RE: RE: another Randgold article re: Volta saleInteresting development indeed! One has to wonder what the reasoning for such a move would be at a time when gold is rising, seasonality is soon to be a factor, Volta is delivering success after success, etc, etc.
I have to believe (until shown otherwise, of course) that this is all about Randgold... perhaps a lack of cash, perhaps money needed for an acquisition, whatever. We have to remember that Randgold got these shares originally for .17 cents so they've made almost 900% profit. The sale of the first 5 m shares of Volta simply reimbursed them for all the work they had put into Kiaka, this last sale will be pure profit.
Here is a comment and excerpt from a news release again that I posted on Aug.6th :
Could this partially explain why Randgold sold some of their Volta shares - to lessen the impact of a really bad quarter?
https://www.cityam.com/news-and-analysis/randgold-disappoints-market-cuts-guidance-key-mali-mine
SHARES in gold miner Randgold Resources tumbled yesterday as its quarterly profit of $36.4m (£16.6m) fell short of expectations.
Much of the 52 per cent growth from the last quarter, a 92 per cent rise on last year, was due to exceptional items such as selling off shares in Volta Resources. Underlying pre-tax profit was $26.3m, down nearly 10 per cent on the previous quarter.
Gold production for the quarter decreased by 17 per cent, and the firm cut output estimates for its flagship Loulo mine in Mali by five to 10 per cent.