In August, Mexico-focused AuRico Gold offered to buy Northgate Minerals for $1.46-billion in a friendly deal that would nearly double its output.
Christie also raised his price forecasts for gold and silver. Gold has vaulted close to eight-fold from just $250 in 2001 to a recent high of $1,911 an ounce.
“For 2012, we are forecasting gold and silver prices of $1,800 per ounce and $40 per ounce, respectively,” given that interest rates are likely to remain negative into 2013 and 2014 and safe-haven buying continues, he said.
Now that the Swiss franc is tied to the plunging euro, which has fallen 5 percent versus the dollar in two weeks, gold is the global default store of value, Christie said.
Galloping gold prices should benefit earnings for gold companies, said Christie, who has majors Barrick Gold and Iamgold Corp on his focus list.
“Given what looks to be a substantially higher gold price environment, most producers will be generating significant cash flow and earnings. We expect that some of this cash will go to support higher dividend payments,” Christie said. source business.financialpost.com For the latest updates PRESS CTR + D or visit Stock Market news Today
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