If this move in gold and gold shares continues, and a QE3 hits...

If this move in gold and gold shares continues, and a QE3 hits the table in coming months, then conditions will be ripe for takeover activity.

A few factors already discussed in the "are the big boys really that smart" thread.

The majors need a few things to pull off larger size (500mill+) deals.

1. positive sentiment towards gold stocks and a rising sp - this make deals easier to swallow for thier shareholders. "Make plays into strength"

2. a rising gold price - puts pressure on the majors to act sooner rather than later , before their targets move from oversold to overbought. And bigger premiums starts getting factored in.

3. Lowered valuations of target interests - well , we certainly have that . Even it amx was to rise another 50% it would still be undervalued. If amx starts to move higher , again , it puts pressure on the majors to make a move.

4. The main thing is having a big cash position , which most of the major have . Thanks to the POG over the last three years, the major all have a warchest of funds at thier disposal. This means they a) don't have to over dilute their own shares register b)don't have to enter the tight fisted debt market to finance deals c) Targets co's are more likely to accept a majority cash offers

Things are certainly looking up and holders of amx have good reason to be optimistic here .

And don't get me wrong . AMX doesn't NEED a takeover deal to start moving much much higher. That is hardly the only ace up our sleeve.

Remember - worst case scenario (very unlikely IMO) - even if a take over does not occur, this will be a highly profitable/long life mine - no need to accept anything less than a fair value deal above 500mill$$.

Moreover, if needed, AMX wont have any problem raising debt to finance mine construction on the back of a favourable PFS. This is a given with todays gold prices.

Remember , always focus on the big picture, the company fundamentals and how the "time" factor will ultimately work in AMX's favour (i.e., from either a take over perspective or "gold pour" perspective).

All fundamentals for AMX are great , even in this macroeconomic environment. When gold goes up , it increases company's value from a serious enterprize/takeover/mining perspective.

Have good Sunday (and an even better monday !)