The ‘engagement’ between Randgold Resources and AngloGold Resources over the Obuasi Gold mine appeared destined to be “a match in heaven” but the former has thought otherwise and opted out after only three months, The Telegraph reports.
This development has many a pundit astonished, considering how initially Rand Gold raved about about the prospects in Obuasi mine, which is ranked amongst Africa’s largest gold mines.
The Telegraph quotes the Randgold’s chief executive, Mark Bristow, justifying the decision saying: “It got to a point where whichever way we cut the cake, we couldn’t get it past our criteria.” After seeing that heads or tails, there was no gain for his company, a decision to shelve the deal made business sense.
Randgold has been known take a cautious, if not calculated, approach to asset acquisition ventures, assessing the level of return on investment before making a decision. Its pattern has been shelving investment plans on seeing envisaged returns would be low without hesitation.