While we haven't hit the place where gold is in danger of being in a bubble, there are an increasing number of institutional, and to a smaller degree, individual investors, putting a portion of their assets into gold.
Marc Faber has been calling gold for a long time before investors saw the possibilities gold offered because of trending government and Federal Reserve policies.
As with commodity investors Jim Rogers and Peter Schiff, Faber sees gold as one of the ultimate defenses against out-of-control government inflating and debt. What is being called quantitative easing today.
Faber hasn't encouraged investors to buy up more gold as a result of the obvious stimulus packages set in play, but has been seeing this happening since the early 2000s.
In one of his books named 'Tomorrow's Gold,' published in the latter part of 2002, Faber told investors they needed to put some of their assets in gold at that time. It was lower than $350 an ounce then.
In the early part of 2001 he called gold mining stocks cheap as well, which has also played out to be true for a large number of them.
All of this is in response to the macroeconomic changes about to hit the U.S. and Faber understood the signs of, and consequences of those actions, the reason he was so clearly right, and continues to be in regards to investing in gold.
Faber has also recently stated that gold prices are still relatively cheap, and quantitative easing will continue as the government is completely out of control and won't stop.
He recommends for people to become their own central bank and hold their own gold, as the Federal Reserve will continue to print money, as will many other central banks around the world.
While gold will build the wealth of those investing in it, Faber also sees it as financial self-defense against the misguided practices of the Fed and others endlessly printing money.
Faber advocates investors to allocate resources to gold on a monthly basis.
Showing posts with label Gold Mining Company. Show all posts
Showing posts with label Gold Mining Company. Show all posts
Friday, October 15, 2010
Wednesday, September 29, 2010
Newmont (NYSE:NEM) Interested in Developing Afghanistan Mines
Newmont Mining Corp. (NYSE:NEM) has reportedly shown an interest in developing mines in Afghanistan, according to the Minister of Mines Wahidullah Shahrani in a Bloomberg interview.
“They also expressed their interest in coming and investing in the gold mines of Afghanistan,” Shahrani said. “Since then, there has been some communication on getting some information from the government of Afghanistan.”
The troubled country is attempting to generate interest in the development of their mineral resources to produce jobs and revenue. In about five years Sharani expects to generate revenue up to $1.2 billion annually, and over a ten to fifteen year period, increase that to $3 billion to $3.5 billion.
That includes all its mineral resources, not only gold.
“They also expressed their interest in coming and investing in the gold mines of Afghanistan,” Shahrani said. “Since then, there has been some communication on getting some information from the government of Afghanistan.”
The troubled country is attempting to generate interest in the development of their mineral resources to produce jobs and revenue. In about five years Sharani expects to generate revenue up to $1.2 billion annually, and over a ten to fifteen year period, increase that to $3 billion to $3.5 billion.
That includes all its mineral resources, not only gold.
Wednesday, September 1, 2010
John Paulson's NovaGold (NYSE:NG) Stake at 9.1 Percent
John Paulson now owns 20,181,818 shares of NovaGold Resources Inc. (NYSE:NG), according to a 13D filing he just filed.
Total cost for the shares was listed at $113,003,059, which equals about $5.59 a share. That represents a 9.1 percent stake in the gold miner.
This isn't an increase in the number of shares, as it is the same as the holdings in the last two quarters, back to the period ending March 31, 2010.
Primarily a gold mining company, NovaGold also produces ancillary metals like silver, copper and zinc.
NovaGold's mining assets are located in North America.
Total cost for the shares was listed at $113,003,059, which equals about $5.59 a share. That represents a 9.1 percent stake in the gold miner.
This isn't an increase in the number of shares, as it is the same as the holdings in the last two quarters, back to the period ending March 31, 2010.
Primarily a gold mining company, NovaGold also produces ancillary metals like silver, copper and zinc.
NovaGold's mining assets are located in North America.
Friday, August 13, 2010
Barrick (NYSE:ABX), Newmont (NYSE:NEM) and Goldcorp (NYSE:GG) to Become Next Freeport-McMoRan (NYSE:FCX)?
It's instructive to watch the major gold miners like Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM), Goldcorp (NYSE:GG) and Kinross (NYSE:KGC) make acquisitions, as it tells a story of where the current gold mining industry is going, at least with the larger companies.
One thing to consider is because the gold price is high and economic conditions ripe for it to continue to rise, we hear the focus of the miners primarily on gold.
But in the background they've been quietly buying up properties, while which including gold, also have a lot of secondary metals included with the acquisitions.
