Monday, February 27, 2017
It is no secret that there is gold in some parts of western Kenya. Only its commercial viability is in question.
So when London-based Acacia Mining announced early on Monday that it had found “inferred mineral resources” on the Liranda Corridor, its shares jumped as much as 2.46% as a number of investment brokers adjusted their price target on the Africa-focused mining company to a ‘strong buy’.
The 1.31 million ounces high grade gold find by Acacia Mining is estimated to be worth about US$1.65 billion at the current price of US$1,258 per ounce. The explorer said it plans to invest US$12 million on further search long the Liranda Corridor.
In other gold news, Barclays Africa Group will finally list its gold-backed exchange-traded-fund on the newly formed ETF market on the Nairobi Securities exchange.
Barclays Africa’s Absa Capital had announced its intention to list its NewGold ETF in Kenya back in 2010 even before the platform was created. The largest gold ETF in Africa already trades in five other markets on the continent.
Kenya’s ETF market was launched at the end of 2016.
ETFs trade like stocks, allowing investors access to commodities like gold and platinum without taking physical delivery of them.