the market is always right ?? wrong!, page-34

Main points are this :

- cheap debt out there for projects that can show fast payback and return on investment .

- gold mining industry will increase its rate of consolidation in 2013
with lots of m&a activity . Both vertically ( big fish eating smaller fish) and horizontally ( smaller fish joining forces to create a stronger entity) mergers of equals a likely theme for 2013 in the junior space . Amx included perhaps ?? But more likely a target for a larger co looking for scaling opportunities.

- M&a activity a likely catalyst to provide liquidity , confidence and efficiency that is needed in the gold sector. Deals being made are liquidity events and keeps money moving through the sector. Stronger management will take control of good assets , poor management will sell under pressure of a low share price . This is long term good for the sector and shareholders.

- many juniors with nothing of value found to date will disappear next year . This will "unclutter" the gold mining investments universe , leaving co's with real assets and real prospectivity to attract the available investment dollars they deserve and need to flourish . Hundred of millions have been wasted on hundreds of co's that have proven up nothing of value over the last 5+ years . The sun is setting for these co's . This "state of the sector" is very much long term bullish for co's like Amx that have points on the board . And more coming .

Another interesting point Rick makes is , that it take about a decade to fully understand , interpret and unlock the full value in a new gold belt/province .
Amx already 3.1mil/oz and counting from 5km of 150km++ in just a few years . What will they end up with when all that area is fully assessed ?

To answer that question , Ive been researching the progression of the tropicana gold belt discovery in Aust recently , and drawing a few parallels with Amx's batie gold camp . Discovery rate , size and scale are all very similar (Amx discovery cost and rate actually better) . But cappex and oppex for Amx likely to be much less imo. But PFS will tell us this soon enough .

Would be interested in gundi's thoughts on this comparison actually. I remember he had posted about IGO a while back .