An exciting early purchase this week - African Barrick Gold's shareprice nosedived on Tuesday morning after the majority shareholder, Barrick Gold Corp, announced it wasn't going to flog off African Barrick Gold to the Chinese state gold producer.
Why does this mean a 20% drop in the company's (African Barrick Gold) value? I have no idea - I guess the speculators were cleared out of the market. What it did mean for me was 'buying opportunity' - nothing in what I care about had changed, apart from the expected dividend which touched over 3% - so I doubled my holding.
Since I bought in the share price is back up by a 1-1.5%, so no big dramas. Do I think the dividend is safe? I'd say so, given that Barrick Gold Corporation needs to cashflow to push out it's own dividends.
I read a slightly concerning story about energy rationing in Zambia, which is affecting the miners there, but I am not overly concerned about these kind of things.
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