• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 2 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 1 hour Is $60/Bbl WTI still considered a break even for Shale Oil
  • 3 hours Theresa May to Step Down
  • 6 hours Old - New Kim: Nuclear Negotiations With U. S. Will Never Resume Unless Washington Changes Its Position
  • 2 hours IMO 2020 could create fierce competition for scarce water resources
  • 5 hours India After Elections: Economy And Hindu Are The First Modi’s Challenges
  • 3 hours IMO2020 To scrub or not to scrub
  • 7 hours Total nonsense in climate debate
  • 2 hours Devastating Sanctions: Iran and Venezuela hurting
  • 11 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 227 days Epic Fail as Solar Crashes and Wind Refuses to Blow
  • 4 hours Apple Boycott in China
  • 4 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 19 mins Level-Headed Analysis of the Future of U.S. Shale Oil Industry
Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

This Mega-Deal Reveals 2 Critical Points On The Gold Sector

As I've said before, one of the things I love most about writing Pierce Points is: the letter keeps me in touch with some of the best professionals going in the global resource business.

That point was driven home again late last week when the Pierce Points network proved extremely informed on one of the biggest deals we've seen for years in the gold space.

In late September, when I wrote about rumours that Barrick Gold was selling its Nevada mines, my inbox lit up with suggestions on the likely buyer. Below is my September 23 post from my Twitter account:

DaveForestTwitter Related: How To Play A Potential Collapse In The HAL/BHI Merger

Last week Waterton Global did indeed step forward to buy Barrick's Spring Valley and Ruby Hill mines in Nevada, with the investment fund bidding a significant $110 million for these assets.

That's yet another sign that private funds are the biggest story going today in mining M&A, with some of the industry's best assets continuing to pass from major miners into the hands of investment firms. Related: LNG Glut Set To Worsen Considerably Over Next 3 Years

But there was another part to Barrick's asset sale, showing an interesting twist on this theme.

Barrick also said it will sell two additional mines -- Round Mountain and Bald Mountain -- to fellow gold major, Kinross Gold, for a hefty $610 million in cash.

That's a very significant move from Kinross. The major has been sitting on over $1 billion in cash for years now, as assets have been getting cheaper. Up until now, however, Kinross had made no moves at all in the M&A space. Related: Railroads Hit By Falling Oil And Coal Production

But the new Nevada deal shows that cashed-up companies like Kinross haven't gone into "turtle mode." Rather, they were simply waiting for the right mines and the right prices -- and today, they feel assets and costs have finally become attractive.

That's a signal for investors to pay attention to; if the world's top gold firms feel it's time to buy, maybe it is.

Here's to seeing it coming,

Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News