Canadian Media Resource Articles – Page 498

Goncalves tirade against the ‘enemy’ – by Kip Keen (Mineweb.com – November 1, 2015)

November 2, 2015

http://www.mineweb.com/

Who’s myopic in this argument Mr. Goncalves?

Pure ridiculum. Cliffs Natural Resources Chairman and CEO Lourenco Goncalves descended into a xenophobic tirade against China during a Friday conference call in which he warned Australia to choose sides in a world where it was helping an “enemy” build up.

China will “bring Australia down” Goncalves said as he reiterated his position that the big diversifieds are oversupplying the iron ore market. He went so far as to suggest that trade with China was a questionable strategy, noting that he was doing everything he could to separate the Cliffs business from China “since the day I put my feet here.”

At one point during comments he went so far as to implore Australia to rethink its trading with China. “I hope the Australians will continue to question themselves why one or two companies are giving their finite resource away to the Chinese while the Chinese build into a military powerhouse in the South China Sea,” Goncalves said.

The Canadian resource sector’s messy duty to consult – by Dwight Newman (National Post – October 30, 2015)

October 30, 2015

The National Post is Canada’s second largest national paper.

Dwight Newman is professor of law and Canada research chair in indigenous rights, University of Saskatchewan and visiting fellow, James Madison Program, Princeton University.

This week, closing arguments were heard in a lawsuit that highlights the Ontario provincial government’s slowness in developing clear approaches to the duty to consult Aboriginal communities and in offering any clarity to those attempting to operate in the Canadian resource sector.

The decision to be rendered has widespread implications. The case has parallels to the situation of other resource companies, and it highlights the significant dangers in governments trying to muddle through the interaction between Indigenous rights and resource development without making clear decisions and enacting clear legal frameworks. Future prosperity for Aboriginal and non-Aboriginal communities alike will be affected by what happens with these sorts of lawsuits.

Upbeat gold miners report stronger results – by Lisa Wright (Toronto Star – October 30, 2015)

October 30, 2015

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Barrick, Goldcorp increase production, cut costs in third-quarter

There was a funny sound that hasn’t been heard in several years on Barrick Gold Corp.’s latest earnings conference call: optimism.

Battered by one of the worst bear markets ever for metals, the Toronto-based gold giant reported a second straight quarter of positive cash flow and that it’s well on the way to meeting its massive debt reduction target of $3 billion (U.S.) this year.

“We’re getting Barrick back into a position of financial strength,” said company president Kelvin Dushnisky, who was audibly more upbeat on a call with analysts Thursday. “We’ve really started to deliver,” he said.

The Alberta disadvantage – by Peter Foster (National Post – October 30, 2015)

October 30, 2015

The National Post is Canada’s second largest national paper.

There were few surprises in this week’s first budget from Alberta’s NDP government, but one great paradox. Projections of eventual fiscal balance depend on the recovery of an industry which the government is committed not merely to diversify away from but euthanize.

The environmental left usually has the luxury of living in a dream world in which they can enjoy the fruits of a fossil-fuelled society while they condemn it, and dwell in Utopian visions of a wind- and solar-powered future. The Alberta NDP is unusual in being forced to confront fossil-fuel reliance very directly, although it doesn’t appear to have quite caught on. Then again, that’s why it’s an NDP government.

As the Canadian Association of Petroleum Producers noted in a submission to the province’s royalty review panel this week, the oil industry employs approximately one in three Albertans, it generates two-fifths of Alberta’s GDP, and is responsible for more than a third of provincial revenues.

So the government wants to get away from it as quickly as possible, both for the sake of diversification and the health of the planet.

Slash in Goldcorp’s share price shows that investors still wary of gold’s prospects – by Ian McGugan (Globe and Mail – October 30, 2015)

October 30, 2015

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Skittish investors have grown sensitive to any hint of problems in the gold sector after four years of falling metal prices and disappointing share performance.

