Jim Sinclair’s Commentary
Please read the last three paragraphs to see that my analysis of the Tanzanian situation was spot on.
Although the transaction mention today was Barrick taking over let me assure at the end of the day it is a reverse takeover with Rand in command soon is what happened.
Randgold was my primary competitor for the Buckreef property in Tanzania.
Barrick Gold, Randgold in Advanced Talks on Merger
September 23, 2018
Barrick Gold Corp. is said to be in advanced negotiations to merge its operations with Africa-focused rival Randgold Resources Ltd., protecting the Toronto-based miner’s crown as the world’s largest producer of the metal.
A deal is imminent, according to one of the three people familiar with the negotiations. They declined to provide more details. Talks could still fall apart should the parties fail to agree on the terms. Executives from Barrick and Randgold are in Colorado Springs for the Denver Gold Forum.
IKN, a blog specializing in mining news earlier reported that an announcement may come as early as Sunday or before the opening bell Monday, adding, “multiple sources have told the desk the deal is on.”
Andy Lloyd, a spokesman for Barrick, and Kathy du Plessis, a spokeswoman for Randgold declined to comment.
In many ways, the strategies of the two companies are similar. Both firms are highly focused on production costs, aiming to build portfolios that generate free cash flow even if gold prices drop to as low as $1,000 an ounce. They also have high internal ‘hurdle’ rates for investment; in Barrick’s case they must generate an internal rate of return of 15 percent and in Randgold’s 20 percent. The metal settled at $1,200.04 on the spot market Friday.
Bank Of America Sees Gold Topping $1 300 On Fiscal Deficit
September 24, 2018
SINGAPORE – Gold is set to surge over the next year as concerns deepen about the widening US. budget deficit and a tariff-driven trade war starts to damage the country’s economy, according to Bank of America Merrill Lynch.
Bullion could average $1 350/oz in 2019 as corporate tax reforms worsen the US fiscal balance, Francisco Blanch, head of global commodities and derivatives research, said in a phone interview last week. Spot gold traded at $1 196.23 on Monday and has averaged about $1 285 this year.
We’re still pretty constructive longer term on gold,” because of worries over the future of the US economy even though it’s performing relatively well right now, said New York-based Blanch. “In the short run, the effects of strong dollar, higher rates dominate. But in the long run, a huge US government budget deficit is pretty positive for gold,” he said.
The warning over the budget echoes billionaire hedge fund manager Ray Dalio, who predicted this month that the US economy is about two years from a downturn, which will see the dollar plunge as the government prints money to fund a swelling deficit. Goldman Sachs Group Inc. has also joined the chorus of bulls, seeing gold at $1 325 in 12 months. Bullion has been building a base around $1 200, after five months of losses, the worst run since 2013.
The Congressional Budget Office has predicted the US administration’s tax cuts, when combined with new federal spending, will push the budget deficit to $1-trillion in 2020. That’s forced the US Treasury to lift note and bond sales to levels last seen in the aftermath of the recession that ended in 2009.