Some more thoughts from LR:

"Even though investors are not putting a lot of value on metal companies, other mining companies appreciate the value in these companies. Last year, the total value of mergers and acquisitions in the mining industry was $149 billion twice the value of two years before.

More important than the massive transaction total: the price paid for gold and copper companies in those takeovers was, on average at a 46% premium to the market price.

The latest deal was done at a pre-mium of more than 100% to market: Inter-Citic traded at C$0.91 before a C$2.05 takeover offer.

Investors are coming back to this sector. At this time, they are being highly selective. There will be further big gains as more of the high quality companies are "discovered" by investors. "