Guys I keep going back to the smart guys been around way longer than me! And a lot of Punters on this blog! Rick Rule: These discoveries will lead to corporate merger activities. The large intermediate and major mining companies need to acquire new economic projects in order to continue to exist. Every day they produce, their business gets smaller. The twenty-year "bear market" in gold equities that ended in 2002 constrained these companies' ability to explore, so now they must acquire. As a consequence of the improved corporate cash-generating capabilities, they can afford to both acquire other companies as well as develop the projects they acquire. They can afford to acquire each other, too, eliminating wasteful duplicate general and administrative expenditures and enhancing shareholders' returns.
Discoveries and takeovers add liquidity and hope to a market lacking both. While we may not enjoy the rewards for contrarian acquisitions this year, I am certain we will be well rewarded over time.
All this from a Sprott that has 3% of AMX and in the next few days maybe more!
AMX Price at posting:
19.7¢ Sentiment: LT Buy Disclosure: Held
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