Captain Time,
Well put!
Cheap oil, currency problems stimulating flight to safety and possibility still of deflation all favor low cost, diversifed gold miners with solid balance sheets, not the underfunded guys, even if they have good projects that would be attractive at higher prices. The deflation possibility means go for cash flow and balance sheets, plus staying away from bad governments who will take or tax your assets: certainly Venezuela and Russia but also possibly South Africa, Argentina maybe Brazil (look at the screwing of the so called national oil company) and a host of smaller populist or out right far left countries.
Agnico looks good, and as noted earlier, has a lot on their plate for aggressive development including Meliadine and Amaruq in Canada and Cayden in Mexico plus expanding output in Finland and at depth in their original mine in Quebec.
These new projects will cost money but should generate sizable gold production gains over the next five years.
That's why I'm afraid Agnico-Eagle won't jump in with a higher bid for Probe, although I'd like it if they did...we all would benefit from a better bid, even if Goldcorp came back higher. But if you think Goldcorp tops them anyway, why administer another jab in the nose to the guy you already bloodied in the Osisko fray? Who knows, Agnico might need a friend some day...
Goldcorp's offer is certainly fine if no one can or will bid more -- in fact it's great under those conditions! Meanwhile, their shares are OK under both the deflation AND inflation scenarios. Be happy!
NSS
