Showing posts with label Yamana Gold. Show all posts
Showing posts with label Yamana Gold. Show all posts
Monday, August 03, 2015
Saturday, February 28, 2015
Rob McEwen: Los Azules Copper - "The Glimmer of Hope for Argentina."
It looks like there is some interest to Los Azules Copper project in Argentina now. Political situation will change later this year and this kind of giant copper deposits are not coming along every day. Who is on the property now? Hopefully we will have more information at PDAC.
Kirill Klip.:
Rob McEwen: Los Azules Copper - "The Glimmer of Hope for Argentina."
Rob McEwen was presenting at BMO Capital Markets conference this week. It is the very interesting presentation and you can find it on the McEwen Mining website. The most interesting for TNR Gold was his comment on the recent situation in Argentina. He sees "the glimmer of hope" with the coming elections in October later this year: "Producers are making their enquiries about the Los Azules Copper project and one of them is on the property now."
Please read carefully my legal disclosure and do not get very excited or make any investment decisions based on this public information from Rob McEwen. I personally think, that it is the very encouraging update from Rob on Los Azules Copper status. His view on Argentina and the changing mining landscape confirms the Yamana Gold and Goldcorp news we have discussed before. There is a long way from the any visit on the property to the signed contract, but magnitude of Los Azules Copper will speak for itself one day - you can find more information on TNR Gold website. Higher copper prices will be the catalyst here and today's news from China has ignited 2% rally in very oversold Copper. We will see soon whether it becomes the sustainable trend. As Rob has mentioned: "This is the time to look at valuations for the best projects."
TNR Gold Receives Royalty From McEwen Mining On "One Of The Largest Undeveloped Copper Projects".
Please read carefully my legal disclosure and do not get very excited or make any investment decisions based on this public information from Rob McEwen. I personally think, that it is the very encouraging update from Rob on Los Azules Copper status. His view on Argentina and the changing mining landscape confirms the Yamana Gold and Goldcorp news we have discussed before. There is a long way from the any visit on the property to the signed contract, but magnitude of Los Azules Copper will speak for itself one day - you can find more information on TNR Gold website. Higher copper prices will be the catalyst here and today's news from China has ignited 2% rally in very oversold Copper. We will see soon whether it becomes the sustainable trend. As Rob has mentioned: "This is the time to look at valuations for the best projects."
TNR Gold Receives Royalty From McEwen Mining On "One Of The Largest Undeveloped Copper Projects".
Goldcorp: Confident In Argentina; Eyeing Free Cash Flow – Chuck Jeannes.
Argentina is coming back to radar screens now, elections this coming Fall will bring the new catalyst. Now Goldcorp is talking about its investments in the country. Chuck Jeannes tale about The Peak Gold in 2015 as well now. Read more."
Los Azules Copper: "Argentina's Mining Landscape Improving, Cerro Morro A Go – Yamana CEO."
"More and more good news are coming from Argentina these days. Country will face elections this year and smart money are already positioning themselves in the best undervalued projects. Nothing should be taken as an investment advise on this blog, please always do your own DD and read my full disclosure.TNR Gold is very fortunate to have McEwen Mining as its partner at the world-class Los Azules Copper project. With lower copper prices and perception of the investment risk in Argentina all valuations were driven into the ground. The return to the mean could be potentially dramatic as well. Gold Corp will put its new mine into production in Argentina this month, Yamana is moving forward with Cerro Morro and China is solidly on the track to secure supply of commodities from Latin America. I do not know when, but Los Azules Copper will be back on the radar screens of the investors one day and its fundamentals will speak for themselves.Now you can more appreciate the step by step approach in the development of Mariana Lihium by our J/V with top Lithium producer from China - Ganfeng Lithium. Please stay tuned for the update on our next phase development programmes. You can check more information on the links provided below and in our latest presentations on this blog. Please always consult you financial adviser before making any financial decisions, all latest financial information for TNR Gold and International Lithium can be found in the SEDAR filings and websites of the companies. Read more."
