Well said Samboy. The article below highlights the limited investment opportunities there are out there as the two big boys would prefer to hand over billions of dollars back to shareholders.
There aren't many major ready made investments where a quick payback and high returns on investment can be made from. Twiggy and Gina know Atlas provides that diversified option at a low entry cost.
.....However, the chances are good that at least some of the proceeds, should the deal be finalised, will wind up in the hands of shareholders.
While investors are usually pleased to get their hands on a pile of cash, the fact that BHP intends to hand over the cash and Rio Tinto may do the same illustrates that there really are very few suitable investment opportunities.
Mining companies were heavily criticised for over-investing in the last boom period, which ended in 2011 and was followed by five years of declining prices for most major commodities, such as iron ore and coal......
This resulted in the companies turning their focus to operational efficiencies and boosting returns to shareholders, a shift that is still the current mantra most often heard from top mining executives.
But while this was a necessary change in mindset, it is also a strategy that's unlikely to work in the long term......
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AGO Price at posting:
4.2¢ Sentiment: Buy Disclosure: Held
