good deal or bad deal, page-30

Hi JGPM and all,

As I mentioned before I believe this to be a good deal; however, the management will need to act decisively and quickly to bring this production into reality. Something the current mamagemnet are well aware of I am sure, also hope they can do it without too much more share-holder dilution.

No doubt cash will need to be raised, hopefully when this needs to happen the company will consider their share-holders first and not some outside investor group.

Another company merger / supply deal linked below caught my eye and stories like this one can only assist the Gold mining sector as a whole IMHO!

“South Korea's Samsung Construction & Trading (C&T) will provide small British miner Cluff Gold with funding in return for access to its gold supply under an initial $20 million partnership deal between the two companies.”

In return, Samsung C&T, a much larger company valued at $9 billion, will have access to a supply of gold bullion at a 2.25 percent discount to the price of the metal on the day prior to delivery, Cluff Gold said.

http://www.mineweb.com/mineweb/view/mineweb/en/page504?oid=158492&sn=Detail

It makes good sense to me as a producer for companies to guarantee supplies of critical resources (Gold less 2.25%) used in the production of their goods and an excellent way to spend your record profits. It’s also great to see a company taking a longer term view.

It certainly looks like the boys in New York are serious about the $1,780.00 and $35.00 line in the sand and courtesy of Uncle Bens there is not going to be any shortage of freshly printed dollars to handle the job. Dodgy job numbers or not.

However, once the election is over and the debt ceiling is breached once again around the beginning of December these same boys may find they have their work cut out for them.

Maybe Samsung are taking the view I heard Marc Faber use recently when asked in these turbulent times where does one put his money.

He answered it’s as easy as A B C D.

Anything

Bernanke

Can’t

Destroy

Personally I think that just about says it all and it would appear that more and more people are recognising the negative effects of Q E to Infinity and Beyond!

Cheers to all and very best regards: Andy