The gold miners will continue to rise in share price, but the question in the back of a lot of investors' minds over the long term is what happens after the prices end their run.
Answers to that question are obvious, and the gold mining companies are starting to act more like a company like Freeport-McMoRan (NYSE:FCX) than pure gold miners, even though they're positioning themselves primarily as gold companies in the current economic environment.
Interestingly, Freeport gets a lower valuation than Barrick Gold, and is just ahead of Newmont and Goldcorp in market value.
That shows the premium being placed on gold at this time by investors, and that will remain that way until the gold bull market runs it course, which could easily be several years into the future, or more, depending on the actions of central banks and governments around the world; especially the Federal Reserve in the U.S.
An amazing part of this is the major gold miners, by investing in a diverse amount of metals, will become better companies, but could lose market value because they won't be considered pure gold miners any longer.
This probably won't happen anytime soon, but once the bull market is over, we'll probably see the miners named above, and others, position themselves as base metals companies, or if a particular metal or metals are hot at that time, as whatever that metal may be ... such as copper, etc.
We'll probably see a much stronger metals market at that time, and increased and more robust competition as the demand for metals soars as emerging market middle classes increase their expendable income.
One thing to consider is because the gold price is high and economic conditions ripe for it to continue to rise, we hear the focus of the miners primarily on gold.
But in the background they've been quietly buying up properties, while which including gold, also have a lot of secondary metals included with the acquisitions.
The gold miners will continue to rise in share price, but the question in the back of a lot of investors' minds over the long term is what happens after the prices end their run.
Answers to that question are obvious, and the gold mining companies are starting to act more like a company like Freeport-McMoRan (NYSE:FCX) than pure gold miners, even though they're positioning themselves primarily as gold companies in the current economic environment.
Interestingly, Freeport gets a lower valuation than Barrick Gold, and is just ahead of Newmont and Goldcorp in market value.
That shows the premium being placed on gold at this time by investors, and that will remain that way until the gold bull market runs it course, which could easily be several years into the future, or more, depending on the actions of central banks and governments around the world; especially the Federal Reserve in the U.S.
An amazing part of this is the major gold miners, by investing in a diverse amount of metals, will become better companies, but could lose market value because they won't be considered pure gold miners any longer.
This probably won't happen anytime soon, but once the bull market is over, we'll probably see the miners named above, and others, position themselves as base metals companies, or if a particular metal or metals are hot at that time, as whatever that metal may be ... such as copper, etc.
We'll probably see a much stronger metals market at that time, and increased and more robust competition as the demand for metals soars as emerging market middle classes increase their expendable income.
Wednesday, May 19, 2010
Eldorado Gold (NYSE:EGO), Iamgold (NYSE:IAG), Yamana Gold (NYSE:AUY), Plummet with Gold Price
Recently the gold mining stocks have moved closely in unison with the price of gold, and as the gold prices go, so go the mining stock (at least most of them), and that happened today with Eldorado Gold (NYSE:EGO), Iamgold (NYSE:IAG) (TSE:IMG) and Yamana Gold (NYSE:AUY) (TSE:YRI).
Measured by percentages, dropping the most of these three gold mining companies was Iamgold, which plunged by 5.42 percent, or 42 cents. In New York they ended the session as $17.83 a share, and in Toronto they finished at $17.10 a share.
Volume was up on both exchanges for Iamgold as well, led by New York, where the company had a volume of 7,267,069, well above the 3-month average of 4,223,170. Toronto trading volume was also up above the 3-month average, but pretty much in line with normal activity, increasing to 3,481,476, while the regular average is 2,630,170.
Eldorado Gold was down 3.67 percent, or 63 cents a share. It finished the day at $16.52.
Volume surged for the miner, like it did with most gold mining companies, increasing from their 3-month average of 5,150,160, to 9,533,986.
Yamana Gold performed close to Eldorado for the day, falling by 3.65 percent, or 42 cents a share in Toronto, and 4.57 percent, or 51 cents a share in New York.
Volume in New York increased from 12,925,200 for a 3-month average, to 19,927,147. In Toronto, volume for the last three months on average was 4,469,540, compared with today's volume of 7,316,653.
The stock closed in New York at $10.66, and in Toronto at $11.10.
Measured by percentages, dropping the most of these three gold mining companies was Iamgold, which plunged by 5.42 percent, or 42 cents. In New York they ended the session as $17.83 a share, and in Toronto they finished at $17.10 a share.
