China Gold International , a mid-sized Canadian-based company with two mines in China, is eager to make an acquisition in Canada, but asset prices remain very high despite a bombed-out mining sector, a company official said on Thursday. At a time when small- and medium-sized miners are struggling to raise funds as investors have cooled on the sector, China Gold is in the enviable position of having ready access to finance through its biggest shareholder, China National Gold, a Chinese state-owned enterprise.China National Gold is China's only state-owned gold mining enterprise and China's biggest gold producer. It owns 39 percent of Vancouver-based China Gold and is perhaps best known for its failed attempt to purchase African Barrick Gold a year ago from Barrick Gold Corp."You have seen market cap drops. But the asset values are still up there. People are refusing to sell at lower prices. We have tried a few times," Jerry Xie, executive vice president of China Gold, told Reuters.He said the company would "prefer to find something in Canada" but was not willing to overpay for it.
Barrick Gold Corporation (Barrick) is engaged in the production and sale of gold, as well as related activities, such as exploration and mine development. Shares of ABX traded higher by 3.86% or $0.68/share to $18.31. In the past year, the shares have traded as low as $13.43 and as high as $36.08. On average, 17204000 shares of ABX exchange hands on a given day and today's volume is recorded at 17499664.
Barrick Gold Corporation (Barrick) is engaged in the production and sale of gold, as well as related activities, such as exploration and mine development. Shares of ABX traded higher by 4.44% or $0.83/share to $19.54. In the past year, the shares have traded as low as $14.22 and as high as $35.50. On average, 3887780 shares of ABX.TO exchange hands on a given day and today's volume is recorded at 3120882.
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