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Australian gold companies likely to attract more investment from China

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Yesterday's announcement by *Aphrodite Gold* (ASX:AQQ) that it had received approaches from major mining and investment companies, from mainland China, Hong Kong and Singapore demonstrates a growing trend that should benefit investors.

The recent fall in the gold price looks to have ignited interest from Asian gold producers and companies looking to pick up assets at a lower entry prices in ASX listed gold companies than were generally prevailing over the past 18 months.

While early stage gold explorers may find interest, the focus is likely to centre on listed gold companies past feasibility study stage, into pre-production or gold production.

Recent examples support the premise including *Norton Gold Fields* (ASX:NGF), 89 per cent owned by Zijin Mining Group Co evaluating acquiring gold assets in Australia.

This follows Norton's earlier offer to acquire *Kalgoorlie Mining Co*. (ASX:KMC) for $14.9 million in April.

Qixing Group Company Ltd.'s Shenzhen-listed subsidiary *Shandong Qixing Iron Co*.(002359.SZ) offered US$140 million to acquire the assets of ASX listed *Stonewall Resources* (ASX:SWJ).

Hong Kong-listed iron ore miner *China Hanking Holdings Ltd*. (3788.HK) agreed to acquire *St. Barbara's *(ASX:SBM) Southern Cross mining operations for $22.5 million in January.

A rush for gold bullion and jewellery surged in mainland China and Hong Kong as consumers sought to take advantage of lower gold prices.

The interest in Australian gold assets and projects owned by ASX listed companies should have investors running a ruler through gold companies.

 

*Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.* Reported by Proactive Investors 3 days ago.

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