In much the same way that some believe the collapsed oil price will spur takeover activity among the small explorers, there is the possibility that the low price of gold may prompt the sale of some assets by the more financially stressed producers.
In that case, one of the beneficiaries could be Randgold Resources. A FTSE 100 company, Randgold now has its three main assets in west Africa producing strongly and ended 2014 with more than $100 million of cash or gold in hand.
The company has been trying to find alternative sources in other African countries, such as Senegal, Cameroon, Kenya and Tanzania. The price of gold, $1,650 an ounce two years ago, is now hovering a little above $1,200.
Randgold’s cost of