Gold for Cash for More Gold: Junior Gold Producers Rising to the Occasion

While the dollar teeters, and gold surges, now is as good a time as ever for juniors to gobble up assets, develop projects and take that important leap to the next level.
By: Prospecting Journal
 
Aug. 11, 2011 - PRLog -- ANALYSIS – ProspectingJournal.com – With increasing volatility in the US dollar, the gold bugs are licking their lips at the possible gains on the horizon for their yellow wealth.  Despite the current run up of gold prices, there’s a mixed blessing in store for the gold miners as equity valuations have significantly lagged the performance of the underlying commodity. Case in point: Barrick Gold [ABX – TSX] saw its 52-week low come on June 17 of this year, despite the fact that gold had only recently powered through the $1500 threshold. While the equity prices have not reflected the run up in gold prices the cash positions on these large caps continue to bulge.  With the current market selloff, acquisition targets are becoming increasingly cheaper. M&A activity is surely to follow.

In comparison, the expectations on junior and emerging producers are different. These companies are all striving to hit the next level from junior to mid tier to senior producer to achieve higher equity valuations.  At this time, the route of the mid-cap junior producer may be the sweet-spot investors are looking for. Between organic growth, mergers and acquisitions, and grass roots exploration, emerging mid tiers offer the best risk reward ratio for investors.

Read more:
http://prospectingjournal.com/gold-for-cash-for-more-gold...

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Source:Prospecting Journal
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Tags:Endeavour Mining, Gold, Bullion, Gold Exploration, Gold Mining, TSZ, Mid Cap, Junior Cap
Industry:Mining
Location:Canada
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