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Gold/Mining/Energy : Gold Price Monitor
GDXJ 92.99+2.9%Nov 7 4:00 PM EST
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To: long-gone who wrote (72297)6/25/2001 12:34:31 PM
From: Rarebird  Read Replies (3) of 116753
 
It is a very good merger for HM because they needed ABX's $$$ to fully untap the tremendous assets in Veladero. ABX's cash flow is a tremendous asset to HM. HM went on an acquisition binge over the past couple of years, diluting shareholder value, mistakenly assuming that the Gold Bear was about to end. This is not to say that HM erred in its most recent acquisitions. The Veladero acquisition became a steal and ABX knows it, as a 40% partner. I think ABX came to regret that it did not outbid HM for the remaining 60% stake of Veladero.

From a gold mining standpoint, this merger is bullish. ABX is clearly making a statement here that it expects the POG to enter Bull Mode over the next couple of years.

Let's see how the market treats ABX's shares over the coming weeks. Given HM's good balance sheet, I doubt the Market will treat ABX the same way it did NEM when it acquired BMG. BMG was loaded up to its ears with debt.

I welcome this merger.
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