Today we get this news on CNBC that major gold miner Newmont will be buying out Goldcorp creating "the world's biggest gold producer by output". Below are a couple of excerpts and then some added comments.
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"Newmont Mining said on Monday that it would buy smaller rival Goldcorp in a deal valued at $10 billion, creating the world’s biggest gold producer by output.
The deal is the second high-profile merger in the mining industry since Barrick Gold agreed to buy Randgold Resources Ltd in September last year to cut costs."
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My added comment: Having worked in the oil and gas industry for many years at a company that buys oil and gas reserves from other companies, I can observe that these large mergers/buyouts in the gold industry suggest that the executives for those companies think that gold is near a bottom for it's price cycle and likely to start into a longer term move higher (start a new upleg cycle). If you believe that, you would be very aggressive in trying to buy up as many reserves as possible before prices go somewhat higher. So I would tend to interpret this news in that way.
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