Toby Connor: Gold Charts - Just To Keep Your Spirit High! $GLD $GDX $TNR.v $MUX $ABX

Dedicated to the All Gold Bugs. The less of us left - the closer to this picture we are getting ...

Mining M&A: China's Top Gold Firm Talking To Barrick And Friedland As Copper Rallies.

Gold Sents:

Charts Of The Day.

Powered By Lithium: Why Build a Gigafactory? The Numbers Behind Tesla’s Wild Plans TSLA ILC.v TNR.v LIT

Elon Musk: Tesla Lithium Gigafactory Will Make Batteries With 400 Miles Range For Tesla Model S TSLA ILC.v TNR.v

"Eon Musk confirms another very important outcome of his Tesla Gigafactory plan. It will not only  reduce the cost of existing batteries by 30% and allow Tesla Model E launch with 200 miles range and price tag of 35k, but also Tesla Model S and X can get the better quality Lithium Battery packs for up to 400 miles range. Once "affordable" Electric Car can go over 300 miles range the Electric Revolution will be happening for real. Will Elon Musk not only Occupy Mars, but save billions of lives in China and India on the way?"

  Tesla Gigafactory news is making its rounds and igniting the interest in the junior mining investment community from Lithium to Graphite plays and even to Cobalt investment ideas. Among a lot of wannabes will be a few solid stories you have to dig out. Not everybody will be able to develop even the very promising projects - you need Capital and Expertise first.  After that you will have to find the End Users among Lithium Materials Producers, like Ganfeng Lithium to integrate your supply. Elon Musk with Tesla Gigafactory sends the most important message now that Electric Cars are here to stay, volume will bring crucial improvement in Lithium Technology and will allow to reduce the cost of Batteries making the mass market for Electric Cars reality in a few years. Future is happening now.

  This move from Tesla Motors, followed now by Daimler and LG Chem, is stressing out one more time the importance of Vertically Integrated Lithium Batteries Supply Chain in the eyes of major automakers. We are following one such business in the making here with Ganfeng Lithium from China and International Lithium from Canada and will provide a few links for you to study it.

International Lithium: Ganfeng Lithium Is Halted Pending Major Acquisition ILC.v TNR.v LIT TSLA KNDI

"We are following International Lithium here with its strategic partner from China Ganfeng Lithium. Elon Musk with his Tesla Gigafactory has brought a lot of attention to the Lithium strategic commodity story and Asian companies are coming into the spotlight as well now. LG Chem is talking about building major Lithium battery plant in China and Lithium Materials Industry is getting the green light from the Chinese government in its efforts to curb the horrible pollution.

"Kirill Klip, president of International Lithium (TSXV:ILC), views the announcement of Tesla’s Gigafactory as a “groundbreaking development.”

Tesla “brought attention to what Elon Musk has accomplished,” Klip told Lithium Investing News. “He showed to everyone that electric cars are not toys anymore — they are for real.”

International Lithium's Strategic Partner, Ganfeng Lithium, Takes Large Stake in Mariana and a $10 million Option on the Blackstairs Projects ILC.v TNR.v LIT

  "Mar 19, 2014 (ACCESSWIRE via COMTEX) -- Vancouver, B.C. / ACCESSWIRE / March - 2014 / International Lithium Corp. (the "Company" or "ILC") announces several major transactions with strategic partner GFL International Co., Ltd. ("Ganfeng Lithium" or "GFL")." 

WSJ:

Why Build a Gigafactory? The Numbers Behind Tesla’s Wild Plans

Elon Musk has a fondness for grand ambition, building rockets that land themselves and proposing warp-speed public transport systems. But while the Hyperloop raised eyebrows in a country that has lost its political taste for big public infrastructure projects, the $5 billion Tesla MotorsTSLA +5.78% “gigafactory” has people asking a different set of questions.

