Michael Ballanger expounds on the Goldcorp/Kaminak deal and what it means for the gold market, and he dissects the most recent COT report.
I was emailing back and forth with my pal Brien Lundin, editor of Gold Newsletter, this week and as we were basking in the limelight of analytical brilliance, it occurred to me that having a stock that many of us own, Kaminak Gold Corp. (KAM:TSX.V), suddenly the target of a $520,000,000 bid by a major mining company, Goldcorp Inc. (G:TSX; GG:NYSE), is exactly how proper analysis should be rewarded. At least, that’s how we were taught, to say the least. To wit, this event is truly a significant watershed and a concrete block of confirmation that the New Golden Bull has arrived. Whether or not you are a raving foam-in-the-mouth bull, or a patient hiding-under-the-desk bull (as am I), Goldcorp’s bravado is a wonderful thing to behold and would have made Harry Callahan proud.
What really got me thinking that inevitably Kaminak would be acquired was when the company released the preliminary economic assessment in 2015 where it basically told us that in an area covering perhaps 20% of the land package, it had identified 1.8 million ounces (1.8 Moz) gold Measured and Indicated and 3.4 Moz Inferred. So with a 5 Moz deposit in arguably the most mining-friendly territory in the world, it really wasn’t much of a surprise when mighty Goldcorp stepped in with a half a billion dollar bid, but it WAS an absolute delight. Good on Goldcorp and good on all of you that own/owned Kaminak, but rather than standing here holding the bouquet of roses, batting my eyes and curtseying, let’s move on. . .
The COT Report:
For the week ended May 10, …read more