Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Acacia Mining on Friday reported a 13% rise in gold reserves at the end of May for its Gokona Mine in North Mara, Tanzania, adding weight to its view that majority shareholder Barrick Gold’s buyout proposal undervalued the miner.
Acacia Mining last month strongly disagreed with the world’s No. 2 gold miner’s valuation of the company, saying the proposal undervalued its mine plans and appeared to have ignored the value of its exploration and development assets.
Barrick’s proposal to take full control of its African unit to resolve a long-standing tax dispute with Tanzania has drawn the ire of Acacia’s minority shareholders, who may have the ultimate vote on a deal.
Barrick, however, has stuck to its offer, saying assumptions made by the smaller firm about its mine plans were out of touch and changes were indeed needed.
(By Noor Zainab Hussain; Editing by Saumyadeb Chakrabarty)
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