Reading about Barrick Gold’s acquisition of Placer Dome last night and spent some time on their website. Found several items I found very interesting.
Gold reserves, they currently have listed at 88,591,000 oz. This means AURC has over 8% of the reserves of the worlds largest firm. IF they were to acquire AURC at $40 per ounce, it would require only an additional 1.24% shares to be issued, at $50 per ounce it would be 1.55%, both good ratio’s compared to 8% reserves. Yes, it would most likely be stock. It saves capital and dilutes FAR less than it adds.
They are already in Russia and according to their own site are seeking other partners/acquisition. They have only been around since 1983 and have done most of their growth through the purchase of other firms. They are now the largest producer on earth and are still looking for additional acquisitions.
Per their site:
Russia & Central Asia
Barrick is well-established on four continents in some of the world’s most prospective gold districts. Now the Company is proceeding, in measured fashion, to build strategic relationships in yet another region with outstanding geological potential: Russia and Central Asia. Barrick’s approach is to identify assets that are technically and economically feasible, and ensure that these deposits receive world-class development . We are doing this on a three pronged approach – exploration, acquisition and with local partners. The Russia and Central Asia region has the potential to develop a much larger gold industry and Barrick aims to be a forerunner and partner of choice in the development of that industry.
Barrick has had a presence in Russia since 1996, using the time to familiarize itself with the geological potential of the region and its dynamics. Barrick’s exploration budget in Russia and Central Asia is significant and growing, for the Company has a positive view of economic and business development potential there and is making a long-term commitment to corporate social responsibility and citizenship in the region. Barrick has begun seeking partners and investing in selected growth and exploration companies.
Link for the above
http://www.barrick.com/Default.aspx?SectionID=1bbdc6ee-52e6-4841-b527-adbf8db96c45&LanguageID=1&....
They are in acquisition mode, they just purchased Placer Dome on March 15.
Per their site:
Barrick Completes Acquisition of Placer Dome
3/15/2006
Download this Press Release (PDF 63k)
TORONTO, Mar 15, 2006 (BUSINESS WIRE) -- Barrick Gold Corporation (NYSE:ABX)(TSX:ABX)(LSE:BGD)(SWX:ABX)(EURONEXT PARIS:ABX) -
All figures in US dollars
Barrick Gold Corporation announces that it has acquired all of the remaining common shares of Placer Dome Inc. pursuant to its statutory right of compulsory acquisition.
Link for the above
http://www.barrick.com/Default.aspx?SectionId=e1655d8c-6398-4251-8ebc-d0c02928bacb&LanguageId=1&....
They are a Canadian firm and have a member of their Board of Directors in Montreal Mr. Mulroney, a Barrister and former Canadian Prime Minister until 1993 when he joined Barrick. Members of management are also residents of Montreal and a Management member that is of Ukrainian descent, as is Mr. Parkin. (ok this is a bit sketchy but after a discussion with Mr. Parkin several weeks back he brought up Ukrainian emigrants). If I were to pick a firm with whom a deal would take place, Barrick is it. Now that NDOL is beginning to roll, I think AURC is next.
AIMHO
Airdale
This post is an opinion and should not be considered reason to buy or sell any security, or to besmirch, belittle or berate any person, religion, cult, creed, race, sex, political party, company or company representative of any age or appearance.
AI
