hunts for African gold assetsDAKAR, Nov 17 (Reuters) - African gold miner Randgold Resources <RRS.L> is looking to snap up assets from rival diggers left struggling by the financial crisis as it seeks to boost its reserves, the company head said late on Sunday.
"We're looking now, we're looking very hard. We've got our eyes on a few assets. The challenge is, most of the large resources, assets and mines we would be interested in are owned by majors," Chief Executive Mark Bristow told Reuters.
"Other assets are located in difficult places, and none of them could be converted into mines within the next two years."
An ideal target would contain 3 million ounces of gold, have an internal rate of return of 20 percent and be viable as a mine even if the world gold price <XAU=> fell to $650 per ounce, almost $100 below its level at Monday's opening, he said.
Mining firm valuations have been hammered in the past few months by a worsening outlook for commodity prices, as the likelihood of a severe recession in Europe and the United States has increased.
The UK mining index <.FTNMX1770> has lost 56 percent this year -- though Randgold itself is up 6 percent -- and lower share prices would mean lower price tags.
"You've got to find the right asset to buy. There's been a massive erosion of share prices so in theory they are not as bad value as they were," Bristow said.
https://africa.reuters.com/metals/news/usnLH577177.html