We would like to share with you today the very good overview of Major World Gold deposits from Carlos Andres. The main value driver for the junior mining sector will be the hunger of Major Gold producers for the new deposits and as you can see on the chart above they are not coming up very often.

Rick Rule On Gold & Resources: "The Stage Is Set For An Absolutely Dramatic Recovery" TNR.v, MUX

"As we can see now, all Majors are cutting the marginal production and shelving the project developments. The production cost price will determine the bottom in the particular commodity. While it is possible to experience the prolonged period of below the cost of production prices, it is not sustainable and it does not play very well with the FED talking about the tapering due to the economic growth. 

  All these drastic cost cutting and Major's "new CEO bottom preservation measures" will lead to the price reversal once the Demand will outstrip Supply. Normally this move is very impressive, as you can not put online new mines just by flipping the switch. The lead time in the industry is measured by years  and by billions of underinvested Capital in the Projects Pipeline."

Rob McEwen Interview: On Gold Prices, Gold Miners And Bitcoin MUX, TNR.v, GLD

"Rob McEwen is very active in the mass media these days and he has the very interesting story to tell."

TNR Gold Corp. Files Technical Report on Shotgun Gold Project, Alaska TNR.v

Kitco:

World’s Top 10 Gold Deposits

Tuesday August 20, 2013 15:53

Today, we present the world's Top 10 producing Gold Mines. Compiling them was not easy because there are a few ways they can be ranked. A top 10 list can by compiled by annual production, or by the size of proven and probable reserves, or more generally by their measured, indicated & inferred resources (which include reserves). We ultimately decided to rank them based on the overall size of gold resources to give the viewer a truer sense of the deposits size and potential. Please enjoy our Top 10 List as we begin with the smallest and work our way to Number #1.

#10 | Obuasi | 29,830,000 Oz Gold

Location: GHANA, western Africa

In the #10 spot is Obuasi, owned by major gold producer AngloGold Ashanti. It is primarily a high-grade underground mine with periodic open-pit operations during its long history. It is located in the Ashanti region of southwest Ghana in western Africa; a prolific gold producing region for centuries. The underground operation extends to a depth of 1,500 meters or 4,900 feet (almost a mile). Mining began at Obuasi more than 110 years ago, in 1897 when it was originally known as the Ashanti Mine.

#9 | CADIA EAST | 37,600,000 Oz Gold

Location: New South Wales, AUSTRALIA

In the #9 spot is Cadia East, owned by Australian major Newcrest. The large underground mining operation is part of a trio of gold mines, in close proximity to one another, known collectively as Newcrest's Cadia Valley Operations, roughly 250 kilometers west of Sydney. The other two mines are Cadia Hill and Ridgeway. Cadia Hill is a large open-pit mine nearing the end of its useful life just as the newly developed Cadia East recently began its expected 30 year mine life. Gold was first discovered in the Cadia region in 1851 and then in Cadia East was discovered in 1994.

#8 | MPONENG | 39,557,000 Oz Gold

Location: Near Johannesburg, SOUTH AFRICA

In the #8 spot is Mponeng, owned by South African major AngloGold Ashanti. It is located just 65km west of Johannesburg in one of the world's most prolific mining regions known as the Witwatersrand. In addition to being one of the largest, Mponeng is also one of the world's deepest underground mines. It extends over 2 miles below the surface and it takes over an hour to reach the bottom. The rocks at this depth reach a temperature of 150 degrees farenheit requiring slurry ice be pumped underground to cool the environment down to a bearable 85 degrees.

#7 | PUEBLO VIEJO | 40,085,000 Oz Gold

Location: DOMINICAN REPUBLIC

Coming in at #7 is Pueblo Viejo, owned jointly by majors Barrick (60%) and Goldcorp (40%). This large deposit is located in the Dominican Republic, roughly 100km northwest of the capital of Santo Domingo. It might surprise some that this small island nation is rich in mineral reserves. The open pit mine is very new and began production in January 2013. It also has large silver and copper reserves to complement its gold deposit. As it ramps up to full production, it will also be one of the largest producers in the world, but we'll save production figures for a separate Top 10 List.

#6 | OYU TOLGOI | 46,340,000 Oz Gold

Location: South Gobi Desert, MONGOLIA

At #6 on our list is Oyu Tolgoi, owned jointly by Rio Tinto (34%), Turquoise Hill (32%) and Mongolia (34%). This is another newly developed mammoth deposit located in the remote southern reaches of Mongolia. The mine cost the princely sum of US$6.6B to develop and went into production in January 2013. In addition to its 46Moz+ of gold, it also contains over 40 billion pounds of copper worth US$140B. It's really a copper mine masquerading as a gold mine. It will also be one of the largest gold and copper producers on earth as it ramps up to full production.

#5 | OLYMPIADA | 47,500,000 Oz Gold

Location: Central Siberia, RUSSIA

In the #5 spot is Olympiada, owned solely by Russian major Polyus. This large open-pit mine is located in the country's most prolific gold bearing region; the Krasnoyarsk krai in central Siberia. In fact this area is the heart of Russian natural resource production in general. Olympiada was discovered in 1970 and finally went into production in 1996 and despite its age it has plenty of resource life left. Russia is the 4th largest gold producer in the world, and as Russia's biggest producer, Olympiada was responsible for 9% of the total in 2012.

