potential mergers and acquisitions

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aitakahashi

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potential mergers and acquisitions

posted on Sep 27, 2008 09:21AM

there is a link at bottom to the entire report. i think blackmont capital is just trying to drum up business, so a lot of this has to be taken with a grain of salt. sso is primarily a silver play, so it wouldn't make much sense for barrick to buy it.

the report looks like they told their analysts to come up with three potential takeover targets for each company, no matter how farfetched. however, sso is so attractive at these depressed levels that it is listed as a potential target for fresnillo, pan american, and even silver wheaton, which only buys silver production and not companies.

that said, i don't think sso will be acquired, and i don't want to see it acquired. i think it has far more potential as an independent company than as a small part in a large bloated company, where its contribution would be greatly diluted.

Possible M&A Candidates for Barrick Gold, Newmont Mining and Goldcorp

Written by Arjun Rudra,

1. Kinross Gold (K: TSX) – by acquiring Kinross Gold, which itself is currently in the process of acquiring Aurelian Resources (ARU: TSX) Barrick could increase its growth profile through large projects such as Kupol in Russia, Paracatu in Brazil and now Aurelian’s Fruta Del Norte (FDN) project in Ecuador. Barrick is already familiar with workings in Russia though its 34% ownership stake in Highland Gold Mining, which is Russia’s fourth largest gold producer. Additionally, Barrick could further consolidate ownership of the Round Mountain and Cerro Casale projects, both of which are currently joint ventures with Kinross Gold. Lastly, acquiring Kinross would allow Kinross CEO Tye Burt to take over the empty CEO spot at Barrick.

2. Detour Gold (DGC: TSX) – the acquisition of Detour Gold, would provide Barrick with a 13.2 million ounce deposit in politically benign Ontario, Canada. With a possible start up by 2012, the only hindrance in Barrick’s path would be Detour’s largest shareholder, PDX Resources (PDX: TSX) that current owns about 40% of Detour.

3. Silver Standard Resources (SSO: TSX) – the interest in Silver Standard Resources would stem from the company’s world class Pitarrilla project in Mexico, the potentially large Snowfield gold project in British Columbia and the high grade San Luis project in Peru. A suitable strategy for Barrick would be to keep the gold projects while divesting the silver projects together with Pascua Lama.

http://www.24hgold.com/viewcompanyar...

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