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« GOLD: Needs a higher High! | Main | Where Was Your Money in 2008? »
Thursday
Jan082009

Barrick Gold Corporation: The Predator of 2009!

Barrick logo 09jan09


Barrick Gold Corporation looks to be absorbed in its own organic growth programme at the moment however they have pulled off some pretty big take-overs in the past so we ask could this be the year that they hit the acquisition trail with a vengeance
?

According to Google Finance Barrick Gold Corporation has a market capitalisation of 28.97 billion dollars, a P/E ratio of 16.41 and an average volume of 13.78 million shares traded. As of 30th September 2008 they had cash and equivalents of 1.746 billion dollars. This cash plus their ability to raise capital if required puts Barrick in a strong position for the acquisition of other precious metals producers.

Now if we throw into the mix a new a player in form of Aaron Regent who has just been appointed President and Chief Executive Officer of the Company, the stage is set for change. The new man will want to make his mark and do it quickly.
Aaron Regent Barrick 09jan08


Their strategy could one of picking off a myriad of small gold producers with ounces in the ground and an interesting story to tell. The list of possible candidates that fit this profile is fairly long and we could waste oceans of time trying to second-guess what will appeal to Barrick. On the other hand they could make a real splash and go for an acquisition that would have a dramatic impact by adding to Barrick’s gold reserves, a quality pipeline of projects and a good management team to see those projects come to fruition. Any predator would prefer a friendly take-over however not all target companies will be willing to be swallowed up by a bigger fish, so a hostile take-over may be necessary.

Why do we care? Well, if we happen to be holding the stock of the target company then we should make a handsome profit on the trade assuming that a healthy premium to the stock price is to be paid.

You probably have many names jumping into the picture and so have we, however we will mention a few that we believe could be on the short list.

Goldcorp Inc at $23 billion is probably a little ambitious.

Newmont Mining at $17 billion is also a giant.

Kinross Gold Corporation at $12 billion, a quality stock that would be a real scoop.

AngloGold Ashanti limited at $7 billion.

Agnico-Eagle Mines at $7 billion, another quality scoop.

Yamana gold at $5 billion, a little smaller but may be easier to acquire.

At $4 billion and below we have Llhir Gold Limited and Harmony Gold and further down the list we have Iamgold at $2 billion.

This is just our imagination of course but we wont be surprised to see one of these companies disappear in 2009.

If you believe that there are more suitable take-over candidates then please feel free to fire them in!

Have a good one.

If you are new to investment in the precious metals sector then you may wish to subscribe of our FREE newsletters regarding gold stocks, silver stocks and uranium stocks, please click on the links.



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Reader Comments (8)

Hmm, ya gotta pick a pocket or two. So who will it be?

Of course, if anyone gets a creditable inkling as to what might be in the hopper I, for one, would sure like to know.
And, yes, it works both ways.

John

January 9, 2009 | Unregistered CommenterJohn Ell

What do you think of Seabridge for acquisition by Barrick?
Seabridge has the reserves and acquisition is what they
are shooting for.

January 9, 2009 | Unregistered CommenterRon Sharbonno

Check out sangold sgr-v

January 9, 2009 | Unregistered Commenterrobin

Merrill Lynch says rich turning to gold bars for safety

"Merrill Lynch has revealed that some of its richest clients are so alarmed by the state of the financial system and signs of political instability around the world that they are now insisting on the purchase of gold bars, shunning derivatives or "paper" proxies.

Gary Dugan, the chief investment officer for the US bank, said there has been a remarkable change in sentiment. "People are genuinely worried about what the world is going to look like in 2009. It is amazing how many clients want physical gold, not ETFs," he said, referring to exchange trade funds listed in London, New York, and other bourses.

"They are so worried they want a portable asset in their house. I never thought I would be getting calls from clients saying they want a box of krugerrands," he said.

The metal should do well whatever happens. If deflation sets in and rocks the economic system it will serve as a safe-haven, but if massive monetary stimulus gains traction and sets off inflation once again it will also come into its own as a store of value. "It's win-win either way," said Mr Dugan."

...

January 13, 2009 | Unregistered CommenterBC

Learn from Brown's blunder on Britain's gold.

You may not lose £5.5bn, as the former chancellor did when he offloaded England's gold, but beware of selling at the bottom of a bear market.

As Chancellor of the Exchequer, Gordon Brown began selling more than half of the English national gold reserves – a total of 395 tonnes – at an average price of $275 per ounce.

http://www.telegraph.co.uk/finance/personalfinance/comment/iancowie/4177058/Comment-Learn-from-Browns-blunder-on-Britains-gold.html

January 13, 2009 | Unregistered CommenterBC

As a Brit I'm gutted every time that gold sale is mentioned, Gordon Brown was touted as the prudent Chancellor, not looking so good now.

January 13, 2009 | Unregistered CommenterGold Prices

The best mistake to learn from is someone else's mistake. In my case I SCUBA dive and you won't live long enough to make them all your self.

Gordon Brown is an great lesson, especially if I consider selling all of my metals holdings.

January 14, 2009 | Unregistered CommenterBC

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