via Financial Post

You may as well add New Gold to the list of potential acquirors of GBN.V. Nobody notices of course, that gold miners seem to have to dilute their shareholders and pay usurious interest rates to creditors through debentures, while holders of stock are merely optionees in a share price advance.

They don't have the cash on hand, unless they have already sold a property, diluted their shareholders, borrowed money from investors, but didn't raise it themselves through cash flow. That says gold companies are actually cash poor.

New Gold means to borrow money, half a billion, for no specific reason, probably to acquire another interest in a second rate property and call it growth. This is called consolidation in the industry, not growth.

GMP seems to have an opinion, and also was a big seller of GBN.V shares on Friday, even though they didn't own any. But the price of treasuries is up brusquely, and it's quite legal to sell shares which you don't first own, as long as you parry the money against treasuries.

So we have: New Gold, Aurico, IAMGold, Centerra.

But narrow vein properties are very unpopular. Even Sprott is totally embarassed to list GBN.V in its precious metals portfolio.

http://business.financialpost.com/2012/11/09/is-smaller-better-for-gold-miners/

-F6