Junior Miners: Gold Breaks $1,360 As US Dollar Slides Further Down TNR.v MUX GDX GLD ABX NG RGLD

  

  Gold breaks $1,360 today with US Dollar sliding down to 79.63. China's worries and Ukraine situation are putting futures under pressure. Could it be that the Copper slump is the counter strike at Chinese shadow financial system in the ongoing Financial War? We will never get the clear answers here, but US Dollar is sliding further today and Copper at this levels can not indicate the healthy growing economy. 

  Gold is climbing the "Wall Of Worry" in its new Bull market and we have a lot of calls that this rally will be short lived. Shorts will be surprise and will have to cover again providing more fuel to this move. Now the second wave of advance in Gold Junior miners should confirm this rally. Major companies are solidly off the lows from December, but smaller companies were still lacking the bids behind. With rising Gold price the best projects held by juniors will come on the investor's radar screens.

ZeroHedge: BofAML Turns Bullish On Gold GLD, MUX, TNR.v, GDX

US Dollar weekly chart is very weak with its closing below MA200 last week.

  

  ZeroHedge reports about BofAML Bullish Call on Gold. This technical analysis bodies well with our own observations. Weekly closing on US Dollar below 80.00 and Gold above $1300 will be very important on Friday.

HedgehogTrader: Canadian Venture Exchange Breaks Epic Downtrend! GLD, MUX, TNR.v, GDX, SLV

 "We are following here very talented HedgehogTrader - he has developed very interesting trading system based on combination of technical, fundamental, insider buying analyses and proprietary Alpha Signals. He has issued the Call on CDNX today.

  It goes well with our own recent observations, and you can find more on HedgehogTrader work at his website and twitter. He follows McEwen Mining and TNR Gold as well. If this his Call proves to be right again, these two companies will benefit from huge Short position in McEwen Mining and any positive developments with Los Azules copper project in Argentina."

Peter Degraaf: Don’t Miss Out on These Important Gold Charts. GLD, MUX, TNR.v, GDX

"Peter Degraaf has produced a set of very interesting charts which we would like to share with you today. Gold is at the very important juncture now and when Jim Cramer is talking about "U.S. as a laughing stock around the world" the "serious investment" public will take notice."

ZeroHedge:

BofAML Turns Bullish On Gold

BofAML's MacNeil Curry is changing his view on gold from bearish to bullish. The impulsive gains from the 1251 low of Oct-15 and break of the two-month downtrend (confirmed on the break of 1330) tells him that a medium-term base and bullish turn is unfolding. BoFAML looks for an ultimate break of the 1433 highs of Aug-28, with potential for a push to 1500/1533 long term resistance. In the next several sessions Curry suggest buying dips into 1309, cautioning that this bullish view is "wrong" if gold breaks below 1251. For those awaiting additional confirmation of a turn, Curry notes you need to see a break of 1375 (Sep-19 high & right shoulder off a multi-month Head and Shoulders Top).

Chinese investment in Canadian mining cautiously seeks more opportunities

  

  Behind the scene Chinese companies continue to accumulate their positions in Canadian companies in order to secure the supply of the commodities. Recent massacre in the Junior Mining sector provides them with the best opportunity to cherry pick the best projects and teams to develop them.

International Lithium Corp. Receives $250,000 Advance From Strategic Partner, Ganfeng Lithium Co. Ltd. ILC.v, TNR.v

Mining Weekly:

Chinese investment in Canadian mining cautiously seeks more opportunities

By: Simon Rees

2nd August 2013 

TEXT SIZE

 

TORONTO (miningweekly.com) – The acquisition of Canada-based Nexen by China National Offshore Oil Corporation, which closed on February 25 for $15.1-billion, provoked a national debate about Chinese investment in Canadian natural resources, including the mining sector. As the deal progressed, tabloid tattle often gave the impression that Chinese state-owned enterprises (SOEs) were poised to embark on an unchecked buying spree.

The reality of Chinese investment is more nuanced and subtle. Certainly this is the case for mining, where the driving forces revolve around domestic concerns surrounding supply, demand and costs, as well as Canada’s perceived competitiveness and appeal.

