Oromin Explorations Ltd OLEPF

RE: African Barrick IPO

[socalbernie]

https://www.miningmx.com/opinion/columnists/david-mckay/Barrick-chasing-Randgold-premium.htm
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But I don’t think that’s quite it. Sure, there is an element of derisking Barrick Gold by lessening exposure to it, but there’s also the fundamental benefit that by giving management its own head, Barrick Gold will have a slightly smaller part of a more valuable unit.
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The London listing is key to this. In the UK, there isn’t a wide choice for certain mandated funds of listed gold entities: Centamin perhaps, a firm operating in Egypt. Peter Hambro Mining is another.In London, it’s all about Randgold Resources, the firm managed by the indefatigable Mark Bristow. Randgold trades at a huge premium, a premium rating based heavily on the fact it has a captive audience.
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Barrick is also starkly aware that in Randgold and Bristow, the focus and understanding in and of Africa is peerless. Bristow is an Afro-realist. His highly cooperative attitude to local governments is not only an evolved view, it’s a commercially savvy one. Speak to Bristow about African politics: he’s well read and widely knowledgeable of recent history. He gets the ebb and flow of government in Africa.
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Oh yes, there’s also the assets.
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Personally, it’s hard to believe that if Barrick Gold wanted to externalise its African assets, it wouldn’t have first discussed the possibility of a merger of them with Randgold Resources.
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Bristow is infamously cautious of corporate activity so it's possible there were discussions between Barrick and Randgold that came to nothing, quite likely on the question of relative valuation, what else?
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So better then to list African Barrick Gold and let the market independently set a value on the assets possibly with a view to fresh discussions with Bristow.