The thing about Clive from B2 is that he would say WAF is expensive or any other takeover target he has in mind is expensive.
All of the bigger companies want the same thing: 200koz for 10 years+ at AISC < US$800/oz in a stable jurisdiction. The problem is that these projects are as rare as hens' teeth and they are not being found. SBM has wanted one for about 12 months. The only projects that seem to be changing hands, or up for sale, are those with higher costs (like Pogo) or in iffy jurisdictions (like Barrick/Acacia in Tanzania). All of the mid-tiers want what all the other mid-tiers have and want to get rid of the same kind of assets!
All the while the high margin reserves are being depleted and costs are rising across the industry.
This isn't like 2014 with sales of good quality assets like Cowal or Jundee.
The only way the Mexican standoff gets resolved I think is with the mid-tiers/majors having to pay up. As you know this is along the Brent Cook's thinking.
GoldFields is one of the companies that understands this with the investment in Gruyere and position built in Cardinal.
WAF Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
