Message: M & A Ahead ???????
Major Miners Looking To Acquire Undervalued Junior Explorers
Wealth in the ground chosen carefully in friendly mining jurisdictions has outperformed and risen from cautiously chosen bullion to geometric profits in miners. We continue to believe in the motherlode miners as they continue to produce many times the value of bullion. However, we are witnessing the major miners dealing with declining production and are having difficulty replacing ounces in the ground.
We have predicted for some time a rise in resource nationalism which both Freeport Mcmoran is dealing with in Indonesia and Goldcorp who recently acquired for a large premium Andean Resources in mining hostile Argentina. We recently saw Yamana Gold acquire Extorre Gold for pennies on the dollar in Argentina as Extorre’s price was hammered down by the fears of new taxes and royalties by the government. This is nothing new.
The major gold stocks continue to seek well chosen explorers in order to provide a continual increasing source of growth, quarter to quarter and year to year. Capital has to continually rise year to year and quarter to quarter. The majors have historically exploded upward in time and advance to many times the value of hard metal. It is only a matter of time, when the giants will move into well-chosen and professionally operated explorers trading for pennies on the dollar.
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We have predicted for some time a rise in resource nationalism which both Freeport Mcmoran is dealing with in Indonesia and Goldcorp who recently acquired for a large premium Andean Resources in mining hostile Argentina. We recently saw Yamana Gold acquire Extorre Gold for pennies on the dollar in Argentina as Extorre’s price was hammered down by the fears of new taxes and royalties by the government. This is nothing new.
The major gold stocks continue to seek well chosen explorers in order to provide a continual increasing source of growth, quarter to quarter and year to year. Capital has to continually rise year to year and quarter to quarter. The majors have historically exploded upward in time and advance to many times the value of hard metal. It is only a matter of time, when the giants will move into well-chosen and professionally operated explorers trading for pennies on the dollar.
READ MORE
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