gdo to acquire rand uranium, page-77

The way I see it this deal significantly increases the risk/reward profile of GDO as it is essentially a massive punt on high gold prices. If the gold price falls below about 1200 (or perhaps a bit lower due to efficiencies which can be extracted from synergies and better management) then we'll have a 250m white elephant on our hands. I think this explains the exodus today - big investors probably can't remain because their mandate is more conservative. On the flipside it may be a great punt because they've acquired a pretty large resource for a pittance. I actually think that's the more likely outcome here as I don't see gold going lower. But it is a punt nonetheless and the market has responded accordingly. Some details re potential cost reductions would be most welcome. My 2c