Interesting comparison.....why is it not better to buy CDV for 1 billion, plenty left for capex and exploration upside.....?
Just saying....and don't know enough about Damang to say it's apples with apples....
Damang on a brief google is 5mtpa, grading circa 1.5 g/t....opex circa USD700/oz. Producing about 200k oz pa.
From that article:
"The point Esterhuizen makes, however, is that new gold projects are scarce owing to massive under-investment in finding new gold resources. (This factor, coupled with geopolitical uncertainty, low interest rates and sluggish global economic growth is likely to give impetus to the gold price).
The reason for the under-investment in the sector is fairly obvious. Since the gold price crash in 2011, gold mining companies have been focused on reducing debt which has meant very little investment in developing reserves. Greenfields exploration is almost non-existent among the large companies.
Gold Fields CEO, Nick Holland, said in a presentation to the Melbourne Mining Club in August that “… gold companies have not been spending enough to replace reserves, never mind grow them. As a result of under-spending and lower gold prices, reserve life has fallen from 24 years to 17 years in 2015”.
Said Esterhuizen: “We expect to see a lot more of these deals as well as industry wide consolidation, especially as the lack of capital investment continually squeezes this window of declining output ever more shut.
“This makes mining companies even more desperate to secure something that even remotely resembles some growth or at the very least keeps the optionality alive."
CDV Price at posting:
63.0¢ Sentiment: None Disclosure: Held
