Gold mining companies targeting Africa have been busy with mergers, strategic partnerships and takeovers in the current year. The industry has witnessed 14 mergers, in the run up to secure a foothold in the African mining sector, alone from July to October 2009.
This development has not gone unnoticed by investors and other stakeholders in times of recession and a weak dollar, which is at a historic low compared to other currencies.
The world is looking for an alternative store of value and this is why investors increasingly invest in gold stocks.Proactive Iinvestors has recently reported that merger activities have further intensified investor interests in at least 80 listed gold stocks active on the continent.
One example of increasing interest is the share of Nevsun Resources (AMEX: NSU) with its Bisha project in Eritrea . At the beginning of this week Nevsun Resources was comfortably the strongest gold stock on the American Stock Exchange, rising over 8%.
Many analysts and traders put Nevsun as a stock to watch out for, due to several facts; the share price is continuously on a rise, gold exports from the Bisha mine in Eritrea will start in 2010 and Nevsun Resources is considered to be a takeover candidate in the near future.
Nevsun Resources Presentation October 2009
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