This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

PwC: Gold Equities Reached Breaking Point In 2012

Seniors are obviously flush with funds to make acquisitions, but PwC does not expect a flurry of deals. Twenty percent of senior miners pulled out cash for acquisition activities in 2012 and the same number reported plans to do so this year.

However, 33 percent of junior and mid-tier companies have acquisition spending in their plans for 2013. That's double the number this group spent on mergers and acquisitions in 2012, the PwC report states.

Only 20 percent of senior miners will look for additional financing this year, and most of them plan to turn to the equity markets.

By contrast, the smaller companies have more aggressive investment plans, with over 70 percent expressing that they will be on the prowl for financing. Over half of these junior and mid-sized companies will seek funding through debt. More than a third hope the equity markets will provide funding, while 11 percent hope to secure offtake agreements or streaming deals.

The damage that has already been done must be undone or compensated for before significant benefits can be enjoyed, states PwC's report. But change is reportedly already underway. And now, after the flood of headlines chastizing them, gold companies are starting to rally, the firm said.

 

Securities Disclosure: I, Michelle Smith, do not hold any equity interests in any companies mentioned in this article.

Related reading:

The Ins and Outs of Dividend-paying Mining Stocks

Resource Companies Reinvent Themselves for Tough Markets

PwC: Gold Equities Reached Breaking Point in 2012 from Gold Investing News

null
3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,074.43 +100.12 0.59%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,524.5790 -24.6470 -0.54%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs