Lundin Mining LUN.to LMC is "punished" by Congo situation

I was with Tenke Mining for many years: political risk was always there and will be always there. This was the only reason I could buy this one at 0.9 CAD.

Interpretation of this risk is what matters for the stock price. My own personal take is that all these "news" are actually positive for Lundin Mining. Only if someone is investing after Mad man on BubbleTV sad Buy and without any DD this will be out of the blue.

Revision of all mining licenses in DRC are taking place from the very beginning of this year: you can find information on this blog: just search Tenke mining. Even Doug Casey once has put Tenke Mining on SELL because of it...at 5.o CAD. Should I remind you the price of TNK.to last April?

Actually now information from management is confirmed: Tenke Fungurume is not under question of termination. Renegotiation is another story and could certainly happen, but before you will sell in panic give it a thought:

1. Just check the value of the resources in Tenke Fungurume and discount by the market value of it in Lundin mining. Find conditions of the deal on this blog.

2. If conditions will be different - then previous uncertainty will be resolved and actual value, even still with Congo country risk, will be much higher. NPV of the project assumed long term copper prices of 1.0 USD. Value of Tenke Mining for Lundin Mining based on 8 cents for lb of Cu in the DRC ground. Extension of the resource base was never announced after latest drilling: I will guess that news will come out after "renegotiation".

3. "Renegotiation" are already well under way: Kabila - President of DRC, has visited Washington within last two weeks and met with G.W. Bush. Freeport-McMoran FCX is not a small company: they must have their own connection. There is some information (do not Trade on this one) that it is possible that people who looks like Kabila, his Minister of Defence and Minister of Mines have visited FCX properties in part of former Phelps Dodge which was recently acquired by FCX.

4. There are also some very important provisions in the Tenke Mining and former Phelps Dodge agreement on Tenke Fungurume: if capital required for putting Tenke Fungurume into production will exceed 25% PHD and now FCX will be responsible for all overcup.

As usual all this information does not contain any investment advise and only my thoughts on this particular situation.

If you will insist my advise will be only to read CS and that if you are on a margin or have put your house in ANY stock in the market SELL immediately. In all other cases obtain all information and then entertain yourself with your own thoughts and decisions.

The news could be found here:

http://uk.reuters.com/article/hotStocksNews/idUKL038094520071103

http://www.mining-journal.com/Breaking_News.aspx?breaking_news_article_id=4130

http://www.mining-journal.com/Breaking_News.aspx?breaking_news_article_id=4133

Fed pumps $41B into US financial system

US Dollar is getting nowhere but down...

"WASHINGTON (AP) - The Federal Reserve pumped $41 billion into the U.S. financial system Thursday, the largest cash infusion since September 2001, to help companies get through a credit crunch...

The Federal Reserve Bank of New York, which carries out the central bank's open market operations, moved Thursday to inject $41 billion in temporary reserves into the U.S financial system. It came as part of ongoing efforts designed to ensure that the markets -- which have suffered through a period of turbulence over the last few months -- function smoothly. The cash infusion came in three separate operations.
A New York Fed spokesman said it was the largest single day of operations since $50.35 billion was pumped into the system on Sept. 19, 2001, following the terror strikes on New York and Washington. He declined further comment."

Now you can understand magnitude of financial disaster and melt down in Sub prime market. New supply of dollars with less demand will lead to further depreciation of the US dollar. It will bounce time from time, but general direction is down. Indication by the Market with yesterday's sell off after FED Rate Cut show us that Bull liquidity story has ended and in order to keep thing just from falling apart in financial sector further rates will follow and Gold, Silver and Commodities will fly.

Newmont Mining weekly: spot the difference

This is still Bullish chart. Like I have sad before I am expecting Gold and Silver stocks to decouple from General markets like it happen in 2002. With general markets drifting down and sideways Goldies will take a new highs. MACD Buy intact, RSI positive and rising.

China FXI daily is at SELL.

Will China's economy break down - I do not buy this theory: it is planed economy with capitalistic approach with huge driving force of urbanisation and leap frog forward in infrastructure. This Dragon will be eating commodities for years to come. Will China's stock market correct? It is not a question for me - the only dot left is when...

Dayli SELL: RSI falling down, MACD Sell.

Google GOOG ...I know, I know - "this time it is different".

This is still a barometer of Investment Madness in WEB 2.0 bubble to watch. Untill this stock corrects to its "more reasonable level" of 30-40 FCF we will be still in a bubble state. Unhealthy expectations of next 20% upside with potential 50% downside are driven by liquidity, but it is quickly drying out...

The last time Warren Buffet sad in China: Google is great company and its easy to see it, but valuation is different: at 200 billion MC (it was before recent run) just to deliver 14% p.a. return to shareholders it needs to reach valuation of 400 billion in five years.

I have run the numbers again with GOOG at 694USD its market cap was 217 bil. Now MC/FCF=74.8! CAPEX has decreased from 597 to 553 mil in 2007 Q3 from Q1. Assuming at least the same CAPEX (hitting competition, Video - new storage blades ets.) FCF margin is 25.6%. In order to reach "normal valuation to MC/FCF=30") with return of 15% p.a. in five years time FCF must be 14.6 bil! and Revenue 57 bil! It means 30% growth year over year without any CAPEX growth extension. Google will reach MC of 437 bil in this case. Is it possible with economy marching into recession? I do not think so, but even if you are optimist here it is 15% per year with all risks of downside of one trick pony business and hitting competition. To give the idea of "normal MC/FCF valuation" Royal Gold RGLD will need to double overnight just to get there.

Research In Motion RIMM daily is at SELL

RIMM is daily at SELL: MACD SELL, RSI is falling down.

Apple AAPL daily is overbought, uprun is overextended: could turn on a dime.

Move up is overextended, any drop down will create Sell on MACD and stock will be due for correction.

S&P SPY daily is at SELL

SPY is at SELL daily: MACD still Sell, RSI is falling. Financial fall out has just began we will witness a lot of staff taken out of the closets.

DOW DIA daily is at SELL

DIA SELL at daily: MACD is stll SELL, RSI is falling.

NASDAQ TEC QQQQ dailly is at SELL

New highs are not confirmed by RSI, MACD is at SELL, SLOW STO overbought, volume is lower at new High.

Newmont Mining upgraded by RBC Capital

1-Nov-07 RBC Capital Mkts Upgrade Underperform Sector Perform

Markets are getting Nervous: VIX is rising

Markets are very close to panic mode: VIX is rising. "Buy" signal is still valid: MA50 cross over MA200 from August. Once crowd will realise that FED is NOT CUTTING RATES when everything is perfect, they are cutting rates to SAVE economy from melt down in Housing Market Collapse and Credit Crunch, the game with music chairs will begin. Rate Cuts are positive for Gold, Silver and Commodities I am expecting HUI and XAU - Gold and Silver mining companies to decouple from DOW, S&P and Nasdaq as it happen in 2002.

Positions PUT on DIA, SPY, FXI.

