Gold Sector M&A to “Pick Up, Given the Valuations”
Gold shares were mixed on Tuesday, as the Market Vectors Gold Miners ETF (GDX) oscillated between gains and losses near $53.91 per share. The sector’s activity mirrored that of the broader equity markets, as the S&P 500 Index seesawed between positive and negative territory near 1,458.
Notable advancers this afternoon included GDX components Harmony Gold (HMY) and AngloGold Ashanti (AU) – which rose by 4.3% to $9.52 and by 0.8% to $36.57 per share. In contrast, shares of Barrick Gold (ABX) slipped 0.7% to $41.89 while Kinross Gold (KGC) fell 0.9% to $10.10 per share.
( for more information on the gold sector, including analysis and rankings of every GDX component, visit GoldAlert Pro at http://pro.goldalert.com )
While the gold sector has rallied significantly over the past six weeks – the GDX has jumped 25.9% since the start of August – shares of most mining companies have continued to lag the price of gold. On a year-to-date basis, the GDX is up by just 4.5% while the yellow metal has climbed 13.6%. Furthermore, the ratio of the gold price to several of the gold sector indices remains near historic lows.
As a result of the sector’s underperformance, several industry executives and investors expect merger and acquisition activity to pick up as many large-cap gold producers that have struggled to generate growth look to purchase their smaller peers at a relative discount.
Chuck Jeannes, CEO of Goldcorp (GG), stated in an interview last week that “The development-company valuations have come down to where, at least on paper, it looks like there’s some opportunities,” according to a report by Bloomberg.
Jeannes went on to say that investors have responded positively to recent pledges by the world’s largest gold miners to make better investment and operational decisions. “It’s not ounces, it’s value,” he asserted.
The report also included commentary from Marc Sontrop, a portfolio manager at Interward Asset Management in Toronto. “A lot of the juniors have been hard up for cash, the financing window wasn’t necessarily open,” he noted, but added that “I think we’re going to see takeover activity pick up, given the valuations.”
Randy Smallwood, CEO of Silver Wheaton (SLW) – a silver and gold royalty company – provided his thoughts on the issue as well, Bloomberg noted. “The market is a bit gun-shy and there is a bit of a sentiment to sit on the cash and be a bit more patient before you go acquiring those growth opportunities,” he stated. “At the same time, you’ve got these undervalued equities that are screaming out that there’s some pretty good deals out there in terms of acquisitions, so I don’t see that lasting very long.”
2012-09-19 20:33:55
Source: http://www.goldalert.com/2012/09/gold-sector-ma-to-pick-up-given-the-valuations/
Source:
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Humic & Fulvic Liquid Trace Mineral Complex
HerbAnomic’s Humic and Fulvic Liquid Trace Mineral Complex is a revolutionary New Humic and Fulvic Acid Complex designed to support your body at the cellular level. Our product has been thoroughly tested by an ISO/IEC Certified Lab for toxins and Heavy metals as well as for trace mineral content. We KNOW we have NO lead, arsenic, mercury, aluminum etc. in our Formula. This Humic & Fulvic Liquid Trace Mineral complex has high trace levels of naturally occurring Humic and Fulvic Acids as well as high trace levels of Zinc, Iron, Magnesium, Molybdenum, Potassium and more. There is a wide range of up to 70 trace minerals which occur naturally in our Complex at varying levels. We Choose to list the 8 substances which occur in higher trace levels on our supplement panel. We don’t claim a high number of minerals as other Humic and Fulvic Supplements do and leave you to guess which elements you’ll be getting. Order Your Humic Fulvic for Your Family by Clicking on this Link , or the Banner Below.
Our Formula is an exceptional value compared to other Humic Fulvic Minerals because...
It’s OXYGENATED
It Always Tests at 9.5+ pH
Preservative and Chemical Free
Allergen Free
Comes From a Pure, Unpolluted, Organic Source
Is an Excellent Source for Trace Minerals
Is From Whole, Prehisoric Plant Based Origin Material With Ionic Minerals and Constituents
Highly Conductive/Full of Extra Electrons
Is a Full Spectrum Complex
Our Humic and Fulvic Liquid Trace Mineral Complex has Minerals, Amino Acids, Poly Electrolytes, Phytochemicals, Polyphenols, Bioflavonoids and Trace Vitamins included with the Humic and Fulvic Acid. Our Source material is high in these constituents, where other manufacturers use inferior materials.
Try Our Humic and Fulvic Liquid Trace Mineral Complex today. Order Yours Today by Following This Link.