Norton Says May Seize on Gold’s Slump to Make Acquisitions
“When the good opportunities come up, we will have a good look and take advantage of the current low gold price and the low market to grow our business further,” Chief Executive Officer Dianmin Chen said today in an interview.
Gold fell into a bear market in April as some investors lost faith in the metal as a store of value and investment holdings contracted. Zijin, China’s biggest gold miner by market value, said last year it’s targeting spending of as much as 10 billion yuan ($1.6 billion) annually on acquisitions and expanding mines.
“We have not set up a time frame for when we need to get one done, but our strategy is to keep looking,” Chen said. Zijin will support Norton in making further acquisitions in Australia, he said.
Norton, which last month made a takeover offer for Kalgoorlie Mining Co., was unchanged at 16.5 cents in Sydney trading. The stock has dropped 20 percent this year.
Barrick Gold Corp. (ABX), the biggest producer by sales, is working with Bank of America Corp. and UBS AG on a possible sale of three gold mines in Australia, two people with knowledge of the matter said April 20.
Chen, who managed one of the three mines during a 10-year career with Barrick until 2007, declined to say whether Norton had, or planned, to bid for the mines.
“Barrick is a good company, and the assets must have a good value as well,” he said. “We have got a desire to grow in Australia, our strategy is to increase gold production and to cut production costs. We are looking at any opportunities which can help us to achieve this strategy.”
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