Volume was up on both exchanges for Iamgold as well, led by New York, where the company had a volume of 7,267,069, well above the 3-month average of 4,223,170. Toronto trading volume was also up above the 3-month average, but pretty much in line with normal activity, increasing to 3,481,476, while the regular average is 2,630,170.
Eldorado Gold was down 3.67 percent, or 63 cents a share. It finished the day at $16.52.
Volume surged for the miner, like it did with most gold mining companies, increasing from their 3-month average of 5,150,160, to 9,533,986.
Yamana Gold performed close to Eldorado for the day, falling by 3.65 percent, or 42 cents a share in Toronto, and 4.57 percent, or 51 cents a share in New York.
Volume in New York increased from 12,925,200 for a 3-month average, to 19,927,147. In Toronto, volume for the last three months on average was 4,469,540, compared with today's volume of 7,316,653.
The stock closed in New York at $10.66, and in Toronto at $11.10.
Wednesday, May 12, 2010
Silver Getting Some Respect
Silver has been performing somewhat like gold mining stocks over the last year or so, as expectations of breaking out were always sitting there, but it wasn't able to break through.
Now that gold has surged beyond resistance points, there are no short-term barriers in its way to stop it from rising at a steady pace.
Silver, along with gold mining companies, has now broken out with gold in its latest move, and could break the $20 an ounce mark sometime soon, and from there will probably find support and start to rise much higher as a result, with some thinking in the months ahead it could break the $25 an ounce barrier.
Once gold shattered all-time records yesterday and today, gold mining companies started responding in similar ways, especially junior and mid-size companies, which had been sitting still for quite some time waiting for the right moment, and that moment is now, as investors pour money into the sector.
For silver, if it starts to act in unison with gold, and investor continue to look for a safe place to put their money, silver could start a huge bull run where it's anybody's guess where it'll end up. We're in for some interesting times ahead, and gold, silver, and gold mining stocks should do very well over the next year, and while ultimately correcting, there is nothing in the near or mid-term future which indicates it will interfere in this process, even if interest rates are raised by the Federal Reserve, which may be for the most part ignored in the light of these extraordinary economic times we live in.
Now that gold has surged beyond resistance points, there are no short-term barriers in its way to stop it from rising at a steady pace.
Silver, along with gold mining companies, has now broken out with gold in its latest move, and could break the $20 an ounce mark sometime soon, and from there will probably find support and start to rise much higher as a result, with some thinking in the months ahead it could break the $25 an ounce barrier.
Once gold shattered all-time records yesterday and today, gold mining companies started responding in similar ways, especially junior and mid-size companies, which had been sitting still for quite some time waiting for the right moment, and that moment is now, as investors pour money into the sector.
For silver, if it starts to act in unison with gold, and investor continue to look for a safe place to put their money, silver could start a huge bull run where it's anybody's guess where it'll end up. We're in for some interesting times ahead, and gold, silver, and gold mining stocks should do very well over the next year, and while ultimately correcting, there is nothing in the near or mid-term future which indicates it will interfere in this process, even if interest rates are raised by the Federal Reserve, which may be for the most part ignored in the light of these extraordinary economic times we live in.
Tuesday, May 11, 2010
Northgate Minerals (TSE:NGX) Up On Higher Metal Prices
Northgate Minerals (TSE:NGX) first quarter earnings came in at estimates, generating earnings of $4.9 million, or 2 cents a share. Adjusted quarterly earnings stood a 3 cents a share, in line with what analysts had been looking for.
Revenue for the quarter increased to $125.3 million, slightly up from the $123.8 million last year in the same quarter.
Profits last year were higher at $21.4 million, or 8 cents a share.
Gold and copper production dropped significantly in the first quarter, with gold production plunging by 32 percent to 73,362 ounces, and copper production falling by 37 percent, or 9.5 million pounds.
Guidance for production for the full year was given at 310,000 ounces of gold at a cash cost of $553 an ounce.
The company was helped by stronger gold and copper prices during the quarter.
Revenue for the quarter increased to $125.3 million, slightly up from the $123.8 million last year in the same quarter.
Profits last year were higher at $21.4 million, or 8 cents a share.
Gold and copper production dropped significantly in the first quarter, with gold production plunging by 32 percent to 73,362 ounces, and copper production falling by 37 percent, or 9.5 million pounds.
Guidance for production for the full year was given at 310,000 ounces of gold at a cash cost of $553 an ounce.
The company was helped by stronger gold and copper prices during the quarter.
