Mid-tier producer Randgold Resources made headlines during the week ending Aug. 12 by topping AngloGold‘s bid for Ashanti Goldfields by about US$100 million. Randgold is offering one of its own shares for every two Ashanti shares. AngloGold’s offer stands at 0.26 of one of its shares for one share of Ashanti. Randgold climbed a dime to US$20.86. For their part, Ashanti shares were $1.50 higher at US$9.33, and AngloGold’s issue rebounded to the tune of $3.58 to reach US$36.28.
Paced by record revenue of US$15.8 million in fiscal 2003, royalty company Royal Gold surged $1.15, or 5% of value, to US$23.50 on 1.8 million shares during the period. Despite the record sales, Royal’s net income came to US$6.8 million, or 34 per share, off the year-earlier pace. The difference is attributable to a deferred tax asset of more than US$6.8 million in fiscal 2002.
Meanwhile, Anglo American, the world’s third-largest mining group, turned in net profits of US$760 million. Headline earnings climbed by 2% to US$856 million for the first half of 2003, thanks largely to 49% higher earnings from 45%-owned De Beers. Anglo shares finished the period 91 higher at US$18.42.
Shares in WMC Resources, the world’s third-largest nickel producer, rose 18 to make $12.95 after the company posted flat first-half net profits of A$47 million. Eying positive cash flow in the second half of the year, the Aussie miner says it may pay a modest final dividend. The company failed to pay a first-half dividend because of negative total cash flow.
Be the first to comment on "Ashanti bidders rebound"