Gold Takeovers Set Record

Global gold mining takeovers set a record this year with “chest-beating” miners chasing deals as the price of the metal surged, boosting fees at advisory banks BMO Capital Markets, HSBC Bank Plc and Merrill Lynch.

Takeovers may increase as China, the world’s largest gold producer, backs acquisitions abroad.

“Producers are under pressure to continue to buy or find gold to replenish the production pipeline and many companies look to do both.”

Barrick, the world’s biggest producer, and Newmont, the largest U.S. gold company, have both signaled in the past two months that they may consider “opportunistic” acquisitions.


Hopefully you have a large basket of junior miners to take advantage of these takeovers… it is like buying the high-quality seniors at a discount as you get shares of the senior when they take-over the junior, but more shares than if you just bought the senior to begin with.


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