Gold Futures Close a Record Level of $1,220 An Ounce
Gold futures prices closed at a record price today of $1,220.30 an ounce, as growing fears on China's measures to combat inflation, and Europe's offering of just under $1 trillion to irresponsible governments to save their hides, has investors extremely jittery, and money is plowing into gold as a result, which brought the record gold futures close today.
A number of gold companies' share prices rose strongly as well with Allied Nevada Gold (AMEX:ANV) up well over 10 percent, Iamgold (NYSE: IAG) was up just under 10 percent, Jaguar Mining (NYSE:JAG) was just behind Iamgold at right under 10 percent as well, and Eldorado Gold (NYSE:EGO) was little over 9 percent, as just about the entire gold mining sector surged on the ongoing bad economic news and threats of inflation and nations defaulting.
News from the Commerce Department also revealed wholesale prices in the U.S. increased by 2.4 percent, and inventories rose, signifying sales are slowing down.
The mainstream financial press is reporting as if none of this is relevant or happening, but they'll soon find out, as always, that they're clueless in these matters, and gold will continue to soar in the light of these extraordinary economic circumstances threatening the wealth of people around the world.
A number of gold companies' share prices rose strongly as well with Allied Nevada Gold (AMEX:ANV) up well over 10 percent, Iamgold (NYSE: IAG) was up just under 10 percent, Jaguar Mining (NYSE:JAG) was just behind Iamgold at right under 10 percent as well, and Eldorado Gold (NYSE:EGO) was little over 9 percent, as just about the entire gold mining sector surged on the ongoing bad economic news and threats of inflation and nations defaulting.
News from the Commerce Department also revealed wholesale prices in the U.S. increased by 2.4 percent, and inventories rose, signifying sales are slowing down.
The mainstream financial press is reporting as if none of this is relevant or happening, but they'll soon find out, as always, that they're clueless in these matters, and gold will continue to soar in the light of these extraordinary economic circumstances threatening the wealth of people around the world.
Monday, April 26, 2010
Nationalizing Gold Mining in Venezuela
The latest move by Venezuelan President Hugo Chavez to take over the economy of the country is nationalize gold mining concessions, adding to the already nationalized metal, utilities and oil in the country.
While this is at the threat stage from Chavez, it's highly likely he will follow through with it, as he's ready to end the grants because of the “capitalist mafias” which exploit his country, according to the dictator.
After nationalizing the oil industry, ConocoPhillips (NYSE:CON) and Exxon Mobil (NYSE:XOM) have pursued a process of arbitration against Venezuela, who essentially stole the assets of these companies from them.
The good news is there aren't too many gold mining companies working in the country, and the gold reserves aren't that important in the overall picture, as the country doesn't produce that much, so it'll be easily replaced by ramping up production at mines outside Venezuela.
One gold mining company already battling Chavez is Gold Reserve Inc. (AMEX:GRZ), which is based in Washington, who has also entered arbitration against Venezuela for having their gold mining projects taken over by the country. The company poured $300 million to develop the projects before the government took them over.
And for anyone dumb enough to do it, Venezuela has announced they're looking for partners to help them develop the Las Cristinas project, which is one of the larger undeveloped gold deposits in the world.
While this is at the threat stage from Chavez, it's highly likely he will follow through with it, as he's ready to end the grants because of the “capitalist mafias” which exploit his country, according to the dictator.
After nationalizing the oil industry, ConocoPhillips (NYSE:CON) and Exxon Mobil (NYSE:XOM) have pursued a process of arbitration against Venezuela, who essentially stole the assets of these companies from them.
The good news is there aren't too many gold mining companies working in the country, and the gold reserves aren't that important in the overall picture, as the country doesn't produce that much, so it'll be easily replaced by ramping up production at mines outside Venezuela.
One gold mining company already battling Chavez is Gold Reserve Inc. (AMEX:GRZ), which is based in Washington, who has also entered arbitration against Venezuela for having their gold mining projects taken over by the country. The company poured $300 million to develop the projects before the government took them over.
And for anyone dumb enough to do it, Venezuela has announced they're looking for partners to help them develop the Las Cristinas project, which is one of the larger undeveloped gold deposits in the world.
Wednesday, April 21, 2010
International Tower Hill Mines (AMEX:THM) Continues Strong
International Tower Hill Mines (AMEX:THM) has been a solid performer among gold mining stocks while the gold correction was going on, and that speaks well for the company.