We have "Buy" on VXN: Volatily will rise with Tec melt down

Note MA50 is in "Bullish" cross of MA200, MACD at "Buy" and RSI is positive: Nasdaq Volatulity index is going higher. Positions PUT on QQQQ, AAPL, RIMM, GOOG, HHH, SMH

Rainy River RR.v Announces Correction to Option Exercise Price

"VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 1, 2007) - Nelson W. Baker, President and CEO of Rainy River Resources Ltd. (TSX VENTURE:RR - News) announces a correction to yesterday's news release which stated that the Company has granted a total of 510,000 stock options to directors, officers, employees and consultants in accordance with the Company's stock option plan. Each option is exercisable into one common share of the Company for a period of two years at the price of $5.25, rather than $4.25 as was stated in yesterday's release. Any shares acquired upon exercise during the first 4 months of the term of the options will be subject to a hold period expiring on March 1, 2008."

Now it makes sense: latest Placement was at 5.2 CAD.

Infrastructure is there, grades are fine: this one will move from now on.

Newmont Mining NEM is flying today

Calls NEM 45 Jan o8 is Up another 80% today.

This is called leverage to the Gold Price:

"8:35AM Newmont Mining beats by $0.47, beats on revs (NEM) 46.44 : Reports Q3 (Sep) earnings from continuing operations of $0.72 per share, $0.47 better than the Reuters Estimates consensus of $0.25; revenues rose 49.4% year/year to $1.65 bln vs the $1.41 bln consensus. Co is narrowing outlook for equity gold sales to between 5.2 and 5.4 million ounces at costs applicable to sales of between $400 and $430 per ounce for 2007. "

"APNewmont Mining 3Q Earnings Double"


http://biz.yahoo.com/ap/071031/earns_newmont_mining_corp.html?.v=3

Avino Silver & Gold Mines ASM.v update

Slowly but surely Avino is moving close to 43-101 resource estimate. Two drills now are working on San Gonzalo deposit on Avino's Durango Mexico Property. Market Cap of the company now representing ONLY the value of production assets without any credit for mineral resources. It looks like a real bargain at this level: stock is totally forgotten and is bottoming out at double bottom.

New drilling results:

Avino Continues to Receive Encouraging Drill Results on Durango's Mexico Property

Google GOOG Earnings: Growth rate slowed further Valuation is Insane.

Google managed again to get amusement of the crowd by beating expectations, but the truth is that from now on the higher it goes the harder will it fall.

Growth rate slowed further to 57% Y/Y from 58% in Q2, and 63% Q1. Licencing and other revenue is still miserable 1%. Company has only one revenue stream and continue to be "a one trick pony". International revenue brought 48% and Google nicely profited from falling USD:

"International Revenues - Revenues from outside of the United States totaled $2.03 billion, representing 48% of total revenues in the third quarter of 2007, compared to 44% in the third quarter of 2006 and 48% in the second quarter of 2007. Had foreign exchange rates remained constant from the second quarter of 2007 through the third quarter of 2007, our revenues in the third quarter of 2007 would have been $24 million lower. Had foreign exchange rates remained constant from the third quarter of 2006 through the third quarter of 2007, our revenues in the third quarter of 2007 would have been $121 million lower."

Net Income margin is slightly higher at 25% of Revenue vs 24% in Q2 and lower then 27% in Q1.

Google managed to increase its Free Cash Flow to 1.1 billion USD from 0.7 billion in Q2, but it was "spiced" by reduced CAPEX to 0.55 billion from 0.58 in Q2 and 0.6 in Q3.

Revenue per Head has declined to 266 000 USD from 281000 in Q2.

It could be all very good news on solid company performance, but if you look at valuation at 640 stock is valued at ... 70 times Free Cash Flow (trailing). What is "normal"? - just 30-40 according to "value" analyst Henry Blodget. Even if Google will be granted 40 ratio for its market leader status its share price should be at around ... USD 367.

With all risks related to recession and ongoing competition Google's new target price at 800 by 2008 year end is "only modest" 23% increase from USD650.

Should the stock continue to rise on recent hype over USD650 it will be in parabolic move and I will build my put positions again.

Until Google corrects to "conservative" levels of valuation, market bubble will be growing and its burst after housing crash will be remembered for years.

More on Earnings to follow.

Silverstone Resources SST.v Presentation

New Silver Wheaton SLW in the making:

http://www.silverstonecorp.com/_resources/SST_Presentation_Oct_12.pdf


Notes:

1. Major shareholders Capstone Mining CS.to 22% and Lundin Mining LUN.to LMC 19%.
2. John Wright business development: Co-founder of Pan American Silver.
3. Resources 367 Moz of Silver (including all categories plus historical).
4. Fixed cost of Silver at 3.92 USD/Oz.
5. Based on 2011 production 98% discount to Silver Wheaton valuation.

Target price CAD 6.0

Upside drivers:

1. New deal on Silver Revenue Stream.
2. Existing mines resource expansion (recently announced by Lundin Mining plus 300 000 oz production from 2011 plus to recent 850 000 Oz)
Today's Capstone Mining Cozamin : Capstone Increases Resources to 8.6 Million Tonnes at the Cozamin Mine. "- The resource update yields a 47% increase in tonnage with a 51% increase in contained copper and 54% in contained silver."
3. Rising Silver price.

More on Silverstone Resources SST.v:

http://sufiy.blogspot.com/search?q=silverstone

Google WEB 2.0 Bubble: Value Click - not so much value left.

Stock VCLK is down 10% now. Is it company specific problems or Sub prime mess made its way in online advertisement market already?

ValueClick Warns on 3Q Sales

"The company now expects quarterly sales between $156 million and $157 million, compared with previous guidance of between $155 million and $165 million.
Analysts polled by Thomson Financial expect sales of $159 million.
Revenue was hurt by continued weakness in lead generation, which is the process of collecting contact information and potential sales leads, offset by better-than-expected results in the comparison-shopping segment."

Gold Bugs Index HUI Double Top Break Out

The sector will be driven by:

1. Falling US Dollar and rising Gold price.

2. Consolidation: Majors are starving without reserves.

You can find on this blog why exploration trends will make Juniors are most valuable assets in this Bull Market.

Silver Rocket is on the Launch pad

Please mention delay in Silver break out at phase I regarding to Gold break out charts on previous post.

Gold Double Top Break Out

Google GOOG, WEB 2.0 Bubble, Gold and meditation on emothions and when to quit. CS.

One reader has put very important observation and question:

"Anonymous said...
You have been wrong on GOOG for the past 500 points. When are you going to give it up? Should it fall, taking a victory lap at this point should not be warranted."

This is my response which will go right into Common Sense Secrets of Trade - CS.

It is very important! For me first of all, then for those who are following. It is like in the plane with oxygen mask, same routine.

You should never Marry your stock, or even worse: start to Hate one. This is the ticket in the first class to poor house. (First class is because it is very expensive).

There are great businesses and not so and there are stocks and their prices: representing valuations of those businesses by Investment Crowd. Judgement of the crowd is hardly ever right: we never have all information, it is distorted by "official" figures (if you really think that there is no INFLATION - save your time), Bubble Media and specially blessed people like Mad Guy.

