Nevsun looking to grow by AcquisitionsSunridge Gold looks to me like it would be a serious contender in the acquisition sweepstakes...
https://www.miningweekly.com/article/cashed-up-nevsun-on-the-prowl-to-buy-new-projects-2011-11-15
TORONTO (miningweekly.com) – Nevsun Resources, which operates the Bishagold mine in Eritrea, is hunting for a copper gold project t spend someof its $227-million-and-growing cash pile on, CEO Cliff Davis said on Tuesday.
He commented on the Toronto-listed company’s third-quarter earningscall that the company was enjoying cash margins of around $1 450/ozbefore taxes, equating to a daily pre-tax cash flow of some$1.4-million.
Nevsun business development VP Scott Trebilcock saidthe firm was looking to use some of this cash to grow by acquisition,and that advanced stage copper-gold projects in the Americas, Europe orAfrica would get a look.
He said that Nevsun wanted to pick up an additional project that had“some kind of economic assessment, either a PEA (preliminary economicassessment) or greater”.
“Our preference would be a company that has a development asset,however, we may look at something that has some production and adevelopment asset in it,” he said, adding that the company was “verycomfortable” operating in Africa, but would also consider opportunitiesin the Americas and Europe.
Asian, South-East Asian and Australian projects were not on the radar screen.
Davis said Nevsun was patiently waiting "to find the right assets atthe right price". He had first flagged the firm's acquisitive intentionsin May, with any deals yet to emerge.
The company, meanwhile, reported earnings of $89-million for thequarter ended September, as production at Bisha grew to 110 000 oz forthe three-month period.
The first gold pour at the mine took place in December last year.
'GOING VERY WELL'
Production for the September quarter beat the number for the priorquarter by 18% as Nevsun mined higher-grade areas of the Bisha pit,though the fourth quarter would see more normalised grades.
"Things are going very well indeed," Davis enthused.
The company is busy building an expansion at Bisha that will allow itto produce copper as well as gold, silver and zinc, which is scheduledto reach completion in the first half of 2013 at a cost of between$90-million and $100-million.
Davis said Nevsun also aims to by the end of the year apply for amining licence at the Harena deposit, located 9.5 km southwest of Bisha.The plan is to truck this ore to the company's flagship operation forprocessing.
POLITICS
Davis also addressed reports that Gabon and Nigeria were to petitionthe UN Security Council to impose harsh sanctions on the Horn of Africastate in retaliation for Eritrea's alleged support of Islamist rebels inSomalia, which the country denies.
"Based on everything we’ve seen and heard, I don’t expect any draconianeconomic sanctions to be levied on Eritrea or the mining industry inthe country," he commented, adding that it made little sense to squeeze anation that is already one of the world's poorest.
"In my view, more rational minds will prevail."
Shares in Nevsun were trading slightly lower on the TSX at C$5.96 by 14:24S