Point # 2: Consolidation of the Mining Industry
This is one of Jim’s main points that we at the tent have found unclear. He worded this matter yesterday in such a way that it is obvious he does not mean that Barrick will gobble up every single mining company and own them all. His wording was “all companies of interest who are willing to be taken over.” This, of course, makes most sense. Barrick will not want every mining company, and the shareholders of many mining companies won’t want to be absorbed into Barrick. Nothing was said as to whether he recommended owning Barrick stock. He reitterated, however, that at the end of the game it would play out like the Ashanti case. I am not sure I completely understand the following concept, or how this works, so feel free to jump in and clarify: shareholders would receive delivery in kind, or it would be settled more likely in cash and shares. While I am ignorant about this mechanism, he made it clear in person as he did on his website that the shareholders would have made a lot of money by the time the owners of the Barrick hedges called “game over.” If I understand the matter correctly, these ”longs” on the other side of Barrick’s hedge obligations, would then own the company and would henceforth own and control all future production. Which brings us to Point # 3 . . .
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