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When AngloGold Ashanti announced a £1.9bn takeover of a London-listed gold miner Centamine Last week, the South African firm described the deal as “very attractive.”
Centamin owns a world-class mine in Egypt that will increase AngloGold’s annual production by more than 15 percent.
In return, Centamin investors have been asked to exchange the majority of their shares for AngloGold shares plus 12.5 cents (9.5p) in cash.
A Nugget?: While gold is at an all-time high, gold miners are not…
The mix valued each Centamin share at £1.63 on the day of trading, but the price began to fall last week as AngloGold shares fell.
In 2015, Midas recommended Centamin at 62p. After a rocky period, the stock hit £1.20 before AngloGold pounced on it and closed the week at £1.56.
Midas Verdict: Although gold is at an all-time high, mining companies are not. South Africans have discovered a bargain: this story may have more to offer. Don’t despair.
Listed in: Main market Heart: CEY Contact: Centamin.com
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