In the past year, there have arguably been only two days where it would’ve been a terrible idea to announce a major transaction in the mining sector.
The first was last Friday, when gold plummeted from $5,400 to as low as $4,680. The second was the following Monday, after investors spent the entire weekend doomscrolling, wondering just how bad their losses were going to get. Honestly? Even announcing a deal on Christmas Day would have been a better move.
But apparently, that wisdom didn’t reach everyone. Because on Monday, Eldorado Gold (TSX: ELD) announced their acquisition of Foran Mining (TSX: FOM) to create a new leading gold-copper producer.
And well… the market reacted exactly as you’d expect.
Let’s dive in.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
