid?
Gnome, Back in the day there was only one largeish indigenous contractor in Egypt known as Arab Contractors and they were a quasi government company, not sure they would have bid on this project, not sure if they are still in business.
Just googled Arab Contractors and looks as though they are still going strong and particularly successful with Government(s) contracts but don't see them doing much if anything with the private sector.
The original poster of this thread ,would like Pugnacious Bristow to do a T/O,.
Only because he or she percieves a profit for themselves.
An equally pugnacious person equal to Bristow.
But claims no longer invested ? Get your heads around that.
And of course Capitols investment in rock trucks, the vehicles depreciation ,and maintainence costs including consumables, including tyres end up as a huge cost.
Along with pages of not keeping to the contract of time ,which are clearly stated.
Not compying means huge legal problems and loss of confidence.
Not just Africa but world wide.
I am sure Capital will have done their homework on equipment life time costs because they have considerable experience running drill rigs which have very high running costs. Cowichan has jumped on early profits made by Capital which can be expected during the honeymoon warranty period.
Can this carry on for 4 years doubtful but with careful planned maintenance and service unforeseen issues can be minimised.