Every why hath a wherefore

Mining’s money grab

Detour C$141m
Osisko C$200m
Richmont $30m C$34m
Primero U$75m
Asanko C$40m

All since yesterday’s close. All bought deals. All companies with either delusions of grandeur or growth projects that need funding. All of them understand that improving the balance sheet is the primary concern. All because instos have been getting phone calls from New York for the first time in 12 months. And all of that above because Goldman Sachs screwed up on its $1k/oz gold price prediction.

PS: Or to put it another way, dear retail investor, the mining companies have suddenly seen a big wash of money come into the sector and they don’t want it all to be wasted on mere share price increases (i.e. you benefit), they want to make sure that they get theirs, so that their treasury positions expand more rapidly than your back pocket. Now you get it?

UPDATE Wednesday afternoon: Welcome, Romarco. $300m

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