Hyperinflation

Exploring Gold Miner Stocks: Mid-Year 2009 Analysis

I liked the sale of Yamana's mines. It may be try to finance an acquisition (which they naturally wouldn't announce) or are planning to ramp up El Penon, Jacobina and Gualcamayo ahead of schedule. They may also be trying to push Pilar or Santa Luz ahead of a year, but my gut is telling me they are trying to push Agua Rica (their next flagship) ahead. But who knows. I know any potential buyer will have to pay a hefty premium for their first class pipeline.

If I were Lihir I would divest those mines such an Bonriko as well as their other Australian portfolio to push the MOPU system at Lihir Island and develop thier African mines. I know people hate Africa but S.A gives it a worse name. Sure there are many bad countries in Africa, but you can't generalize every country as such.

I never look at P/E ratios because i think using EV/EPS is much more telling.

Other than Yamana and the Eagle, I think Jaguar will provide one of the highest rates of return.