Please Note our Legal Disclaimer on the Blog, including, but Not limited to:
There are NO Qualified Persons among the authors of this blog as it is defined by NI 43-101, we were NOT able to verify and check any provided information in the articles, news releases or on the links embedded on this blog; you must NOT rely in any sense on any of this information in order to make any resource or value calculation, or attribute any particular value or Price Target to any discussed securities.
We Do Not own any content in the third parties' articles, news releases, videos or on the links embedded on this blog; any opinions - including, but not limited to the resource estimations, valuations, target prices and particular recommendations on any securities expressed there - are subject to the disclosure provided by those third parties and are NOT verified, approved or endorsed by the authors of this blog in any way.
Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advice on this blog and there is no solicitation to buy or sell any particular company.
Thursday, May 08, 2014
McEwen Mining Posts 1Q Profit; El Gallo 1 Nearing High-Grade Zone – McEwen President MUX TNR.v
TNR Gold And McEwen Mining: Argentina's Caem Optimistic Over Pascua Lama Future TNR.v MUX ABX GDX
"Argentina slowly comes to its senses and welcomes mining business back these days. Argentinian government is negotiating with Chile the ways to bring development of Pascua Lama back on track and China is already waiting for it, according to some rumours. Captains of the mining industry are allocating new investments in mining projects in Argentina and Yamana Gold has announced that it will focus on its Cerro Moro Gold and Silver project in Argentina along with Canada Assets.
Los Azules Copper is waiting for its hour to come into the industry spotlight and Pascua Lama development will do the trick. Both projects are located in the same San Juan province in Argentina. Shareholders of TNR Gold and McEwen Mining finally will be rewarded for their patience one day. And now this day is coming closer with every positive development in Argentina."
TNR Gold And McEwen Mining: Chinalco Mining Sets Sights On Copper Projects in Latin America TNR.v MUX FCX NEM ABX
"CS. With Las Bambas deal secured in Chinese hands and Pascua Lama and CITIC rumours still circling in the industry, another industrial group from China is searching the Globe for the best Copper projects left. We have discussed before, that M&A activity in this case signifies the very important bottom in the mining cycle. Barrick Gold talks with Newmont Mining in Gold and Las Bambas purchase by Minmetals Group in Copper.
Western Central Banks are anxious with "the lack of Inflation" - all "official" Inflation measures in US (if you are not eating, paying insurance or rent) are dangerously low, if you consider the unprecedented amount of the freshly printed money in the system. ECB is talking about the new "whatever-it-takes" war on Deflation and Copper is sensing the upcoming change already. Prices of Copper are up last week.
With this report from China Los Azules Copper is very well positioned to bring the Catalyst to TNR Gold and McEwen Mining. Rob McEwen is talking about it as "One of the best Copper projects in the world" and industry's M&A activity will bring it on the investors radar screens again."
Kitco:
McEwen Mining Posts 1Q Profit; El Gallo 1 Nearing High-Grade Zone – McEwen President
(Kitco News) - McEwen Mining Inc. (TSX:MUX)(NYSE:MUX) returned to first-quarter profit with net income of $17.9 million, or 6 cents per share, compared to a loss of $11.0 million, or 4 cents per share, in last year’s 2013 first-quarter results.
The jump in net income was largely due to a $24.7 million gain due to the recovery of deferred income taxes relating to the decline in the Argentine peso relative to the U.S. dollar, the company said. Adjusted net loss for the first-quarter was $6.2 million, or 2 cents per share, when removing the deferred income tax.
Gold equivalent production totaled 32,146 ounces, from 20,062 gold ounces and 725,025 silver ounces, a 14% increase year-on-year. Production was lower than the previous quarter due to fewer days in the quarter and traditional ramp-up in Argentina after year-end holidays.
“We expect higher production to come in the second quarter, versus the first quarter, and we expect our strongest quarters to come in the third and fourth quarters, as we will benefit from the full expansion at El Gallo 1,” said Ian Ball, president of McEwen Mining, during the company’s earnings telephone conference.
