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Great Video for those that have 4 hours to kill


moore_capital54
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http://www.youtube.com/watch?v=QY8g_IsI_gY

 

This ties in well with some of the debates we have been having here about fiat money, etc.

 

Also for those that don't believe in the Junior Market, another consolidation occurred last week. Cameco, one of the largest uranium producers in the world acquired Hathor for $520 million. Hathor, for almost a decade has been developing a large 17mm ounce uranium property in saskatchewan. Since inception, Hathor has raised $112mm from capital markets, while it retains $17.2mm in cash. In other words, with about $95mm Hathor has created $520mm in value for its shareholders (Buyout price).

 

Why did Cameco buy Hathor? Because they need more Uranium resources to produce!

 

 

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http://www.youtube.com/watch?v=QY8g_IsI_gY

 

This ties in well with some of the debates we have been having here about fiat money, etc.

 

Also for those that don't believe in the Junior Market, another consolidation occurred last week. Cameco, one of the largest uranium producers in the world acquired Hathor for $520 million. Hathor, for almost a decade has been developing a large 17mm ounce uranium property in saskatchewan. Since inception, Hathor has raised $112mm from capital markets, while it retains $17.2mm in cash. In other words, with about $95mm Hathor has created $520mm in value for its shareholders (Buyout price).

 

Why did Cameco buy Hathor? Because they need more Uranium resources to produce!

 

I believe there would be some juniors growing into something significant. However, it is not even a game for good investors. I think only 1 in 10000 investors can figure out what really is going on in the sector. The volatility is hard to swallow as well. For a company to go from 1 to 10 per share, sometimes it goes to 5 cents first. It is hard to sleep sound at night with this kind of holdings.

 

Bad for your health :)

 

 

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More Junior M&A Today, Aurico Acquiring Northgate:

 

http://www.marketwatch.com/story/aurico-gold-to-buy-northgate-minerals-2011-08-29

 

As I explained, things tend to get busy towards the end of the year. Why did Aurico acquire Northgate? It's because they want to become a mid tier producer (500k ounce+).

 

Meanwhile, Northgate which was about to acquire Primero, another interesting junior with some good assets, has broken off that deal for Aurico, and will pay a $25mm breakup fee.

 

The demand comes from the actual commodities, which are supplied by the producers, who themselves are supplied by the juniors. It's the circle of life.

 

 

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