It's possible International Tower will reach a low that is higher than in the past, and from there find a much higher high than it has in its relatively short history.
The range over the last twelve months has been from $2.35 to $8.08, and has been moving sideways so far in 2010, and could be ready to go up in price and break through the $8.00 barrier on a consistent basis.
This is a gold mining stock worth taking a look at and watching closely. A significant dip of any kind could be a strong buying opportunity.
It's possible International Tower will reach a low that is higher than in the past, and from there find a much higher high than it has in its relatively short history.
The range over the last twelve months has been from $2.35 to $8.08, and has been moving sideways so far in 2010, and could be ready to go up in price and break through the $8.00 barrier on a consistent basis.
This is a gold mining stock worth taking a look at and watching closely. A significant dip of any kind could be a strong buying opportunity.
Allied Nevada Gold's (AMEX:ANV) Great Performance
Over the last year and a half, Allied Nevada Gold (AMEX:ANV) has been one of the stronger performing mining companies, continuing to move up on a nice stair-step pattern during that period of time.
For the last 52 weeks, they've continued to do the same, moving from a a range of $5.29 to $17.16.
Obviously tied into the performance of gold, Allied Nevada Gold will move in accordance with gold prices, and that bodes well for the company and its investors, as it will probably move to more all-time highs in the near future (share price), as gold continues to be the preferred place of safety for investors, and ongoing uncertainty in the markets along with inflation worries should keep gold prices up for some time.
It has yet to be proven how gold prices will respond to interest rate hikes, but that shouldn't be for some time, and with the decoupling from the U.S. dollar recently, it may have far less impact on gold prices than in the past, and gold miners like Allied Nevada Gold.
For the last 52 weeks, they've continued to do the same, moving from a a range of $5.29 to $17.16.
Obviously tied into the performance of gold, Allied Nevada Gold will move in accordance with gold prices, and that bodes well for the company and its investors, as it will probably move to more all-time highs in the near future (share price), as gold continues to be the preferred place of safety for investors, and ongoing uncertainty in the markets along with inflation worries should keep gold prices up for some time.
It has yet to be proven how gold prices will respond to interest rate hikes, but that shouldn't be for some time, and with the decoupling from the U.S. dollar recently, it may have far less impact on gold prices than in the past, and gold miners like Allied Nevada Gold.
Tuesday, April 20, 2010
George Soros' Gold Bubble Stupidity
Earlier in the year George Soros made the ridiculous comment that gold was in a bubble, but not only that, it was "the ultimate bubble," said Soros.
Of course he's been proven to be completely wrong, as the fading former investing star obviously was playing investors in an attempt to influence gold on his behalf, as he had invested millions in gold companies not too long before he made the statement.
It's quite possible he had shorted the position and was hoping investors would flee gold and prices would plunge. He could make a ton of money that way, or he may have been trying to get people to sell their positions in gold mining companies and then buy up a bunch of shares at depressed prices.
Either way, it didn't work, and gold continues to have support, and there's little in the near future that will change that, and in the long term it seems that will be the case as well.
Of course when interest rates are ultimately raised, we'll see at that time how far gold has decoupled from the U.S. dollar and if it's standing on its own in a way it hasn't for a long time.
There are so many variables at this time, it's impossible to see very clearly, even in the short term, and with the U.S. government, and other governments around the world, interfering and influencing markets in major ways, it's hard to tell what they may do to upset things, as it's usually something stupid with the normal unintended consequences.
Even if there is a major gold correction, I don't think we'll be seeing it fall far below $1,000 an ounce any time soon, and even if it does, the economic climate we live in and the inevitable economic challenges we're going to continue to face in the near future, gold will remain one of the few safe places people will run to, and that isn't even bringing inflation into the picture, which is happening in a number of sectors already, such as iron ore and copper prices.
Of course he's been proven to be completely wrong, as the fading former investing star obviously was playing investors in an attempt to influence gold on his behalf, as he had invested millions in gold companies not too long before he made the statement.
It's quite possible he had shorted the position and was hoping investors would flee gold and prices would plunge. He could make a ton of money that way, or he may have been trying to get people to sell their positions in gold mining companies and then buy up a bunch of shares at depressed prices.
Either way, it didn't work, and gold continues to have support, and there's little in the near future that will change that, and in the long term it seems that will be the case as well.
Of course when interest rates are ultimately raised, we'll see at that time how far gold has decoupled from the U.S. dollar and if it's standing on its own in a way it hasn't for a long time.