My business is to find those that are having very low valuation and those that are having very high one. Then you can build your case and invest accordingly: accumulate for your Core positions (90%) undervalued assets with IHPV (Insainly High Potential Value) which are in multi year bull market (Gold, Silver and Commodities) and maybe trade with LIMITED possible loss (puts) those that are at the peak of their performance (Google, as you know, I have allocated to this kind of stock).

Why should I give up? It is not a competition, it is my observation and opinion. I am putting some money in this particular play: only what I can afford to lose, read CS if you really care. I have made some money on my puts and lost some, more on this particular trade.

But my personal record does not affecting Google valuation in any way. The main factor is that we are now in late stage of a Bubble: the higher it goes the harder will it fall. Now the stock is in parabolic rise without any fundamental reason. It is madness and insanity of investment crowd that brought stock to that level. Company is "great" (remember Enron - it was also great until CEO quit in August and Enron busted in November. So far we had "only" CFO "Retired" rather suddenly) - valuation of that company is crazy and unsustainable, guys (Larry and Sergey) must be praying that it will stop rising so fast: nothing in the world could stop fear when confidence is lost. It will bring company down with its stock. Fear is more powerful feeling than even greed.

Regarding my personal record I am making very good money in my core positions, did very good with puts in August on Tec, Home builders, QQQQ, DIA and SPY and closer to make money on WEB Bubble 2.0 as never. Sold out puts and bought calls on NEM, RGLD and SLW - all was posted here. Calls on NEM, SLW and RGLD are above plus 100% mark and I took some profit already. I was able to accumulate, when there was "blood on the streets" in Junior mining sector in August and I was blessed to reach my goal for this year now and standing at all time high. The goal was very high and I thought that I can not make it, but with the help of this exercise I made it. This is the reason why I am taking your question so seriously. I will do my homework in order to defend my achievement for this year at least and preserve my capital.

The main point is not to lose money. If you made some in Google, great - take profit and find new Real Bull Market within Trade of this Decade, read CS, Gold and Silver on this blog. Mission of this blog is to help you to think and do not chase last 20% of the Bubble, but to go to there where 80% percent left. If you are not convinced - fine, do not invest in juniors, gold and silver, but just do not lose your money, leave them for your kids it will be your best investment.

Like I have put before: always ask - Why?

I am the one of the greediest person in the world: I need you and your money to drive the Great Bull market of the decade. You are reading it now, you will come back in one year. You will start to think, ask questions and listen. Than you will make your own decision, but it will be yours not of the Mad Guy. If we will be able to get out when only 20% will be left - you will send me Xmas card.

Three most important things in investing:

http://sufiy.blogspot.com/2007/05/three-most-important-things-in.html

My Bearish Case on Google:

http://sufiy.blogspot.com/search?q=goog

``It's scary if that ever started to go wrong.'' Bloomberg

http://www.bloomberg.com/apps/news?pid=20601109&sid=a__uOeKKJ6xY&refer=home

"As Its Stock Tops $600, Google Faces Growing Risks" The New York Times

http://www.nytimes.com/2007/10/13/technology/13google.html?_r=1&ref=business&oref=slogin

Google GOOG is loosing its steam: First CFO abrupt departure, now "golden boy"

What do they know that Market crowd can not get yet?

Revenue is droping?

http://www.alleyinsider.com/2007/10/internet-rece-1.html

Are Google's days over? Stock has entered WaterFall zone after Baidu.com BIDU expectation was lowered at JP Morgan. Google will turn on a dime now after parabolic rise into crash.

Apparently upside of 20% from here is not worth the risk for them.

"Benjamin "bling" Ling, described as one of "Larry and Sergey's golden boys," is jumping to Facebook, reports Josh Quittner at Netly News. Ling will reportedly head the white-hot Facebook platform program, having previously succeeded with Google Checkout. Quittner says Google's stunning $600-plus stock price has backfired on the company, making it profitable for top staff to bail out now rather than waiting for more shares to vest."

More on WEB 2.0 Bubble:

http://sufiy.blogspot.com/search?q=google

Lundin Mining LMC LUN.to CC presentation

Rather busy conference call: few analysts and investment companies engaged, swiss UBS and Julius Baer are following the story. Main message apart from acquisitions Lundin Mining is dynamic organic growth story as well. Tenke Fungurume is on track to production in 2008 and Ozernoe feasibility study is moving forward.

From CC:

http://www.lundinmining.com/i/pdf/lumi_confcall071011.pdf

"This indicates to us that we're moving towards a new center of mineralization and presents distinct possibilities for additional copper resources," Neil O'Brien, Lundin's vice-president of exploration and business development, said on a conference call.
He said zinc drilling results at the mine were exceeding the company's expectations in terms of thickness of mineralization.
"We can tell you that what we are looking at... is one of the largest known undeveloped zinc resources anywhere," he said.

Lundin Mining Reports More High Grade Drill Results From Lombador Exploration.

"VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Oct 11, 2007 -- Lundin Mining Corporation ("Lundin Mining" or the "Company") (Toronto:LUN.TO - News)(NYSE:LMC - News)(OMX: LUMI) is pleased to announce additional drilling results from the Lombador zinc zone at the Neves-Corvo mine."

Copper Fox Announces It Has Earned a 70% Direct Interest in the World Class Mineral Deposit at Schaft Creek

Now we will witness back in rights game with Tec Cominco:

"CALGARY, AB--(MARKET WIRE)--Oct 11, 2007 -- Copper Fox Metals Inc. ("Copper Fox" or the "Company") (CDNX:CUU.V - News) is pleased to announce that it has delivered notice to Teck Cominco Limited ("Teck Cominco") that it has surpassed the $15,000,000 threshold of qualifying expenditures in the world class mineral deposit located at Schaft Creek, British Columbia. Under the terms of the Option Agreement of the Schaft Creek Mineral Deposit ("the Option") dated January 1, 2002 between Teck Cominco and the Company, upon incurring $15 million in qualifying expenditures Copper Fox shall earn a 70% direct interest in the project from Teck Cominco. "This is the most significant milestone to date for Copper Fox," says Guillermo Salazar President and CEO of Copper Fox. Mr. Salazar goes on to say, "The Company expects to release a scoping study in October which will represent its first economic analysis on the Schaft Creek deposit. The company is fast tracking the mine plan development processes and remains on target to achieve its primary goal of completing a bankable economic feasibility report."

More on Copper Fox Metals CUU.v:

http://sufiy.blogspot.com/search?q=copper+fox

Silverstone Resources SST.v more Silver to come

"Lundin Mining Conference Call to Discuss Neves-Corvo and Zinkgruvan Expansion Plans"

I am looking forward to find out how much Silver will be sold to Silverstone Resources now with Expansion plans. With this addition SST.v valuation will be even more favorable compare to Silver Wheaton SLW.

You still can buy "New" Silver Wheaton at 2 CAD and a change, not for a long thou.

More on Silverstone Resources:

http://sufiy.blogspot.com/search?q=silverstone

Lundin Mining LUN.to LMC Upgraded

"Lundin Mining Raised To Buy From Hold At Paradigm >LMCLundin
Tgt Raised To C$16.75 From C$14.60 At Paradigm >LMC "

These guys know what they are talkimg about, they were ones who followed Tenke mining and issued BUY at CAD5.0. They also participated in PP in Tenke mining at early stage.