#4 | MURUNTAU | 50,000,000 Oz Gold

Location: Kyzyl Kum Desert, UZBEKISTAN

At #4, Muruntau is physically the largest open pit gold mine on earth, measuring 3.5km x 2.5km across (2.2mi x 1.6mi) at the surface. This megalith of a mine is owned by the Uzbek government after expropriating Newmont's ownership in 2006. Like its cousins, Oyu Tolgoi and Olympiada, this mine is located on the remote fringes of the Asian steppe. Production began in the late ‘60s, as modern larger scale production ramped up in the 1990s with Newmont's involvement. Although large, the deposits true size is hard to ascertain due to a less than transparent owner.

#3 | LIHIR | 64,100,000 Oz Gold

Location: Niolam (aka Lihir) Island, PAPUA NEW GUINEA

Now we're entering rarified air. In the #3 spot is Lihir at a whopping 64Moz+. This large tropical open pit mine began production in 1997 and is currently owned by Australian major Newcrest who acquired it in 2010 for a cool US$22B. It's another remote mine, located on the small island of Lihir, over 900km (560mi) east of Port Moresby, Papua New Guinea. The pit is actually in the caldera of an extinct volcano that is geothermically active. Retrofitting is currently underway to dramatically increase production, which will likely make it one of the largest gold producers as well.

#2 | SOUTH DEEP | 81,413,000 Oz Gold

Location: Near Johannesburg, SOUTH AFRICA

#2 South Deep is also located in the Witwatersrand Basin, very near to 8th place Mponeng. Similarly, it is a high-grade deep underground mine, just southwest of Johannesburg. The mine is in the early stages of ramping up to full production. Mining began at the site in 1961 and Gold Fields bought the operation in 2006. The mine produced 273,000 ounces in 2012 and is expected to produce 770,000 ounces annually by 2015. Amazingly, it is estimated that the mine will maintain this high rate of production until 2057 with mine life lasting until 2080.

#1 | GRASBERG | 106,231,000 Oz Gold

Location: Papua, INDONESIA

At #1, Grasberg is the granddaddy of them all containing a whopping 100Moz+ of gold. The massive mine is owned by Freeport McMoRan but includes a sizeable sharing agreement with miner Rio Tinto. The site is located in the mountains at an altitude of 4,300 meters or 14,000 feet. In truth, Grasberg produces far more copper, by value, than gold and thus represents one of the world’s largest copper and gold mines. The operations consist of both open pit and underground mines, and have been in operation since the 1980s. The pit forms an enormous mile wide crater.

Carlos Andres
Managing Editor & Chief Analyst
Gold Miners Investment Newsletter
www.goldminersreport.com 
carlos@goldminersreport.com"

M&A in Canada: Lundin Mining adopts poison pill after merger cancelled lun.to, czx.v, tnr.v, sgc.v, tck, bhp, fcx, rio, bwr.to, cs.to, imn.to, ncu.to, tko.to, wrn.to, qux.to, bls.to

 

  With Inmet it was the road into the nowhere, now Lundin Mining is still open to Equinox offer. Freeport McMoran move still could be in the cards for Lundin Mining jewel - Tenke Fungurume. It will be difficult for Lukas Lundin to defend the company with anything better than 10CAD on the table now - we will still consider that it is the very good deal for the buyer.

  We will monitor other companies with Lukas Lundin or his companies involvement now Canada Zinc Metals, TNR Gold, NGeX Resources, Sunridge Gold and Fortress Minerals.

"Let's the bidding game begin! We have mentioned quite a few times that Tenke Fungurume is a crown jewel for any mining company with its high grade Copper and cobalt deposit. Equinox has basically confirmed it in one of the interviews by its CEO - they are going after the Tenke Fungurume stake which belongs to Lundin Mining. We should not discount the egos involved as well: Lukas Lundin was trying to buy out Equinox before and now "the table has turned" - Equinox will be the least option for him to sell the company with his name.
   How long Freeport McMoran will be waiting to enter the game?"

Lundin adopts poison pill after merger cancelled


2011-03-29 19:05 ET - News Release

Mr. Phil Wright reports

LUNDIN MINING ADOPTS SHAREHOLDER RIGHTS PLAN AND COMMENCES PURSUIT OF ALTERNATIVES TO MAXIMIZE SHAREHOLDER VALUE

Lundin Mining Corp.'s board of directors has adopted a limited duration shareholder rights plan to enable a full consideration of strategic alternatives.

Commenting on the adoption of the rights plan, Phil Wright, the president and chief executive officer of Lundin Mining, said: "This plan has been put in place to ensure that we have adequate time to explore all alternatives to bring value to Lundin shareholders. Our exploration of alternatives starts immediately, and we will be actively and aggressively looking for the best value transaction.

"The rights plan ensures that we can do this in a considered and structured way and get the best result for our shareholders," Mr. Wright said.

In a previous Stockwatch news release earlier today, Lundin Mining announced that it has mutually terminated its proposed merger with Inmet Mining Corp. and has agreed that Inmet's right to a break fee of $120-million will be preserved in connection with the unsolicited offer of Equinox Minerals Ltd.

The board continues to recommend that shareholders reject the Equinox offer, on its own merits, for the reasons detailed in the directors circular mailed to registered shareholders on March 21, 2011, and available on SEDAR.

Commenting on the plans to pursue alternative transactions, Lukas Lundin, chairman of Lundin Mining, said: "Our hands have been completely tied in defending against the lowball, risky Equinox bid because of the Inmet agreement.

