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Wheaton River Minerals has had 7 consecutive quarterly record earnings. Not bad. They had been planning on merging with the Canadian Vancouver-based company Iamgold IMG-T to form a new company to be known as Axiom Gold. It will be one of the TOP 10 GOLD PRODUCERS IN THE WORLD. With operations in North and South America, West Africa, and Australia. The new company is expected to produce one million ounces of gold a year at a cash cost of LESS THAN $50 PER OUNCE. Shareholders are supposed to vote on the merger on June 8 in Toronto. Analysts have not been impressed with the idea and Wheaton President Ian Telfer has expresssed disappointment that the analysts have not made appropriate valuations based on bringing together two experienced companies, one with a strong exploration team and the other with a strong operating team. Also the combined finacial strength of the two merged companies would allow the new company to go after major acquisitions. Even though the analysts are not enamored with the idea of the merger, Coeur d' Alene Mines, (CDE) is impressed with the companies and their low stock prices and so has made an unsolicited bid for Wheaton and may also make a bid for Iamgold. Interestingly, during the last bull market for gold in the 80's, CDE had a dividend of $1.50/share. Then, when the price of gold and silver (CDE is a silver mining company) fell to a 20 year low, CDE got rid of its didvidend. Now that the company has recovered in price and financial stability, it has reinstated a dividend. It has started at .15/share and may increase its dividend periodically. If the management of Coeur d' Alene is willing to put up big bucks for Wheaton River Minerals, and considering that the company had repeated record quarterly earnings it might be a company that you might want to buy and hold on to for the long run. Just an idea. Posts: 580 | Registered: Oct 2003
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Hey Star Gazer, how long are you talkin' for being long on this? Man, I bought this at the high ($4.49, on the way down...) and Research Capital's target on this is $5.50. Ooooo, that's so much upside for me.... I guess any money is good money... I thought this would be a "buy it and fuggedaboudit" but I'm out as soon as it's $5.50ish.
Posts: 14 | From: Canada | Registered: Apr 2004
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STAR How do you view the three options for this takeover. Was the one; a share for share +.37, I was confused because they spoke of the.37 as being taken in CDE but didnot say how the existing WHT shares would be handled. I think I'm in good shape @3.30 VAN
Posts: 1424 | From: Peoria, IL. USA | Registered: Oct 2003
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