“Regarding the El Gallo 1 expansion, it is complete and commissioning began last week,” Ball said. “We expect our first ounces to be poured from the expanded capacity by the middle of May. Final costs were under budget and we’re two months ahead of schedule.”
Ball also said that high-grade zones were within reach in the coming quarters.
“In terms of mining, we’re about two and a half quarters away from the high grades at El Gallo 1,” Ball said. “This is over 2 gram material that we’ll see deeper in the pit. This will increase production from 37,500 ounces this year to 75,000 ounces next year.
“At $1,300 gold, we expect El Gallo 1 to generate about $35 million in free cash flow once we encounter this higher-grade material,” he said
Once the high-grade material enters production, Ball said that all-in sustaining costs would drop to $850 an ounce.
Total cash costs in the first quarter totaled $790 per ounce, a 21% decrease year-on-year, while all-in sustaining costs were lower at $1,100 per gold equivalent ounce, down 37% year-on-year. The company said costs were lower versus the two comparable quarters due to the devaluation of the Argentine peso and less mine site exploration and mine development.
Earnings from mining operationsduring the first quarter totaled $11.4 million, a rise from $7.0 million in 2013’s first quarter due to a higher number of ounces sold from the San José mine, as well as lower costs due to the devaluation of the Argentine peso.
McEwen Mining reaffirmed its full-year production guidance of 135,000 to 140,000 gold equivalent ounces.
The company also underlined its new reserve and resource estimate for the San José mine, located in Argentina. The estimate increased the size of the proven and probable reserve by 12%, gold grades by 9% and silver grades by 10%, confirming San José as one of the highest-grade precious metal mines in the Americas, the company said.
Please Note our Legal Disclaimer on the Blog, including, but Not limited to:
There are NO Qualified Persons among the authors of this blog as it is defined by NI 43-101, we were NOT able to verify and check any provided information in the articles, news releases or on the links embedded on this blog; you must NOT rely in any sense on any of this information in order to make any resource or value calculation, or attribute any particular value or Price Target to any discussed securities.
We Do Not own any content in the third parties' articles, news releases, videos or on the links embedded on this blog; any opinions - including, but not limited to the resource estimations, valuations, target prices and particular recommendations on any securities expressed there - are subject to the disclosure provided by those third parties and are NOT verified, approved or endorsed by the authors of this blog in any way.
Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advice on this blog and there is no solicitation to buy or sell any particular company.
US Dollar Dives Below 79.00 - How Long Can They Keep Gold Down? GLD GDX TNR.v MUX NG ABX
US Dollar dives this morning and is breaking down the all-crucial 79.00 line in the sand. At the moment of writing we have 78.94. Our rhetorical question of the day is how long manipulation can keep Gold down in this environment? Now yesterday's attack on Gold can be put in the new totally dramatic perspective of today's US Dollar Melt Down.
"US Dollar today is in a total meltdown mood and is holding just a notch above the psychologically crucial 79.00 level at 79.09 now. Gold is moving between 1,300 and 1,317, which was tested yesterday. The both levels are crucial as we have discussed before. Move above MA50 at $1,317 will ignite the new Rally and short covering will provide the fuel for the launch of Leg Up Two in this Gold Bull market."
Eric Sprott: The Chinese Gold Vortex - Do Not Miss This Golden Opportunity GDX TNR.v MUX
CS. Gold is building a very strong reversal pattern after resent correction. The only problem is that we are not the only one watching this chart closely and manipulators are trying to paint the breakdown on the chart above. In the normal market this picture will indicate very strong Bull market, building the base after The Golden Cross to make its Second Bull Leg Up. We have the close right above the MA200 at $1,300 and Bollinger Bands suggest that volatility will increase dramatically. Will "They" be able to break Gold down again? This is the question which will separate boys from the men again. The most important for us that this technical picture reflects the fundamentals Eric Sprott is talking about in his article.
