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

Gold Sents:

Charts Of The Day.

TNR Gold & McEwen Mining Copper M&A: Lumina Copper Hits CAD10.36 - Is Another Bid Coming For Taca Taca Now? $TNR.v $MUX $LCC.v

All slides in this part of the post are from McEwen Mining presentations.

  We have only one question and concern, as you know. Why McEwen Mining is not properly working with Los Azules Copper project now? It is the world-class asset and "One of The World's Largest Copper Projects" according to Rob, why there is no appropriate marketing of it? Its proper sale will solve all capital problems which McEwen Mining is facing now in order to grow further. 

   We all have noticed the change in the company's goal - now S&P 500 target is not possible by 2015, but it is the great company with the great leadership, why Los Azules Copper has not being promoted properly so far?

   TNR Gold is moving forward with its Los Azules Copper Back-In Right asset and nobody is going to sell it cheap as it looks like now, so why is McEwen Mining not using the better climate in Argentina and rising Copper prices to tell its story? 

  

  The irony is here that: "soft Gold and Silver prices are due to the economic recovery" - what can be better hedge from "such an adversary" for the Gold Miner as Copper World-Class asset in this case? We would take it any day now as Chinese may one day.

Kirill Klip.:

Copper M&A: Lumina Copper Hits CAD10.36 - Is Another Bid Coming For Taca Taca Now?

  

  "Please do not get very excited and read my legal disclaimer carefully, but as we have seen before this kind of price action in Lumina Copper case can tell us that something is going on. It can be the simple arbitrage play by the big guns, but the market cap of Lumina copper is already higher than the calculated at the announced acquisition price by First Quantum Minerals. The announced price was CAD 470 million. Lumina Copper has 46,978,235 Fully Diluted shares, price at CAD10.36 gives us already CAD 487 million! I do not think that it is bet on rising Copper price or rising First Quantum share price - you can more safely buy the First Quantum shares in that case. Somebody thinks that Taca Taca can be worth more...

  Let's see what the next couple of weeks will bring us here. I will repost my yesterday's entry and you will appreciate later why it is important. Now Los Azules Copper will be making its rounds in the industry.

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

    

  As we have discussed before, we have really Hot Winter In Argentina for mining M&A. Now Frik Els confirms "China's Top Gold Firm Talking to Barrick Gold, Has Friedland "hotline":

"China's largest gold mining company, China National Gold, is officially setting up shop in junior mining hub Vancouver this week as part of a push into new markets and its global acquisition strategy.

President Xin Song told the Wall Street Journal ahead of Wednesday's event, the Beijing-based firm is on the hunt for global acquisitions and partnerships in gold, silver and copper:

"The growing strategy is very clear, we are going out looking at things globally. On our hands we have a few opportunities, at different stages."

Song, who also chairs the China Gold Association, has not ruled out acquisitions in developed countries, such as Canada, Australia and the US, but the main focus of its expansion strategy is assets in the region including in Mongolia, Russia and countries in central Asia.

Investments in "politically stable" countries in Latin America and Africa are also being considered Song said. Mining.com"

TNR Gold: Shotgun Gold Project - Why Do We Need New Gold Deposits?

"We are working on the corporate structure now, which will allow to develop Shotgun Gold with the potential new strategic partner on J/V basis like we are doing with Ganfeng Lithium in International Lithium. You can find more information in the Shotgun Gold Project presentation below, on our website and give us a call to discuss it at any time. Read more."

TNR Gold Shotgun Gold Presentation, Alaska - April 2014 from Kirill Klip

  Gold smells Inflation and is moving higher these days, Chinese quest for resources will bring new deals into the mining M&A space and projects like Shotgun Gold will be on the radar screens of investors again. 

  Now Copper is making headlines as well and Wall Street Journal reports "Copper Prices Seen Marching Higher":

"Some investors are turning bullish on copper prices, brushing aside concerns sparked by a probe into the metal's place in China's financial system. Instead, these investors are focusing on a rebound in manufacturing world-wide, which they expect will boost copper demand broadly. Increasing consumption by factories will offset any decline in the use of copper as collateral to back loans as a result of the probe, these investors say. China is the world's biggest copper consumer and importer, though how much of the metal goes to manufacturers is unclear. WSJ."

  As you already know, my personal take on the Missing Collateral in China is Bullish for the metals:

Bullish For Metals?! Missing Collateral in China, Follow The Trail of Loans, Copper and Fraud.

"In my personal opinion, we are witnessing the same game of the rehypothecation as it is happening with FED, BIS, Investment Banks and Gold. This, actually missing metal as collateral, will be the very bullish set up for the commodities markets. After initial selling due to the margin calls and unwinding of Paper Positions in the market, Mr Market will realise that all these metal accounted for the supply and demand picture is NOT there. Industrial demand will stay in place, but Supply which was supposed to be hoarded in the warehouses is missing: the collateral was used a few times for the different transactions. Read More."

