Is this a fair deal ?Yes, in the context of $1200 gold. But what about $2,000 gold, where gold was headed until the Federal Reserve and U.S Government were staring into the abyss and put into motion the most corrupt and intensive market intervention strategy in history in order to get gold down to where it is now and save the U.S. dollar?
Goldcorp knows where the price of gold is headed and this why they are buying Osisko now. They also probably know that the window of opportunity to buy 30 million ounces of gold in the ground at this price is quickly closing. In other words, this deal marks the turn in the massive gold and mining stock sell-off of the last two-plus years. While I expect Goldcorp to sweeten its offer, don't get caught up in the details of this transaction and miss the big picture: the bottom is in and gold is back on track to resume the upward trajectory it was on in 2011.