Gold sector to see a rise in mining acquisitions
Goldcorp (TSX:G)(NYSE:GG), one of the top producers of the precious metal, expects mergers and acquisitions in the sector to increase in the coming months.
In a recent interview, CEO Chuck Jeannes said valuations remain attractive and tougher financing conditions have created what looks like renewed opportunities, according to Bloomberg.
Gold stocks have rallied over the past three months after suffering for much of 2011 and the first half of this year. Prices for the precious metal reached a six month high Tuesday and continue to climb.
With bullion now settled at $1,771/oz optimistic headlines are gathering momentum and Schools of Business everywhere are rushing to produce papers that can explain it all. This recently published research by U.S.-based Duke University, which looks at the "real" price of gold around the world.
The “real” price of gold in the U.S. is historically high, relative to its history as an actively tradable asset. But what about the real price of gold in other countries? It turns out that, in our impressionistic sample of 23 countries, the real price of gold is high everywhere. The real price of gold is high in “troubled” countries as well as in “safe” countries. If the real price of gold is a barometer of perceived troubles then there is trouble everywhere. Or, alternatively, gold is just expensive everywhere.
In a related development, Goldcorp said Tuesday it has signed a deal to sell part of its stake in Primero Mining (TSX:P), (NYSE:PPP) in a secondary offering worth $44.2 million. The Vancouver-based company said a syndicate of underwriters have agreed to buy 8.4 million shares of Primero at a price of $5.25 per share.