TSXV:GPG - Post Discussion
Post by
Teakbois on Aug 06, 2020 10:15pm
Extract of Article by AOTH on Junior Minors
Ka Ching!
https://goldseek.com/article/gold-miners-junior-buying-spree Junior resource companies, not majors, own the worlds future mines and juniors are the ones most adept at finding these future mines. They already own, and find more of, what the world’s larger mining companies need to replace reserves and grow their asset base.
Up to now the few buyouts that have occurred have come at low premiums, or in some cases, no premiums.
But competition for ounces in the ground is going to drastically heat up resulting in bidding wars and much higher premiums offered than we have seen to date. Another thing that’s changed with the much higher gold price, is major gold companies can afford to pick up smaller deposits. Previously when gold was, say, US$800.00 majors needed to buy large deposits, greater than several million ounces, then scale them up to have an effect on their bottom lines. With gold prices of +$2,000/oz, they could consider a 500,000-oz deposit, as long as the grades are decent and it’s close to existing infrastructure. This opens up the field to many more take-over possibilities - every company with a +500Koz gold deposit is now a potential candidate.
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