Big news for the gold sector – Goldcorp and Barrick teaming up in Chile
The major news from the mining industry is Goldcorp and Barrick teaming up in Chile. Barrick is the largest mining company by value and Barrick is number 3. On the heals of this news we also have Goldcorp buying out Exeter Resource Corp. (a sponsor to the website).
Chris and I discuss what this news means for the overall metals sector. There is a lot at play but this is definitely good for the overall sector.
Click download link to listen on this device: Download Show
Goldcorp Teams Up With Barrick in Chile as Miners Share Risk
by Danielle Bochove – March 28, 2017
How Much Will a New Copper Mine in Chile Cost to Build?
by @BenjaminCox on March 20, 2017
https://ceo.ca/@benjamincox/how-much-will-a-new-copper-mine-in-chile-cost-to-build
Indonesia Wants Control of Freeport’s Grasberg Within Two Years
by Yoga Rusmana and Eko Listiyorini
March 22, 2017
THIS WORLD-LEADING COPPER SUPPLIER JUST CAME BACK ONLINE
admin | March 22, 2017
Zinc, copper miners in Peru declare force majeure amid flooding
Leading zinc and copper miners in Peru have declared force majeure on nearby supply contracts as flooding and landslides continue to disrupt transportation in the country, most notably in the Central Andes, sources with knowledge of the matter told Metal Bulletin.
https://www.google.co.uk/url?
Exeter Resources share price up over 50% on Goldcorp takeover.
sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwi9qPKz
z_nSAhXJB8AKHcX4CFwQqOcBCCYwAQ&url=https%3A%2F%Exeter Resources share price up over 50% on Goldcorp takeover.2Fwww.juniorminingnetwork.com%2Fjunior-miner-news%2Fpress-releases%2F927-tsx%2Fxrc%2F30676-PFSlNO0Mqtc9FE0aqhV14pUA&bvm=bv.150729734,d.d24
Well done Exeter and to their team! Cause for celebration for sure.
(Of course this happened when I had rotated out of them temporarily) 🙁
Goldcorp to acquire Exeter Resource Corporation
March 28, 2017 /CNW/ – GOLDCORP INC. (TSX: G, NYSE: GG) and Exeter Resource Corporation (“Exeter”) (TSX: XRC, NYSE-MKT: XRA, Frankfurt: EXB) are pleased to announce that they have entered into a definitive arrangement agreement pursuant to which Goldcorp has agreed to acquire, by way of a plan of arrangement, all of the issued and outstanding shares of Exeter. The total consideration offered for all of the outstanding shares of Exeter is approximately $247 million (on a fully diluted basis).”
http://www.newswire.ca/news-releases/goldcorp-to-acquire-exeter-resource-corporation-617285643.html
CEO Roundtable with Yale Simpson
by Allan Barry Laboucan
“Interview with Yale Simpson from Exeter Resource Corp. We have a great chat about the companies Yale is involved with and plenty of great information for investors from insider’s perspectives.”
http://allanbarryreports.com/2016/11/29/ceo-roundtable-with-yale-simpson/
There is a lot of chatter in the Exeter room over at ceo.ca
Resource Junior (EXETER) Surges on Goldcorp Acquisition
Posted By Sean Mason – March 28, 2017
https://smallcappower.com/top-stories/resource-junior-goldcorp-acquisition/
Peru’s Cerro Verde miners to walk out this week
By Alex Emery Tuesday, March 7, 2017
Peru’s Cerro Verde miners to walk out this week
Cerro Verde union ends two-month strike
Shougang Perú iron ore miners end strike
Miners at Freeport-McMoRan’s Cerro Verde unit, Peru’s biggest copper mine, plan to begin a strike on March 10 to push for improved labor conditions.
“Cerro Verde’s workers cited a need for safer working conditions and greater profit sharing to justify the “indefinite” labor stoppage, Sociedad Minera Cerro Verde said in a corporate filing sent to securities regulator SMV.”
https://www.bnamericas.com/en/news/mining/perus-cerro-verde-miners-to-walk-out-this-week/
Cory,
Can you bring someone from Exeter Corp? What does this mean for current XRA shareholders? Should one wait to sell their shares until the closure in June?
Hey CaliJoe, I have been in touch with them today and we are working on a time. They will not be able to say if shareholders should continue to hold but there are 2 things to consider.
