The National Post reports in its Wednesday edition that after a
year of playing it safe, Canada's troubled gold sector has a new
mindset: bigger is better. Senior gold producers have roared back
to life with three major deals in recent weeks, aggressive plays that
end many months of caution and cost-cutting. On Nov. 30,
Vancouver's Placer Dome Inc. snapped up a 50 per cent stake of
a South African gold project for $235-million (U.S.). Then on
Dec. 9, in a bid to become the world's lowest-cost gold producer,
Peter Munk, chairman of Barrick Gold Corp., announced a
$142-million all-cash hostile takeover for Argentina Gold Corp.
Not to be outdone, Placer grabbed the front page again Dec. 14
with a pricey $1.1-billion (U.S.) all-stock takeover bid for Getchell
Gold Corp. of Denver. The consolidation games have begun.
Barrick and Placer have signalled their deal-making days are far
from over. Meanwhile, many of this country's mid-tier gold
producers, anxious not to be left out in the cold, are on the make,
analysts say. One analyst expects "a huge shake-out. There's too
many companies chasing too few dollars."
(c) Copyright 1999 Canjex Publishing Ltd. |
