Barrick‘s announcement that it intends to sell off 25% of African Barrick Gold upon its listing in London should raise the world’s biggest gold producer at least USD 1bn in cash, based on valuations of some 90 listed stocks active in gold in Africa, and elsewhere. For one, Red Back, which anticipates producing around 500,000 ounces of gold this year from two mines in West Africa, holds a market capitalisation of USD 4.3bn.

African Barrick Gold produced around 716,000 attributable ounces of gold in 2009, from four mines in Tanzania. The group is targeting an increase in production to over one million ounces a year by 2014, and to double its production in the next ten years. African Barrick Gold is expected to produce around 825,000 ounces this year. It has reserves of 16.8m ounces, on a 100% basis.

Randgold Resources, which holds a market value of USD 6.5bn, has projected gold output of about 450,000 ounces this year, rising to a projected 1m ounces-plus for 2013, on an attributable basis.

While a good number of reasons have been given for listing African Barrick Gold, it may be a sign that Barrick itself has become too big. In a statement, Barrick CEO Aaron Regent said: “As an Africa-focused public company, we believe that the new company will be better positioned to generate shareholder value from its operating platform”.

At the same time, there are suits in London that are looking a little frayed after the monsoons in financial and commodity markets. With both continuing patchy recoveries, African Barrick Gold could repair a good few soles with holes.

During 2008, it was substantially the same well known collection of London suits behind the promotion of African Barrick Gold who promoted the London listing of Fresnillo, the world’s biggest primary silver producer, all of it out of Mexico. Parent company Peñoles continues to hold the majority of stock in Fresnillo, at just over three-quarters. Fresnillo’s stock price has corrected in the past few months, after its market value topped the USD 10bn level.

The pricing and terms for African Barrick Gold are yet to be determined; the offering is expected to be priced in late March. Based on a statement from Barrick, the potential cash raised from the listing is going to be welcome at Barrick. “This return of capital to Barrick”, says the world’s biggest gold digger, “is expected to provide increased financial capacity to fund the company’s pipeline of development projects”.

 

Selected gold stocks active in Africa

 

 

Stock

From

From

Value

 

price

high*

low*

USD bn

South Africa & beyond

 

 

 

 

AngloGold Ashanti

USD 36.57

-23.0%

31.2%

13.248

Gold Fields

ZAR 91.75

-26.6%

10.4%

8.438

South Africa focus

 

 

 

 

Harmony

ZAR 70.25

-47.1%

2.3%

3.903

Simmer & Jack

ZAR 1.30

-60.8%

6.6%

0.207

First Uranium

CAD 1.09

-86.4%

-9.2%

0.174

DRDGold

ZAR 4.71

-50.7%

47.2%

0.234

Wits Gold

ZAR 51.00

-48.0%

100.9%

0.185

Gold One

AUD 0.28

-71.9%

19.6%

0.198

Central Rand

ZAR 1.77

-77.9%

18.0%

0.057

Pan African

GBP 0.06

-29.3%

68.3%

0.132

Mintails

AUD 0.03

-57.3%

6.7%

0.030

West Wits Mining

AUD 0.10

-31.0%

53.8%

0.011

Global & Africa

 

 

 

 

Barrick

USD 39.38

-18.0%

54.2%

38.763

Newmont

USD 48.15

-14.7%

40.0%

23.132

Iamgold

USD 15.11

-28.0%

139.5%

5.574

Lihir

AUD 2.72

-27.9%

12.9%

5.751

West Africa

 

 

 

 

