• 3 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 5 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 6 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 7 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 7 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
Alt Text

Will Ecuador’s Mining Sector Return To Its Golden Days?

Despite the recent political problems…

Alt Text

Gold Prices Could Spike As India Resumes Imports

Gold purchases in India imploded…

Who's The Buyer For This $700 Million Package Of Gold Mines?

Who's The Buyer For This $700 Million Package Of Gold Mines?

I've discussed the massive amounts of private equity being raised for natural resources recently. And this week, news suggests these big pools of capital may get a shot at the gold sector.

Reports emerged that major miner Barrick Gold is close to selling a package of U.S. gold operations. Including five mines in key producing district Nevada, and another in Montana.

Barrick officials said on Sunday at the Denver Gold Show that the company is receiving "strong interest" in the asset sale. With analysts having suggested the package could fetch between $500 million and $700 million in bids. Related: Is This The Bottom For Oil Prices?

This makes it sound like a purchase offer could soon emerge for these assets. Which begs the question: who will be buying?

Press in Canada have cited "investment banking sources" as saying that the likely buyers are other gold mining companies. With Newmont Mining and Kinross Gold cited as the most likely bidders.

But here's the thing. This sale represents one of the first major packages of prime mining assets to come available during the current sector downturn -- lying squarely within the world's top gold-producing region. Related: Midweek Sector Update: Iran Holding Up Its End Of The Bargain, So Far

It will thus be indicative to see whether any other bidders step forward for these A-list mines. Especially amongst the cashed-up private equity groups that have largely been waiting in wings over the last few years.

Up until now, those groups have been looking at sales of non-core mining assets. For example, the Cripple Creek gold mine in Colorado sold by AngloGold Ashanti in June.

Lately however, more substantial mining properties have been coming available. Like Anglo American's Mantos Blancos and Mantoverde copper mines in Chile, which were bought by private equity last month. Related: The Best Presidential Candidate For Nuclear Power?

The results of the current Barrick sale will be an interesting gauge of 1) how much fund interest there is in gold (if any), and 2) what price such groups might be willing to pay for good mines. Watch for news on the buyers here.

Here's to jumping on it,

Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




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