With much of the financing drying up for mining companies, Silver Wheaton (SLW) has increasingly become the go to company for capital, with the difference now being that larger companies are seeking financing from the silver streaming company, whereby in the past smaller miners had primarily been those chiefly interested in Silver Wheaton as a way to raise capital.
That has come about largely because of the weak banking system in Europe, where banks there had been the major source of loans for the mining industry. Most of that has dried up, so now larger mining companies are scrambling to raise capital in a tough lending environment.
How the streaming company works is Silver Wheaton offers capital to fund projects in exchange for a discount price on the gold and silver production from the specific project being capitalized.
The majority of streams are of silver, which is produced as a byproduct of larger deposits of base metals, which the miners are more interested in.
Recently Silver Wheaton CEO Randy Smallwood said larger companies have been approaching the company for funding needs over the last quarter and longer.
For Silver Wheaton shareholders this is good news for those looking at the company as a long-term investment, because it offers less volatility and lower risk than smaller mining companies. Most of the risk is in relationship to production levels coming short or being disrupted, although most of that is over the short term.
According to Smallwood, Silver Wheaton is positioned to invest over $1 billion in possible deals going forward. The company has $555.1 million in cash on hand, along with a revolving credit facility of $400 million, among other capital resources.
In 2012 Silver Wheaton made one deal, that one with HudBay Minerals Inc. (HBM), where it sought funds for its Constancia copper mine in Peru. Per that deal Silver Wheaton received the right to acquire all the silver and gold produced through 2016 or until the mine is completed. After that, it will be able to acquire all the silver and 50 percent of the gold in the future.
The weak lending markets make this a terrific time for Silver Wheaton to be flush with cash in the midst of rising capital demand.
If done right, Silver Wheaton could easily position itself for a very profitable and predictable future.
Showing posts with label Mining Companies. Show all posts
Showing posts with label Mining Companies. Show all posts
Thursday, January 31, 2013
Thursday, October 7, 2010
Titan International (NYSE:TWI) Upgraded to Buy by Morgan Joseph
Shares of Titan International (NYSE:TWI) surged Wednesday as Morgan Joseph upgraded them from "Hold" to "Buy," citing the progress of the company isn't priced into the shares.
"While currently trading at about 19x our estimate for 2011 EPS, Titan's shares do not appear to reflect certain qualitative positives. We believe the company could produce profits of $1.20 per share in 2012, in light of the initiatives underway (e.g., expansion into Brazil and Europe, growth of the mining-truck tire business and turnaround of construction equipment)," Morgan said.
"We are adjusting our Q3 and Q4 estimates from $0.19 and $(0.04) to $0.09 and $0.06, respectively, to better reflect our latest views on the timing for revenues and expenses. As a result, our 2010 EPS estimate moves up to $0.33 from $0.30. For 2011, we project EPS more than doubling to $0.75."
Titan closed at $15.07, soaring $0.84, or 5.90 percent. Morgan Joseph has a price target of $18 on the company.
"While currently trading at about 19x our estimate for 2011 EPS, Titan's shares do not appear to reflect certain qualitative positives. We believe the company could produce profits of $1.20 per share in 2012, in light of the initiatives underway (e.g., expansion into Brazil and Europe, growth of the mining-truck tire business and turnaround of construction equipment)," Morgan said.
"We are adjusting our Q3 and Q4 estimates from $0.19 and $(0.04) to $0.09 and $0.06, respectively, to better reflect our latest views on the timing for revenues and expenses. As a result, our 2010 EPS estimate moves up to $0.33 from $0.30. For 2011, we project EPS more than doubling to $0.75."
Titan closed at $15.07, soaring $0.84, or 5.90 percent. Morgan Joseph has a price target of $18 on the company.
Thursday, September 23, 2010
Goldman (NYSE:GS) Likes Caterpillar (NYSE:CAT) Short Term
Goldman Sachs (NYSE:GS) said they really like the short-term prospects of Caterpillar (NYSE:CAT), and increased their earnings per share and price target estimates for the large equipment company.
Even so, the risk/reward balance over the long term is balance said Goldman, and they maintained their "Neutral" rating on Caterpillar.
Earnings per share estimates for the next three were increased by an average of 10 percent. 2010 was raised to $4.25; 2011 to $5.45; and 2012 to $6.80 a share.
That is dependent on an economic recovery said Goldman, although the strength of commodities and the resultant demand for equipment for miners, and possibly farmers in reference to agriculture, could keep the company growing even if the majority of the rest of the economy sputters.
