Reality CheckObviously several short term speculators who were waiting for Goldcorp to buy out Osisko were disappointed at the news that Andean Resources was the designated target overnight by Goldcorp.
1. This does not mean that Goldcorp will not buy Osisko.
2. September to December traditionally are strong months for gold and I would be very surprised if gold is not beyond $1300 during this time frame which bodes well for all gold stocks.
3. Osisko is currently going thru an automatic re-rating process from developer to producer. This normally happens in the months leading up to production not once production is actually achieved. Look at the normal life cycle of any mine. Contrary to what the anal- ysts tell you Osisko will be rising in the months prior to achievement of commercial production. These analysts are the same folks when Osisko was at $7 who said Osisko would under perform its peers because nothing would happen till the mine started. We know where Osisko is at today.
4. For a company with over 300,000 metres of drilling we have had to date reporting of only a small number of results. Hammond Reef will be huge. So will be the Clifton Star venture.There will be other pleasant surprises as well.
5. Roosen and company know what is coming down the pipe so if someone wants the company they will have to open thier coffers. Eldorado is at $11 billion market cap for comparison purposes.
6. Shareholders will be rewarded if there is a takeover or if the company proceeds on its own. The cash flow generated from Malartic alone is obscene.
7. My Osisko baseball cap that I received at the shareholder meeting will be a collector's item and worth a lot of money as well :)