Masters Right About Gold (AUY, KGC, AEM) - On Like Donkey Kong

The Masters wrote on Wednesday (Jan 14th) Gold has got to Comeback and since then, its been on like Donkey Kong.  The gains speak for themselves, this market is timing, if you listened to us, cash out Monday:

But for those of you who searched us thinking you were getting Donkey Kong, here you go (use arrow keys, spacebar to jump):

Timing, this market is all about timing these days, short term investing is what is working for now, so don't fight it, just go with it.

Gold futures rallied 4% Friday, gaining for the first session in five as a weaker U.S. dollar enhanced the metal's appeal as an investment alternative.

Gold for February delivery ended up $32.60 at $839.90 an ounce on the Comex division of the New York Mercantile Exchange. Benchmark gold had lost nearly $50, or 5.6%, over the four previous sessions, closing Thursday at its lowest since Dec. 9. Despite Friday's gain, gold ended the week down 1.8%.  Thus timing is everything and this is your money, so congrats to those who placed the bet.

Yamana (NYSE:AUY) is a favorite play for the Masters and they had some good press this week:

Yamana Gold may buy small rivals to meet goals

Yamana Gold Inc., Canada's fourth-largest gold producer, may accelerate plans to double output by acquiring smaller rivals that are struggling to finance development of their mines.

Yamana, on schedule to produce 2 million ounces in four years by developing its own deposits, could do so more quickly by exploiting a rout in stock prices of smaller miners, chief executive Peter Marrone said Tuesday in an interview.

Acquisitions must have an internal rate of return "significantly in excess" of 15%, he said.

"These unique times give us the opportunity to say, 'Can we get there more quickly'" Mr. Marrone said by telephone from Toronto, where the company is based. "That's the sweet spot for a company like ours."

After shunning acquisitions last year in favor of internal expansion, Mr. Marrone is now looking outward for bargains among mining companies with deposits in the Americas. The global credit freeze left some small mine developers and explorers without access to the cash they need to develop new mines or finance their operating costs.

Yamana (T.YRI) was up 8 cents at $7.84 at 2.20 p.m. in Toronto, having earlier been up 27 cents. The stock fell 27% last year.

The company will use stock to finance acquisitions and will tap its own cash reserves and available credit, rather than obtain new debt, to pay for project construction, Mr. Marrone said. Then again, they may just use reserves to buy Donkey Kong Country and try and make a comeback that way. 

Stupid, but Donkey Kong related.

The company sold stock last year to raise $135-million (US$110-million) and increased the size of its credit facility by US$200-million. It now has about US$500-million available, according to a Dec. 24 statement.

Yamana's management will also look at its current portfolio for "non-core" assets that can be sold to finance projects with a higher return, he said. Those considered for sale would be geographic "outliers" or have higher costs than the company's average.

"My objective this year is to rationalize the company and to focus on our core assets," Mr. Marrone said.

But back to Donkey Kong, can't get enough?

You're in luck, get ready for a new adventure on the Wii -- The Wii version of Donkey Kong Jungle Beat offers a myriad of images to give us a smile. Originally played with bongos, the game features the famous gorilla through an adventure in rhythm. A bit of levels as well as exclusive use of the Wiimote just make one ounce of novelty. Released in Europe will take place this spring 2009.

SOURCE: http://www.financialpost.com/most_popular/story.html?id=1172608