Should Gold confirm this reversal by breaking Up above the MA50 at $1,317 Gold Junior Miners with the strong stories will finally start to move. This very illiquid and speculative type of investments in Gold equities normally start to participate in the stage two of the Gold Rally, when liquidity from professional players is searching for the new "ten-baggers" after booking the profits from the initial Gold Breakout. Every market is the function of the supply and demand, with Equities hitting all-times-highs and moving into the weak "Sell In May" season Gold Junior Miners have all chances to remind why they are considered to be so volatile. The way up normally is a very dramatic move in magnitude after such an obliteration as you can see on the chart below. The most important indicator here is the Volume - money is coming into the sector. More."
Tuesday, May 06, 2014
US Dollar Meltdown - Will Gold Start To Move Finally Up Now? GLD GDX TNR.v MUX NG ABX
US Dollar today is in a total meltdown mood and is holding just a notch above the psychologically crucial 79.00 level at 79.09 now. Gold is moving between 1,300 and 1,317, which was tested yesterday. The both levels are crucial as we have discussed before. Move above MA50 at $1,317 will ignite the new Rally and short covering will provide the fuel for the launch of Leg Up Two in this Gold Bull market.
Eric Sprott: The Chinese Gold Vortex - Do Not Miss This Golden Opportunity GDX TNR.v MUX
CS. Gold is building a very strong reversal pattern after resent correction. The only problem is that we are not the only one watching this chart closely and manipulators are trying to paint the breakdown on the chart above. In the normal market this picture will indicate very strong Bull market, building the base after The Golden Cross to make its Second Bull Leg Up. We have the close right above the MA200 at $1,300 and Bollinger Bands suggest that volatility will increase dramatically. Will "They" be able to break Gold down again? This is the question which will separate boys from the men again. The most important for us that this technical picture reflects the fundamentals Eric Sprott is talking about in his article.
Should Gold confirm this reversal by breaking Up above the MA50 at $1,317 Gold Junior Miners with the strong stories will finally start to move. This very illiquid and speculative type of investments in Gold equities normally start to participate in the stage two of the Gold Rally, when liquidity from professional players is searching for the new "ten-baggers" after booking the profits from the initial Gold Breakout. Every market is the function of the supply and demand, with Equities hitting all-times-highs and moving into the weak "Sell In May" season Gold Junior Miners have all chances to remind why they are considered to be so volatile. The way up normally is a very dramatic move in magnitude after such an obliteration as you can see on the chart below. The most important indicator here is the Volume - money is coming into the sector. More."
Sunday, May 04, 2014
Eric Sprott: The Chinese Gold Vortex - Do Not Miss This Golden Opportunity GDX TNR.v MUX
CS. Gold is building a very strong reversal pattern after resent correction. The only problem is that we are not the only one watching this chart closely and manipulators are trying to paint the breakdown on the chart above. In the normal market this picture will indicate very strong Bull market, building the base after The Golden Cross to make its Second Bull Leg Up. We have the close right above the MA200 at $1,300 and Bollinger Bands suggest that volatility will increase dramatically. Will "They" be able to break Gold down again? This is the question which will separate boys from the men again. The most important for us that this technical picture reflects the fundamentals Eric Sprott is talking about in his article.
Should Gold confirm this reversal by breaking Up above the MA50 at $1,317 Gold Junior Miners with the strong stories will finally start to move. This very illiquid and speculative type of investments in Gold equities normally start to participate in the stage two of the Gold Rally, when liquidity from professional players is searching for the new "ten-baggers" after booking the profits from the initial Gold Breakout. Every market is the function of the supply and demand, with Equities hitting all-times-highs and moving into the weak "Sell In May" season Gold Junior Miners have all chances to remind why they are considered to be so volatile. The way up normally is a very dramatic move in magnitude after such an obliteration as you can see on the chart below. The most important indicator here is the Volume - money is coming into the sector.
Eric Sprott has made his billions in the markets like this one - when nobody wanted the Gold Equities, he is calling it again the opportunity of the lifetime. Will he be right again? Nobody knows. Can we succeed following our stories here - we will find out. But we like the good company for our journey and Eric is one of the best and we like strong companies like McEwen Mining with a few catalyses waiting to happen. Whether TNR Gold with Insiders holding more than 65% of the company will join the party will be known very soon as well. This group has stricken the major deals with top Lithium producer in China for its International Lithium and is waiting for Rob McEwen to make his magic with McEwen Mining projects and working on Los Azules Copper particularly. Nobody knows how soon Chinese will call here as well.
TNR Gold And McEwen Mining: Argentina's Caem Optimistic Over Pascua Lama Future TNR.v MUX ABX GDX
Argentina slowly comes to its senses and welcomes mining business back these days. Argentinian government is negotiating with Chile the ways to bring development of Pascua Lama back on track and China is already waiting for it, according to some rumours. Captains of the mining industry are allocating new investments in mining projects in Argentina and Yamana Gold has announced that it will focus on its Cerro Moro Gold and Silver project in Argentina along with Canada Assets.
Los Azules Copper is waiting for its hour to come into the industry spotlight and Pascua Lama development will do the trick. Both projects are located in the same San Juan province in Argentina. Shareholders of TNR Gold and McEwen Mining finally will be rewarded for their patience one day. And now this day is coming closer with every positive development in Argentina.
TNR Gold Shotgun Gold Presentation TNR.v GDX GLD MUX
"TNR Gold has published its new Shotgun Gold presentation. After the news about Barrick Gold and Newmont Mining talks about the merger we are looking for the major bottom in the mining cycle. The best projects will find its way now to the investors' radar screens."
Gold M&A: Barrick Gold - Newmont Mining Merger Talks ABX MUX TNR.v NEM
"As you remember, we were looking for M&A activity in Gold and Commodities to pick up in order to confirm the major Bottom built up last year. Now we have the very important confirmation about that bottom from the industry insiders. Announced deals with Las Bambas - being bought by Chinese companies and these talks about the merger between Barrick Gold and Newmont Mining signify the very important point in the cycle. It is cheaper "to dig" for Gold and Copper on the Exchange than in the ground. Depressed market valuations of the resources represented by the discounted share prices of miners provide the best entry points in the decades for the commodity markets. It is not only our talk any more - it is the flash news from the top boardrooms in the mining business. It is the money talk by the Insiders. "Don't discount this merger talks in the future!"
SprottGlobal:
The Chinese Gold Vortex
After a long and agonizing winter which was attributed to the so-called “Polar Vortex”, we thought it would be appropriate to highlight for precious metal investors the implications of what we call the “Chinese Gold Vortex”. Over the past year, we have been very vocal about what we consider an aberration: the complete disconnect between gold supply and demand fundamentals and the actual price of the metal.
We have shown in February Markets at a Glance (MAAG) that, for all of 2013, demand from emerging markets, particularly China, was extremely strong, outstripping world mine supply by a fair amount. But this extreme tightness in the physical market was not reflected in gold prices. We have since then discussed many signs of manipulation in both the paper and physical gold markets (ETF flows, Indian intervention, LBMA fixings, to name a few).
This month’s Markets at a Glance presents an update on the demand dynamics in China, discussion around new evidence of manipulation and concludes with an illustrative example of the opportunity in gold equities.
Supply and Demand
While the year is still young, we have been able to gather a few data points from China and they are truly impressive. The table below shows Chinese net imports of gold for the first two months of 2014.1 So on average, each month this year, China has imported about 204 tonnes of gold, up from about 143 tonnes last year.2
Chinese data is taken from the Hong Kong Census and Statistics Department. Swiss data is taken from the Swiss Customs Administration, which started reporting gold exports to specific countries in 2014.
To put these numbers in perspective, for the full year 2013, total mine supply excluding China and Russia averaged 192 tonnes per month (see the February 2014 MAAG for details on the methodology).3 Basically, China is currently vacuuming, on a monthly basis, all of the world’s mine production plus an additional 10 tonnes. But that is only China; anecdotal evidence from other countries suggests that demand remains strong in other Emerging Markets, where Central Banks keep adding to their gold reserves. Moreover, whereas last year’s ETFs contributed (unsustainably) to supply, this year has so far seen net inflows into gold bullion ETFs.
