Wednesday, 17 September 2014

Rick Rule on Gold, Miners and M&A: Newmont & Barrick – This Merger Has To Happen.

Rick Rule shares his industry insights and how this very ugly market for miners is already changing for the better.

Acquisitions signal a turning market for miners. Canadian Junior TNR Gold holds back-in right into one of the largest copper deposits in the world.

"...However, recent deals have brought interest back to the market. These include the acquisition of Osisko Mining Corp. ($3.7 billion), Augusta Resource Corp. ($555 million), and Sulliden Gold Corp. ($300 million), all of which have helped push the 2014 total to more than 40 deals worth over $7 billion.For junior and mid-tier companies, First Quantum Mineral's recent acquisition of Argentina-focused Lumina Copper Corp. is a leading indicator. The $470 million deal, centered on junior miner Lumina's highly promising Taca Taca copper project (120 kilometres east of the Escondida, the world's largest producing copper mine), has spurred interest in companies with similar assets across the Americas. The purchase sets a much-needed price benchmark, an essential gauge in a market now accustomed to good companies with reduced market caps and undervalued assets. Read more."