Not sure about that. Big price tag for NST and AngloGold has been in debt reduction mode. How would they fund an acquisition like that? NST's cash holdings aren't large in comparison to their market cap so they would really need to believe in NST's mines going forward.
ROI by taking out DCN would be larger in my opinion and the potential scale of DCN's resources now looks like it is getting large enough to make it attractive . Even these big companies have to start "thinking" their way forwards. The brute force approach of building gold companies on the basis of acquiring gold production for productions sake is over in my opinion. Its all about margins, organic growth and acquisitions that are good fits. The article said AngloGold are investing $35 million on exploration at Sunrise and Tropicana combined with $12million earmarked for greenfield exploration. These companies are wising up. New deposits are hard to find and exploration gives the best ROI nowadays.
Eshmun
DCN Price at posting:
74.0¢ Sentiment: Hold Disclosure: Held
