Well, this example no doubt is my favorite, how can't it be? Sept 03, 2010 Goldcorp topped Eldorado's $3.4 Billion offer, with a $3.6 Billion offer for Andean.

With all these examples, and especially this one, we always need to understand there is the value of future potential, and other metals (silver, etc).

I remember so clearly that morning when I saw this being announced on BNN, and working the numbers forwards, backwards, again & again, and I thought I had something wrong. I called a few friends to see what I might be doing wrong? How can the offer price per OZ in the ground, be higher than the price of gold that day? I guess Math does not lie!

Company:Andean

Year:2010 (Sep)

Buyer:Goldcorp

Gold Price:$1250

Takeout Offer: $3.6 Billion ($3600 Million)

Gold Reserves:2.54 Million OZ

Price/OZ Paid:$1417

Shares O/S:553 Million

Share Price:$6.50

SLI Equiv:$28.80 (this is based on the offer divided by 125 Million O/S shares for SLI)