The Phaserl


Introducing: A Great New Tool for Gold Investors

by Marin Katusa, Katusa Research:

The Katusa Research team just completed a ground-breaking research project. The result of this project is an incredible system for making reliable profits in gold stocks. Below, we explain how it works and how it fits into our brand-new Market Intelligence Center.

Of all the ways to make money quickly in the gold market, few can match the power of “the buyout.”

Own a small gold stock on Monday… then, suddenly, overnight, you’ve made double or triple-digit gains by Tuesday.

A buyout occurs when a gold miner sees an opportunity to grow and buys all the shares of a smaller gold company – often at a large premium. The result is an overnight windfall for the smaller company’s shareholders.

For example, on December 11, 2008, miner IAMGOLD announced a buyout of Orezone Resources…for a 150% premium over its share price at the time. Orezone shareholders reaped overnight windfalls in the process.

Or, consider the story of Orbis Gold. On October 13, 2014, large gold miner SEMAFO bought Orbis out for a 96% premium over its share price at the time.

These buyout windfalls are rare, and don’t happen every day. But as it turns out, they’re more frequent than you think.

What if you knew how to find these situations… before they happened? You could make some of the biggest short-term gains you’ve ever seen in your life, overnight. That’s what this essay is all about.

Cracking the Code of Gold Buyouts

Despite the incredible wealth building power of the gold buyout, the process behind it is a mystery to many people…even to supposed gold “experts” that follow the sector.

For decades, people have tried to crack the code behind gold buyouts…the qualities large gold companies look for when they shop for smaller companies. Their efforts have largely resulted in failure and frustration.

For every stock someone named as a buyout target, there are five “run of the mill” companies that went out of business.

As you probably know, I’ve devoted my professional life to investing in natural resource projects. I’ve flown more than one million air miles to visit over 400 resource projects in over 100 countries. Along the way, I’ve become friends with some of the world’s top gold executives, mining engineers, and geologists. My friend Ian Telfer, Chairman of gold mining giant Goldcorp even wrote a blurb for my New York Times Bestselling book, The Colder War. I’ve published exclusive interviews with gold mining legends like Pierre Lassonde (founder of mining royalty firm Franco-Nevada) and Rob McEwen (founder of Goldcorp).

I’m referencing my experience to show you that I have insight into the world of gold buyouts that most people do not. Through friendships, due diligence, and my status as a top financier, I’ve learned exactly what the guys making buyout decisions are thinking when they pull the trigger.

Because gold buyouts can be so lucrative for shareholders, my team and I recently took on a massive research project. This project – which required over 1,000 man hours, hundreds of thousands of dollars, and massive data processing capacity – had a simple goal: Develop a reliable “model” that pinpoints gold stocks most likely to hand gold investors overnight windfalls via buyout.

The results of our study are incredible. I believe we’ve built the most reliable system ever for pinpointing gold buyout targets. We’ve found the SIX key qualities that make gold producers attractive buyout targets for majors.

You can think of the gold stock sector like you would a beauty pageant…

Large gold miners are the judges. Well, we’ve found exactly what the judges are looking for. We’ve found the gold stock equivalent of beauty, brains, talent, and charisma.

Why Buyouts Are So Attractive to Gold Majors

Buyouts occur in the gold market for a simple reason…

Every time a gold miner pulls an ounce out of the ground and sells it, it depletes its balance sheet a little.

If a gold miner doesn’t direct some of its revenue into the acquisition of new gold resources, it will mine itself out of existence. It will consume its asset base and cease to exist. And that is why “buyouts” frequently hand gold investors massive overnight gains.

You see, when it comes to adding gold resources to its balance sheet, a big gold miner has two options…

Option #1: The Hard Way

It can spend hundreds of millions of dollars on the risky business of mineral exploration. It can spend a fortune wandering around deserts, jungles, and Artic regions looking for gold deposits.

When you consider that less than 1 in 3,000 mineralized anomalies ever becomes a mine, you realize that exploring for gold is a “long shot” activity.

Also consider: If by some fortunate event the miner actually finds gold, it is now looking at 5 to 10 years of development headaches. In its quest to build a gold mine, the miner will wrestle with crooked politicians, red tape, lawyers, environmental activists, and bankers.

And then you have…

Option #2: The Easy Way

The gold company can bypass the headaches that come with Option #1 and simply buy another company.

That’s it.

No long shot drilling programs in the middle of a desert. No swatting mosquitos in South American jungles. No hacking through miles of red tape to get mining permits.

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