Banro Corp. fka BAA

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Cash-rich African Barrick Gold seeks 3rd 'transformational asset'
http://www.mineweb.com/mineweb/content/en/mineweb-gold-news?oid=257758&sn=Detail

ABG has reiterated 2014 full production guidance upwards of 700,000 gold ounces.

Gordon expects ABG to be generating significant amounts of cash, “and on the Capital Markets Day on the 27th of November, you’ll see just how much potential there will (be) for cash generation in the business.” The company is planning to reveal its long-term planning scenario on its Investor Day on November 27th.

“Obviously the next issue is then, what do we do with the cash? And then we’ve got a dividend policy, which we’ve been abiding by now for some years. So some of that is returned to shareholders, but the rest of the cash has to find a home, and how we apply that cash will be important,” Gordon observed.

“We can either return the remaining 70% to 85% after dividends to shareholders in addition to the dividend. We can apply at our existing operations, and it’s potentially an argument that we could increase production at Bulyanhulu, or we could look to M&A,” he said.

“We’re fortunate to have two great assets in our company and we wouldn’t want to dilute that quality by looking at anything that wasn’t as good as North Mara or Bulyanhulu,” he explained. “So an addition of an asset as good as those two would be transformational. And—that’s what we’re looking at.”