Many companies had been holding off on purchasing new equipment, and now they must do it, and so that restocking should also benefit Caterpillar in the near term.
The price target on Caterpillar was raised by Goldman from $70 to $77.
Caterpillar closed Wednesday at $76.18, down $0.21, or 0.27 percent.
Even so, the risk/reward balance over the long term is balance said Goldman, and they maintained their "Neutral" rating on Caterpillar.
Earnings per share estimates for the next three were increased by an average of 10 percent. 2010 was raised to $4.25; 2011 to $5.45; and 2012 to $6.80 a share.
That is dependent on an economic recovery said Goldman, although the strength of commodities and the resultant demand for equipment for miners, and possibly farmers in reference to agriculture, could keep the company growing even if the majority of the rest of the economy sputters.
Many companies had been holding off on purchasing new equipment, and now they must do it, and so that restocking should also benefit Caterpillar in the near term.
The price target on Caterpillar was raised by Goldman from $70 to $77.
Caterpillar closed Wednesday at $76.18, down $0.21, or 0.27 percent.
Friday, August 20, 2010
Morgan Stanley (NYSE:MS) Increases Deere (NYSE:DE) Price Target
Morgan Stanley (NYSE:MS) upped the price target of Deere & Co. (NYSE:DE) Thursday to $75 a share, saying consolidation in the industry is underestimated.
Morgan Stanley's Alexander Vecchio, Robert Wertheimer and Joseph O'Dea wrote in a note, "In our view, consensus underestimates the impact of consolidation in the US farmer and DE's strong position in the construction market, which should recover even in a weak economy. The company has executed extremely well through the downturn in our view. 2Q/3Q [agriculture] margins at record levels, and high end of historical range even adjusting for 2 points of [positive] mix."
The idea the construction equipment market will do well no matter if the economy is in a downturn isn't too convincing to me.
I would agree with that if they're including the mining industry equipment market, where strong earnings for many could result in increased investment.
Morgan Stanley's Alexander Vecchio, Robert Wertheimer and Joseph O'Dea wrote in a note, "In our view, consensus underestimates the impact of consolidation in the US farmer and DE's strong position in the construction market, which should recover even in a weak economy. The company has executed extremely well through the downturn in our view. 2Q/3Q [agriculture] margins at record levels, and high end of historical range even adjusting for 2 points of [positive] mix."
The idea the construction equipment market will do well no matter if the economy is in a downturn isn't too convincing to me.
I would agree with that if they're including the mining industry equipment market, where strong earnings for many could result in increased investment.
Thursday, July 22, 2010
Caterpillar (NYSE:CAT) Demolishes Analysts' Estimates, Increase Guidance
Caterpillar Inc. (NYSE:CAT) exceeded analysts' expectations by a large amount this quarter, as revenue for its four global regions increased for the period.
Earnings for the second quarter increased to $707 million, or $1.09 a share. Analysts were looking for $0.85 a share. Profits last year reached $371 million, a gain of over 90 percent this year. Revenue was up to $10.4 billion, a major improvement over the same quarter last year where they generated $8 billion in revenue.
Segments which performed the strongest including energy, mining and infrastructure-related equipment. Regions generating the biggest increase in sales included Asia/Pacific and Latin America.
Kent Adams, Cat Financial president and vice president of Caterpillar Inc., said this, "During the second quarter, portfolio quality began to show signs of improvement as economic conditions around the world continued to improve. Our focus in 2010 has been in three key areas: serving our Caterpillar customers and dealers, managing the portfolio and ensuring we have ample liquidity. While there are still economic concerns around the world, we are well positioned to support our customers as the recovery gains momentum."
CEO Doug Oberhelman also gave improved guidance for 2010, saying, "There are significant economic concerns around the world that we are watching closely, orders have continued to outpace our shipments, and we expect to increase production in the second half of the year."
Most the areas that the company excelled in came from good prices in the quarter, in relationship to mining, and building programs from the government for infrastructure projects.
Prices have fallen for commodities this quarter, and infrastructure projects in some areas have been cut back on.
Those factors could hold the company back from growth for the remainder of the year, as the economic outlook continues to be gloomy around the world, despite the assertions of an ongoing recovery, which really isn't happening.
