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Gold/Mining/Energy : Gold Price Monitor

GDXJ 107.29

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To: bambs who wrote (64714)	2/27/2001 2:07:35 PM
From: re3	Read Replies (1) of 116791

from miningweb. NEW YORK -- Miningweb learnt late on Friday that Anglogold was still pursuing a bid for Gold Fields. Details are scant, but indications are that initial discussions were framed around a price close to $4 per share (R31). Early on Tuesday, additional information came to light indicating that the offer had been revised upward to around $5.50 (R43) per share which represents a 30 per cent premium to the current price. That would value Gold Fields at $2.5 billion which doesn't affect its current ranking as the world's sixth most valuable miner, but places it much closer to Placer Dome and Newmont. Critically, that valuation vaults Gold Fields ahead of Anglogold in terms of the imputed market cap per ounce of proven and probable reserves. Although Miningweb has not been able to obtain irrefutable independent confirmation of the deal, sources in Johannesburg say the Gold Fields head office is abuzz with activity and a company insider confirmed that the entire board has assembled in Johannesburg. It is thought that Barrick remains interested although some sources think the Toronto gold giant would baulk at paying such a premium. Spokesman Vincent Borg declined to comment, adding that the speculation was merely a continuation of earlier rumours. Anglogold has a public distaste for acquisitions because of the inevitable premium that is paid. However, both Barrick and Anglogold face mounting institutional investor pressure about their future performance and Gold Fields is the crown jewel. A high price might be justified if other companies get involved and the assets are distributed more widely. Anglogold is known to covet East Driefontein especially, while Barrick is said to be eyeing Tarkwa. Gold Fields's Alaskan platinum joint venture with Outokumpu is also considered one of the best new projects and there is speculation that Anglo Platinum would be a willing buyer. Speculation it all is, but unhedged Gold Fields has a fantastic ace up its sleeve – the rising gold price which is being driven by reports of a shortage of refined metal.

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