The 1 Gold Miner That's Ready to Pounce
I took a few hours yesterday to survey the balance sheets of every mid-tier gold producer, and I was stunned to encounter such a pervasive pattern of modest liquidity that renders the group unlikely to engage in the sort of consolidation surge that we might otherwise expect to see when an industry is clawing its way back from a 15-year valuation low.
Yamana Gold, with its beautiful cash flow, is one exception, but we all know where they'll be focusing any further acquisitive moves. The sole other exception I found was IAMGOLD, which is in absolutely phenomenal position after its recent $500m note offering. What's more, because I was unable to pinpoint any conceivable need for this recent debt within the company's operating or existing growth development needs, it would appear reasonable to conclude that IAMGOLD has its eyes on a timely opportunity.
I'll be adding to my stake in IAG below $14 per share, and I look forward to holding strong straight through the Niobec expansion decision (and possible IPO) and beyond.