If SGR is in the crosshairs and the obvious suitor has a fixed model for a share swap, the major would want the ratio to remain fairly static for obvious reasons.

Gold is up 24% for the year and SGR is struggling to keep a 10% gain for the year on highly questionable performance, not at all dissimilar to Goldcorp.

Van Sun says Goldcorp slips among B.C. market caps

2010-12-31 06:19 PT - In the News

The Vancouver Sun reports in its Friday edition that a commodity bull in a China shop might be the best way to describe the performance of British Columbia's top public companies by market value in 2010. The Sun's James Kwantes writes that shareholders of the top dozen firms were rewarded with double-digit, and in some cases triple-digit returns, as rising commodity prices driven by strong demand from China lifted revenues, earnings and share prices. Only three non-miners cracked the top dozen and one of those was Finning International, the heavy-equipment firm whose fortunes are tied to mining and the oil sands. The commodity boom vaulted Teck Resources past Goldcorp into the No. 1 spot with a market cap of more than $35-billion. Goldcorp closed Thursday at $45.34. Gold has increased more than 24 per cent in value this year and shares of Goldcorp, the world's second-largest gold miner, have risen about 10 per cent. Goldcorp bought Andean Resources for $3.6-billion, outbidding Eldorado Gold to gain control of the Cerro Negro deposit in Argentina. Goldcorp produced 596,200 ounces of gold in the third quarter, tripled net income to $466-million and increased its dividend.