Which US presidential candidate does gold prefer?
Gold loves chaos and should be hitting new highs, especially with inflation coming down and with it, two rate cuts likely before year’s end.
Goldcorp Inc. (TSX:G) (NYSE:GG) earlier this year explored the possibility of buying gold mines in Ghana from Newmont Mining (NYSE:NEM), according to a report by Bloomberg.
The Canadian mining giant showed interest in purchasing the African assets during merger talks between Newmont and Barrick Gold (TSX:ABX), Bloomberg said.
As all of Goldcorp’s mines are located in the Americas, the move would signify a departure for the Vancouver-based gold producer.
In September, Goldcorp CEO Chuck Jeannes said the company is focused on large deposits with low costs and long lives in locations with low political risk, Bloomberg said.
The merger talks between Newmont and Barrick, which involved spinning off some of the combined company’s assets, fell apart in April around the same time Goldcorp ended a hostile offer for Osisko Mining Corp (TSX:OSK).
Osisko was bought by Canadian gold miners Agnico Eagle Mines (TSX:AEM) and Yamana Gold (TSX:YRI) in a friendly deal.
According to Bloomberg, 12% of Newmont’s revenue in 2013 came from its Ahafo and Akyem mines in Ghana.
Toronto-based Barrick is the world’s biggest gold miner by revenue, followed by Goldcorp and then US-based Newmont.
