Look at the history of some failing m&a in the gold business. SBMs BGM failed, BGMs (now UML) BCD was a disaster.
I admit I am not really too excited about the deal SBM proposed to CAH, because CAH has many problems that should be solved before. It is not a good time to get over-exited about such m&a.
There is nothing like a "cheap" company. No more now. This times are gone. The cream piece of the cake is gone some years ago. CAH is not cheap at this prices.
Nevertheless, it is important for all companys to grow and if you throw companys together you can save some money resp.managemenent and general costs. Australia is not the best pick about gold companys. Costs are incredibly high.
That is why I like to diversify and invest in low cost countries too. My best horse in the stable is Apogee Silver in bolivia. I bought shares for 10 cent and am looking for a tenbagger at least. As what australia means for me, I have shares in Lynas, Arafura, Unity Mining and St Barbara. Most of my investment goes to Lynas. Check it out. It is just gorgeous.
GLTA
Five
CAH Price at posting:
$1.71 Sentiment: None Disclosure: Not Held