TNR Gold Los Azules Copper: Chinese M&A - Watch Out For Las Bambas Effect.

  

  "Frik Els provides a very good insight into the Chinese deal culture and mining M&A particularly. Las Bambas deal is not only the very good indicator of the turning mining cycle, but also provides guidance for the smaller companies in China to go on The Hunt For Copper and other commodities. You can witness this approach in our particular case of Strategic Commodities with International Lithium and Ganfeng Lithium as well. Read more."

TNR Gold Investor Presentation March 2014 from Kirill Klip

TNR Gold: Los Azules Copper And M&A in Argentina - First Quantum Minerals to Acquire Lumina Copper For $470 Million.

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.

McEwen Mining And TNR Gold: Los Azules Copper And M&A in Argentina - Lumina Copper halted at open. $TNR.v $MUX $ABX $LCC.v

 

  We have breaking news this morning:

Kirill Klip.:

TNR Gold Los Azules Copper And M&A in Argentina: Lumina Copper halted at open.

   "I will be monitoring the developments today. Lumina Copper was hitting 52 week highs recently and maybe today we will have the better picture of what is really going on over there. I do hope that we all deserve the positive news. You can find more information on the Copper M&A landscape in Argentina on the links below.

Stockwatch:

"Lumina Copper halted at open2014-06-17 07:54 ET - Halt TradingLumina Copper Corp. has been halted at the open on June 17, 2014, at the request of the company, pending an announcement."

Hot Winter In Argentina: Copper M&A, TNR Gold Los Azules - Lumina Copper Hits 52 Weeks High

 "It looks like we can have finally Hot Copper M&A winter in Argentina! Lumina Copper hit 52 week high at CAD7.47 yesterday rising from the recent Low by the end of March at CAD4.60. Please do not get too exited and rush with any decisions here. Yesterday's breakout was on a low volume, but volume was rising in the last few weeks. Read More."

TNR Gold Los Azules Copper M&A: Barrick Gold Strikes Deal With Pascua-Lama Mine Opponents

  "We have another very important confirmation that Barrick Gold is very serious about the re-start of its huge Pascua Lama mine building on the boarder of Argentina and Chile. All recent activity makes me think that somebody is more than likely is ready to support Barrick in this project with the capital and maybe even part of the Chinese market demand. All these developments are very positive for mining in Argentina and Lumina Copper advance demonstrates what potential assets re-pricing does really mean in this market environment. Reuters reports: "Barrick Strikes Deal With Pascua-Lama Mine Opponents."  Please carefully read my legal disclaimer and do not apply any of this information to any particular security or make any investment decisions. Now we have both of our valuation drives moving in the positive direction for TNR Gold: perception of political risk for mining in Argentina and copper prices reflecting Chinese PMI developments.

"May 28 (Reuters) - Canadian miner Barrick Gold has come to an initial agreement with local indigenous peoples in Chile who have opposed its stalled Pascua-Lama mine, taking a first step on what my be a long road to reactivating the project.
Barrick, the world's largest gold miner, halted the gold and copper project on the Chilean and Argentine border last year after investing $5 billion in it.Reuters."

The Art Of War For Resources: How China Fooled The World ... And Will Do It Again - "Surprise PMI Rise"

TNR Gold: Los Azules Copper Project In Argentina - Barrick Gold Seeks To Restart Pascua Lama.

"As you remember, Los Azules Copper project is located in San Juan province in Argentina. Barrick Gold's Huge Pascua Lama project is located in the same province on the boarder of Argentina and Chile. This ongoing development will be very positive for Argentina mining and Los Azules Copper project, providing the potential catalyst to TNR Gold.

"Copper M&A, Mining In Argentina And TNR Gold's Los Azules Copper Back-In Right. 
Particularly important for Los Azules Copper Project are the efforts by the government of Argentina "to overturn Barrick Gold's Pascua Lama freeze in Chile." Both projects are located in the same San Juan province in Argentina which is considered to be one of the most mining friendly in the country.  You can find more about our Los Azules Back-In Right in the presentation below and you can always contact us to discuss it."

"The sale of our Back-in Right will provide the necessary liquidity and catalyst to all of our group of companies. Rob McEwen has done a great job as Operator developing this project and now Los Azules is at the top of the list of the best copper projects in the world available for sale, according to PI Financial! I would recommend to contact Jim Mustard VP at PI Financial to get more information about Los Azules Copper project and our Back-In Right Asset. Read more."

TNR Gold Investor Presentation March 2014 from Kirill Klip

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.

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

By Alex Létourneau of Kitco News
Thursday May 8, 2014 11:45 AM

(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.

By Alex Létourneau of Kitco News aletourneau@kitco.com
Follow Alex Letourneau @alex_letourneau"

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.