Earnings for the second quarter increased to $707 million, or $1.09 a share. Analysts were looking for $0.85 a share. Profits last year reached $371 million, a gain of over 90 percent this year. Revenue was up to $10.4 billion, a major improvement over the same quarter last year where they generated $8 billion in revenue.
Segments which performed the strongest including energy, mining and infrastructure-related equipment. Regions generating the biggest increase in sales included Asia/Pacific and Latin America.
Kent Adams, Cat Financial president and vice president of Caterpillar Inc., said this, "During the second quarter, portfolio quality began to show signs of improvement as economic conditions around the world continued to improve. Our focus in 2010 has been in three key areas: serving our Caterpillar customers and dealers, managing the portfolio and ensuring we have ample liquidity. While there are still economic concerns around the world, we are well positioned to support our customers as the recovery gains momentum."
CEO Doug Oberhelman also gave improved guidance for 2010, saying, "There are significant economic concerns around the world that we are watching closely, orders have continued to outpace our shipments, and we expect to increase production in the second half of the year."
Most the areas that the company excelled in came from good prices in the quarter, in relationship to mining, and building programs from the government for infrastructure projects.
Prices have fallen for commodities this quarter, and infrastructure projects in some areas have been cut back on.
Those factors could hold the company back from growth for the remainder of the year, as the economic outlook continues to be gloomy around the world, despite the assertions of an ongoing recovery, which really isn't happening.
Thursday, May 13, 2010
First Quantum Minerals' (TSE:GM) China Loan
First Quantum Minerals' (TSE:GM) should be a recipient of part of the $5 billion in loans offered by China to private operating mining companies in Zambia.
President Rupiah Banda, said that the China Development Bank has made a deal with the Ministry of Mines to offer medium- and long-term loans to private mining companies with operations in the country.
China is also financing a power plant, committing $1 billion to build out the electricity in the country, with the plant's output adding 600 mega for the electricity the country will be able to use. The plant is scheduled to be completed in 2017.
Along with First Quantum Minerals, other mining companies to receive loans are Glencore International AG, Vedanta Resources, Metorex and Equinox Minerals.
President Rupiah Banda, said that the China Development Bank has made a deal with the Ministry of Mines to offer medium- and long-term loans to private mining companies with operations in the country.
China is also financing a power plant, committing $1 billion to build out the electricity in the country, with the plant's output adding 600 mega for the electricity the country will be able to use. The plant is scheduled to be completed in 2017.
Along with First Quantum Minerals, other mining companies to receive loans are Glencore International AG, Vedanta Resources, Metorex and Equinox Minerals.
Tuesday, May 4, 2010
BHP Billiton (ASX:BHP), Rio Tinto (LON:RIO) Fall on China Fears, Sovereign Debt Concerns
In a very short time, resource companies like BHP Billiton (ASX:BHP) and Rio Tinto (LON:RIO) have fallen on not only the obvious concerns of the sovereign debt crisis in Europe, but possibly even more important, the apparent cutback by China in their housing market could result in demand for commodities to fall.
Suddenly everyone that has been citing China as the reason for confidence in growth going forward has to reevaluate their businesses and possibly readjust their estimates for revenue and earnings.
Oh yeah, then there's the misguided 40 percent levy by the Rudd government which has disrupted the markets for mining companies with a large presence there, and could end up being a disaster.
So overall, in just a couple of weeks or less, optimism on earnings and revenue have plummeted to companies again taking a more defensive posture in a quickly changing economic environment.
Suddenly everyone that has been citing China as the reason for confidence in growth going forward has to reevaluate their businesses and possibly readjust their estimates for revenue and earnings.
Oh yeah, then there's the misguided 40 percent levy by the Rudd government which has disrupted the markets for mining companies with a large presence there, and could end up being a disaster.
So overall, in just a couple of weeks or less, optimism on earnings and revenue have plummeted to companies again taking a more defensive posture in a quickly changing economic environment.
Tuesday, March 30, 2010
MAG Silver (AMEX:MVG) Prime for Takeover?
MAG Silver a takeover target?
With MAG Silver (AMEX:MVG) almost doubling its share price over the last 12 months, and a plethora of high-quality properties under its control, you wonder if some larger companies are again thinking it may be the right time to swoop in and acquire them before their share price really shoots up and they become extremely expensive to own.
Their market cap is only a little over $357 million as of this writing, so would be very desirable, even with their price close to double what it was last March.
I think any company that does their homework would find MAG Silver an extraordinary buy, but the existing economic climate still makes any long-term acquisition somewhat risky for all but the mining companies with the deepest pockets.
While it's somewhat doubtful, MAG Silver could be left on its own, in which case they should do well over the next decade or so, and probably further. If not, they would still be a great acquisition for the right company.
MAG Silver a takeover target?
With MAG Silver (AMEX:MVG) almost doubling its share price over the last 12 months, and a plethora of high-quality properties under its control, you wonder if some larger companies are again thinking it may be the right time to swoop in and acquire them before their share price really shoots up and they become extremely expensive to own.
Their market cap is only a little over $357 million as of this writing, so would be very desirable, even with their price close to double what it was last March.
I think any company that does their homework would find MAG Silver an extraordinary buy, but the existing economic climate still makes any long-term acquisition somewhat risky for all but the mining companies with the deepest pockets.
While it's somewhat doubtful, MAG Silver could be left on its own, in which case they should do well over the next decade or so, and probably further. If not, they would still be a great acquisition for the right company.
MAG Silver a takeover target?
Friday, March 12, 2010
BHP Billiton (NYSE: BHP) Falls on China Concerns
BHP Billiton China Inflation
BHP Billiton (NYSE: BHP) had its stock price plunge as concerns over the effects of China tightening its money supply has put downward pressure on commodities because of uncertainty of demand.
Reports show China has inflation challenges, and the normal way to deal with that is to take measures to tighten your money supply, which will cut back on spending and demand for raw materials.
Being the largest mining company in the world, BHP Billiton plunged by over 2 percent as a number of precious metals fell in price on the China inflation news.
BHP Billiton China Inflation
BHP Billiton (NYSE: BHP) had its stock price plunge as concerns over the effects of China tightening its money supply has put downward pressure on commodities because of uncertainty of demand.
Reports show China has inflation challenges, and the normal way to deal with that is to take measures to tighten your money supply, which will cut back on spending and demand for raw materials.
Being the largest mining company in the world, BHP Billiton plunged by over 2 percent as a number of precious metals fell in price on the China inflation news.
BHP Billiton China Inflation
Monday, March 8, 2010
Freeport-McMoRan (NYSE:FCX) Getting New Mexico Land?
Freeport-McMoRan and New Mexico Mining Land
Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) may get a chance at securing land near its existing mining operations in New Mexico, as the Bureau of Land Management is looking to sell close to 1,300 acres close to the Gila National Forest.
In the past Freeport-McMoRan has evidently had some interest in the six parcels being offered, but was slow to commit to whether they parcipate in acquiring the land if the offer is officially made.
At this time it would take anywhere from one to three years for the BLM to sell the property, and it has yet to be officially appraised.
Freeport spokesman Eric Kinneberg said at this time there are no existing plans to "change operations" in New Mexico.
Freeport-McMoRan and New Mexico Mining Land
Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) may get a chance at securing land near its existing mining operations in New Mexico, as the Bureau of Land Management is looking to sell close to 1,300 acres close to the Gila National Forest.
In the past Freeport-McMoRan has evidently had some interest in the six parcels being offered, but was slow to commit to whether they parcipate in acquiring the land if the offer is officially made.
At this time it would take anywhere from one to three years for the BLM to sell the property, and it has yet to be officially appraised.
Freeport spokesman Eric Kinneberg said at this time there are no existing plans to "change operations" in New Mexico.
Freeport-McMoRan and New Mexico Mining Land
Thursday, March 4, 2010
Rio Tinto (LON:RIO) Investing Ivanhoe Mines (NYSE:IVN)
Rio Tinto Investing in Ivanhoe Mines
Now that Ivanhoe Mines (NYSE:IVN) has landed the big deal in Mongolia, Rio Tinto (LON:RIO) has decided to invest in the company to the tune of 15 million shares, making the overall stake in Ivanhoe by Rio Tinto at 22.4 percent.
Per the deal, Rio can now acquire up to 44 percent of Ivanhoe Mines, along with other securities in the future to maintain its equity interest if needed.
This is the result of the Oyu Tolgoi project in Mongolia, considered the largest known gold and copper mine in the world yet to be worked.
Rio Tinto Investing in Ivanhoe Mines
Now that Ivanhoe Mines (NYSE:IVN) has landed the big deal in Mongolia, Rio Tinto (LON:RIO) has decided to invest in the company to the tune of 15 million shares, making the overall stake in Ivanhoe by Rio Tinto at 22.4 percent.
Per the deal, Rio can now acquire up to 44 percent of Ivanhoe Mines, along with other securities in the future to maintain its equity interest if needed.
This is the result of the Oyu Tolgoi project in Mongolia, considered the largest known gold and copper mine in the world yet to be worked.
Rio Tinto Investing in Ivanhoe Mines
Wednesday, March 3, 2010
JPMorgan (NYSE:JPM): Terex (NYSE:TEX) for Sale?
Terex for Sale?
Analysts at JPMorgan said that Terex Corp. (NYSE:TEX) could be offering itself for sale, generating strong movements in the price of the shares of the stock.
This comes on the heals of Terex selling its highly profitable mining equipment business last month to Bucyrus International for $1.3 billion.
With the mining equipment business being its most consistent performer, it was highly criticized when they sold the unit, probably what has generated the idea the entire company may be for sale, or parts of the company which make the rest of the whole.
Considering the mining industry should boom for years to come, it didn't make much sense when Terex CEO Ron DeFeo said it was a first step in transforming Terex into a more diverse company which manufactures niche industrial products and machinery.
The construction side of the equation is easy to understand, but the mining part makes little sense, unless it had to be included in the recent sale to make the deal happen.
Terex for Sale?
Analysts at JPMorgan said that Terex Corp. (NYSE:TEX) could be offering itself for sale, generating strong movements in the price of the shares of the stock.
This comes on the heals of Terex selling its highly profitable mining equipment business last month to Bucyrus International for $1.3 billion.
With the mining equipment business being its most consistent performer, it was highly criticized when they sold the unit, probably what has generated the idea the entire company may be for sale, or parts of the company which make the rest of the whole.
Considering the mining industry should boom for years to come, it didn't make much sense when Terex CEO Ron DeFeo said it was a first step in transforming Terex into a more diverse company which manufactures niche industrial products and machinery.
The construction side of the equation is easy to understand, but the mining part makes little sense, unless it had to be included in the recent sale to make the deal happen.
Terex for Sale?
Friday, February 26, 2010
Newmont Mining (NYSE:NEM) Fourth-Quarter Earnings
Newmont Mining (NYSE:NEM) Fourth-Quarter Earnings
Newmont Mining (NYSE:NEM) enjoyed a super fourth quarter as far as earnings go, performing far beyond expectations, as prices shot up for copper and gold, while the management reined in costs to generate the great numbers.
Earnings for the fourth quarter reached $558 million or $1.13 a share, an increase of $4 million from a year ago.
Overall sales of gold grew by 55 percent while copper sales were over ten times what they were from the year before, rising from $47 million to an extraordinary $533 million.
Reserves for both metals increased as well for the year, with copper reserves increasing 17 percent and gold reserves increasing by 8 percent.
It's great to see the second-largest gold mining company behind Barrick Gold (NYSE:ABX) not only flourish because of market demand, but also because they took steps to cut back on costs at the time good management does: when things are going great. Good job overall for Newmont and good discipline.
Newmont Mining (NYSE:NEM) Fourth-Quarter Earnings
Newmont Mining (NYSE:NEM) enjoyed a super fourth quarter as far as earnings go, performing far beyond expectations, as prices shot up for copper and gold, while the management reined in costs to generate the great numbers.
Earnings for the fourth quarter reached $558 million or $1.13 a share, an increase of $4 million from a year ago.
Overall sales of gold grew by 55 percent while copper sales were over ten times what they were from the year before, rising from $47 million to an extraordinary $533 million.
Reserves for both metals increased as well for the year, with copper reserves increasing 17 percent and gold reserves increasing by 8 percent.
It's great to see the second-largest gold mining company behind Barrick Gold (NYSE:ABX) not only flourish because of market demand, but also because they took steps to cut back on costs at the time good management does: when things are going great. Good job overall for Newmont and good discipline.
Newmont Mining (NYSE:NEM) Fourth-Quarter Earnings
Wednesday, February 24, 2010
Silver Standard Resources (NASDAQ:SSRI) Silvertip Property
Silver Standard Resources (NASDAQ:SSRI) Silvercorp Metals (NYSE:SVM)
Silver Standard Resources (NASDAQ:SSRI) has sold its stake in its Silvertip property to Silvercorp Metals (NYSE: SVM) for C$15 million. The property includes silver, lead and zinc. The terms of the deal was half in common shares of the company and the other half in cash.
“The Silvertip project ranks among one of the highest grade silver-lead-zinc carbonate replacement deposits in North America — with great potential to grow,” said Rui Feng, Silvercorp chairman and chief executive.
The lead could be especially rewarding, as it had a concentrate grade of 65 percent and 80.4 percent was deemed as recoverable in a test a couple of years ago.
Another factor is lead for batteries continues to be in strong demand, while there are only about 7 lead mines in the world to provide it.
Silvercorp wil perform its own due diligence before the deal is officially completed in a couple of days.
Silver Standard Resources (NASDAQ:SSRI) Silvercorp Metals (NYSE:SVM)
Silver Standard Resources (NASDAQ:SSRI) has sold its stake in its Silvertip property to Silvercorp Metals (NYSE: SVM) for C$15 million. The property includes silver, lead and zinc. The terms of the deal was half in common shares of the company and the other half in cash.
“The Silvertip project ranks among one of the highest grade silver-lead-zinc carbonate replacement deposits in North America — with great potential to grow,” said Rui Feng, Silvercorp chairman and chief executive.
The lead could be especially rewarding, as it had a concentrate grade of 65 percent and 80.4 percent was deemed as recoverable in a test a couple of years ago.
Another factor is lead for batteries continues to be in strong demand, while there are only about 7 lead mines in the world to provide it.
Silvercorp wil perform its own due diligence before the deal is officially completed in a couple of days.
Silver Standard Resources (NASDAQ:SSRI) Silvercorp Metals (NYSE:SVM)
Monday, February 15, 2010
Mining Industry: Energy Prices Rising
Commodity Prices Going Up
The mining industry has come out in force saying there is no doubt energy prices will continue to rise over the next five years, with oil increasing to over $100 a barrel.
While this will probably be true, with at least price increases at some level, the mining industry added that energy is far from the only raw material or other commodity sector poised to increase in price.
Almost every single future factor will confirm that prices for most commodities will continue to rise based on emerging markets, China, and an increasing population.
Those elements alone will push commodity prices up, even if nothing else happens.
It's only a matter of when it'll happen and with what commodity. To me, the recent tightening in China will only have an effect upon those commodities not that high in demand, as the iron ore price negotiations reveal.
Commodity Prices Going Up
The mining industry has come out in force saying there is no doubt energy prices will continue to rise over the next five years, with oil increasing to over $100 a barrel.
While this will probably be true, with at least price increases at some level, the mining industry added that energy is far from the only raw material or other commodity sector poised to increase in price.
Almost every single future factor will confirm that prices for most commodities will continue to rise based on emerging markets, China, and an increasing population.
Those elements alone will push commodity prices up, even if nothing else happens.
It's only a matter of when it'll happen and with what commodity. To me, the recent tightening in China will only have an effect upon those commodities not that high in demand, as the iron ore price negotiations reveal.
Commodity Prices Going Up
Wednesday, February 10, 2010
Dutch Gold Resources (DGRI.PK) Claims Mine That Could Produce $3 Billion
Dutch Gold Resources in Possible $3 Billion Find
Dutch Gold Resources (DGRI.PK) claims they are sitting on a gold mine in Montana which has the potential to produce over $3 billion in gold during the lifetime of the mine.
The location of the mine, according to the press release of the company is about two miles from Rock Creek in Granite County, Montana. They called it a large open-ended gold and silver system, although no mention of the silver potential was mentioned.
Sometime in February the company says they will file the required preliminary applications with the Montana Department of Environmental Quality, which is the next step in the process to be allowed to mine the gold.
Also filed by the company has been the necessary forms with the U.S. Securities and Exchange Commission, which will help potential investors to take a look or do more research concerning the big claims asserted by the gold mining company.
Dutch Gold Resources in Possible $3 Billion Find
Dutch Gold Resources (DGRI.PK) claims they are sitting on a gold mine in Montana which has the potential to produce over $3 billion in gold during the lifetime of the mine.
The location of the mine, according to the press release of the company is about two miles from Rock Creek in Granite County, Montana. They called it a large open-ended gold and silver system, although no mention of the silver potential was mentioned.
Sometime in February the company says they will file the required preliminary applications with the Montana Department of Environmental Quality, which is the next step in the process to be allowed to mine the gold.
Also filed by the company has been the necessary forms with the U.S. Securities and Exchange Commission, which will help potential investors to take a look or do more research concerning the big claims asserted by the gold mining company.
