RE:RE:RE:interesting blurb on RandgoldI think it was after Q1 that they stated that outside investments were all too expensive and that focusing on their internal pipeline is the direction they were going. That was one bit of good news. Now after Q2, they are stating they are suspending talks on Sadiola. So that's even better news as it leaves Boto/Diakha as the most advanced (and most attractive) development project. The other three are not as advanced and so far, have given good results but apparently not as good as Boto/Diakha. I wouldn't be surprised to see one or two of their development projects curtailed.
The next interesting step to watch for is to see the results of their capital expenditure and development expenditure review. Letwin stated in the Q2 call that every item was under review. That means that whatever survives this round of cuts will tell us which they consider the best of the best. Again in the Q2 CC, Letwin stated that Boto will continue for now so it may already be past the review hurdle. I believe they have previously stated that a Prefeas would commence after drilling in Boto ceases and that a Feas would be completed in early 2016.
I can't see them suspending Boto/Diakha. Whether or not they decide to go ahead with mine development themselves, this project is now very close to being marketable as a low cost, high volume mine. I believe that when Papillon marketed Fekola to B2Gold they were either at the Prefeas or Feasibily Study stage. Boto/Diakha has the potential to be either a company-maker or a company-saver for IMG. IMG does appear to be in survival mode these days so they can also look at Boto as having the potential to generate cash in a sale to shore up finances if necessary. Regardless, they need to buy out MXI to make the package attractive for sale or for their own development.
Yet another option for IMG is to buy out MXI and turn Boto/Diakha into a JV. That way the partner could pay for the capex of the mine development (more or less) and IMG could advance the project without putting more cash into it. Surely this has occurred to them and they could have candidates lined up from their Sadiola negotiations in which they were looking for a JV partner to come into Sadiola and share the capex and risk in developing The Deeps there. I think it would be much easier to find a JV partner for Boto/Diakha than Sadiola since the metrics will be much more attractive.
All that said, I have listened Letwin for several years now and he seems to blow with the wind, making predictions of IMG decision-making more difficult. The outlook could change back and forth yet before a decision on MXI is made.