Google GOOG market cap is more then 200 billion dollars now.

Or I must refrase it "Google market cap is more then 200 billion dollars - not for long!"?

Henry Blodget proposed interesting game:

If you were the owner of all Google's shares: would you keep Google or take Cash?
What would you do with your cash?

You can bet this was my response:
"I would take cash: for 110 billion I will buy All gold mining companies in HUI index, then I will buy Lundin Mining - 5.5 billion, 50 billion for Oil&gas companies in Canada, Brasil, Russia and China; for 20 billion I will become King of Junior mining sector and will buy All promising deposits in Gold/Silver/Copper/Zinc/Lead/Nickel/Uranuim and will put 10 billion to short Google over 600. I will keep 4.5 billion in mix CAD/AUD/Euro in order not to think about my investments for 25 years. In 10 years I will buy for 100 million spin off from XinHua Agency former Google just to keep my blog ranking No 1 in WEB 2.0 Bubble search"

It is very simple, but powerful approach to see behind the trees. Very much Warren Buffett style: will you buy not stock, but business at this valuation or you would rather sell?

With economy going into recession, housing slump and credit crunch how will Google survive this valuation? Margins are falling, growth is slowing from the beginning of this year and market is full of rumours about disaster (be careful with this one it is too ground breaking)?

This is total insanity - stock price is pump out and earnings are almost irrelevant: who will care even if Google will miss again and growth will slow further? Now everybody is waiting for Gphone...and we have new target price of 745 to chase another 25% for the crowd amusement.

This company has not produced anything meaningful revenue wise apart from search so far, why it will be different this time?

How will we remember these days in 25 years time? Old Wise Guy Once sad: "Five most dangerous words in investing: It Is Different This Time" The more illusion is going on the harder fall will be, when crowd will through into the towel and not only stock price but shire existence of this company could be threatened.

What will happen if tomorrow there is no google.com page? Will your car stop, or there will be nothing to build that car with? Nothing to build your house with? Nothing to eat or cure your headache? You can not find your way to nearest pizza? Wait, there are still Yahoo!, MSN, ASK. What is the secret? We are very close to find out...

Google WEB 2.0 Bubble:

http://sufiy.blogspot.com/search?q=google

UBS has upgraded its gold forecast for 2008 and 2009

Crowd needs affirmation as usual and this one is coming from the right source: world biggest wealth management company, please be assured their clients were busy buying for months now.

"LONDON (Thomson Financial) - UBS has upgraded its gold price forecasts for 2008 and 2009 due to the changing macroeconomic outlook, on top of growing evidence the jewellery market adapted to higher prices.
The investment bank has increased its 2008 forecast to 760 usd per ounce from 650 usd, while they now expect bullion to average 700 usd per ounce in 2009 versus a previous forecast of 550 usd.
The potential for further weakness in the US dollar, which has recently fallen to a series of all-time lows against the euro, and the ongoing economic uncertainty stemming from the US sub-prime crisis has led UBS analysts to predict gold prices will now be stronger over the next two years than anticipated.
"The past twelve months has seen strong jewellery demand growth despite higher prices," said John Reade, UBS metals analyst. "Potential for a weaker US dollar, concerns about the credit crunch and the impressive rally have brought investors back to gold in ways not seen for years, or in the case of safe haven buying, decades."

Copper to $9,000 - Lundin Mining LUN.to LMC upside underestimated

When Lundin Mining took over Tenke Mining estimated long term price for copper in Tenke Fungurume Project was ... USD 1.0. There is a lot political risk, but I do not think that we will see copper at 1.0 USD for 1 lb again.

"Copper specialists Bloomsbury Mineral Economics believe that we can expect copper prices to reach $9,000 a tonne within the next two years.

Author: Lawrence WilliamsPosted: Friday , 05 Oct 2007
LONDON -
In a presentation at Mining Journal's 20:20 Copper Day in London, Chris Welch of copper specialist analytical service, Bloomsbury Mineral Economics (BME), made a strong case for copper reaching $9,000 a tonne - $4.08 a pound - by 2009. Given that BME has a great track record on copper price predictions such a prediction should not be taken lightly!

The point perhaps that both speakers were making is that individual corporate presentations of copper mine supply are frequently heavily overestimated but many analysts may take these as reality without applying a big enough discount for projects which are cancelled, fall behind schedule or for major supply disruptions for technical, political and labour reasons. Real growth in copper consumption remains very strong, older mines are becoming depleted and grades are declining sharply.
Another interesting point which arose in Longley's presentation was the rate of copper usage per capita in the Asian sector in particular. It was pointed out that growth in Taiwan and South Korea has been very high in relation to the developed nations where the curve was lower because of the existing copper based infrastructure. But in the real growth economies like China and India, this growth pattern has hardly started yet, and should this rise to Korean or Taiwanese levels then the effect on the$ supply/demand pattern could enormous with price development which could make $9,000 copper itself a huge underestimate!"

Lundin Mining LUN.to LMC Take Over Bid

If somebody was really interested to make a bid - it is right time: once uncertainty in DR Congo will be resolved stock will surpass CAD 20.0 and bid will have to be in CAD 30.0 region to be successful. With portfolio of Zinc, Copper, Lead and Nickel company is becoming very attractive target for acquisition. One of the suitors could be Freport-McMoRan with its pile of cash 2.0 bil USD and two J/V with Lundin Group: one in DR Congo - Tenke Fungurume and another one is Fortress Mining in Russia, which took off today to +20%? Is something going on?

Do you remember:

"Desjardins' take over price of CAD 25.00 for Lundin Mining based on Spring aquisitions value looks like a dream now, but time is flying fast and such bargains are not forever."

More on Lundin Mining:

http://sufiy.blogspot.com/search?q=Lundin

Lundin Mining LUN.to LMC expansion to Double Zinc production

Lundin Mining to Increase Zinc, Lead Output at Neves

Oct. 5 (Bloomberg) -- Lundin Mining Corp., based in Canada, will expand two mines in Portugal and Sweden to help double zinc production and boost output of lead.

Report from CitiBank on Gold

Do you remember who is one of the largest shareholders in CitiBank? Saudis has bought 30% more gold in second Q 2007 alone.

http://www.gata.org/files/CitigroupGoldReport092107.pdf

"...almost unbelievable.
Citi is/was part of the Anti-Gold Cartel. In this report they predict $1000 gold and acknowledge that central bank sales have been used to cap the gold price. THESE GUYS ARE THE ONES WHO HAVE BEEN DOING THE SHORT SELLING ON BEHALF OF THE CENTRAL BANKS. Clearly they have broken ranks. This is an incredible development.
CIGA Frankly"

Mantle Resources MTS.v is halted

Must be some serious news are coming...Lundin Mining LMC LUN.to owns 10% of the company.

End of the US Dollar as reserve currency of choice continued...

Country could be small, but trend is big. On every USD dollar spike more and more US Treasuries will be sold in order to diversify assets out of Subprime currency, gold and silver will fly:

"Dollar's double blow from Vietnam and Qatar

"Vietnam is planning to cut its purchases of US Treasuries and other dollar bonds, raising fears that Asian central banks with control over two thirds of the world's foreign reserves may soon join the flight from US assets.