What immediately comes to mind is: where does all this gold come from? As we have long argued, gold to Emerging Markets has been supplied by Western Central Banks for many years.4Recent data substantiates this claim. A closer look at Swiss import and export data shows that it imports most of its gold from the US and the UK and exports most of it to China and Hong Kong. For example, in the first two months of 2014, the UK has exported over 233 tonnes of gold to Switzerland; this is more than half of the Chinese net imports over the same period (remember the UK doesn’t produce any gold). Similarly, the US, which has a monthly gold production of about 19 tonnes, has exported, in the month of January alone 56 tonnes, most of which went either to Switzerland or to Hong Kong directly.5 So where does all this gold come from? It is supplied by Western Central Banks, which according to our analysis have very little gold left.
While it is still early, the Chinese Gold Vortex is firing on all cylinders and data so far this year suggests that demand will far outstrip supply.
Manipulation
The topic of gold price manipulation seems to be making its way into the mainstream. Regulators in Germany made the first foray into gold manipulation with their investigations of the London Bullion Market Association (LBMA) now infamous Gold Fixing.6 Now, we hear that the CME Group (which owns the COMEX, where paper gold trades) has been sued by three traders for allegedly selling order information to HFTs ahead of the broader market.7
Simultaneously, academic studies have found evidence of manipulation in the gold market and a consultancy (Fideres) even claims that “global gold prices may have been manipulated 50% of the time between January 2010 and December 2013”.8
We have long suspected manipulation, but it is now clear to us that both the physical and paper bullion markets have been tampered with for quite some time, to the advantage of those that are naturally short gold (i.e. the bullion banks and other gold dealers). With the increasing amount of scrutiny from the public, academia, regulators and now lawyers, manipulators should have a progressively more difficult time preventing gold from reaching fair value.
The Opportunity
The stars are aligned in 2014 for a significant re-rating of the gold price. In our opinion, the best way to participate in a return of the gold price to fundamentals is to invest in junior gold miners. The tables below show EPS estimates under various gold price scenarios and the associated stock price targets, assuming a price-to-earnings ratio of 10x, for both a major (Barrick) and a junior (Crocodile) miner. From the table, it is obvious that junior gold miners have much more leverage to the price of gold.
Estimates are for FY2014. Price returns assume a P/E ratio of 10x. All figures in USD.
Source: Sprott Estimates and RBC Capital Markets
For illustrative purposes only, Eric Sprott and Sprott Asset Management Funds beneficially (directly or indirectly) may own in excess of 1% of one or more classes of the issued and outstanding securities of the above securities.
In summary, the tailwinds are twofold for gold: the Chinese Gold Vortex is putting an undeniable pressure on the physical market, while focus on price manipulation makes it progressively harder for price manipulators to operate. The reversal of this anomalous, yet explicable market dysfunction could provide astute investors with multi-hundred per cent returns.
Do not miss this Golden Opportunity!"
Please Note our Legal Disclaimer on the Blog, including, but Not limited to:
There are NO Qualified Persons among the authors of this blog as it is defined by NI 43-101, we were NOT able to verify and check any provided information in the articles, news releases or on the links embedded on this blog; you must NOT rely in any sense on any of this information in order to make any resource or value calculation, or attribute any particular value or Price Target to any discussed securities.
We Do Not own any content in the third parties' articles, news releases, videos or on the links embedded on this blog; any opinions - including, but not limited to the resource estimations, valuations, target prices and particular recommendations on any securities expressed there - are subject to the disclosure provided by those third parties and are NOT verified, approved or endorsed by the authors of this blog in any way.
Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advice on this blog and there is no solicitation to buy or sell any particular company.
Thursday, May 01, 2014
TNR Gold And McEwen Mining: Argentina's Caem Optimistic Over Pascua Lama Future TNR.v MUX ABX GDX
Argentina slowly comes to its senses and welcomes mining business back these days. Argentinian government is negotiating with Chile the ways to bring development of Pascua Lama back on track and China is already waiting for it, according to some rumours. Captains of the mining industry are allocating new investments in mining projects in Argentina and Yamana Gold has announced that it will focus on its Cerro Moro Gold and Silver project in Argentina along with Canada Assets.
