Apple could buy IAG with 1 month of earnings...far fetched? maybe? but Apple should diversify into Gold and keep this yellow currency in their portfolio...They could do so much with 137 Billion of cash, it's mind boggling..
I hear ya vin. I used to think outrageous thoughts, like cash rich conglomerates should hoard bullion on their balance sheets but even suggesting it in a chatroom gets you shouted down. Warmcamp is right about how far-fetched Apple would be to buy a miner, but if if Apple did buy a miner, it would certainly buy a silver miner. .
But seriously, there WILL be larger entities that come into the gold mining space. Chinese and BRIC entities, sovereign wealth funds, Mideast money, and private equity associated with banking cronies. Of this you can be sure. We don't need no stinkin' Apple!
Other scenarios will emerge. I think once gold miners regain their footing a little, M&A activity will accelerate. The producers rising first, and the Exp/dev lagging. You might see some interesting mergers like 3 ways. You'll see cash rich juniors doing deals with companies that have viable projects, but are just out of capital. I could even see Newmont buying IAG at $10-11, if they hurry... It would make sense for Newmont: for minimal dilution it would add a few years reserve life, boost production in the neighborhood of 1M oz (which is 20% increase for NEM) and if gold lifts could add $1-2 eps, which could boost NEM shareprice $15-30 in a more optimistic PM market.
I think IAG could do itself some good if they indicate they are going to quarterly dividends, that would make the stock much more attractive. People hate annual and biennials. I know I do. The niobium project has been very quiet in the last year. They were really making a lot of noise about it in 2010-11. It's a very long life asset I think they will eventually use to monetize some if not all. I'd love to see them do a JV with a major and do that major expansion from the PEA. They even talked about a spinoff, but I'd like to see them keep it under the IAG umbrella for the steady cash flow unless the niobium market caught fire (yawn.) lol
Nice joke, but it could wait for tomorrow (April 1).
Anyway, if Apple or any other entity, unrelated to this industry, will ever decide to diversify cash holdings into gold, then it will buy gold. It won’t buy a mining company that involves very different business model and management experience.