Dutch Gold Resources in Possible $3 Billion Find
Friday, December 18, 2009
Joy Global (Nasdaq:JOYG) Fourth Quarter Results
Joy Global (Nasdaq: JOYG) is a manufacturer of mining equipment, and their fourth quarter results show the company has a solid ending to the year, and a decent 2009 in general.
Earnings per share for the year gained a nice 28 percent for 2009, and that was net sales increasing by only 5 percent.
What that tells us is Joy Global had some strong backlog o forders which helped them during these more difficult economic times, where overall mining equipment orders have been drying up.
Another positive for the company is they greatly increase their supply chain management, and were able to streamline costs nicely, which could set them up for nice profits going forward once a real recovery begins to happen.
Operating margins for 2009 endd at 20 percent, a great performance when bookings were down for mining equipment. Again, that was a testament to great cost-cutting measures.
Even with all the backlog and great performance, things remain tenuous for the time, as orders for new mining equipment have plunged by 74 percent from last year at the same time, making it tough going forward into 2010 for Joy Global.
If it wasn't for aftermarket products things would have been far more dismal, as original equipment bookings were almost non-existent for the company over the last year.
Earnings per share for the year gained a nice 28 percent for 2009, and that was net sales increasing by only 5 percent.
What that tells us is Joy Global had some strong backlog o forders which helped them during these more difficult economic times, where overall mining equipment orders have been drying up.
Another positive for the company is they greatly increase their supply chain management, and were able to streamline costs nicely, which could set them up for nice profits going forward once a real recovery begins to happen.
Operating margins for 2009 endd at 20 percent, a great performance when bookings were down for mining equipment. Again, that was a testament to great cost-cutting measures.
Even with all the backlog and great performance, things remain tenuous for the time, as orders for new mining equipment have plunged by 74 percent from last year at the same time, making it tough going forward into 2010 for Joy Global.
If it wasn't for aftermarket products things would have been far more dismal, as original equipment bookings were almost non-existent for the company over the last year.
Thursday, November 19, 2009
Jim Rogers: Avoid Mining Stocks
A large number of investors have looked to Jim Rogers for advice on how to play the ongoing rise in silver and gold, as it looks like there's no end in sight as to how high the prices of the two precious metals will go in the years ahead.
Rogers has cautioned that he wouldn't by gold through mining stocks unless you're a great stock researcher and picker, as investing directly in gold and silver over the years has proven to be the best way to make money.
He applies that to all commodities as well, where studies confirm investing in commodities in and of themselves outperform commodity companies.
Even though gold is far below its high when adjusted for inflation, it is hovering near its all-time highs as far as price goes.
Rogers says while he's not buying, neither is he selling, as price will go up without a doubt, even if there are the usual corrections.
Concerning gold, Rogers recently stated that there is no doubt in his mind that gold will surge past the adjusted for inflation high of about $2,000. Peter Schiff has said he could see it going as high as $5,000 in the current commodity bull market.
Rogers has cautioned that he wouldn't by gold through mining stocks unless you're a great stock researcher and picker, as investing directly in gold and silver over the years has proven to be the best way to make money.
He applies that to all commodities as well, where studies confirm investing in commodities in and of themselves outperform commodity companies.
Even though gold is far below its high when adjusted for inflation, it is hovering near its all-time highs as far as price goes.
Rogers says while he's not buying, neither is he selling, as price will go up without a doubt, even if there are the usual corrections.
Concerning gold, Rogers recently stated that there is no doubt in his mind that gold will surge past the adjusted for inflation high of about $2,000. Peter Schiff has said he could see it going as high as $5,000 in the current commodity bull market.
Monday, January 26, 2009
Commodities: Caterpillar in Massive Layoffs
Caterpillar, the huge mining and construction equipment maker, announced today it was going to lay off about 20,000 people in response to a worst than expected quarter, as plunging commodity prices caused mining companies to cut back on equipment acquisitions.
According to Caterpillar, their net profit in the fourth quarter plunged by 32 percent to $661 million from the same time a year ago.
The performance was so bad for the equipment maker that they said 2009 will be their poorest year since World War II. Earnings for the fourth quarter came in at $1.08, in contrast to the estimated $1.31 analysts were looking for.
Caterpillar CEO Jim Owens concurred with the outlook, saying it's going to be a very tough year for the company.
Much of the poor performance came from mining companies, as they cut back on equipment purchases as commodity prices fell in a big way in the last part of 2008.
