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« GOLD: BUY, BUY, BUY | Main | Democrats poised for US election gains »
Monday
Nov062006

KINROSS GOLD CORP to buy BEMA?

According to Reuters - Kinross Gold Corp. will make a takeover bid for fellow Canadian miner, Bema Gold Corp. trading halted on Monday morning.

This is a rather interesting move, which should be good for Bema’s stock price. We will need to see the details of the bid before we can comment further.

Kinross Gold Corp trades on TSX as K and on the NYSE as KGC.

Bema Gold Corporation trades as BGO.

06 November 2006

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Reader Comments (4)

If this bid is to be accepted by BGO, that would make KGC the biggest among the medium-sized gold producing mining companies. I must admit that I prefer preys rather than predators in this indsutry, for obvious reasons. The premiums that are being paid are already quite substantial and as the metals boom gains momentum, the acquisition premiums will grow along.

November 7, 2006 | Unregistered CommenterJoey

Agreed.

For us this takeover will make Kinross a bigger part of our portfolio than we are comfortable with. So now we need to look for the next 'Bema' - your call on Yamana was bang on so if you have any suggestions or thoughts on the next 'prey' we would be delighted to hear them.

November 7, 2006 | Unregistered CommenterBob

There are simply too many!! I think if you diversify in your portfolio and buy the smaller mining companies, you're pretty likely to have a couple that will be taken over. I've just seen my EZM shares increase as the result of a merger with Lundin (now AMX:LUN).
I think the logical step for gold mining companies is to diversify and buy themselves some copper, zinc or lead producers. I like CUP in that respect. Southern Copper might also try to take over CUP.
As for others: GRZ, KRY, AZK, NSU, NXG, TGB, name them. There's too many that are likely to be acquisition targets. That's the beauty of this industry which awaits an enormous consolidation!

November 8, 2006 | Unregistered CommenterJoey

Good point on merger strategy, although I'd like to throw out alternative idea or strategy that considers mergers less than advantageous.

I've been dabbling in gold stocks for about 4 years – originally did a lot of research, build a nice balanced basket (explor, small, mid & large) focusing on small/mid that were heavy in exploration potential but with at least a small amount of production.

Strategy was to stumble onto at least a couple that had low stock dilution, unheaged w/ near to mid term production potential that when gold hit the $1000/oz level (and the econ was in the dumper) that these would go to the moon!!!! (longer term strategy).

But what has happen more times then I'd can count is that they get gobbled up by bigger boys before they have a chance to make huge gains. Not that I'm really complaining, have not lost, gained shares in larger co. at a good price but have only a couple of times gotten double baggers or higher. Now my basket is much heaver on larger producers then originally wanted.

Guess, its time to start activity trading again - but the point is that my original strategy of looking for "to the moon" companies may not be a realistic one. Small incremental gains I guess is still the only proven strategy.

any comments on successful strategies?

July 26, 2008 | Unregistered Commenterdave

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