16th Sep 2014 10:27
LONDON (Alliance News) - Randgold Resources Ltd will not pay a premium to buy the rest of the Kibali mine in Democratic Republic of Congo that it does not already own, Bloomberg reported on Tuesday.
Mark Bristow, the chief executive of FTSE 100-listed Randgold, said in an interview with Bloomberg that it "doesn't make sense to pay a premium on a premium we created."
There is currently speculation that AngloGold Ashanti Ltd could sell its 45% stake in the Kibali mine to partner Randgold following the former's decision to cancel its restructuring and rights issue plans on Monday. The speculation about Kibali was sparked by an Investec PLC note on AngloGold on Monday.
Bristow said it was unlikely Randgold would look to buy the rest of Kibali, but said he would consider other assets AngloGold puts up for sale.
Speaking on Monday, AngloGold Chief Executive Srinivasan Venkatakrishnan said AngloGold will consider divesting assets in order to cut its debt pile. He said that while Kibali is a "core" operation, the sales would likely focus on its operations in Colombia and the Obuasi mine in Ghana.
Randgold Resources shares were trading 0.63% lower at 4,603.00 pence per share Tuesday morning.
http://www.bloomberg.com/news/2014-09-15/randgold-says-it-s-not-paying-premium-for-mine-stake.html
By Sam Unsted; [email protected]; @SamUAtAlliance
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