Vietnam, which has mid-sized reserves of $40bn, is seen as weather vane for the bigger Asian powers.
Together they hold $3,575bn of foreign reserves, over 65pc of the world's total. China leads with $1,340bn, but South Korea, Taiwan, Singapore, and even Thailand all built up massive holdings.

Separately, the gas-rich Gulf state of Qatar announced that it had cut the dollar holdings of its $50bn sovereign wealth fund from 99pc to 40pc, switching into investments in China, Japan, and emerging Asia."

Sterling Mining SRLM.ob is trading in Toronto SMQ.to

It is very positive development for the company. Now institutional investors could buy this stocks and Toronto Exchange is providing much more credibility then OTC market.

"WALLACE, IDAHO--(MARKET WIRE)--Oct 2, 2007 -- Sterling Mining Company (Toronto:SMQ.TO - News)(OTC BB:SRLM.OB - News)(Frankfurt:SMX.F - News) announces that further to the completion of conditional approval of the Toronto Stock Exchange ("TSX") to list its common shares (see press release dated September 28), the common shares of Sterling have now commenced trading on the TSX under the symbol "SMQ"."

The "new" Silver Wheaton

Silverstone Resources is receiving more and more spotlight:


http://www.businessday.co.za/articles/mining.aspx?ID=BD4A577205

More on Silverstone Resources SST.v:


http://sufiy.blogspot.com/search?q=Silverstone

Will Google miss expectations again?

Please note that Google's traffic is rising going into Q3, but less then Yahoo!'s. YouTube monetising and margins seams to be way below in order to improve Google's total picture. If industry insider is talking about Yahoo!'s flat Q3 in ads revenue Google will be under pressure to meet this Q3 expectations. EPS expectations are down to 3.74 from 3.75 in last 30 days. Somebody is already "talking down" expectation which is not a good sign particularly after CFO sudden decision about "retirement". It was not very much publicised fact that Google actually missed last Q2 expectation in EPS with actual 3.56 against expected 3.59: negative surprise of -0.8%. It was a clear change of trend with "normal" positive surprises to the upside from the Company. Nobody talking ofcause in Bubble Media about already apparent deteriorating fundamentals and slowing growth in financials results this year:

http://sufiy.blogspot.com/2007/09/google-goog-sailing-in-subprime-heavy.html

More on WEB 2.0 Bubble and Google:

http://sufiy.blogspot.com/search?q=Google

Silverstone Completes Purchase of All the Silver From Lundin Mining's Neves-Corvo and Aljustrel Mines

Lundin deal is closed:

"VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Sep 28, 2007 -- Silverstone Resources Corp. (CDNX:SST.V - News) ("Silverstone") is pleased to announce that it has closed its previously announced deal (June 6, 2007) with Lundin Mining to purchase all the silver production from Lundin Mining's Neves-Corvo and Aljustrel mines in Portugal for life of mine"

More on Silverstone Resources SSt.v:

http://sufiy.blogspot.com/search?q=Silverstone

Sterling Common Shares to Commence Trading on the TSX

"WALLACE, IDAHO--(MARKET WIRE)--Sep 28, 2007 -- Sterling Mining Company (OTC BB:SRLM.OB - News)(Frankfurt:SMX.F - News) announces that further to the conditional approval of the Toronto Stock Exchange ("TSX") to list its common shares (see press release dated August 2, 2007), the Company has now satisfied all conditions of the TSX, such that the common shares of Sterling will commence trading on October 2, 2007 under the symbol "SMQ"."

Major Exchange will open Sterling Mining SMQ.to SRLM.ob to new buyers on institutional level who are not allowed invest in OTC markets. With its production development on track we will have hot Christmas:

"Sterling Mining Begins Processing Ore Through Sunshine Mill"

Silverstone Resources SST.v Denver presentation

New Silver Wheaton in the making:

MC 230 mil
0.700 Moz in 2007 up to 3 Moz of Silver sales in 2009
Resources over 300 Moz with historical
FCF in 2010 30 mil
Largest shareholders Lundin Mining 19% and Capstone Mining 22%

http://events.onlinebroadcasting.com/denvergold/092407/index.php?page=redirect

Silver Wheaton Denver presentation

Register, it is worth it:

http://events.onlinebroadcasting.com/denvergold/092407/index.php?page=redirect

Listen and learn, unique business model: option on rising Silver Price without time decay.

Only one remark: it is NOT the only pure silver company any more check out Silverstone Resources SST.v.

Lundin Mining LUN.to LMC Daily at Buy

Gold Bugs Index HUI Break Out after retesting resistance

Google GOOG Madness in WEB 2.0 Bubble

You can buy all Gold mining companies in Gold Bugs Index HUI plus couple of Oil companies for the price of One Google. What will happen if tomorrow there will be no WEB PAGE GOOGLE.COM?

US Dollar: Nobody Loves Me Anymore

Avino Silver drills 1,037 g/t Ag over 5.5 metres

"Avino Drills 5.5 Metres, 1,037 grams/tonne (33 ounces/tonne) Silver, 3.69 g/t (0.1186 oz/t) Gold Which Includes 1.45 metres, 3,908 g/t (125 oz/t) Silver, 13.71 g/t (0.4408 oz/t) Gold"

http://www.kitco.com/pr/1267/article_09262007205916.pdf

New Discoveries beyond the mine:

http://www.avino.com/s/Avino.asp

More on Avino Gold and Silver Mines ASM.v:

http://sufiy.blogspot.com/search?q=Avino

Lundin Mining LUN.to LMC presentation

Commodity story at its best. When in doubt just meditate on it:

http://www.lundinmining.com/i/pdf/LundinMining-Aug07.pdf

CEO CNBC interview:

http://www.executiveinterviews.com/2311-lund-cnbc/

Transcript:

http://www.executiveinterviews.com/2311-lund-cnbc/2311-cnbc.pdf

Jim Rogers on commodities and US Dollar

Commodities are going much, much higher:

http://www.bloomberg.com/index.html?Intro=intro3

Apparently he is not giving too much credit to "clowns in Washington" and their actions are killing US Dollar.

Mantle drills 27.61 m of 12.2% Zn, 2.99% Pb at Akie

"Mantle Resources Inc.: Assay Results for Hole A-07-43Monday September 24, 2:15 pm ET
27.61 Meters Grading 12.20% Zinc, 2.99% Lead, 20.01 g/t Silver
Akie Property, B.C.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 24, 2007) - Mantle Resources Inc. (TSX VENTURE:MTS - News; FRANKFURT:A0F7E1 - News; the "Company"), is pleased to report the following assay results for hole A-07-43, the first hole completed during the 2007 exploration program currently underway at its 100% owned Akie zinc-lead property, located in northeastern British Columbia, approximately 260 kilometers north-northwest of the town of Mackenzie.
Hole: A-07-43. (Az: 055 degrees; Dip: -81 degrees; Grid: 3400S/0105W; Elev: 1429 meters; End of hole: 629.72 meters)"

It is one of the strategic investments by Lundin mining LUN.to LMC.

