Food for gold thought!Goldcorp wants to buy Andean Resources putting in a rival bid against Eldorados bid for T-AND $7.04 + 2.23 +46%
You can see in this article that Andean has gold production levels up to 255,000 per year with production costs at $60 range when you factor in the discount for all silver mined as well.
On the other hand YNG is now producing 150,000 ounces and that may increase very shortly.
What currently is YNG's cost of production per ounce gold?
So now we are seeing stories of mid tier and majors buying up gold producers with smaller gold production levels under half a million ounces per year, which makes a convincing story for YNG's future growth and possible take over by a gold producer as well. They would definetly be on the radar for a take over bid at the current share price. this is a steal compared to many similar producing companies with much higher share prices. You can sample a list of companies with similar gold producction levels under 300,000 on YNG's web site.
Goldcorp
GG announced a cash and stock acquisition for Andean Resources for CAD 3.6 billion ($3.4 billion, including up to CAD 1 billion in cash), trumping an all-stock offer from Eldorado
EGO of CAD 3.5 billion. Andean Resources' principal asset is the Cerro Negro project located in Santa Cruz province of Argentina with reported indicative reserves of 2.1 million ounces of gold and 20.6 million ounces of silver. The project is expected to start producing in late 2012 with
255,000 ounces of annual production at a cost of around $60 per ounce after accounting for silver credits.
https://torontostar.morningstar.ca/globalhome/industry/news.asp?articleid=351178
This stock price for YNG is really undervalued as the board and analysts point out. This price per share is not going to stay under a buck for very long IMO Best get all the shares you can get your hands on before the rise comes would be the game plan here if you see a gold mining consolidation expanding by the majors gobbling up these smaller producers to fill their gold reserve lists to keep their own balance sheets and stock prices strong.
Gold prices also will dictate what the future holds for take over offers so this is starting to heat up from the looks of things in the gold mining industry.
Any thoughts on this possible expansion of gold consolidation by majors buying up the smaller producing companies?
Enjoy all the posters thoughts here.
Trader2day