“Right now there’s been some hesitation in Chinese investment in the mining sector, which is primarily driven by matters of supply and demand,” Norton Rose Fulbright business lawyer for mining, mineral exploration and natural resource companies David McIntyre told Mining Weekly Online. McIntyre has in-depth sector knowledge of Chinese investment within Canada.

“Chinese consumption of iron-ore, coal and base metals will be higher this year than the last, but supply growth has outpaced demand growth and is now weighing on prices. This has affected the need to make further foreign investments and to open up additional supply streams,” he explained.

“For example, China-based steelmakers drive the country’s demand for iron-ore. The major investment coming to Canada is primarily made by steelmakers like Hebei, Baosteel or Wisco etcetera, but they’re currently dealing with domestic steel oversupply. So how much near-term future investment they’re likely to make in Canadian iron-ore is hard to predict,” he said.

“Moving to base metals, we often think about companies like Jinchuan, Tongling, Jiangxi Copper and they’re subject to the same ebbs and flows behind price performance and issues of oversupply as other international mining companies,” he added.

“But longer-term, if demand progresses in the right direction, additional supply will be needed, which is the nature of the mining business,” he said. “Major Chinese investors will therefore continue with their investment strategies, although cautiously so.”

“Although there’s no doubt that they have made a careful note of the write-downs by the majors,” he added. “They’re concerned about suffering a similar fate, which has injected caution into their plans for acquisition abroad, including Canada.”

“Still, I expect they’re well aware of the interesting buying opportunity this market presents, and the recent announcement of the acquisition of North Parkes mine by China Molybdenum from Rio Tinto shows that the Chinese investors are willing step up,” he said.

Investment Board of Canada analyst Michael Grant with specialist knowledge of Chinese foreign direct investment in Canada also highlighted the cautious approach. “Chinese SOEs have monitored the majors closely, carefully noting those who were burnt on some really big deals. They’re wary of making the same mistakes,” he told Mining Weekly Online.

“Yet China is keen to recycle money flowing through its banking system, which means SOEs and even private mining companies are in a strong position to continue utilising this wealth for the funding of their investment strategies,” he added.

SMALL IS BEAUTIFUL

The junior sector could also prove a fertile ground for Chinese investment. “Many Canadian-owned junior companies are having a hard time, often with heavy debt constraints, which means it could be an opportune time for Chinese entities to obtain substantial stakes or even make acquisitions,” McIntyre said.

“So far the only recently-published deal in this field is by China-based Kingwell Group that announced it will make a bid for Brazilian Gold, which is listed on the TSX Venture exchange,” he said. “Kingwell is interesting as it’s held by a privately-owned group through a Hong Kong-listed entity.”

“We’ve also heard talk of other transactions and I wouldn’t be surprised to see more investment and M&A, particularly in the gold space,” he added.

“Meanwhile, don’t discount investment by wealthy private individuals looking at Canadian juniors either … look out for their names on a company’s board,” he said. “Overall, there are a surprising number of junior mining companies with Chinese shareholders that you wouldn’t necessarily know about.”

Grant has certainly noticed this. “I was recently researching Saskatchewan and taken aback by the number of Chinese companies involved there, including three or four Chinese companies directly concerned with development plays,” he added.

Chinese investment has the advantage of offering a junior extra protection. “Involvement in juniors by Chinese entities can add a layer of security. For example, in a worst-case scenario, if a project hits the rails then Chinese backers can assume control and halt the company’s implosion,” he said.

“Having a significant Chinese stakeholder can also bolster liquidity,” he added. “You can imagine how attractive it would be for a struggling junior to be approached by a Chinese company that says ‘don’t worry, we’ll fund you for the next four or five years in return for a stake’. The junior would agree in a heartbeat.”