Sterling Mining SRLM.ob Sunshine mine opening is scheduled for December 2007

"BIG CREEK, Idaho, Sep 23, 2007 (The Spokesman-Review - McClatchy-Tribune Information Services via COMTEX) -- The Sunshine Mine bustled with activity Saturday morning, a forerunner of things to come.
Accompanied by the rumble of heavy equipment, men in hard hats scurried back and forth across the mine's "Main Street," a cement courtyard that leads to the portal, hoist room, maintenance shop and employee lockers.
Come December, "you won't be able to stand at the bottom of that stairway at shift change," predicted Mike McLean, the Sunshine's general manager. "You'd get run over by people heading out to their cars."
Sterling Mining Co. anticipates reopening the Sunshine Mine in December with a staff of 125. It's a second chapter for the underground silver mine, which closed in 2001 amid the financial troubles of a previous operator. "

Sterling Mining 43-101 Technical Report on the Sunshine Mine

More on Sterling Mining SRLM.ob:

http://sufiy.blogspot.com/search?q=sreling+mining

Cramer's 'Mad Money' Recap: Pedal to the Metals

Crowd is a crowd: I hope that all other fox have taken position already in advance. I like particularly that Lundin Mining LUN.to LMC is "a sexy speculative buy".

"After the Fed's rate cut, it's time for investors to make some speculative mining plays, Jim Cramer told viewers on his "Mad Money" TV show Friday.
The half-point cut on Tuesday has raised the value of hard assets against paper money. Additionally, lower Fed rates lead to higher economic activity, which leads to more consumption of metals, Cramer said.
For a sexy speculative buy, Cramer recommended Lundin Mining (LMC - Cramer's Take - Stockpickr). Although the company has had its ups and downs, Lundin now deserves "two thumbs up."
Lundin has major exposure to four metals: zinc, copper, nickel, and lead. After acquiring Tenke mining and Rio Narcea earlier this year, Lundin is bigger than ever. By purchasing Rio Narcea and Tenke, Lundin has increased its nickel and cobalt exposure, Cramer said.
Asian consumption of zinc "continues unabated," driving up zinc's price by 3% this week, Cramer said. Lundin has captured this price rise, so its earnings should increase. With China and India importing record amounts of zinc and nickel, respectively, the increase in demand should continue. Additionally, Lundin has seen some insider activity. Lundin is a great buy at $12 per share, Cramer said."

Lundin Mining LUN.to LMC CEO interview

Prices for commodities will remain strong.

Will the company stay independent?


http://www.thestreet.com/video/index.html?clipId=1373_10380588&channel=Exec+Interviews&cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

Lundin Mining to Commence Trading on NYSE at Market Opening on September 20, 2007

"VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Sep 19, 2007 -- Lundin Mining Corporation ("Lundin Mining" or the "Company") (Toronto:LUN.TO - News)(AMEX:LMC - News)(OMX: LUMI) is pleased to announce that its common shares will commence trading on the New York Stock Exchange ("NYSE") under the symbol "LMC" at the opening of the market on September 20, 2007.
The Company will participate in the opening bell ringing ceremony at the NYSE. To view a live webcast of the event please use the following link which will become active at approximately 9:25 a.m. EST on September 20, 2007"

This company will benefit from US Dollar collapse and is one of the prime candidates for take over bid in my opinion. It is more safe play then other Junior mining companies mentioned on this blog.

More on Lundin Mining:

http://sufiy.blogspot.com/search?q=Lundin

Fears of dollar collapse as Saudis take fright

This is truly historical development: End of US Dollar as Reserve Currency of Choice:

"Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East."

"This is a very dangerous situation for the dollar," said Hans Redeker, currency chief at BNP Paribas.
"Saudi Arabia has $800bn (£400bn) in their future generation fund, and the entire region has $3,500bn under management. They face an inflationary threat and do not want to import an interest rate policy set for the recessionary conditions in the United States," he said.
The Saudi central bank said today that it would take "appropriate measures" to halt huge capital inflows into the country, but analysts say this policy is unsustainable and will inevitably lead to the collapse of the dollar peg."

Remember? It is another sign in the picture:

http://sufiy.blogspot.com/2007/09/end-of-us-dollar-as-reserve-currency-of.html

Avino Drills 1.50 Metres, 1,511.8 g/t Silver, 15.77 g/t Gold at San Gonzalo

Another high grade results from recent exploration: capitalisation of this company is roughly equal to its hard assets: equipment and constructions, without any credit for resources at all. Company is in the process of preparing resources estimate. management is definitely pleased with the progress and adding second drill to the property:

"Avino Silver and Gold Mines Ltd. has added a second core drill to its program at the large Avino property located 80kms north east of Durango, Mexico.
The first drill continues to explore the San Gonzalo zone. It is currently drilling Hole 31 at that zone.
The second drill started at the beginning of the month and has currently completed two holes on the ET zone on the main Avino Vein. This is the zone on the main Avino Vein from which the company mined 1975-2001.
A program of 11 holes are planned to explore the ET zone below the 11 1/2 level where production ceased in Nov 2001.
Avino is pleased to announce results of a further four holes at San Gonzalo (20 through 23). (Locations can be viewed on the Avino website)."

http://biz.yahoo.com/ccn/070919/200709190414222001.html?.v=1

More on Avino Gold and Silver mines:

http://sufiy.blogspot.com/search?q=Avino

Credit Suisse Raises Gold, Silver Forecasts on Supply, Dollar

By Saijel Kishan
Sept. 20 (Bloomberg) -- Credit Suisse Group, Switzerland's second-biggest bank, raised its 12-month forecast for gold, silver and other precious metals because of supply shortfalls and a decline in the value of the dollar.
Gold may trade at $730 to $770 an ounce, compared with the Zurich-based bank's previous forecast of $670 to $720, according to a report yesterday by Tobias Merath, Credit Suisse's head of commodity research.
Silver may trade at $13.50 to $14.50 an ounce compared with the bank's previous forecast of $12.50 to $14.50. Credit Suisse said that platinum may trade at $1,400 to $1,600 an ounce, up from a range of $1,250 to $1,450.
Palladium may trade at $310 to $350 an ounce, compared with $300 to $340, the bank said.
Gold for immediate delivery was at $729.17, silver at $13.1462, platinum at $1,312 and palladium at $335 as of 9:25 a.m. in London.

Silverstone Updates Silver Reserves and Resources at Lundin Mining's Neves-Corvo and Aljustrel Mines

It is very important development for new Silver Wheaton SLW in the making: Silverstone Resources SST.v effectively controls 207.6 Moz of Silver just in this one agreement. Update of Capstone Mining's Cozamin resources which is due in September 2007 will add more to this resource base. Silver cost is fixed at 3.9-4.0 USD per oz. Company is working on its own resource base in Mexico which has historical indication of more then 100 Moz. First silver revenue from Lundin deal will pour in on September 28th, 2007. Small junior will become second pure silver play with revenue stream from silver sales and with fixed cost base: it is option on rising silver price without time decay. Main shareholders are Capstone Mining CS.to, Lundin Mining LUN.to LMC and couple of investment funds: shares are very tightly held.

"VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Sep 17, 2007 -- Silverstone Resources Corp. ("Silverstone") (CDNX:SST.V - News) is pleased to announce that it has completed its updated technical reports on Lundin Mining's Neves-Corvo and Aljustrel mines located in Portugal. The National Instrument 43-101 compliant technical reports were prepared by Wardell Armstrong International, for Silverstone titled Technical Report on the Neves-Corvo Mine, Southern Portugal dated August 2007, and Technical Report on the Aljustrel Mine, Southern Portugal dated September 2007."

More on Silverstone Resources:

http://sufiy.blogspot.com/search?q=silverstone+resources

China's planned economy will support commodities prices for decade to come.

Jim has nailed it:


"Important Dollar Considerations That Have To Be Added To The Formula Author: Jim Sinclair

Dear CIGAs,
Westerners do not understand China plans its economic future decades ahead, making all preparations for it. No Western country has any economic plan other than short term political rhetoric.
Since Western analysts have no clue about the depth of economic planning, they predict the consumption of China in raw material to be a product of China’s prior month's economic figures. Nothing could be further from the truth.
Diversification out of the US dollar by investment in raw material is part of the long term Chinese economic plan.
Since the Bank of China does not hold paper dollars, but rather US Treasury securities, such diversification will require bond liquidation.
As the dollars created by the sale of US Treasury securities are invested in raw material production, those dollars enter the international liquidity pool.
This type of diversification does avoid instant destabilization of the US dollar but clearly puts long term downward pressure on it.
It is well known that China officially has quiet interest in many of corporations, especially those operating internationally.
One only needs to follow the money to prove the above dollar negative long term thesis."

Commodities, Gold and Silver plays:

http://sufiy.blogspot.com/2007/08/silver-seven-juniors-from-summer-2006.html

Important Market Observation for Lundin Mining LMC LUN.to and Juniors

From Monty Guild:

Posted On: Thursday, September 13, 2007, 8:36:00 PM ESTMonty Guild's Global Market Commentary Author: Monty Guild

"BASE METALS
We have been bullish on gold, oil, base metals, India, China and transportation of energy and minerals for a very long time and that bullishness continues. In a recent email, I stated that we had become more cautious short term about the demand for base metals although continued to be long-term bullish. Our logic was that a U.S. economic slowdown in demand would impact the prices of base metals...and even though it takes many years to bring on new mines, a slowdown in U.S. demand would impact global prices.
Now after a few days of deep research and conversations with a number of economists, we have modified our position. It seems that the ship borne deliveries of many base metals and minerals are almost entirely imported by the fast growing countries like China; ship borne imports of many metals into the U.S. is not a large part of the global market. With the exception of copper and one or two others, most metals are not imported into the U.S. by ship in nearly as large quantities as they are imported into China and similar countries.
Because we continue to believe that a recession in the U.S. would not lead to anything more than a growth slowdown in the developing countries, we are once again short-term bullish on base metals such as iron ore, nickel, cobalt and others where the U.S. is not a huge importer. We will buy the companies that mine these metals on dips.

URANIUM
Also, for those of you who think more long-term take a look at uranium, which has suffered a big price decline. Perhaps not immediately...but over time, uranium prices will once again rise, as demand from nuclear utilities will be growing, due to the fact that more and more nuclear power plants are going to be built worldwide."

The most comprehensive comment on recent Markets. Gold, Silver, USD collapse, Subprime.

http://www.sprott.com/pdf/marketsataglance/09-2007.pdf

I am ready to delete this post immediately should Sprott consider it is in breach of their copyright.

Holdings of US Treasuries by Foreign Central Banks are falling further

According to Dan Norcini:

http://jsmineset.com/cwsimages/Miscfiles/5187_Charts_for_9-13-2007_Custodials.pdf

US Dollar will be under constant Selling pressure ss escape from USD nominated assets contunues.

Sterling Begins Drifting on Silver Mineralization Exposed by Cross-Cutting at Sunshine Mine

Close to Sterling Mining SRLM.ob listing in Toronto we should expect more good news.

"WALLACE, IDAHO--(MARKET WIRE)--Sep 13, 2007 -- Sterling Mining Company (OTC BB:SRLM.OB - News)(Frankfurt:SMX.F - News) today reported that its mining crews have completed over 230 feet of drifting on a new portion of the Sunshine vein, that has been accessed from the new Sterling Tunnel and which was exposed during exploration cross-cutting in June and July.
Sampling by Sterling's geologists to date indicate a vein grade of 33.7 ounces per ton over an average of 0.9 feet true vein width for the entire length of the exploration drift.
Raymond De Motte, President stated "This initial result is very exciting, and adds to our projections that there is ore in the Upper Country area that has been either inaccessible to date, or not explored due to fragmented land ownership with prior operators. The Upper Country area, which is separate from the lower levels of the Mine and its silver reserves that are the focus of our return to production, is key to our continuing exploration efforts at Sterling".

Baja Mining Secures Underwritten Commitment for El Boleo US$515 Million Debt Financing

Good companies with strong management and real resources in Junior mining sector still can get financing, it is very positive for all PGM and commodities picture:

"The proceeds of the Facilities will be used to partly finance the development, construction and working capital costs of the El Boleo project (the "Project") located in Santa Rosalia, Baja California Sur, Mexico, which is 100% owned by the Company."
http://biz.yahoo.com/iw/070912/0301319.html

Google GOOG is fully exposed to the Recession Downturn in Advertisement

"Online Ad Recession Watch: Tracking The Signals
Henry Blodget September 12, 2007 7:24 AM
We continue to believe that we are likely nearing (or already in) the first stages of a cyclical downturn for advertising and the Internet sector--one that will affect not only start-ups and second-tier players but majors like Google (GOOG), Yahoo (YHOO), AOL, et al. Such downturns do not begin suddenly, and they are not instantly obvious (except in hindsight). Rather, as with the housing market, the environment changes gradually, over many months, with early signs slowly becoming a steady torrent of bad news."

These signs are all over Google's performance this year:

http://sufiy.blogspot.com/2007/09/google-goog-sailing-in-subprime-heavy.html

What Freeport-McMoRan FCX is going to Buy?

"Freeport-McMoRan Copper & Gold Inc. Announces Sale of International Wire & Cable Business for $735 Million"

It will be nice addition to 2.0 billion of cash according to recent filing.

"FCX is a leading international mining company with headquarters in Phoenix, Arizona. FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX has a dynamic portfolio of operating, expansion and growth projects in the copper industry and is the world’s largest producer of molybdenum. The Grasberg mining complex, the world’s largest copper and gold mine in terms of reserves, is the company’s key asset. FCX also operates significant mining operations in North and South America and is developing the potential world-class Tenke Fungurume project in the Democratic Republic of Congo"

Will Lundin Mining LMC LUN.to fit the bill with its 25% in Tenke Fungurume? FCX knows Lundin group already and has another J/V with Fortress Mining FST.v

Gold Bugs Index HUI P&F Price Target USD 520.00

Newmont Mining NEM P&F Price Target USD 60.00

Streettracks GLD Gold holdings Up 51.51 tons in 4 days.

