Looking for reasons....For the huge share price increase and volume spikes for the past 3 weeks
I always jump into gold this time of year and so do most knowledgeable investors who witness it year after year. But IMG share price has already duplicated what it took 1.5 months last year at this time.
As for the volume, this is quite extraordinary. It could be massive short covering but I think it's more than that.
I came across a post on the net this AM that might explain it. Was wondering if anyone else has heard of this
https://www.thestreet.com/story/12733596/1/iamgold-iag-continues-to-rise-on-high-volume.html?puc=yahoo&cm_ven=YAHOO
Very shallow analysis. All the negatives can be traced in large part to the decline in gold prices. If I were to look for a real negative, I would look at a mediocre, at best, management. That said, they have made some progress in some areas of cost cutting. Management doesn't have the moxy to make huge progress.
The huge volume of the last two days is due to the big news of B2Gold buying up Papillion for around $600 million.....a merger actually. Papillion has one asset: the Fekola deposit in Mali. Here's the connection: IAG has the southern extension of Fekola across the river in Senegal called Boto, and the deposit appears to continue down into a JV property of IAG and a little explorer named Merrex Gold. Speculation is the one of the big boys is sniffing around to buy IAG.....possibly Newmont. If NEM bought IAG even at a decent premium, they will still get Boto for free. It would be a very smart move to buy up IAG in its entirety, then subject it to smart management. Plus, you would get to start up a new low cost open pit mine in Senegal/Mali that cost you nothing. Investors are betting the IAG is either a goner soon, or that Boto and Merrex Gold's properties will get recognized as a game changer for IAG.