1) Will there be a competing bid? No one knows…
2) How is Goldcorp’s stock going to preform? This will be the main factor if you decide to hold.
and a third… Can you allocate the money somewhere else for a better gain?
Great points Cory – well stated.
Ditto.
Cory – Tommy over at CEO just gave you props my good man!
@tommy – “Did any newsletters cover Exeter $XRC? I think the Korelin crowd followed it. Producer/Anchor Cory Fleck is related to Yale Simpson. A great win for them! “
@HRA-Coffin – “Yes Tommy. I think Adamera and Rugby are the only current things he’s working on. Adamera for nice stable political jurisdiction, Rugby for, well, not so much… ”
@tommy – “Second hand heard Simpson says Adamera $ADZ has the best ‘looking’ land package and targets of his career. Heresay, not evidence .”
@HRA-Coffin – “I heard it first hand, for what its worth Tommy. Early stage, obviously, but Yale is pretty pumped about it. $ADZ”
To all KEites,
Question: What happens next with Exeter? Should one hold their shares until the closure in June? Stock reached high to $1.89 then went sideways, I certainly don’t want to sell when everyone is selling. What do you guys think?
Thanks
It really comes down to how you feel about Gold Corp going into the Summer doldrums. I expect we’ll see some waffling from overvalued to undervalued during the next month or so.
You don’t have to sell or average down/up all in one transaction either. You can sell 1/3 or 1/2 and let the rest ride.
I’ve never understood why so many investors are all-in or all-out in their thinking. (?)
When in doubt, fade out….
Ive heard alot of people say theyve made money on buy outs and mergers, this exeter is the first time for me, never saw it coming either.
Im not interested in bigger mining companies, I want small, they move much better than big ones.
Congrats B. and to all Exeter shareholders. It was a long wait.
Personally, I held Exeter shares for years on and off (waiting and waiting for buyout), and even had a small position recently, but I figured it was going to stay dormant for a while longer and missed the move today on the buyout news.
** This is exactly the kind of Buyout news that comes from out of left field that I was discussing on the weekend show that the Charts don’t predict, even though everybody knew Exeter was a takeover target for the last decade.
Positioning in smaller Jr companies that are takeover candidates from the larger Mid-tiers and Majors are one of the most profitable aspects to investing in Jr miners. I rarely invest in Gold or Silver companies unless I believe they are takeover candidates (excluding the streamers of course).
Typically after the takeover news breaks and is digested, then I sell a portion of my shares or sometimes make a clean exit. The exception being if I want to be part of the new combined company (like with the Gryphon acquisition by Teranga), but it’s very rare that I want to be part of the new conglomerate in the Gold Silver space, and more common so stay put in the Uranium space (where it happened to me about 6-7 times in the last few years).
With Gold & Silver mining companies, or even smaller Base Metals companies, then I agree with you that I’d rather cash out and position in the next smaller Jr that has takeover potential, rather than hanging in the large juggernaut that doesn’t have much leverage (like a Goldcorp). Think about how the action ground to a halt when Claude or Lakeshore Gold or Romarco etc… got acquired by the larger companies. The upside torque was gone….
Ecuador mining. The political and mining rulings are in limbo. Elections April 2. As per yesterdays WSJ either tyranny or no open pit mining. Costs in US$ currency. Dollarized economy. On the ground I wonder what you are seeing as optimistic, looks like rocky road ahead or worse a following towards Venezuela and Bolivia.
This must just be Copper Day….
Turquoise Hill Resources Announces Financial Results and Review of Operations for 2016
(Marketwired – March 27, 2017)
Yep – It’s Copper Day.
Ivanhoe Mines Issues 2016 Year-End Results and Review of Operations
(Marketwired – March 28, 2017) – Ivanhoe Mines (TSX:IVN)(OTCQX:IVPAF)
Low-grade mines can’t mess up.
March 28, 2017 Benjamin Cox -EC Aston Bay and Senior Advisor Outotec
https://www.linkedin.com/pulse/low-grade-mines-cant-mess-up-benjamin-cox
I did a Youtube interview with the CEO of Exeter, Wendell Zerb, on May 5th at the PDAC. Check it out: http://king1eye.blogspot.com/2017/03/a-waking-giant-one-of-largest.html
Escondida outcome seen as disaster for BHP as workers return
COMMODITIES | Fri Mar 24, 2017
http://www.reuters.com/article/us-chile-copper-labor-idUSKBN16V2SL