Dan Norcini reported:


http://jsmineset.com/cwsimages/Miscfiles/5168_Charts_for_9-11-2007.pdf

US Dollar has entered WaterFall Zone

Google GOOG is sailing in Subprime heavy waters

Before chasing upside of 20% from here, print out two tables with Google financial results and ask yourself: will holders of Google with profits from 200 level sell into next earnings or wait for another confirmation of Slowing trend?

Q2 results 2007:
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEisFA1dk0HJnnVngO7N7DhC40BAWQUJjGOO-V8oE1RaHoXHm2iJEWZUsJhPmJTA0I_N9T0UUiSziz_gQ_AL2x6kBTnWjWbrnl3qd8P_B_jIkyaJhBovErXfTPSjYJMRoUhOKGW_Iw/s1600-h/scan0011.jpg

Q1 results 2007:
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEglzAWhDysrWoyZlMxNW_3hIb7XQMxvGnsL2DtDLosafeRlWhRPDNvkLXfbwwdJmBrqYg1M5iGSItc_JhqxloGT4435UcWWvKZ387_C0LStCgr2lZyWmut1915BQabVYV8uG5FZ3g/s1600-h/scan0008.jpg

Google and Subprime: http://sufiy.blogspot.com/2007/09/mortgage-impact-on-google-goog.html

Original posts:

Q2: http://sufiy.blogspot.com/2007/07/google-goog-earnings-and-growth-are.html
Q1: http://sufiy.blogspot.com/2007/04/google-earnings-eps-is-falling-and.html

Rainy Continues to Intersect Strong Gold Values

"Strong Gold Values in ODM and 17 Zone Drilling: 30.0 Metres Grading 2.04 g/t Gold, 10.0 Metres Grading 2.73 g/t Gold and 6.0 Metres Grading 5.98 g/t Gold"


Rainy River RR.v is still under recent Private Placement Price:

"VANCOUVER, British Columbia, August 2, 2007 -- Rainy River Resources Ltd. (TSX-V:RR) (the "Company") is pleased to announce that the Company has closed its private placement of an aggregate of 5,775,000 units of the Company (including full exercise of an over-allotment option consisting of 1,925,000 units) (the "Units") at a price of $5.20 per Unit and 840,000 flow-through common shares of the Company ("FT Shares") at a price of $6.00 per FT Share for gross proceeds of $35,070,000, as previously announced on July 18, 2007 (the "Offering"), all pursuant to an underwriting agreement between the Company and Canaccord Capital Corporation and Wellington West Capital Markets Inc. (collectively, the "Underwriters") dated for reference July 17, 2007."

You can get piece of action below Canaccord Capital which is worth studying. Development is interesting due to proximity to all infrastructure in the region. Website is here: http://www.rainyriverresources.com/s/Home.asp

Sterling Mining SRLM.ob New Catalysis

August turmoil in the markets put on the second plan a lot of positive developments in Junior sector. Sterling Mining is ready for Run in Silver game. Graduation to Toronto Stock Exchange and start of production this year will move the stock back onto radar screen of investment public.

"August 02, 2007Sterling Mining Completes Private Placements And Receives Conditional Approval For Toronto Stock Exchange Listing"

"In addition, the Company has received conditional approval from the Toronto Stock Exchange ("TSX") to list its common shares on the TSX, subject to fulfilling all requirements of the TSX and filing of customary documentation on or prior to October 30, 2007."

Final Prospectus:

http://www.sterlingmining.com/i/pdf/Sterling_Final_Prospectus_09-05-07.pdf

Hedgers are out of fashion in the Gold market.

First Barrick Gold and now NEWCREST to be Hedged is definitely becoming out of fashion. Additional demand for the Gold will push price higher.

Top Aussie gold miner to close out hedge book, restructure finances

"This latest big de-hedging by a major global gold miner, involves the close-out of hedge contracts totalling 2,049,017 ounces, though the company says it will purchase 2.25 M oz of gold put options equivalent to an average of 500,000 oz per annum over 4.5 years, beginning in January 2008. The strike price is $A800/oz ($US657.6/oz)."

""Newcrest intends to close out all its gold hedging contracts and gold loan embedded gold forward sales contracts totalling 2,323,642 oz for an approximate cost of $A842 M," said chief executive Ian Smith.
"Newcrest has pre-purchased 2.3 M oz at an average price of $A831 per oz to enable settlement of these contracts when the proceeds of the entitlement offer are received."
He said the company plans to temporarily leave the longer-dated gold bullion forward sales contracts in place. These would be closed out within 12 months, subject to the gold price, market liquidity and agreeing the terms with hedge counterparts."

Lundin Mining LMC LUN.to has graduated to NYSE

"VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Sep 7, 2007 -- Lundin Mining Corporation ("Lundin Mining" or the "Company") (Toronto:LUN.TO - News)(OMX: LUMI)(AMEX:LMC - News) is pleased to announce that its common shares have been approved for listing on the New York Stock Exchange ("NYSE"). The Company expects it will begin trading on the NYSE on September 20, 2007 under the symbol "LMC"."

It is very positive development for the company and its Stock price. Company has met strict NYSE listing standards and will enjoy higher trading volumes hopefully. More fund managers and index funds will have to keep exposure to Lundin Mining and anticipation of this move will bring share price higher. Actual buying will provide new institutional shareholder base and will require more analyst following. Once the story will be told the Market's recognition of actual value of the company assets will be more apparent in rising share price.

"Lundin Mining hits big time with NYSE listing:

"Lukas Lundin, chairman of the board of Lundin Mining, commented: "This is a proud moment for our company as it is a reflection of our growth and maturity as a global mining company. We have a large shareholder base in the U.S. and are very pleased to have received this important recognition of being accepted for listing on the New York Stock Exchange. We will continue to pursue our goal of becoming a major global mining house in the base metals sector and believe being on the NYSE will assist us greatly in our accomplishing this goal."

Gold is moving Up and USD is breaking down? It is just the begining.

Thank you for coming. Gold is moving Up and everything else: USD, DOW, SPY and NASDAQ - down? If you are not surprised - this is your site. We are thinking aloud and are making some money here. Bad spelling and Grammar are downside, but read between the lines: you know all this stuff already - I am just putting it in one place. Consider it is like a Lab and research for IHPV. Invest your time before your money. Help me to learn. Read, study, share and post your thoughts. I am ready to share mine. First take some antidote from Bubble Media Madness: http://sufiy.blogspot.com/2007/05/three-most-important-things-in.html and welcome into Common Sense adventure.

I was busy lately buying into small names in Junior sector. After first initial excitement of public with Gold break out above 700 and big names like Newmont Mining NEM, Royal Gold RGLD, Silver Wheaton SLW, money will find its way into tiny Junior mining and exploration sector where the biggest reward for highest risk will be. Join me on the wild ride out of USD collapse and into Brand New World of opportunities:

First sharpen your saw and check yourself whether we are on the same page in big picture:

http://sufiy.blogspot.com/search?q=US+Dollar

Secrets of trade to stay alive in the Slaughter House:

http://sufiy.blogspot.com/search?q=CS

Few Research Ideas:

http://sufiy.blogspot.com/2007/08/silver-seven-juniors-from-summer-2006.html

Yes, I think in the end rise in Silver price will be even more dramatic then in Gold due to tiny size of its market.