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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (44635)	10/7/2009 12:32:53 PM
From: LoneClone	Read Replies (1) \| Respond to of 196520

There’s gold in them thar companies INSIDER October 7, 2009 By Jamie Freed theage.com.au Sino Gold is set to release a scheme booklet detailing the $2.2 billion bid from Canada’s Eldorado later this week or early next week, but it remains to be seen whether this move will spark further consolidation in the gold sector. Once the Eldorado-Sino deal is completed, local investors will be able to trade Eldorado shares on the ASX through CHESS depositary interests, but there may not be a lot of liquidity because only about 20 per cent of the Sino register is based in Australia and most of that is institutional. Credit Suisse has analysed various factors that have historically led to acquisitions in the gold sector and found the timing of the Eldorado bid for Sino was likely a function of Eldorado’s paper trading at a record premium to that of Sino. Credit Suisse has found the factors that typically influence the value of goldminers are the gold price, the cash cost of production and the reserve base. On those metrics, Newcrest Mining, Newmont Mining, AngloGold Ashanti and Harmony Gold would appear cheap relative to their peers. If anything, that could represent an opportunity for Barrick to take a look at Newcrest and Newmont in particular. At the smaller end, it is interesting that Credit Suisse found Oceana Gold, Resolute Mining, Mineral Deposits and Capital Gold Corp among the more likely targets. The first three are listed in Australia, and Resolute and Mineral Deposits have both been considered potential targets for Lihir Gold, which is on the hunt for acquisitions in Africa. In other consolidation news, Norton Gold Fields this week disclosed it was in talks with various parties that had expressed interest in investing in the company and its projects. Norton bought the Paddington mill near Kalgoorlie from Barrick Gold in 2007.