Randgold intends to buy up more junior miners
African gold miner Randgold Resources (LSE: RRS; NASDAQ: GOLD) expects to bolster its exploration work on the cheap if the price of gold falls further, reports Reuters.
The company said it is investigating stakes in smaller mining firms and their projects, especially if there is a downward trend for the yellow metal.
CEO Mark Bristow said small miners would be affected the most by low gold prices resulting in reduced financing and putting operations on hold.
Established companies would then have an opportunity to find bargain prices for purchasing a stake — something Randgold has already started to do.
The firm bought a majority stake in Canadian junior Kilo Goldmines (TSXV: KGL) in order to join forces in the Democratic Republic of Congo.
It will also join with UK-based Goldstone Resources Ltd. (LSE: GRL) for a venture in Senegal.
Bristow said larger miners with cash, which take advantage of investment opportunities like these, would likely become stronger than their competitors.
Randgold runs mines in Mali, the Ivory Coast and the DRC.
Image courtesy Randgold