SBM – St Barbara acquires Atlantic Gold for $A780m

St Barbara (SBM) acquires Atlantic Gold for $A780m. It seems this is the way of the future, don’t worry about exploration or getting mines into production, just take them over. There will be a major acquisition in Australia prior to end of the 2019 fiscal year with what we believe will be an unseen before of multiple acquisitions of Gold Companies who have resources and are undervalued.Today with the cost of establishing an exploration company and putting together teams geologists, creating the infrastructure that goes with it, hiring drilling rigs and motor vehicles and establishing mining tenements together with the major headaches that come with EPA in Australia, it seems that this is the way of the future , “let someone else do the hard work.

The payback won’t take long with Atlantic Gold producing 352,346 ounces for the year and a current like of 12.5 years makes sense to pay upfront and reap the rewards at the end. At a healthy profit of around a $US1,000 ounces cost per ounce will take a little over 2 years for the money to come back. Even with a major hiccup in the gold price won’t take more than 3 years payback. Great deal for the St Barbara crew and their shareholders.

Goldman

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