Seabridge Gold, Inc. (USA) (SA)

toutisf (98.45) Submitted: 3/10/08 5:11 PM : Start Price: $23.20 SA Score: -2.02

Large miners need more gold to dig so they can't maintain their cap (NEM is a good example) so SA will finally be acquired sooner or later.

It is like when MSFT wants to buy YHOO: sure it is a costly operation to them but they know they need to do it if they want to compete with GOOG and stay the course.

What is 800M$ for SA and all its properties when ABX cap tops 41B$, NEM 22B$ and many top dogs are over 10B$

If NEM buys them, they will increase their reserves hugely.

SA cap is just 3.6% of NEM cap so if NEM cap goes up 4% after the merger and the update in reserves they can make up the expense in just one day.

Think also that large caps spent billions getting rid of their hedge so what is 800M$ for them is the can get access to more that 15Moz of gold reserves and one of the top copper deposit in the world (Mitchell)

If you believe gold will go through 1,000$/Oz, this is a no brainer.

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