Recent Article from Business Speculator on Monday.........mmmm??
South African gold miner Gold Fields is believed to be on the acquisition trail in Australia, with some suspecting it could be circling Independence Group.
The attraction is thought to be Tropicana, a gold mining venture in Western Australia that was formed between Independence, which holds 30 per cent, and AngloGold Ashanti, which controls the remainder.
Tropicana started producing gold two years ago, and while it has been described as an attractive target, it is not for sale.
Independence has seen its market value slide in recent months to almost $1.4 billion, from about $1.8bn in October, and the weaker dollar could make the company an attractive target for a foreign suitor. Gold is also the most favoured commodity in the resources sector at the moment.
This month, Independence reported flat earnings before interest, tax, depreciation and amortisation of $151 million, as revenue fell slightly, but analysts at Credit Suisse downgraded the stock due to the share price performing more strongly than its peers.
Other potential targets for Gold Fields could be Evolution Mining or Gold Road Resources.
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