There are so many variables at this time, it's impossible to see very clearly, even in the short term, and with the U.S. government, and other governments around the world, interfering and influencing markets in major ways, it's hard to tell what they may do to upset things, as it's usually something stupid with the normal unintended consequences.
Even if there is a major gold correction, I don't think we'll be seeing it fall far below $1,000 an ounce any time soon, and even if it does, the economic climate we live in and the inevitable economic challenges we're going to continue to face in the near future, gold will remain one of the few safe places people will run to, and that isn't even bringing inflation into the picture, which is happening in a number of sectors already, such as iron ore and copper prices.
Friday, April 9, 2010
Taseko Mines (AMEX:TGB) Downgraded, Still Soars
Investors shrugged off the downgrade of Taseko Mines Limited (AMEX:TGB) by UBS AG analyst Phillip Huang, who cut his rating from a "Buy" to "Neutral."
The major reason for the downgrade by Huang was the recent success of Taseko, which has surged 21 percent from mid-December through April 7.
On the other hand, analyst Craig Miller of Toronto-Dominion Bank, made the opposite move, upgrading Taseko Mines from a "Hold" to a "Buy," saying he based his decision on his expectation that Taseko won't be selling shares to finance the Prosperity gold and copper project.
Either way, Taseko seems to be holding strong is positioned pretty strongly for a possible nice run.
The major reason for the downgrade by Huang was the recent success of Taseko, which has surged 21 percent from mid-December through April 7.
On the other hand, analyst Craig Miller of Toronto-Dominion Bank, made the opposite move, upgrading Taseko Mines from a "Hold" to a "Buy," saying he based his decision on his expectation that Taseko won't be selling shares to finance the Prosperity gold and copper project.
Either way, Taseko seems to be holding strong is positioned pretty strongly for a possible nice run.
Monday, March 22, 2010
Barrick Gold (TSE:ABX) Increases Reserve Estimates at Donlin Creek
Barrick Gold Donlin Creek Gold Project
Barrick Gold (TSE:ABX), which holds a 50 percent stake in the Donlin Creek Gold Project with NovaGold Resources (TSE:NG), has increased the reserve/resource estimates for its Donlin Creek Gold Project by 4.3 million ounces.
The amount of reserve/resource of gold at the site now stands at an estimated 33.6 million ounces.
Barrick Gold's portion of the gold reserves, along with NovaGold's, are 16.8 million ounces each.
Barrick Gold (TSE:ABX), which holds a 50 percent stake in the Donlin Creek Gold Project with NovaGold Resources (TSE:NG), has increased the reserve/resource estimates for its Donlin Creek Gold Project by 4.3 million ounces.
The amount of reserve/resource of gold at the site now stands at an estimated 33.6 million ounces.
Barrick Gold's portion of the gold reserves, along with NovaGold's, are 16.8 million ounces each.
Thursday, March 18, 2010
New Gold (TSE:NGD) Resumes Operations at Cerro San Pedro Mine
Full Operations Resume at New Gold's Cerro San Pedro Mine
New Gold (TSE:NGD) said it has received approval from a Mexican court to resume full operations at its Cerro San Pedro mine in Mexico.
The mine was partially shut down when concerns over explosives used there had to be litigated.
A federal court made a ruling in 2006 which resulted in the environmental ministry revoking New Gold's permit until the issue was resolved.
Now that full production will resume, New Gold estimates to produce about 95,000 to 105,000 ounces of gold a year, costing about C$390 to C$410 an ounce sold.
New Gold (TSE:NGD) said it has received approval from a Mexican court to resume full operations at its Cerro San Pedro mine in Mexico.
The mine was partially shut down when concerns over explosives used there had to be litigated.
A federal court made a ruling in 2006 which resulted in the environmental ministry revoking New Gold's permit until the issue was resolved.
Now that full production will resume, New Gold estimates to produce about 95,000 to 105,000 ounces of gold a year, costing about C$390 to C$410 an ounce sold.
Barrick Gold (NYSE:ABX) Approved for Expansion of Cowal Gold Mine
Barrick Gold Approved for Cowal Gold Mine Expansion
Although it has took some time, Barrick Gold (NYSE:ABX) has finally received approval to expand its Cowal Gold Mine, albeit with several conditions attached.
Initially, Barrick has requested to double the size of Cowal Gold Mine and to double the life span as well. That was met with resistance an litigation.
Now that is past them and they are ready to begin their expansion. Some of the conditions of the expansion include buying up three farms close to the mine if the owners make the request. Limiting noise at six other properties owned by Barrick is another condition.
Water sources were important in the decision-making process as well, with the Lacklin River entitlements held by the company under pressure. Consequently, Barrick found other water resources to add to their needs to relieve pressure on the river.
Barrick has commited $58 billion to the project.
Although it has took some time, Barrick Gold (NYSE:ABX) has finally received approval to expand its Cowal Gold Mine, albeit with several conditions attached.
Initially, Barrick has requested to double the size of Cowal Gold Mine and to double the life span as well. That was met with resistance an litigation.
Now that is past them and they are ready to begin their expansion. Some of the conditions of the expansion include buying up three farms close to the mine if the owners make the request. Limiting noise at six other properties owned by Barrick is another condition.
Water sources were important in the decision-making process as well, with the Lacklin River entitlements held by the company under pressure. Consequently, Barrick found other water resources to add to their needs to relieve pressure on the river.
Barrick has commited $58 billion to the project.
Wednesday, March 17, 2010
Alamos Gold (TSE:AGI): Going Big Time?
Alamos Gold is Ready for the Big Time
After a solid fourth-quarter report, Alamos Gold (TSE:AGI) has walked away from it with some swagger, and is looking toward significant expansion going forward.
The company has enjoyed three straight years of increasing their gold production, as their Mulatos Mine in Mexico continues to produce well, projecting between 160,000 to 175,000 ounces to be mined in 2010.
Cost an ounce will be at about $338, making it a very profitable project.
With that effort and a strong war chest of $147 million, including short-term investments and cash, Alamos gold is positioned to grow the company out through acquisitions, while maintaining some solid organic growth.
CEO John McCluskey has thrown aside subtle and let it be known they are hunting for gold properties and companies, and are willing to merge and do things nice, or get aggressive and make hostile bids if that's what it takes to grow the company.
They have two gold projects they acquired from Teck Resources (NYSE:TCK)and Fronteer Development Group (AMEX:FRG) in the early part of 2010, and estimate it'll begin production in the early part of 2013. They bought those for cash.
I like this company because of their strong cash position, organic growth potential, and the desire to grow over the next several years. Most of what I like is the cost controls in place, which show they have good management in place who aren't ready to just throw money around hoping to land a deal which could easily bankrupt or weaken the company.
That means they've worked hard to position themselves to take advantage of a number of opportunities in the near future, or to make their own opportunities. If they keep their heads and operational discipline, this could be a very nice gold company to invest in and hold.
Alamos Gold is Ready for the Big Time
After a solid fourth-quarter report, Alamos Gold (TSE:AGI) has walked away from it with some swagger, and is looking toward significant expansion going forward.
The company has enjoyed three straight years of increasing their gold production, as their Mulatos Mine in Mexico continues to produce well, projecting between 160,000 to 175,000 ounces to be mined in 2010.
Cost an ounce will be at about $338, making it a very profitable project.
With that effort and a strong war chest of $147 million, including short-term investments and cash, Alamos gold is positioned to grow the company out through acquisitions, while maintaining some solid organic growth.
CEO John McCluskey has thrown aside subtle and let it be known they are hunting for gold properties and companies, and are willing to merge and do things nice, or get aggressive and make hostile bids if that's what it takes to grow the company.
They have two gold projects they acquired from Teck Resources (NYSE:TCK)and Fronteer Development Group (AMEX:FRG) in the early part of 2010, and estimate it'll begin production in the early part of 2013. They bought those for cash.
I like this company because of their strong cash position, organic growth potential, and the desire to grow over the next several years. Most of what I like is the cost controls in place, which show they have good management in place who aren't ready to just throw money around hoping to land a deal which could easily bankrupt or weaken the company.
That means they've worked hard to position themselves to take advantage of a number of opportunities in the near future, or to make their own opportunities. If they keep their heads and operational discipline, this could be a very nice gold company to invest in and hold.
Alamos Gold is Ready for the Big Time
Newmont Mining (NYSE: NEM): Gold Going Up!
Newmont Mining Says Confident Gold Prices Going Up
Newmont Mining (NYSE: NEM) is the largest producer of gold based in the United States, and the company recently stated they are "confident" gold prices will continue to rise in 2010.
I agree, as there is little to stand in the way of gold prices increasing, and the surged yesterday on the news from the Federal Reserve interest rates will continue to stay where they're at for now.
But even if interest rates increase near the end of the year, which many analaysts believe will happen, I don't see that having a negative impact on gold prices, as there are many other factors undergirding the price of gold.