Los Azules Copper is waiting for its hour to come into the industry spotlight and Pascua Lama development will do the trick. Both projects are located in the same San Juan province in Argentina. Shareholders of TNR Gold and McEwen Mining finally will be rewarded for their patience one day. And now this day is coming closer with every positive development in Argentina.
TNR Gold And McEwen Mining: Chinalco Mining Sets Sights On Copper Projects in Latin America TNR.v MUX FCX NEM ABX
"CS. With Las Bambas deal secured in Chinese hands and Pascua Lama and CITIC rumours still circling in the industry, another industrial group from China is searching the Globe for the best Copper projects left. We have discussed before, that M&A activity in this case signifies the very important bottom in the mining cycle. Barrick Gold talks with Newmont Mining in Gold and Las Bambas purchase by Minmetals Group in Copper.
Western Central Banks are anxious with "the lack of Inflation" - all "official" Inflation measures in US (if you are not eating, paying insurance or rent) are dangerously low, if you consider the unprecedented amount of the freshly printed money in the system. ECB is talking about the new "whatever-it-takes" war on Deflation and Copper is sensing the upcoming change already. Prices of Copper are up last week.
With this report from China Los Azules Copper is very well positioned to bring the Catalyst to TNR Gold and McEwen Mining. Rob McEwen is talking about it as "One of the best Copper projects in the world" and industry's M&A activity will bring it on the investors radar screens again."
Las Bambas Purchase Shows China Is Still in the Hunt for Copper MUX TNR.v LCC.v CU
"We have narrowed it down from the Wall Street headline: the best Copper projects are going to those who can think about the economic development with the long term view. We have been discussing Las Bambas Sale for quite a while here and other our stories could be coming to fruition now as well. Security of supply is the major issue during the next stage of the Rising Power and Chinese companies are scooping the Globe for the best projects available."
"Is this rumour too good to be true for the proud people of Argentina? Can Argentina ever make its come back in mining? On the one hand we have still the very strong perception of the high political risk and on another hand we have reports from the ground about the changing environment in the country:
Copper M&A: Glencore Xstrata Close to Sale of Its Las Bambas Peruvian Copper Project MUX TNR.v LCC.v
"According to the report China is closing the next mega deal in the resource sector in order to secure the supply of strategic commodities. This time it is copper. Another Chinese company - China National Gold is reported to be in talks with Ivanhoe on DRC Copper mine. We guess that the end of the world will be postponed again and China is using any opportunity to buy the real assets at the cheapest price possible. China is executing the state-level plan to diversify its reserves out of US Dollar and is buying assets in Gold, Copper and Lithium. We have mentioned before the rumours about Barrick Gold being in talks over its huge Pascua Lama with CITIC from China and are monitoring the sector for the conformation."Situation in Argentina is changing for the better with recent developments on Repsol compensation. Goldcorp was talking about "Argentina issues easing" and Pan American Silver CEO has recently sated:"Meanwhile, when asked by an analyst to comment on the future of the Navidad project, PanAm CEO Geoff Burns said he sees signs of noted improvement “in our operating environment and in the attractiveness of making investments” in Argentina.“There was a new chief of cabinet installed…now a couple of months ago,” he observed. “And he certainly seems to be driving a more business-friendly environment, or at least, pushing for a more business-friendly environment.”“I was down there [in Argentina] just a couple of weeks ago, and I would say I am more optimistic than I have been in the last couple of years about the future of Argentina and the future of mining investment in Argentina,” Burns advised."Rob has mentioned as well that Argentina is changing for the better now: "Profits are coming out of the country now and political change will happen within next one and a half years. We have very large Los Azules Copper project in Argentina. Last year large projects went out of favour, we are sitting on it now. Copper prices are above 3 dollars now and we had the new PEA last Fall. It is our source of liquidity in the future."