This is unfortunate, as it looks like with gold and silver prices rising, the last half of 2009 will probably be a good one, as money starts flowing to acquiring equipment again. But the battering on Caterpillar forces them to make these moves in order to survive.
Looking ahead, Caterpillar cut its 2009 sales and earnings guidance from $51.3 billion and $5.66 a share, to $40 billion and $2.50 a share.
The first half will be brutal for the company, but as I said, the second half will bring some recovery, but it won't be nearly enough or in time to offer any short-term support to the company or stock.
Why this is significant, especially in the commodities sector, is Caterpillar is a bellwhether for the overall economy; both nationally and internationally. Taking this big of a hit has brought optimism back to reality, and tells us things will be tough going ahead.
For investors, this should be a sign that gold and silver will continue to be good places to put their money in 2009, as the U.S. dollar will weaken and diminish as a place of safety, and gold especially will start to be the place people look for for safety, as it usually is in times like this.
According to Caterpillar, their net profit in the fourth quarter plunged by 32 percent to $661 million from the same time a year ago.
The performance was so bad for the equipment maker that they said 2009 will be their poorest year since World War II. Earnings for the fourth quarter came in at $1.08, in contrast to the estimated $1.31 analysts were looking for.
Caterpillar CEO Jim Owens concurred with the outlook, saying it's going to be a very tough year for the company.
Much of the poor performance came from mining companies, as they cut back on equipment purchases as commodity prices fell in a big way in the last part of 2008.
This is unfortunate, as it looks like with gold and silver prices rising, the last half of 2009 will probably be a good one, as money starts flowing to acquiring equipment again. But the battering on Caterpillar forces them to make these moves in order to survive.
Looking ahead, Caterpillar cut its 2009 sales and earnings guidance from $51.3 billion and $5.66 a share, to $40 billion and $2.50 a share.
The first half will be brutal for the company, but as I said, the second half will bring some recovery, but it won't be nearly enough or in time to offer any short-term support to the company or stock.
Why this is significant, especially in the commodities sector, is Caterpillar is a bellwhether for the overall economy; both nationally and internationally. Taking this big of a hit has brought optimism back to reality, and tells us things will be tough going ahead.
For investors, this should be a sign that gold and silver will continue to be good places to put their money in 2009, as the U.S. dollar will weaken and diminish as a place of safety, and gold especially will start to be the place people look for for safety, as it usually is in times like this.
Wednesday, October 29, 2008
Commodities: Gold Mining Companies
Gold mining companies looking to preserve capital for yellow commodity business
Until the forced liquidation period is over, mining companies will have as their major goal the preservation of capital, rather than exploration and expansion. In other words, survival is the key during this difficult economic period.
None of the underlying fundamentals for demand has changed, as the needs of China remain. What all this will do is prolong the commodity bull market as we go through this temporary hiccup.
Like in any difficult time, commodity companies with heavy debt loads will suffer more than those that are run leaner. It's also probable that some of them either won't survive, or they will be bought up by healthy companies.
As far as commodities that at this time are being considered hot for 2009, tin, manganese, molydenum and bauxite are looking good. Others like cobalt, zinc and vanadium are probably going to tank over the next year.
Allan Trench, Australasian regional director of CRU research and advisory group said, "There is opportunity for the likes of tin, manganese and bauxite -- in the same way there was in uranium two years ago and as there was in phosphate earlier this year -- for IPOs."
Commodity companies that are well run will be looking to preserve capital throughout 2009.
Until the forced liquidation period is over, mining companies will have as their major goal the preservation of capital, rather than exploration and expansion. In other words, survival is the key during this difficult economic period.
None of the underlying fundamentals for demand has changed, as the needs of China remain. What all this will do is prolong the commodity bull market as we go through this temporary hiccup.
Like in any difficult time, commodity companies with heavy debt loads will suffer more than those that are run leaner. It's also probable that some of them either won't survive, or they will be bought up by healthy companies.
As far as commodities that at this time are being considered hot for 2009, tin, manganese, molydenum and bauxite are looking good. Others like cobalt, zinc and vanadium are probably going to tank over the next year.
Allan Trench, Australasian regional director of CRU research and advisory group said, "There is opportunity for the likes of tin, manganese and bauxite -- in the same way there was in uranium two years ago and as there was in phosphate earlier this year -- for IPOs."
Commodity companies that are well run will be looking to preserve capital throughout 2009.
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