Post by
templetooth2 on Jan 20, 2020 11:32am
Buyer will speak Strine
I have previously pontificated that Newmont is a seller, not a buyer: their plate is full, overflowing full, sorting through the Goldcorp shtuff. Proof of this came when Newmont happily unloaded their position in Continental to the Chinese. Hope Bay is a very feeble candle when held against Continental's Buratica project.
IMHO people overestimate the ability of this or that company to handle more than one integration/acquisition at any particular time. Thus, forget Kirkland. As well, most companies avoid buying "problem assets". Witness Detour. Some years ago Detour got steered into the ditch when Gerald Panneton or Peloton or whatever that SOB was called. You coulda bot all you wanted at $6 or less, but with problems attached. Most companies would far rather wait for problems to be solved or mostly solved: it is far more palatable to pay $26 rather than $6.
About the only Cdn company that I can think might be interested is Agnico. However, they might be concerned about over-concentration in Canada, plus there could well be a not-discovered-here thought process at play.
By the process of elimination you arrive at the Ozzies. They have the dry powder and a demonstrated interest in Canadian assets, challenged or not.
Comment by
snowshoedb on Jan 20, 2020 12:24pm
Agree with your well thought out response... Nobody wants to buy a problem... they would rather pay more upfront vs having a money pit. And the Aussies are all in good shape looking for additional assets.