Seeking Alpha

Heavy acquisition activity for Chinese gold miners

  • Takeovers and asset purchases by producers based in China and Hong Kong rose to a record $2.24B this year amid the steep decline in gold prices and mine values, according to data compiled by Bloomberg.
  • The busy Chinese activity comes as shareholders in Western-based miners warn executives to chill their M&A activity. Chinese miners - often with lower production costs - are less constrained and have continually perky domestic consumption to satisfy.
  • Next possible targets are Papillon Resources (PAPQF.OB), Iamgold (IAG), Amara Mining, and Perseus Mining (PMNXF.PK), according to Aussie gold analyst David Brennan. China's largest producer Zijin Mining has previously said it has its eye on three Australian mines Barrick (ABX) has for sale.
  • China's appetite for gold is virtually insatiable, says Jon Price of Phoenix Gold (PGLD.PK). "They have a large bank account with which to work, and a lot of U.S. dollars that they perhaps would rather see turned into physical assets."
  • Gold mining ETFs: GDX, GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING.
Comments (5)
  • DeepValueLover
    , contributor
    Comments (8167) | Send Message
     
    Junior Gold Miners: The World's Deepest Valueâ„¢ (at the moment). ;)
    21 Aug 2013, 08:25 AM Reply Like
  • haleiwahu
    , contributor
    Comments (3449) | Send Message
     
    I like the fact that China's appetite for gold is virtually insatiable, says Jon Price of Phoenix Gold (PGLD.PK). "They have a large bank account with which to work, and a lot of U.S. dollars that they perhaps would rather see turned into physical assets." This alone should keep the value of gold where it needs to be. What industry drops their price when a customer like China will buy up everything you got at your asking price?
    21 Aug 2013, 08:48 AM Reply Like
  • Daveintosa
    , contributor
    Comments (142) | Send Message
     
    Economist AGI makes a lot of sense! GO PACK GO!
    21 Aug 2013, 09:09 AM Reply Like
  • davidjk
    , contributor
    Comments (6) | Send Message
     
    too many bargins to choose from right now. looks like silver miners may raise quickest, my favorite is aunff. watch out for earnings this friday.
    26 Aug 2013, 09:07 AM Reply Like
  • haleiwahu
    , contributor
    Comments (3449) | Send Message
     
    David - according to the company's web site AUNFF completed their pre-feasibility study that supports that once the mine and mill are operating at full capacity, Shafter will be the second largest, pure-silver producing mine in the U.S. and capable of supplying 10% of U.S. silver demand. If all this is correct, maybe 2014 will be a good year for them. And depending on the Monday opening it might be a good time to buy. AUNFF currently $2.38
    1 Sep 2013, 10:17 AM Reply Like
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