RE:RE:RE:NEM buys GGYes I am here thanks for asking. Just still on vaca.
The deal is horrible and a ridiculous merger. A typical get bigger for the sake of getting bigger. The BoD should have fired Garafolo's A*S out the door as he has been horrible for shareholders and then GG could have remained independent.
GG actually had some remnants of a plan, so no clue why the BoD sold out to NEM. Makes no sense. I got out of Goldcorp in 2012 at around $ 46 CAD. Shareholders had 4-5 times to get out in mid to high $ 40s Canadian back a half decade ago +. Anyone still stuck in that ticker is their fault, as the writing has been on the wall the past 1-2 years of GG's underperformance. Brutal.
The merger between Barrick and Randgold made sense in terms of synergies and market rewarded accordingly although new Barrick SP performance very bad past two weeks. Reversion to the mean evidently.
I don't think anyone out there has the firepower to take out KL.
Maybe the Chinese or Newcrest as someone else posted. NEM is now out of the picture for sure. Or the "new" Barrick since they could afford a share offering. Barrick may want to issue a bunch of shares and do some in cash since they inherited cash from Rangold. They may be able to pull off a deal to buy KL,
BUT I doubt Eric Sprott wants his baby to go to Barrick of all companies which now has such a small Canadian representation on Management teams and BoD after it merged with Randgold! So count Barrick out. KL will remain INDEPENDENT based on everything happening so far in M&A space. Organic growth much better than stupid deals. The
Globe and Mail article about "new" Barrick mentioned Pretium though, and I think Pretium gets taken out in the next 4-6 months before anyone moves on KL.
I would buy Pretium at these levels as dirt cheap with the stream repurchased and still $ 45 Million in cash at year end 2018. They won't be as big a producer as modelled in the geological study, but still the shares are now very cheap and they are way ahead of where they were a year ago.
So my next bet is Pretium gets taken out by Barrick
OR Barrick goes after B2Gold as B2Gold only has now $ 400 Million debt after repaying debt due October 2018. B2Gold will be debt-free in the next two years, and they have close to 1 M oz. at AISC just a bit higher than KL, but still very low industry AISC.
KL is in a league of its own after the most recent production report, and no further analysis is needed as I mentioned all about PEG and future earnings growth before. The earnings coming up will be MASSIVE and market already positioning shares closer to $ 40 CAD rather than further away from $ 40 CAD point.
I also like Alamos after their Q4 and Y-End #s announced this evening and they are also debt-free just quite high AISC around $ 950 which I don't like.
Will be a big year in M&A. And gold holding nicely just below $ 1300 USD.
Regards,
JIN
Long KL Shareholder
Long B2Gold Shareholder TheWolff wrote: I wonder if they knocked our door, I remember Jin (Are you alright?), saying Newmont was the only with deep enough pocket to buy KL, I say : Eric don’t sell it,