Yamana Gold Inc. T.YRI

How AUY Could Cease To Exist - A Speculation

[chux02]

Here's what I wrote over at Seeking Alpha in regards to something that probably should at least be on your mind IF you own any of these shares because it IS a possibilty... Comments??

 

chux08

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Now there's a thought...Yamana says that in 2016 they'll produce (abt) 1.25 million ounces of gold, (abt) 7 million ounces of silver and (abt) 125 million pounds of copper. If you look at the location of their assets and Goldcorp's assets what you're pointing out here COULD be a real possibility. GG would then be the undisputed largest precious metal miner in the world - I hope you're right... As a side note the CEO of Barrick was on CNBC last Friday touting their production costs of just under $900 per gold ounce. I believe AUY has that number lower than $800 which would also be a plus especially from the standpoint of any potential suitors looking for a desirable takeover target, although in the world of M & A, with almost 7000 employees and a market cap of over $3.5 billion, AUY would still be a HUGE worm to swallow for the acquiring company. Dare to dream, I guess...

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chux08

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On second thought IF I had to hazard a guess as to which large gold producing company would aspire to buy out and own what we now call Yamana Gold, it would be the company that they already have a fairly large working relationship with right now. Which is the same company that did a 50% - 50% deal with Yamana to buy out Osisko Mining which is the company that originally developed Malartic. I think Agnico Eagle Mines would be the most likely suitor and I'd even further speculate that it would probably be a friendly deal as well, what with all they're doing together now, IF that was going to occur. Go to AEM's website and check out their impressive list of mine operations and exploration projects and you'll see they list right out there in front of God and everybody that that particular project (and there's others - Hammond Reef & Kirkland Lake) is with Yamana Gold on a 50 - 50 basis. And from what I can tell, what AEM calls "the partnership" is going rather well all things considered. And who knows? We here all know what a tight ship AEM runs, they're a great company with a great reputation. Maybe some of that has rubbed off on Yamana management who is tightening up their own ship so to speak making themselves even more attractive to both investors and large gold miners looking to add quality projects and low cost ounces to an already impressive bottom line. And maybe right next door too. Dare to dream? OK I will...