Asanko Gold could be appropriate target for Randgold, industry analyst says
Randgold Resources [NYSE:GOLD] of the Channel Islands could find a target in Ghana-based Asanko Gold [NYSE:AKG], according to a gold industry commentator cited in The Energy Report's online publication, The Gold Report.
The report credited Nana Sangmuah, managing director of research at Clarus Securities in Toronto, Ontario, as stating that more African M&A is forthcoming. The report cited him as stating that Randgold has established an aquisition threshold seeking 20% returns on gold priced at USD 1,000 an ounce, for in excess of two million ounces. Based on those criteria, he stated, the target that would come closest is Asanko Gold.
The report cited him as stating that Randgold could also look at asset acquisitions controlled by "major operators" with high debt and not much cash, such as a mine in Obuasi in Ghana.
A 9 February report on this news service cited Randgold CEO Mark Bristow as stating in an earnings call that his company is interested in M&A opportunities, and as laying out the criteria that his company would like to see targets with the potential to house three million ounces of gold and have a 20% IRR in a long-term gold price of USD 1,000. That report stated that he did not specify the geographies that Randgold would target, but noted that the company works in Mali and other African nations.
Asanko Gold had a USD 228m market cap in morning trading on 10 March.
Energy Report