RE:BARRICK LOOKS TO THE FUTURE IN COTE D'IVOIRE05RfidRich wrote: Maybe Mark Bristow will be visiting TGZ while he is in the area.
Is it possible that Massawa besides Sabodala Fits into Barricks Criteria of Only investing in mines with ressources over 3 million ounces If they bought TGZ.
TGZ is real cheap now But that may not last long.
GLTA
Possible. I just think the Barrick has its handful with the majority takeover of Acacia and then dealing with the problems in Tanzania. They are on record as wanting to divest of African properties. Since the takeover of Rangold they have too many prospects and will want to liquidate some debt in the process . I see them as too big to want to gooble up TGZ at this point with its 3-4 mines in progress in 2-3 countries.
Addressing all the problems associated with operating mines in Africa ( ie dealing with Governments with their hands out, resettlements, local infrastructures, etc.) is better left to the smaller mid-tier producers ( eg EDV, SMF, TGZ, etc). Acacia failed at it and paid a dear price. It’s left to Barrick to now try to fix it.
if I'm wrong and they make a run at TGZ it wouldn’t upset me... but I’m not holding my breath.
TGZ will likely re-rate to between $6 and $7 on its own if the PoG continues to zig-zag upwards to over $1500, especially when they start pouring gold from the second mine.
The Massawa opportunity, although great for the medium term, will mean more debt leveraging and more dilution. That could delay the move to $7 somewhat.
All IMHO.
MM