Randgold Resources (#RRS) – merger with Barrick Gold effective
- 2019-01-02 00:46:54
UK 18:32 Wednesday, 23 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
So the Randgold (RRS) and Barrick Gold (ABX in the US) merger does come to pass. I mentioned the rumour yesterday and today the details have been realised. A nil-premia merger that creates an $18 billion gold sector behemoth which - to use the strapline the two entities are using on their presentation documents - is a 'new champion for long-term value creation in the gold industry'…
When a sector is showing weakness it can be tempting to sell up and move into something else, but often if you are in for the longer term then this is actually the time to be adding to your investment.
You always have to watch your biases in the world of investment. There are some shares or sectors that for personal, historical or other exogenous/endogenous reasons you just love or hate. Regular readers will know that Randgold Resources (RRS) has been one of my structural favourites for many a long year, with the stock one of my largest (and most successful) holdings during the final part of my institutional fund management career, contributing to outperformance and the like.
What a funny day today for some of my FTSE-100 preferred names. Carolyn McCall was never off my Christmas card list, but I might risk a present now, after her soothing words in ITV's (ITV) trading statement today where online and Studios romped and the World Cup shines brightly for the near-future. That's perfectly inline with my hopes as discussed in my last write-up HERE. And with Liberty Media flush with Vodafone's (VOD) cash you never know whether it might build up its stake materially.
It isn’t often that I look at shares in a FTSE100 company and can easily see a very high chance of a 25% or more gain in share price over the coming months.
I know, I know, you have bigger matters to worry about with the current bout of stock market volatility impacting your wealth. It impacts mine too - especially the 6% fall of my largest holding Randgold Resources (RRS) after a full year results publication that saw record production, lower cash costs, fantastic grade, super sounding prospects... I could go on but regular readers know that I have an almost perma love-up with the FTSE-350's largest pure-play gold producer.
I know, I know...I do have a bit of a perma love-up with Randgold Resources (RRS), London's largest listed gold company but as it is a year since I wrote my latest paean I felt an update was overdue following last Thursday's numbers.
I have been a fan of Randgold Resources (RRS) for a long time and the latest update from the company continues to support my bullish view here.
When it comes to picking a company which is going to perform well over the course of a year, I believe that you need to consider the macro-economic factors that are likely to affect the sector in which it operates.
It was a real rollercoaster ride for precious metals and shares last week, following the results of the US elections and a surprise win for Donald Trump, but this could present some great buying opportunities.
Gold has been showing signs of weakness but I am yet to be convinced that this is justified and I think the market has over-reacted, which means that there are some good opportunities around for gold bulls.
Too many years ago to remember I recall one of my University lecturers observing that ‘life is a trade-off problem’. He was highlighting some tedious point about microeconomics, but I have a bit of a personal quandary at midday: should I review the latest interest rate and inflation information dump from the Bank of England (‘Super Thursday’) or listen to the Randgold Resources (RRS) quarterly conference call?