This doesn't mean there won't be a correction, just that it won't hold after the initial reaction.
Eventually money will start being borrowed out by banks, and when that happens, inflation will surge as the growing demand for iron ore in China and the steel industry shows.
That's a prelude to how commodity prices in general will perform once demand explodes again, which it will. That means gold will continue to be a major place to put your money to protect against inflation and as a place of safety.
Newmont Mining Says Confident Gold Prices Going Up
Newmont Mining (NYSE: NEM) is the largest producer of gold based in the United States, and the company recently stated they are "confident" gold prices will continue to rise in 2010.
I agree, as there is little to stand in the way of gold prices increasing, and the surged yesterday on the news from the Federal Reserve interest rates will continue to stay where they're at for now.
But even if interest rates increase near the end of the year, which many analaysts believe will happen, I don't see that having a negative impact on gold prices, as there are many other factors undergirding the price of gold.
This doesn't mean there won't be a correction, just that it won't hold after the initial reaction.
Eventually money will start being borrowed out by banks, and when that happens, inflation will surge as the growing demand for iron ore in China and the steel industry shows.
That's a prelude to how commodity prices in general will perform once demand explodes again, which it will. That means gold will continue to be a major place to put your money to protect against inflation and as a place of safety.
Newmont Mining Says Confident Gold Prices Going Up
Tuesday, March 16, 2010
Barrick Gold (ABX.TO), Potash (POT.TO) Push TSX Up
Toronto Stock Exchange Up on Rising Commodity Prices
Rising commodity prices drove up the Toronto Stock Exchange today to its highest level since September 2008, led by majors like Barrick Gold (ABX.TO) and Potash (POT.TO).
This is the third straight day the index has finished the session above 12,000.
Gold mining giant Barrick Gold (ABX.TO) closed the day at $40.64, while Potash (POT.TO) endd the session at $128.75. Potash was moved by reports their inventory may have dropped.
Barrick Gold and other similar companies were moved partly by the anticipation of interest rates in the U.S. remaining the same, and the Federal Reserve confirmed this after their meeting, possibly signaling another upward move of gold as everything is lining up to favor the inflation hedge and safety currency for investors.
Toronto Stock Exchange Up on Rising Commodity Prices
Rising commodity prices drove up the Toronto Stock Exchange today to its highest level since September 2008, led by majors like Barrick Gold (ABX.TO) and Potash (POT.TO).
This is the third straight day the index has finished the session above 12,000.
Gold mining giant Barrick Gold (ABX.TO) closed the day at $40.64, while Potash (POT.TO) endd the session at $128.75. Potash was moved by reports their inventory may have dropped.
Barrick Gold and other similar companies were moved partly by the anticipation of interest rates in the U.S. remaining the same, and the Federal Reserve confirmed this after their meeting, possibly signaling another upward move of gold as everything is lining up to favor the inflation hedge and safety currency for investors.
Toronto Stock Exchange Up on Rising Commodity Prices
Friday, March 12, 2010
Barrick Gold (TSE:ABX) CEO: Closing Hedgebooks
Gold Companies Closing Hedgebooks
Barrick Gold (TSE:ABX) CEO Aaron Regent said you can confirm from the actions of the gold production industry over the last year, they are bullish on the direction the price of gold is heading, based on many gold mining companies closing their hedgebooks during that time.
That means gold producers believe there is a certain support for gold, and at this time there is no need to hedge against it because even in difficult times and various market conditions gold prices will hold up for some time to come.
As governments foolishly attempt to force the economy to come back based on throwing printed money at it, gold will continue to do well, as inflation continues to go high and the value of currencies decline from oversupply in the market.
Regent sees a strong support for gold at the $1,100 level, and doesnt' think that's going to change any time soon.
Gold Companies Closing Hedgebooks
Barrick Gold (TSE:ABX) CEO Aaron Regent said you can confirm from the actions of the gold production industry over the last year, they are bullish on the direction the price of gold is heading, based on many gold mining companies closing their hedgebooks during that time.
That means gold producers believe there is a certain support for gold, and at this time there is no need to hedge against it because even in difficult times and various market conditions gold prices will hold up for some time to come.
As governments foolishly attempt to force the economy to come back based on throwing printed money at it, gold will continue to do well, as inflation continues to go high and the value of currencies decline from oversupply in the market.
Regent sees a strong support for gold at the $1,100 level, and doesnt' think that's going to change any time soon.
Gold Companies Closing Hedgebooks
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