Interest rate outlook suggests beaten-up bullion could be about to bounce

Smashed gold stocks beckon contrarian investors. And there’s plenty of M&A fever in the mix … think Gold Road-De Grey, Red 5-Genesis-St Barbara-Bellevue-Northern Star etc. 8th September Barry Fitzgerald.

St Barbara (SBM) managing director Craig Jetson came out punching on the company’s recent profit conference call on the subject of consolidation in the Leonora gold district.His intent was to demonstrate that St Barbara had plenty of options in the coming consolidation wave, one kicked off by Raleigh Finlayson’s Genesis (GMD) in July with its agreed takeover of Dacian (DCN).
Both St Barbara and Genesis later confirmed they were exploring getting together and because of the force of his record and personality, it was assumed that Finlayson’s Genesis had the whip hand in the talks despite being the smaller of the pair.But Jetson late last month said Genesis was not the only “group of people we have been talking to”."There's more than one train at this station,” he said. "There are probably four or five that are genuine contenders, to be honest.
"Red 5 (RED) has got to be one of them, and it has just strengthened its hand by announcing an increase in the ore reserves/resources at its newly developed King of the Hills operation (once owned by St Barbara).More to the point, it has a shiny new 4.7mtpa treatment plant with expansion upside which is what you would want if you intend leading a regional consolidation."