The reports provided on the links below are suggesting that this particular move by Barrick Gold could not be so far fetched: company has confirmed that it is working on strategic partnerships on Pascua Lama and that partners from China are of a particular interest for the company. Argentinean government has even organised negotiations with Chile in order to bring Pascua Lama project back to life. We will not rush ahead to the conclusions and will wait for the official confirmations about these talks, but the trend is quite apparent for the industry insiders and we had discussed it before.
After the bidding war for Las Bambas Copper in Peru there are not so many world class copper assets left. M&A activity in Copper sector is heating up with ongoing deals on Glencore's Las Bambas, Hudbay's acquisition and OZ Minerals talks with potential partners. Now the projects like Los Azules copper will get more industry attention. We are following McEwen Mining and TNR Gold involved in this project, please read carefully all our disclaimers and do your own DD, as usual.
"TNR Gold is still the sleeping beauty: company holds shares in McEwen Mining after the settlement on Los Azules and Back-In right into Los Azules Copper project in Argentina. Among other assets TNR Gold holds 100% of Shotgun Gold project in Alaska with first resources announced last year and strategic stake in International Lithium."
Among other beneficiaries of improved investment climate in Argentina we should name Lumina Copper with its Taca Taca copper deposit and International Lithium developing Mariana Lithium brine project with its strategic partner Ganfeng Lithium.
We will closely monitor the situation with these developments around Pascua Lama and you can find additional information for your research on the links below.
BN Americas:
Argentina's Caem optimistic over Pascua Lama future
MartÃn Dedeu, president of Argentina's private sector mining chamber Caem, is optimistic that the Pascua Lamagold-silver project of Canadian miner Barrick Gold (TSX, NYSE: ABX), located in the border of Argentina and Chile, will move forward, despite its current suspended status.
"I'm an absolute optimist that even though the project is facing a slowdown, it will go ahead," he told BNamericas.
Dedeu acknowledged that the status of the project is a concern in Argentina. In March, the country's mining minister Jorge Mayoral said the government was willing to engage in talks with Chile over the future of Pascua Lama.
"It's a subject that is obviously worrisome. But we've found ways to diminish the impact of the project's suspension in San Juan province," Dedeu told BNamericas.
The binational project was officially suspended by the company in October last year, following a series of judicial, regulatory and social setbacks on the Chilean side over environmental issues and breaches of its environmental resolution (RCA).
In addition to the suspension, the project is now facing a multimillion dollar fine from environmental regulator SMA, following an order issued by the environmental court to rewrite the resolution that imposed a fine, saying that the document included a number of "errors and illegalities."
In May 2013 SMA ordered Barrick to pay 16,000 of the country's annual tax units (UTAs), some US$16mn, and ordered the suspension of construction of Pascua Lama due to what it called very serious breaches of the project's RCA regarding alleged damage to the area's water resources.
Following SMA's decision not to challenge the court's decision, Barrick filed a motion with the Chilean supreme court contesting the environmental court's ruling. The court has not viewed the case yet.
Dedeu said that "every country has the right, obviously, to make the decisions it believes to be fair. But I think it would be a shame that our first binational project should fail."
"An agreement needs to be reached that is fair and reasonable and that won't cancel the most important binational project that has ever been developed between the two countries."
Please Note our Legal Disclaimer on the Blog, including, but Not limited to:
There are NO Qualified Persons among the authors of this blog as it is defined by NI 43-101, we were NOT able to verify and check any provided information in the articles, news releases or on the links embedded on this blog; you must NOT rely in any sense on any of this information in order to make any resource or value calculation, or attribute any particular value or Price Target to any discussed securities.
We Do Not own any content in the third parties' articles, news releases, videos or on the links embedded on this blog; any opinions - including, but not limited to the resource estimations, valuations, target prices and particular recommendations on any securities expressed there - are subject to the disclosure provided by those third parties and are NOT verified, approved or endorsed by the authors of this blog in any way.
Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advice on this blog and there is no solicitation to buy or sell any particular company.
Subscribe to:
Posts (Atom)