Initially read this at JSMineset but the link here gives access to the full article.
Sinclair argues that "value" will turn the direction of gold stocks.
An interesting article from Australia on Chinese interest in Gold mining acquisitions. Historically there has been a presumption that there was a focus only on iron and base metals. There is also reference to direct Chinese purchases of gold from mining companies.
I note also that Bill Cara writes that his new venture Greenfield Mining Capital may make agreements with Chinese state-owned companies. (See Week in Review - Gold Miners Section)
Additionally the article discusses Saudi Arabian Mawarid Investment's involvement with Australian miners to establish Saudi gold mining.
I continue to believe that the current painful shake-out in the miners, and especially the juniors, offers value to those seeking to create growth gold mining companies and those seeking cheap ownership of gold and exposure to gold.
Once the seniors and mid-tier share prices turn and reach a tipping point where their stock-paper is more valuable relative to the juniors I expect to see significant acquisition activity as junior developers are purchased to replace depleting resources.
I anticipate that funds, realising gains from those acquisitions, will seek out the next tier of explorers and developers from a field which will have been depleted by acquisition activity.
Quality junior exploration should see a new influx of capital.
The danger is that the Vancouver printing presses will meet the demand with poor quality new ventures; the challenge will be to identify those management teams and properties in a position to add real value.
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