chinese takeover another oz oldmine, page-7

Oracle;

we all have dreams...:-)

The major gold producers desperately need gold deposits but can’t afford to build many of the large deposits they have on the books. Like Barrick Gold pullout of its Donlin Creek ( 19 million ounces )and Cerro Casale (17 million ounces). Gold Fields pullout of Chucapaca deposit (7.5 million ounce) last month. they are too costly to develop these mines for the majors.

Also please Keep in mind of Barrick’s recent trouble WA mine expansions which has capex over $450 mils to increase production from 90K to 170K. But the project is hitting on the rocks. The director/manager who was in charge of the development has been kicked out and expansion project halt at this moment. In larger scale, Barrick’s Pascua Llama mine development --an initial $3.5 billon capex estimate is now over $8 billion. One huge blow out.

Let’s think Barrick instead use the $450 Mils to takeover Saracen at 80 cents per share. They immediate increase their annual WA gold mine production from 70K to 200K plus for the next 7 years. The takeover cost is far less then development of new mines and it is warrant and take much less time.

Another factor is as a lot gold miners are either slowing or defer their gold productions/development due to rising cost and lower grades. Total gold supply will drop but consumer demand are strong. Result of it, POG should rise on tightening supply.