Goldstone Resources

GBP 0.01

-55.6%

292.9%

0.003

Colonial Resources

AUD 0.08

-30.0%

950.0%

0.012

Avnel Gold

CAD 0.18

-39.7%

600.0%

0.014

Medoro Resources

CAD 0.69

-26.6%

1280.0%

0.265

African Aura

CAD 1.20

-14.3%

233.3%

0.061

Red Back

CAD 19.42

-2.7%

209.2%

4.303

African Gold Group

CAD 0.49

-48.9%

546.7%

0.035

Semafo

CAD 4.74

-7.8%

222.4%

1.137

Golden Star

USD 3.10

-29.4%

192.5%

0.763

Resolute Mining

AUD 1.02

-19.0%

104.0%

0.353

Nevsun Resources

CAD 2.60

-29.0%

140.7%

0.349

Perseus Mining

AUD 1.73

-19.4%

226.7%

0.530

Etruscan Resources

CAD 0.38

-37.7%

117.1%

0.123

Cluff Gold

GBP 0.80

-4.2%

171.8%

0.150

Mineral Deposits

AUD 0.91

-22.6%

70.1%

0.466

Keegan Resources

USD 5.73

-24.3%

258.1%

0.163

Searchgold Resources

CAD 0.04

-20.0%

100.0%

0.006

Gryphon Minerals

AUD 0.42

-28.8%

412.2%

0.081

Shield Mining

AUD 0.14

-44.0%

677.8%

0.009

Adamus Resources

AUD 0.40

-24.5%

37.9%

0.102

Orezone

CAD 0.77

-17.2%

196.2%

0.050

Axmin

CAD 0.08

-57.1%

7.1%

0.022

PMI Gold

CAD 0.14

-18.2%

350.0%

0.026

Azumah Resources

AUD 0.24

-27.7%

197.5%

0.038

Pelangio

CAD 0.27

-64.5%

217.6%

0.030

Ampella Mining

AUD 0.85

-10.5%

1018.4%

0.121

Castle Minerals

AUD 0.30

-21.1%

215.8%

0.022

Volta Resources

CAD 0.79

-24.0%

618.2%

0.074

North Atlantic Resources

CAD 0.21

-4.5%

600.0%

0.007

Avion Resources

CAD 0.60

-24.1%

242.9%

0.170

Signature Metals

AUD 0.02

-56.4%

500.0%

0.020

Channel Resources

CAD 0.08

-42.9%

220.0%

0.005

Riverstone Resources

CAD 0.73

-12.0%

421.4%

0.045

Pan African

 

 

 

 

Randgold Resources

USD 72.46

-19.8%

79.3%

6.523

Africa West

CAD 0.06

-38.9%

120.0%

0.002

Pan African

GBP 0.06

-29.3%

68.3%

0.132

Goldplat

GBP 0.10

-22.6%

22.4%

0.018

African Queen

CAD 0.62

-16.2%

195.2%

0.025

Central African

GBP 0.01

-54.2%

52.0%

0.015

Caledonia

CAD 0.07

-50.0%

30.0%

0.031

Mwana Africa

GBP 0.13

-26.8%

333.3%

0.080

Midlands Minerals

CAD 0.47

-20.3%

526.7%

0.036

Africa, other

 

 

 

 

Shanta Gold

GBP 0.09

-4.1%

268.4%

0.014

Banro

CAD 2.01

-40.4%

55.8%

0.204

Kilo Goldmines

CAD 0.40

-45.2%

100.0%

0.024

Loncor Resources

CAD 1.30

-18.8%

490.9%

0.038

Sunridge Gold

CAD 0.39

-54.7%

165.5%

0.023

Luiri Gold

CAD 0.31

-22.5%

785.7%

0.033

Helio Resource

CAD 0.46

-49.5%

53.3%

0.029

Tanzanian Royalty

CAD 4.01

-38.3%

37.8%

0.350

Centamin Egypt

CAD 1.90

-27.8%

126.2%

1.854

Obtala

GBP 0.28

-4.3%

150.0%

0.082

GMA Resources

GBP 0.03

-43.3%

39.0%

0.025

New Dawn

CAD 1.13

-38.9%

175.6%

0.031

Kasbah Resources

AUD 0.06

-29.4%

87.5%

0.009

African Consolidated

GBP 0.11

-40.8%

90.9%

0.058

Lake Victoria Mining

USD 0.45

-69.8%

28.6%

0.013

Red Rock

GBP 0.02

-27.1%

125.8%

0.015

Also in Africa

 

 

 

 

MDN

CAD 0.51

-40.0%

21.4%

0.046

Douglas Lake

USD 0.22

-56.9%

29.2%

0.016

Great Basin

CAD 1.70

-28.6%

53.2%

0.543

Gold Wheaton

CAD 2.59

-36.0%

1518.8%

0.354

High River

CAD 0.61

-37.8%

481.0%

0.466

Crew Gold

CAD 0.20

-82.7%

95.0%

0.399

Oromin

CAD 0.75

-47.6%

29.3%

0.074

Vatukoula Gold

GBP 0.02

-15.5%

349.0%

0.129

La Mancha Resources

CAD 1.88

-16.4%

422.2%

0.256

Avocet Mining

GBP 0.92

-14.5%

43.0%

0.274

CGA Mining

AUD 2.30

-11.2%

69.1%

0.680

Chalice Gold

AUD 0.41

-39.7%

345.7%

0.050

NGEx Resources

CAD 0.68

-32.0%

189.4%

0.095

Bezant Resources

GBP 0.32

-22.6%

388.5%

0.023

Nyota Minerals

GBP 0.11

-6.5%

290.9%

0.043

Franco-Nevada

CAD 27.35

-14.9%

18.4%

2.977

Mainly copper

 

 

 

 

First Quantum

CAD 78.81

-21.4%

170.0%

6.060

African Eagle

GBP 0.03

-73.0%

50.0%

0.015

* 12 month

 

 

 

 

Source: market & company data, crunched by Barry Sergeant