"Having agreed to terminate with Inmet, we can now pursue new alternatives to significantly improve shareholder value and get a proper premium if we do a change of control transaction.

"I am not against selling if it achieves an excellent financial return to shareholders, but I will not support selling at bargain prices," Mr. Lundin said.

Scotia Capital, as financial adviser, and Cassels Brock & Blackwell LLP, as legal adviser, will continue to assist the company in responding to the unsolicited offer announced by Equinox.

The board will make every effort to maximize value for the benefit of Lundin Mining shareholders and will update shareholders from time to time of its efforts.

Details of the rights plan

The rights plan is intended to ensure that in the context of the unsolicited takeover proposal for Lundin Mining common shares announced by Equinox, the board has sufficient time to identify, develop and negotiate alternatives to maximize shareholder value. The rights plan also seeks to ensure the fair treatment of shareholders and to provide them with adequate time to properly assess any potential takeover bid without undue pressure.

Prior to the termination of the proposed merger with Inmet, the company has been subject to customary no-shop clause obligations under the terms of the arrangement agreement with Inmet, which has rendered the company unable to seek other value enhancing alternatives to Equinox's unsolicited offer.

The board has authorized the issuance of one right in respect of each common share of the company outstanding on March 29, 2011, at 5 p.m. (Eastern Time) and each share issued thereafter. The rights will become exercisable if a person, together with its affiliates, associates and joint actors, acquires or announces an intention to acquire beneficial ownership of common shares which, when aggregated with its current holdings, total 20 per cent or more of the outstanding common shares of the company (determined in the manner set out in the rights plan). Following the acquisition of 20 per cent or more of the outstanding common shares, each right held by a person other than the acquiring person and its affiliates, associates and joint actors would, upon exercise, entitle the holder to purchase common shares at a substantial discount to the market price of the common shares at that time.

The board has the discretion to defer the time at which the rights become exercisable (which it has done in respect of the proposed Equinox offer) and to waive the application of the rights plan and/or redeem the rights if the board determines it is in the best interests of Lundin Mining to do so.

The rights plan permits the acquisition of control of Lundin Mining through a permitted bid, a competing permitted bid or a negotiated transaction. A permitted bid is one that, among other things, is made to all holders of common shares for all of their shares, is open for a minimum of 90 days and is subject to an irrevocable minimum tender condition of at least 50 per cent of the common shares held by independent shareholders. The rights plan will expire on May 31, 2011, at 5 p.m. (Eastern Time).

Although the rights plan is effective immediately, it remains subject to acceptance by the Toronto Stock Exchange. A copy of the rights plan will be available at SEDAR.

The Equinox offer

The board recommends to Lundin Mining shareholders that they reject the unsolicited offer and do not tender their Lundin Mining shares for the following reasons:

The unsolicited offer is inadequate from a financial point of view to Lundin Mining shareholders.

The pro forma debt-to-equity ratio of the combined Equinox and Lundin Mining is excessive and will present increased financial risk and a more highly leveraged capital structure than Lundin Mining and peer group companies. In addition, the lenders to Equinox will have considerable influence over the business decisions of a combined Equinox and Lundin Mining.

Substantially all of Equinox's and Lundin Mining's existing cash balances and projected near-term cash flow will be utilized to pay for: lenders fees; interest charges; and the principal repayments of the debt incurred to finance the cash portion of the consideration payable under the unsolicited offer.

The unsolicited offer would result in a company with increased exposure to geopolitical risks due to the location of Equinox assets in Zambia and Saudi Arabia.

The unsolicited offer is highly opportunistic. Equinox's shares were trading at or near the all-time-high share price when Equinox announced the unsolicited offer, which followed a news release made earlier in February, 2011, on its strategy to expand the Lumwana project. The proposed Lumwana expansion plan is not supported by mineral reserves or mineral resources and is not based on prefeasibility or feasibility studies. To date, the Lumwana mine has significantly underperformed original feasibility study projections disclosed by Equinox.

There are no strategic benefits for Lundin Mining shareholders under the unsolicited offer. The acquisition results in a company with high Africa and Middle East concentration and few, if any, synergies with Lundin Mining's business.

The board has reservations about the experience of the management of Equinox to operate a multimine company, with projects and mines spread across seven countries.

The unsolicited offer is highly conditional and has a substantial risk regarding completion without additional compensation for such risk. Conditions are subject to Equinox's lenders discretion resulting in Equinox, in many instances, not being the ultimate decision maker.

The unsolicited offer may be a violation of Section 5 of the U.S. Securities Act of 1933, as amended.

Lundin Mining's directors, officers and certain shareholders have confirmed that they will not tender their common shares to the unsolicited offer.

Shareholders do not need to take any action in response to Equinox's proposed offer at this time.

We seek Safe Harbor."

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• Copper, Zinc and Cobalt: Equinox to offer $4.8-billion for Lundin takeover at CAD8.1 per share lun.to, czx.v, tnr.v, ngq.to, fcx, eqn.to, bwr.to, cs.to, imn.to, ncu.to, tko.to, wrn.to, qux.to, rio, bls.to, tck (sufiy.blogspot.com)
• Copper, Zinc and Cobalt: LUNDIN MINING ANNOUNCES POTENTIAL UNSOLICITED TAKE-OVER BID lun.to, czx.v, tnr.v, bwr.to, cs.to, imn.to, ncu.to, tko.to, wrn.to, qux.to, rio, bls.to, tck (sufiy.blogspot.com)
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• Canada Zinc Metals: M&A play with tight Zinc supply: "No more ore at Century" czx.v , lun.to, tnr.v, bwr.to, cs.to, imn.to, ncu.to, tko.to, wrn.to, qux.to, rio, bls.to, tck (sufiy.blogspot.com)
• Lukas Lundin's NGeX Resources is on fire today ngq.to, lun.to, czx.v, tnr.v, cuu.v, bwr.to, cs.to, imn.to, ncu.to, tko.to, wrn.to, qux.to, rio, bls.to, tck (sufiy.blogspot.com)
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Lukas Lundin's NGeX Resources is on fire today ngq.to, lun.to, czx.v, tnr.v, cuu.v, bwr.to, cs.to, imn.to, ncu.to, tko.to, wrn.to, qux.to, rio, bls.to, tck

  No news so far....

"Now we have an idea why Lukas Lundin was buying his  own "Global Exploration Vehicle" stock in the market recently - NGeX Resources added to its Gold, Silver and copper properties Potash in Erirea.
"Lukas will be again in a very favorable position after these very tough few years for the company. He can and should use his currency - shares in the company above CAD10.0 to buy another companies with sizable projects at still undervalued valuations among juniors. He should definitely, in our opinion, to study well opportunities for acquisition in CIBC report. His another company - NGeX Resources is a part of that M&A list with its properties in Argentina, Chile, Africa and Canada is moving up nicely in price these days as well. TNR Gold has a few J/V projects with NGeX Resources in Argentina. Lukas Lundin was buying recently NGeX Resources in the market."

"NGeX Resources - Another of our Summer Picks is wakening up now. Lukas Lundin's Global exploration Play NGeX Resources is finally making some progress in the market place and stock is ready to follow. The recent J/V deal with Teck Resources gave the share price a nice boost of confidence, but stock is still only a shadow of what it once was, with the portfolio of properties and very high expectations in Suramina Resources, Canadian Gold Hunter and Sanu Resources, which were all combined to constitute NGeX Resources.           

  NGeX resources has a number of J/V projects with our another Top Pick - TNR Gold, which is spiced by Lithium and REE in plus to its Gold and Copper projects. It is a very small world of quality names in resource exploration and development companies and Lukas Lundin is involved in our Chinese M&A story in Canada as well: Lundin Mining has a position in Canada Zinc Metals.

  The major asset in all Lundin companies is Mr Lukas Lundin himself and we think that this company now lacks his determination and charisma - recent CEO is not even close to what shareholders were taking for granted with Lukas. The company is very shy now of any promotion or even telling its story properly to the market place.

  With all that said, it could be the best buying opportunity again: the stock is under the radar screens at the moment. Recent drill results are coming from getting hot Eritrea in Africa. You can see the core pictures here. Lukas was always famous in trading political risk for exploration one. Eritrea had its own bad moment after the crisis with UN sanctions and lack of political stability, but Nevsun Resources is making its way with mine development now and all other juniors involved in that country seems to be following moving to the upside:"

NGeX presentation.

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NGeX Resources awarded major Potash project ngq.v, tnr.v, lun.to, czx.v, pot, bhp, rm.v, lmr.v, sqm, fmc, roc, li.v, ore.ax, lit, tck, rtp, vale

   Now we have an idea why Lukas Lundin was buying his  own "Global Exploration Vehicle" stock in the market recently - NGeX Resources added to its Gold, Silver and copper properties Potash in Erirea.

"Lukas will be again in a very favorable position after these very tough few years for the company. He can and should use his currency - shares in the company above CAD10.0 to buy another companies with sizable projects at still undervalued valuations among juniors. He should definitely, in our opinion, to study well opportunities for acquisition in CIBC report. His another company - NGeX Resources is a part of that M&A list with its properties in Argentina, Chile, Africa and Canada is moving up nicely in price these days as well.TNR Gold has a few J/V projects with NGeX Resources in Argentina. Lukas Lundin was buying recently NGeX Resources in the market."

"NGeX Resources - Another of our Summer Picks is wakening up now. Lukas Lundin's Global exploration Play NGeX Resources is finally making some progress in the market place and stock is ready to follow. The recent J/V deal with Teck Resources gave the share price a nice boost of confidence, but stock is still only a shadow of what it once was, with the portfolio of properties and very high expectations in Suramina Resources, Canadian Gold Hunter and Sanu Resources, which were all combined to constitute NGeX Resources.           

  NGeX resources has a number of J/V projects with our another Top Pick - TNR Gold, which is spiced by Lithium and REE in plus to its Gold and Copper projects. It is a very small world of quality names in resource exploration and development companies and Lukas Lundin is involved in our Chinese M&A story in Canada as well: Lundin Mining has a position in Canada Zinc Metals.

  The major asset in all Lundin companies is Mr Lukas Lundin himself and we think that this company now lacks his determination and charisma - recent CEO is not even close to what shareholders were taking for granted with Lukas. The company is very shy now of any promotion or even telling its story properly to the market place.

  With all that said, it could be the best buying opportunity again: the stock is under the radar screens at the moment. Recent drill results are coming from getting hot Eritrea in Africa. You can see the core pictures here. Lukas was always famous in trading political risk for exploration one. Eritrea had its own bad moment after the crisis with UN sanctions and lack of political stability, but Nevsun Resources is making its way with mine development now and all other juniors involved in that country seems to be following moving to the upside:"

NGeX presentation.


NGeX Resources awarded major Potash project.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2010) - NGEx Resources Inc. (TSX:NGQ) ("NGEx" or the "Company") is pleased to announce that it has been granted the Bada Potash Exploration License located in the Danakil Depression in Eritrea. This large license, encompassing over 431 square kilometers, is located 30 kilometres inland from the Red sea port of Mersa Fatma and 150 kilometres southeast of the capital city of Asmara. To view the attached map, please click here: http://media3.marketwire.com/docs/NGQ1206m.pdf.

The Bada license is situated within the northern portion of an evaporite basin extending southward into Ethiopia, where exploration in the 1960's resulted in the discovery of the large Crescent and Musley potash and sylvite deposits. Allana Resources Inc. have been drilling an area north of the Musley deposit and have reported an inferred resource of 105.2Mt grading approximately 20.8% KCl (sylvite and kainite) (Allana press release dated September 17, 2008). BHP-Billiton and Sainik Coal Mining, a leading Indian coal mining company have large exploration licenses in the Ethiopian portion of the basin south of the Crescent and Musley deposits. In the Eritrean part of the basin, South Boulder Mines Ltd. have announced the discovery of shallow potash mineralization near the village of Colluli in Eritrea, 20 kilometres north of Musley and 30 kilometres southeast of Bada. South Boulder reports shallow potash-bearing horizons up to 19.7 metres thick averaging 20% to 25% KCl (see South Boulder Mines press release dated October 18, 2010). South Boulder have announced plans for a pre-feasibility scoping study for low-cost open-pit mining at Colluli. 

The Danikil Depression is known to continue northeast from Colluli and is believed to have potential for potash-bearing beds on the Bada license. However, only very limited historical exploration work has been done in the license area to date. Initial reconnaissance at Bada by NGEX found extensive shallow alluvium cover, young volcanic rocks or recent marine evaporites, with potential for potash-bearing rocks under much of the license area. 

Exploration of the license will start in January, 2011. The initial phase will be to confirm the evaporite sequence and then to drill test the shallower portions of the basin for potash mineralization.

The Bada license area offers several significant advantages for any future operations. The area has easy access to the port of Mersa Fatma to the northeast, alluvial fans on the southeast side of the depression could be a viable source of fresh process-water, and the shallow nature of the mineralization found to the south at Colluli suggests the feasibility of low-cost open pit mining. NGEX's Eritrean subsidiaries, have a 12 year operating history the country and a strong technical and support team.

Wojtek Wodzicki, President and CEO of the Company, commented, "We believe that there is potential for a significant potash discovery on the Bada license and we are excited about starting work on this new and unexplored portion of a major, world-class potash basin."

Dr. Demetrius Pohl, a Qualified Person as defined by National Instrument 43-101 has reviewed and verified the technical information contained in this news release.

On behalf of the Board,

Dr. Wojtek Wodzicki, President and CEO

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• Canada Zinc Metals: Canada Zinc closes $18-million private placement with Tongling Nonferrous Metals Group Holdings Co czx.v, lun.to, tnr.v, bwr.to, cs.to, imn.to, ncu.to, tko.to, wrn.to, qux.to, rio, bls.to, tck (sufiy.blogspot.com)
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• LUNDIN Mining ANNOUNCES SUCCESSFUL COMPLETION OF TENKE FUNGURUME CONTRACT REVIEW PROCESS LUN.to, FCX, CZX.v, TNR.v, BHP, MAI.to, RIO, (sufiy.blogspot.com)
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• The Financial Post says Lundin Mining catches a break with DRC lun.to, czx.v, tnr.v, mai.to, fcx, rio, bhp, bwr.to, cs.to, imn.to, ncu.to, tko.to, wrn.to, qux.to (sufiy.blogspot.com)
• Lundin Mining drills 36.5 m of 1.44% Cu at Neves-Cuevo, earns $59-million (U.S.) in Q3 lun.to, czx.v, tnr.v, sgc.v, tck, bhp, fcx, rio, bwr.to, cs.to, imn.to, ncu.to, tko.to, wrn.to, qux.to, bls.to (sufiy.blogspot.com)

Globe says Lundin Mining target boosted to $8 lun.to, czx.v, tnr.v, mai.to, fcx, rio, bhp, tck, bwr.to, cs.to, imn.to, tko.to, wrn.to, qux.to

We have first upgrades and boost in a share price target for Lundin Mining after the Tenke Fungurume news.

"Lundin Mining is in no way a junior mining company, will have attention from Majors in the Copper sector. Freeport McMoran - J/V partner on Tenke Fungurume - will be a natural suitor for this Jewell. In our logic it have to attempt at least to buy out the share of Lundin Mining in Tenke Fungurume - otherwise it will be done by others and Chinese, who are very active in DRC, will be backed by the DRC government in this case. An outright bid for all Lundin Mining operations could be in the cards as well.

We believe that Lukas Lundin will have to make his move and show that now - with cash flow from Tenke Fungurume and further expansion of production in DRC - he can build value in Lundin Mining itself. Realisation of the facts, described above, by the market could bring the share price north of CAD10.0 (we will not be surprised to see a target price of this magnitude with company's book value at around CAD5.2 now and E/P at CAD 0.13 in Q2 2010). Lukas will be again in a very favorable position after these very tough few years for the company. He can and should use his currency - shares in the company above CAD10.0 to buy another companies with sizable projects at still undervalued valuations among juniors. He should definitely, in our opinion, to study well opportunities for acquisition in CIBC report. His another company - NGeX Resources is a part of that M&A list with its properties in Argentina, Chile, Africa and Canada is moving up nicely in price these days as well. TNR Gold has a few J/V projects with NGeX Resources in Argentina. Lukas Lundin was buying recently NGeX Resources in the market."

StockWatch:

Globe says Lundin Mining target boosted to $8

2010-10-26 05:45 ET - In the News

The Globe and Mail reports in its Tuesday edition that Lundin Mining jumped 15 cents to finish Monday at $6.90. The Globe's Darcy Keith writes in the Eye On Equities column that Lundin Mining stock has a 52-week range of $2.91 to $7.04. Lundin Mining will now hold a 24-per-cent ownership interest in the Tenke mine following an agreement between Freeport-McMoRan Copper & Gold and the government of the Democratic Republic of Congo. CIBC World Markets analyst Alec Kodatsky says the deal clears the way for further investment to expand the mine. Mr. Kodatsky boosted his price target by half a buck to $8. UBS Securities Canada analyst Onno Rutten upgraded his rating on Lundin Mining to "buy" from "neutral" with a price target of $5.20 in the Eye column on June 23. The stock was then worth $3.62. TD Securities analyst Greg Barnes maintained Lundin Mining at "buy" in the Eye column on Feb. 24. Lundin Mining stock could then be had for $4.44. Mr. Barnes targeted the stock at $7. The Globe's Allan Robinson wrote on Sept. 18 that Lundin Mining stock still had room to rally. It was then trading at $3.89. The Globe's David Parkinson said Lundin Mining was underpriced on Sept. 2. It was then worth $3.71.

Stockwatch:

FP says HudBay missed a big opportunity with Lundin

2010-10-26 06:03 ET - In the News

See In the News (C-HBM) HudBay Minerals Inc

The Financial Post reports in its Tuesday, Oct. 26, edition that Lundin Mining's successful conclusion of the review of Tenke Fungurume Mining's contracts in the Democratic Republic of Congo must have HudBay Mining shareholders wondering what life would be like now had the Nov. 21, 2008, merger gone through. The Post's Barry Critchley writes that it is a certainty that HudBay shareholders would have ended up a lot better off had the miner been successful in issuing $488-million of stock and buying Lundin. Try about $800-million better off, or $5 to $6 a share given that HudBay has 149 million shares outstanding. HudBay shares closed Monday at $16.39. As of Monday, HudBay has a market cap of $2.44-billion, while Lundin has a cap of $4-billion -- a gap of $1.56-billion. Half the difference, or $780-million, was left on the proverbial table by HudBay shareholders. "By their actions the HudBay shareholders have deprived themselves of an enormous windfall," says an unnamed observer. Another unnamed observer says, "Notwithstanding all the noise at the time, it looks like that the smartest guys in the room were actually" former chief executive officer" Allan Palmiere and the board of HudBay after all."

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The Financial Post says Lundin Mining catches a break with DRC lun.to, czx.v, tnr.v, mai.to, fcx, rio, bhp, bwr.to, cs.to, imn.to, ncu.to, tko.to, wrn.to, qux.to

  

  We have the first reaction from the press now. Analyst with new research and target prices to follow. With all recent press for REE Lundin Mining will get more attention later with its Cobalt production and reserves at Tenke Fungurume. Cobalt is used in some chemistries for lithium ion batteries.

"Tenke Fungurume is back and so we are with our pen and paper to share with you this story again. We have another M&A target in the Copper market now back in business. We would expect a new coverage issued on the company and more investment research from Canadian financial institutions with potential upgrades on valuation. Company is up today on volume - chart shows the cup and handle formation - break out to the upside is in the cards with high copper prices. Share price will have to reflect new valuation with settled political uncertainty over this huge copper project in DRC. Country discount will always be there, but the fact that Tenke Fungurume is now producing and will expand its production rate at these prices will drive the valuation."

StockWatch:

"FP says Lundin Mining catches a break with DRC

2010-10-25 08:43 ET - In the News

The Financial Post reports in its Saturday, Oct. 23, edition that Lundin Mining and Freeport McMoRan Copper & Gold have obtained a bit of stability in the Democratic Republic of the Congo after they reached agreement on contract terms with the government covering the massive Tenke Fungurume copper-cobalt mine. The Post's Jonathan Ratner and Peter Koven write that the deal removes a significant political risk overhang over the two companies, and particularly Lundin Mining. The news has been good to Lundin's stock. Last Tuesday, Lundin shares finished at $5.47. On Friday Lundin closed at $6.75. While the new agreement includes some concessions by Freeport and Lundin, analysts do not consider them to be excessively onerous. RBC Capital Markets analyst Fraser Phillips says, "Freeport and Lundin now have the greater confidence level needed to make further capital investments at Tenke, leading the way for them to capture its significant upside potential." Mr. Phillips considers the deal to be a positive catalyst for Lundin. The new arrangement includes an increase in the ownership interest of state-owned Gecamines to 20 per cent from 17.5 per cent, which will come from both Freeport and Lundin."

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Lundin Mining Announces Successful Completion Of Tenke Fungurume Contract Review Process LUN.to, FCX, CZX.v, TNR.v, BHP, MAI.to, RIO, BWR.to, CS.to, IMN.to, NCU.to, TKO.to, WRN.to, QUX.to

  

  It seams to be only yesterday and it is so far away - we are living now in the "new normal", but old values are still here. Decoupling is happening these days after the financial crisis. Lundin Mining after years of waiting - and near death experience with stock price at one point below 0.6CAD  in 2009 - has finally received approval of contract for Tenke Fungurume mine from DRC government. 

    As one of our loyal readers from those days mentioned - we have spent a lot of time writing about this project. We came into it after the war in DRC, when Tenke mining was trading at 0.6CAD and we have seen it sold to Lundin Mining at above 20CAD - sweat memories. Then political uncertainty has taken its force in DRC over the project and we visited the story again only a few times. We are writing here mostly about the companies we are interested in and which we own or have owned before as our investment. We never give any investment advise here - only share our journey and travel notes with you. You have to decide always by yourself: what and when to buy, sell or just enjoy the scenery we are writing about. Always consult with qualified financial adviser, who shares you views and investment goals.

Tenke Fungurume is back and so we are with our pen and paper to share with you this story again. We have another M&A target in the Copper market now back in business. We would expect a new coverage issued on the company and more investment research from Canadian financial institutions, with potential upgrades on valuation. Company is up today on volume - chart shows the cup and handle formation - break out to the upside is in the cards with high copper prices. The share price will have to reflect new valuation with settled political uncertainty over this huge copper project in DRC. Country discount will always be there, but the fact that Tenke Fungurume is now producing and will expand its production rate at these prices will drive the valuation.

Lundin Mining presentation: 2010 Bank of America-Merrill Lynch Mining Conference

Tenke Fungurume Video

Lundin Mining will present now a sizable opportunity as a target itself with market cap at 4 billion now. According to CIBC "Be Long What China's Short. M&A will drive this sector activity and we have just a few quality juniors with large copper deposits to go after."

Lundin Mining is in no way a junior mining company, will have attention from Majors in the Copper sector. Freeport McMoran - J/V partner on Tenke Fungurume - will be a natural suitor for this Jewell. In our logic it have to attempt at least to buy out the share of Lundin Mining in Tenke Fungurume - otherwise it will be done by others and Chinese, who are very active in DRC, will be backed by the DRC government in this case. An outright bid for all Lundin Mining operations could be in the cards as well.

We believe that Lukas Lundin will have to make his move and show that now - with cash flow from Tenke Fungurume and further expansion of production in DRC - he can build value in Lundin Mining itself. Realisation of the facts, described above, by the market could bring the share price north of CAD10.0 (we will not be surprised to see a target price of this magnitude with company's book value at around CAD5.2 now and E/P at CAD 0.13 in Q2 2010). Lukas will be again in a very favorable position after these very tough few years for the company. He can and should use his currency - shares in the company above CAD10.0 to buy another companies with sizable projects at still undervalued valuations among juniors. He should definitely, in our opinion, to study well opportunities for acquisition in CIBC report. His another company - NGeX Resources is a part of that M&A list with its properties in Argentina, Chile, Africa and Canada is moving up nicely in price these days as well. TNR Gold has a few J/V projects with NGeX Resources in Argentina. Lukas Lundin was buying recently NGeX Resources in the market.



We won't speculate about Lundin Mining involvement, potentially, in Los Azules story, but will point to the few facts, which are keeping us guessing about the future move.  Lukas was personally involved in TNR Gold as an investor at one point, knows management there very well and Paul Conibear - Senior Vice president of Lundin Mining corporate development - served on the Board of TNR Gold for a few years. By the way - Tenke Fungurume is his baby - we would like to congratulate Paul and all team at Lunidin Mining with this ground breaking achievement for the company. Lukas was investing in Minera Andes before as well, at least before Rob McEwen came into the picture. We do not know, what stake he has now, but he knows the story about Los Azules very well. Rob is more of a gold guy and Lukas knows the basic metals commodity story very well, particularly copper. Will it make sense for Rob to sell Los Azules to Lukas Lundin at the right price after settlement with TNR Gold and clearing the property title?  We do not know at this moment, but any twist in this direction can bring a new dynamic to the all situation regarding Los Azules and its development. It is too early to say more about it at this moment.

Another interesting move by Lundin Mining could be in its core zinc business with Canada Zinc Metals still in the M&A picture. Even after Chinese involvement, company is still at the very attractive levels of valuation. Its Akie deposit represents one of the largest zinc and lead deposits in the world and based in  Canada. With recent financing from Tongling, Chinese giant will have more than 30% in Canada Zinc Metals, Lundin Mining is the second largest shareholder after Tongling now in that company. We were thinking that Mandarin will be the only language for all presentations in that company, but found recently information on the bullboard about Lundin Mining visits to the Akie property - it could be easily confirmed by the management.

"As I have a large shareholding in CZX I stay in regular communication with management. A team from Lundin Mining was up at the property not too long ago. Apparently the visit went very well...don't forget Lukas Lundin is a wheeler and dealer. Trust me - others are knocking too.
Any sophisticated investor (and I know you are one) knows that all it would take is a large pp with another mining company (including Lundin Mining) and the playing field is levelled."

We have mentioned before: 

"Among the other developments today, we have mentioned that Lundin Mining has increased its loan facility and the maturity of the loan - will Lukas Lundin go shopping one day to increase his resource base for the next leg up in this commodity bull? He still maintains stake in Canada Zinc Metals along with all Chinese participants - should someone decide to chase this dragon - story could become very interesting."




The nearest future will show how our Value Web in a very close and interconnected sector will play itself out. Today we can say only one thing - that Lukas Lundin is back after the crisis and he is stronger then ever, our big picture view is the ideal world for his Midas touch. We will expect him making headlines in the nearest future on a different M&A fronts.

Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advise on this blog and there is no solicitation to buy or sell any particular company here. Always consult with your qualified financial adviser before making any investment decisions.

Lundin partner completes positive Tenke review

2010-10-22 07:12 ET - News Release

Mr. Phil Wright reports

LUNDIN ANNOUNCES SUCCESSFUL COMPLETION OF TENKE FUNGURUME CONTRACT REVIEW PROCESS

Lundin Mining Corp. has learned the government of the Democratic Republic of Congo (DRC) and Freeport-McMoRan Copper & Gold Inc. have successfully concluded the review of Tenke Fungurume Mining's (TFM) contracts. The joint news release reports as follows:

QUOTE

KINSHASA, DRC and PHOENIX, AZ, October (22), 2010 - The government of the Democratic Republic of Congo (DRC) and Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) announced today the successful conclusion of the review of Tenke Fungurume Mining's (TFM) contracts. The conclusion of the review process by the DRC government confirms that the Tenke Fungurume contracts are in good standing, and acknowledges the parties' continuing commitment to the rights and benefits granted under the existing TFM contracts.

In connection with the review, the parties will incorporate clarifying language that its rights and obligations are governed by the mining convention. TFM's key fiscal terms, including a 30-per-cent income tax rate, 2-per-cent mining royalty rate and 1-per-cent export fee, will continue to apply and are consistent with the rates in the DRC's current mining code.

His Excellency the Minister of Mines of the DRC and FCX chief executive Richard Adkerson issued the following joint statement: "We are pleased to announce completion of the contract revisitation process for Tenke Fungurume Mining. The parties worked cooperatively to reach a mutually satisfactory conclusion of the issues raised during the process. This important milestone provides the basis for future cooperation and enables TFM to pursue additional investments to develop this massive project to its full potential."

Mr. Adkerson expressed his appreciation to His Excellency the President of the DRC, His Excellence the Minister of Mines and the Minister's staff for their efforts in completing the review. Mr. Adkerson stated: "We are committed to continuing our positive partnership with the DRC government and providing significant benefits to the Congolese people for decades to come. We look forward to continued development of Tenke Fungurume into one of the world's premier copper and cobalt operations, using world-class standards for environmental management and social programs. The project will provide large and sustainable benefits associated with employment, infrastructure development, taxes, royalties and other benefits to the government and Congolese people over its long life."

TFM agreed to several additional commitments, including an increase in Gecamines ownership interest in TFM from 17.5 per cent to 20 per cent; an additional royalty of $1.2-million for each 100,000 metric tonnes of proven and probable copper reserves above 2.5 million metric tonnes; additional payments totalling $30-million to be paid in six instalments upon reaching certain production milestones; conversion of $50-million in intercompany loans to equity; and a payment of $5-million for surface area fees. In addition, TFM has agreed to expand Gecamines's participation in TFM management and reiterated its commitment to the use of local services and Congolese employment. In connection with the agreed modifications, the parties have agreed to increase the annual interest rate on advances from the current rate of LIBOR plus 2 per cent to LIBOR plus 6 per cent. These terms have been agreed to by TFM, its shareholders and the DRC government and will be incorporated into the related agreements.

The Tenke Fungurume mining concessions are located in the Katanga province of the DRC approximately 110 miles northwest of Lubumbashi. Copper production commenced last year on the approximately $2-billion initial development project, the largest such capital investment in the DRC in recent years. Current operations are designed to produce approximately 250 million pounds of copper and 18 million pounds of cobalt per year and the operation is currently being expanded to approximately 290 million pounds of copper per annum starting in 2011. The initial development project was designed and constructed in world-class fashion, using leading-edge technology and following international best practice standards for environmental management, occupational safety and social responsibility. TFM continues to engage in drilling activities, exploration analysis and metallurgical testing, and has commenced feasibility studies to evaluate the potential of this highly prospective mining district that will enable significant future expansion and enhance the long-term partnership with Gecamines, the government of the DRC, and the Congolese people. In the aggregate, through June 30, 2010, tax and related payments to government institutions, transfer bonuses, and social spending within the DRC has totalled approximately $370-million since the project's inception. TFM estimates more than two-thirds of the economic benefits from the project remain in the DRC in the form of taxes, royalties and duties, and the provision of local services."

UNQUOTE

The company notes that the shareholding change benefiting Gecamines will be shared proportionately by Lundin Mining and Freeport-McMoRan Copper & Gold Inc. As a result Lundin Mining's equity interest in TFM will reduce from 24.75 per cent to 24 per cent. The company will benefit from the increase in the annual interest rate on advances from the current rate of LIBOR plus 2 per cent to LIBOR plus 6 per cent.

Commenting on the news, Lukas Lundin, chairman of Lundin Mining, said, "We are very pleased to have achieved this resolution which has important benefits as we and our partners continue to pursue the significant potential of the highly prospective mineral district at Tenke Fungurume."

We seek Safe Harbor."

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