jump in now before M&A BSX has been a likely take over candidate for some time. Its what buoyed the share price last year. Dont be fooled by the lacklustre 15% IRR of the PFS as those numbers will improve substantially once the greater resource numbers are factored into the capex costs.
The following was written by David Pett for The National Post, May 27th, 2013
Those companies that do have similar characteristics will likely be intensifying their M&A efforts, they said. “We believe that other companies will not and should not sit idle. Here’s why: inventory of high-quality (ie. low capex intensity, favourable IRR, EXECUTABLE) assets in favourable jurisdictions are limited; valuations are compelling; and, bottom line, companies need to get on with business,” the report said.
“In other words, make moves to secure high quality exploration and development projects even if it means putting it into inventory until market conditions improve.”
Possible acquirers include NEWGOLD Inc., Yamana GOLD Inc., Alamos GOLD Inc., Eldorado GOLD Corp., Goldcorp Inc. and B2GOLD Corp., while the short list of high-quality acquisition candidates includes Romarco Minerals Inc., Balmoral Resources Ltd., Belo Sun Mining Corp., Minera IRL Ltd., Newstrike Capital Inc., Rainy River Resources Ltd., and Torex GOLD Resources Inc.
“While other jurisdictions offer prospective geology and, in cases, mining expertise, we see the potential for assets in the Americas, notably Canada, US, Mexico, Chile, Brazil, and, arguably, Peru for bite-size projects, and Australia to remain in focus,” National Bank analysts said.