OPEN THE GATES

Previously, there has been concern that the Investment Canada Act may have dampened China’s desire to invest in Canada. McIntyre is not so sure. “The Investment Canada Act is something to be managed and thought about, but I don’t think it’s a major issue for the preponderance of mining deals,” he said. “Chinese investors seem to prefer investing in single-asset companies or projects below the radar of Investment Canada, rather than taking over big players.”

“Further, there has been no material concentration of ownership by Chinese SOEs in Canadian mining – so one wouldn’t expect foreign state-ownership concerns to be a big issue for the Canadian government. In fact, the provincial and federal governments are actively promoting Chinese mining investment into Canada,” he added.

Issues surrounding the development of infrastructure, port capacity and supply avenues were also a consideration for Chinese investors, Grant stressed. “Canadian federal government policy is to develop supply chains into the Asian markets and the Northern Gateway [oil and gas pipeline project] will play a vital part in this … it will help unlock, strengthen and broaden the supply chains to Asia,” he said.

“However, it will take time as we’re talking about an awful lot of investment and a large number of regulatory approvals required. But it will eventually happen and, when it does, the Chinese will have even more incentive to invest across the Canadian resource sector,” he added.

Improving supply chains can help bring shipping costs down and increase Canadian competitiveness. “And this will include increased competiveness in all kinds of commodities that never had the right portside capacity or supply avenues before,” Grant said. “With these developments, Canadian output will get to the Chinese coastal markets just as cost effectively as Oceania’s material.”

But while Canada has strong and improving appeal, both McIntyre and Grant noted the country must not rest on its laurels. “Canada ticks a lot of boxes, yet it’s worth remembering that Chinese investors are quite happy to look elsewhere if a more appealing project presents itself,” McIntyre said.

“Canada must also carefully consider its perception as a place to do business among Chinese investors. They will want to know that a project in Canada can be brought on stream within a reasonable timeframe and through a clear and understandable regulatory framework,” he added.

“We must understand we’re not the only game in town,” Grant said. “We have to be sufficiently welcoming to the Chinese so that they will continue wanting to invest here. Frankly, Canada needs the money and China is where increasing levels of wealth will come from in the future, so why on earth would we turn this away?”

Edited by: Creamer Media Reporter"

 

 
  Gary Tanashian presents very good technical overview of the Gold and Silver markets after the recent move.

What Is Our Money And Why China Plans To Move To A Gold Backed Yuan Currency.

"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."

Alan  Greenspan  1966. "Gold and Economic Freedom" 

Kitco:

Precious Metals Must Make a Stronger Statement Still

Tuesday July 23

Yesterday was an impulsive looking move and something of a statement in itself.  But now technically, the metals and miners need to gather themselves (after a potential pullback on profit taking) and make a real statement.

Yesterday was the booster stage (gap up), and another leg up from here would give the precious metals complex the velocity to do some real damage with respect to upside targets.  That is because important resistance zones are now at hand.  While a pullback would be normal, gold bugs obviously do not want to see a terminal velocity situation where yesterday’s momentum erodes beyond normal profit taking.

As we have noted in NFTRH, gold has significant visual and moving average (50 day) resistance at and around 1350.  The relic always was going to at least pause at this level.  Now the real work comes in.  Volume, for the ferocity of the price rise, was not inspiring.

Silver’s significant resistance starts coming into play at 21.  It must break the flag to the upside and challenge one of the two noted resistance levels.

HUI did break a flag of its own yesterday, which was something we wanted to see.  That after an ongoing bullish divergence by daily MACD.  Notably, HUI popped over the 50 day averages for the first time during the post-October bear market leg.  So, are the miners leading?

Well, they are making a move to do just that by rising above the 50 day averages and breaking a trend line in relation to both gold (top) and silver (bottom).  This simply must be maintained, no ifs ands or buts, for the precious metals complex to continue looking prospective for upside targets.

There is much more to the picture than the above charts, however.  It is simply vital to track gold’s relation to assets that are positively correlated to the global economy.  That is where the real work takes place in understanding precious metals macro fundamentals, and these signals – which also got a boost yesterday – must remain on track for the rally to attain significant targets and/or morph into a new bull market phase.

Gold-Oil, Gold-Commodities, Gold-Stock Market, etc… That is all the geeky stuff that NFTRH will continue to do on a weekly basis so that we can define what is in play every step of the way.  If the ‘real’ price of gold rises, then we’ve got something cooking – and not just for the precious metals.  The implications would spread out to the entire macro environment.  So watch everything, not just nominal gold, silver and HUI.

By Gary Tanashian
http://www.biiwii.com"

Where The Gold Will Come From? "Hitler gets his drill proposal canned"

   History will always be the guide. Not recommended for the students in mining and geology.

Searching For The Bottom - Is The Low In Place For Gold?

"First things being cut in this downturn by Majors are new project developments and exploration. Where will they find the new production pipeline once the Gold will turn around will be the next crucial question. But first Gold must find its bottom and severity of recent capitulation is telling us that we are very close by now."

Charles Nenner Research: Cycles Say Gold is Bottoming.

Matrix Strikes Back - Gold Wash Out, Goldman Advises To Sell - China Buys Physical Gold By Tons.

  

  It was quite a week for Gold. Goldman Sachs and JP Morgan, must be after reading our entry on Gold this week, has delivered Jim Puplava's "Puke Moment" for all Gold market investors. Gold is Trashed, all stops are taken over. We will look this weekend into the actions behind the scene and particularly who was selling and who is buying. Stay tuned...

"Nobody likes Gold any more. Soros is proclaiming that Gold "has failed to act as The Safe Heaven", Gold Bugs are shattered with all Gold Miners' Write Downs and Junior Miners are plain dead wood in the water without any chance of financing. It looks like BOJ and Bernanke with FED will start to print Gold any moment now and nobody has any guts to call the Bottom any more."

  Our first observation will be that US Dollar has not participated in the Friday Gold Death party - it is still Rolling Over into the Double Top Reversal. This kind of well orchestrated and coordinated action makes us to think hard: what kind of major monetary event really is coming on?

Will Gold Use This Excuse To Build The Reversal Now? Charles Nenner Calls For Gold To Bottom In April.

Former Assistant Secretary of the US Treasury told King World News that the smash in gold and silver today was entirely orchestrated by the Federal Reserve.

Maguire:  “Deliveries in Shanghai alone in March were 283 tons.  In the eight trading days of April, we have seen another 117 tons (of gold) delivered.  Today was another 20 tons delivered.  So what we are looking at here is over 400 tons (of gold) in less than a month and a half.

Jim Puplava’s Big Picture: The Dow Hits A New Record High - Are Stocks Overpriced?

Also on the Big Picture, “Gold - The Final Maalox Moment - I Want To Hold Your Hand”

Jim Puplava And John Kaiser On Naked Short Selling In Junior Miners And The Future For The Sector

  Jim Puplava and John Kaiser are discussing in depth the phenomenon of the naked short selling and its applications for the junior miners market. It is the rare occasion when anybody  even talks about it and it is of the utmost importance for every investor in this sectors.

Jim Puplava’s Big Picture: An In-Depth Conversation on Gold with John Kaiser

The Reasons Behind the Bear Market in Gold Equities and What Comes Next

"Jim welcomes special guest and independent gold analyst John Kaiser of Kaiser Research Online and Kaiser Bottom-Fish Online. In a wide-ranging discussion on gold and gold equities (click here for charts), John and Jim look at the reasons behind the bear market in gold equities; the fundamentals of the mining business, the rise of the Robo-Traders, and the role (and complicity) of the regulators. They also discuss catalysts for why the gold market can recover and continue higher, and why it won’t take Armageddon. John and Jim also advise what to do as a gold stock investor, and how to not fall prey to the Robo-Traders. Also, Jim answers more of your Q-Calls in this segment."

 C.S. It is the time of total desperation in Gold Miners and, particularly, Junior Miners these days. Investors are questioning this Bull and are throwing the babies with the bath water all over again. Time is to look at the charts and to rub our Crystal ball.

Frank Holmes: Follow The Money - Warren Buffett vs. Gold

  

  "Frank Holmes has presented the beautiful deck on Global Trends and the place of Gold in this day and age. Please notice the recent average grades of producing Gold mines and the scarcity of the new discoveries with the magnitude of 3 MOZ and more."

Business Insider:

CITI: Gold Has Fallen To A Pivot Point, Minimum Price Target Now $2,055

Gold fellow below $1,600 on Friday.  This is a six-month low.

According to Citi technician Tom Fitzpatrick, this is exactly where you want it to be if you're a gold bull.

Eric King of King World News has a clip from Fitzpatrick's latest note.

“We believe we have just reached the ideal pivot for gold to form a base and move higher as it did after the 16 month consolidation in 2006-2007," wrote Fitzpatrick who now has a “...a minimum (price) target of $2,055-$2,060.”

  First of all, our December Call on Apple: timing was perfect this time - it was a very powerful formation. There is still room to fill to 400, prudent way will be to take profit now and run 30% of the Short position Down to the target. Too many people are selling Apple now and Gold provides much more lucrative proposition as per below.

Apple To Break Down to 400 and Gold & Commodities To Break Out on China Move AAPL, GLD, FXI, TNR.v, ILC.v, LMR.v, RM.v, CZX.v

   

  US Dollar is still in the same H&S reversal formation, nothing has changed with all Currency War talks, US Debt is still there and the only way out is to debase the US Dollar.

Total Public Debt Outstanding 16,540,800,290,147.46

  We like what we see on on the Long Term Gold chart from CITI. The chart above is not so apparent, but provides support to the same idea. After previous Bull Leg Up Gold is in the consolidation pattern and has created two Bullish wedges. Last week sell off "coincided" with Currency Wars talks among G20 and some help from JP Morgan selling heavily all the week. Soros has announced that he has reduced his holdings in GLD, but we trust more the Gold appetite from China and Russia buying in increasing volumes alongside with other Central Banks. And who knows, maybe, Soros is just switching to the Physical from the Gold ETF among other players.

  Next week Chinese will return from the holidays and it will be interesting to see the direction in Gold. We are in transition stage now from Gold as Insurance Play to the Inflation Play. The real driver for the Gold price is increasing monetary base, debasing of the currencies and negative Real rates. Our best gains in Gold and, particularly, Gold Equities we had after 2002, when economy was "recovering" and FED was solidly behind the interest Curve.

   Now we have all fundamentals in place for another Gold Bull Leg Up to start and, according, to CITI this coiled market is ready to move very soon. The very strong technical support is at 1550 and Gold should bounce of it in this scenario forming the strong Reversal Candle on weekly, still missing in the picture.

  Gold Miners are at the very important pivotal point as well. Should the Gold find itself in the new Leg Up - they will follow. Even more importantly, they must confirm the Gold's move. We have the right set up for this action now. Last few weeks sell off was particularly brutal and we can talk about the Capitulation in this market. We can have the double Bottom reversal on Monthly chart, which will be very strong formation.

 Gold Majors are suffering: despite strong Gold prices companies are experiencing margin compressions with cost even outrunning the Gold price run. New projects are late on time and over the budgets, massive writes off, from the previous expansion phase were the main news in the latest reports. All these developments will support the price of Gold marching Up again.

  Here is where we can see the Main Investment Theme: M&A in search for the ever decreasing Gold Reserves in Stable Mining Jurisdictions. It will be safe to say that you can forget about any Gold production in Russia and China - all that gold will be accumulated within those countries. Africa is losing its battle being caught between geopolitical interests in the War for Oil. Canada and North America and, particularly, Alaska will attract new wave of consolidation among juniors providing the pipeline of projects for the majors.

  The next main action in the Gold market will be among Junior Miners. If Majors are depressed by now, Juniors have been just slaughtered. We can see the same capitulation on the chart above, as with GDX before. 

  Problem here will be that maybe 80% of this market will be gone for good in consolidation and bankruptcies. It will be very selective game from now on. Only Special Situations will bring the serious money. Assets, Teams and Access to the capital will be the prerequisites for the lead in this game, as usual.

  The Chart above is the driver for the Gold Inflation Play. Once the world will stop to worry about its own end, China's Growth will be the main driver for Gold. This picture is still intact after our Apple observations in December.

  As Jim Rogers has suggested: "Do what you know the best". We will paraphrase: invest in what you know the best. Here where McEwen Mining comes into the picture. Even Mr GoldCorp - Rob McEwen was not spared by the brutal Mr Market. After acquisition of Minera Andes by US Gold with combined market caps of over 2 billion dollars in the first half of 2011, when the "merger" has been announced - McEwen Mining was trading last Friday at roughly 796 million (296 million Common and Exchangeable Shares at 2.69).

  We have been investing in Minera Andes years ago at 0.40CAD and we were fortunate to sell it at its run to over 2.0CAD in 2007. Later we have revisited this story with TNR Gold and its Claims to Los Azules. There were very heated discussions among Minera Andes shareholders about the price paid for their company. Only the future will tell whether Minera Andes' assets will still allow Rob McEwen dream about S&P 500 to happen or they have just brought the curse from Argentina to his new company.

  It was a tough road for McEwen Mining shareholders. So far, only Allen Ambrose, former CEO of Minera Andes, was "lucky" with his timing to sell 1.7 million worth of shares of McEwen Mining straight after the merger at the levels higher than 6 dollars in 2012. After that MUX was hit with "news about Argentina" in spring of the last year and later in November McEwen Mining has settled litigation with TNR Gold reinstating TNR Gold's Back-In Right to the Northern Part of Los Azules and issuing 1 million shares of MUX to the junior.

  Fragile market confidence was not helped by the Rights Offering at 50% discount at the moment of announcing in October 2012 - at 2.25 dollars. Trade was quite obvious and Shorts were selling MUX at market, planning to cover by buying the Rights, which were trading on the market as well. This is where we find McEwen Mining at the moment of writing - with 2.69 at Friday's close company is just 20% above the Rights Offering price. Its market cap is far cry from the needed 4 billion dollars in order to qualify for S&P inclusion in 2015, company needs at least 120 million for the El Galo expansion and another Rights Offering can easily bring it below 2 dollars. Market knows it and punishes McEwen Mining with the rest of the Gold market as we have discussed above.

  Should we write off Rob McEwen and his Midas touch? Contrary, we would say that it could be the most intriguing story in the making in our turn-around Gold juniors. All those bad news and developments are already in the market. Short position in MUX has been at 29 million shares as of the end of January. Company has reported spectacular results from Los Azules and announced the expansion of the resources. BMO was hired to market the "One of the World's  largest undeveloped copper project". According to Rob's facebook page, last week McEwen Mining had meetings in Toronto presenting Los Azules developments. Barrick Gold's Pascua Lama was reportedly cleared from "Rock Glaciers" investigations and has received the support of San Juan government in Argentina. McEwen Mining with Los Azules is being reviewed this month.

  Here where Rob McEwen will be coming at his prime as promoter - running against the clock for his goal to qualify for S&P 500 by 2015 he has the last opportunity to turn this story around. 70 million in cash will not buy the place in S&P 500 by itself or even the Second Stage at El Galo, but it will be enough for the "Chief Owner" to fight for his company. Research valuations of McEwen Mining, including the Los Azules valuation will draw the market attention and any hint about the potential buyers for this world class copper asset can make Shorts rushing to cover. 

  Watch out the retest of 2.25 and developments around Los Azules - it will be the key to McEwen Mining performance.

  On our part we will continue to follow TNR Gold as a Call Option on Los Azules without The Time Decay and monitoring its Shotgun Gold project development in Alaska.

  

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