They demonstrated their anxiety on Thursday by chopping 10 per cent off Goldcorp Inc.’s share price after the company reported a surprise loss for the quarter, largely as a result of inventory adjustments and other non-cash items.

Analysts said the fall in Goldcorp’s share price was also related to teething problems at a number of its operations. At its new Éléonore mine in Quebec, for instance, folds and cracks in the rock are resulting in lower-than-expected ore grades being mined. In addition, the company is facing labour issues at its Cerro Negro mine in Argentina and is having to rethink how it approaches the Cochenour ore deposit in Ontario after exploratory drilling revealed a different shape from what had been expected.

Sherritt widens loss as lower commodity prices weigh – by Henry Lazenby (MiningWeekly.com – October 28, 2015)

October 29, 2015

http://www.miningweekly.com/page/americas-home

TORONTO (miningweekly.com) – Diversified miner Sherritt International has increased its net loss by C$158.7-million during the third quarter ended September, as lower prices for nickel, cobalt and oil and gas products weighed on its bottom line.

The Toronto-based firm reported a net loss from continuing operations of C$210-million, or C$0.72 a share, compared with a loss of C$51.3-million, or C$0.17 a share, in the prior-year period.

Excluding special items, the company reported an adjusted loss of C$91.4-million, or C$0.31 a share, missing analyst expectations of a loss of C$0.30 a share, on revenue of C$91.9-million.

Consolidated revenue declined 19% to C$246.5-million for the period, mainly owing to lower nickel and oil prices, which were partly offset by a weaker Canadian dollar relative to the US dollar. The gross working interest (GWI) oil output in Cuba was also lower as oil output from new development wells was not able to offset natural reservoir declines, the company stated.

Editorial: Teck, Freeport burned by falling oil and gas prices – by John Cumming (Northern Miner – October 27, 2015)

October 29, 2015

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

It must have seemed like a good idea at the time a few years ago when Teck Resources and Freeport-McMoRan management bought deeper into the oil and gas sector and diversified further away from their mining businesses, but those decisions to dabble have come back to sting both companies.

In a new phase of financial reporting, miners like Teck and Freeport are posting major non-cash losses related to falling commodity prices, rather than the scenario several years ago when writedowns more often stemmed from cost overruns at projects under construction, or overpayment for acquisitions.

In its quarterlies released on Oct. 22, Teck recorded impairment charges totalling $2.2 billion on an after-tax basis ($2.9 billion pre-tax), including $1.5 billion on its metallurgical coal assets, $340 million on the Andacollo copper assets and $343 million on its 20% share of the Fort Hills oilsands megaproject in Alberta.

AUDIO: Ring of Fire conference in Thunder Bay aims to examine environmental concerns (CBC News Thunder Bay – October 28, 2015)

October 29, 2015

http://www.cbc.ca/news/canada/thunder-bay?cmp=rss

Extraction project must be ‘ecologically sustainable,’ law professor says of Ring of Fire development

A one-day conference about the Ring of Fire, taking place Friday in Thunder Bay, is looking at how issues would be addressed before resources are extracted from the mineral-rich region.

Lakehead University’s Faculty of Law and Centre of Excellence for Sustainable Mining and Exploration is hosting the discussion, which seeks to build on last year’s conference.

Challenges including sustainable development, the duty to consult and impacts on First Nations communities must be considered and addressed before the extraction project begins, said Jason MacLean, an assistant law professor at Lakehead.

“It would be putting the cart before the horse to speed ahead with the development of the project without ensuring that the project is going to be ecologically sustainable and respectful of indigenous rights,” MacLean said.

Barrick posts loss, but makes headway on debt – by Ian McGugan (Globe and Mail – October 29, 2015)

October 29, 2015

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

TORONTO — Barrick Gold Corp. swung to a loss in the third quarter, but reported strong progress in reducing its mountain of debt and paring production costs as it grapples with a challenging market for precious metals.

The world’s largest gold producer said it lost $264-million (U.S.) or 23 cents a share in the quarter, largely as a result of writing down the carrying value of Zaldivar, its South American copper mine, by $452-million. