What is Working in Todays Market - GOLDWhat is Working in Todays Market - GOLD
They are talking about a research report by Canaccord Adams and their suggestions that with gold prices so high and suddenly seniors able to finance, who might be take out targets in this current market. As the Globe writer Andy Hoffman puts it, “They’ve got the cash, so how are they going to spend it?” “With the price of gold approaching $950 (US) an ounce, the big bullion producers have been aggressively tapping the equity markets and loading up the war chest to go after beaten-down juniors.” Reporter Hoffman continues, “There are plenty of bargains to be found, according to analysts at Canaccord Adams. The brokerage has compiled a list of some of the top takeout candidates and is also speculating on who might be doing the buying.”
The first featured takeover candidate is Andina Minerals and Hoffman writes, “With former investment banker Sean Harvey as its chairman, Andina has long been seen as a potential prize for a big gold miner. The company’s flagship asset is the Volcan project in northern Chile, which boasts a resource base of nearly 10 million ounces.”
Interestingly, just 10 km away is Yamana Gold’s La Pepa project and 35 km away is Kinross’s Maricunga mine. Those two would make obvious buyers. Detour Gold with its 13 million ounce Detour Lake gold project in northeastern Ontario is in the neighbourhood of Goldcorp and wouldn’t Goldcorp be sniffing around? Yamana Gold is a biggie, considered by most to be a mid-size gold producer with operations in Chile, Brazil and Argentina.
The suggestion is that Kinross, Barrick or Newmont might be potential buyers of Yamana and it would make a reasonable geographic fit.
Gold View from London/ Asia
"The correction is set to be short-lived as buying from long-term investors is expected on any dips," he said, adding that
gold was seen well
supported at $920-$930.
The holdings of SPDR, the world's largest gold-backed exchange-traded fund, rose 40.37 tonnes, or 4.5 percent, to a record 935.09 tonnes on February 11.
They have climbed by more than 150 tonnes since the beginning of the year, and traders said long-term investors who usually pay little attention to day-to-day price movements were behind the jump.
Just as demand has increased for long-dated U.S. Treasury debt, investors are shifting their focus to gold and gold-backed securities amid worries over the effectiveness of the latest rescue plan for the U.S. financial industry.