Beament sees major opportunity in gold
Northern Star Resources executive chairman Bill Beament believes the gold market is “going to start popping”
9th August 2019
Resources Rising Stars
Northern Star Resources executive chairman Bill Beament believes the gold market is “going to start popping” (reports MiningNews).
Beament addressed the company's annual pre-Diggers & Dealers strategy day on Saturday just as Australian dollar spot gold hit an all-time high of A$2129 an ounce.
He said Northern Star had seen this coming about a year ago and acquired the Pogo mine in Alaska when the gold price was about US$300 an ounce lower in US dollar terms.
"This is not luck - we saw this coming," Beament said.
"We've always been three or four steps ahead and have done everything counter-cyclically."
Beament thinks gold's current rally is only the beginning.
"We're well and truly heading into a 10-year bull market-type scenario - it would be nice," he said.
"We love the macro environment that's opening up now."
The sector is finally starting to see some interest from generalist investors.
"The industry's going to start popping and I think it's only the tip of the iceberg," Beament said.
Nearly a year ago, Barrick Gold and Randgold Resources announced a gold "mega-merger", which created the world's largest gold miner as of January 1.
The new Barrick didn't keep that title for long because in February, Newmont Mining announced another gold mega-deal with its acquisition of Goldcorp.
"There were a couple of bridesmaids left at the altar," Beament said, referring to Newcrest Mining's rumoured pursuit of Goldcorp.
Beament described Newmont and Barrick as being in the gold ‘premier league', while Newcrest and Agnico are in ‘first division'.
"[A merger of Agnico and Newcrest] would be the most sensible deal on a macro level," he said.
"They could join the premier league if they wanted to.
"There are huge holes of opportunity for companies to fill the void."
Meanwhile, Northern Star and Evolution Mining were in ‘second division', according to Beament.
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