With gold vaulting into a new phase of its multiyear advance, the gold rush is back in high gear with miners positioning themselves for inevitable consolidation within the sector.
If Newmont Mining's
Located near Pascua Lama, Barrick's key development project covering territory in both Argentina and Chile, El Morro brings another 5.8 million ounces of attributable indicated gold resources into Barrick's fold, plus a significant cost-cutting bonus of 4.4 billion pounds of copper. The project has completed the feasibility stage, where economic viability is confirmed, and is presently seeking environmental permits.
As I pointed out last week, the larger players within the precious-metals mining sector will inevitably be forced to acquire new assets to sustain their scale of production in a world where large new discoveries are getting harder to find.
Pan American Silver
Golden heavyweights Goldcorp
From this Fool's perspective, the clear winner in this latest Barrick deal is the minority holder of El Morro: New Gold
Gold is a hot topic on the blogs at Motley Fool CAPS. Join the free service today and see just how many Fools are taking the long view when it comes to investing in gold. The "Gold" tag at CAPS lists 46 potential investments, and you'll find Christopher's comments on most of them.
Fool contributor Christopher Barker carries a silver coin which reads: "Honest value never fails." He can be found blogging actively and acting Foolishly within the CAPS community under the username TMFSinchiruna. He tweets. He owns shares of Kinross Gold, New Gold, and Pan American Silver. The Motley Fool's disclosure policy is 0.999 pure.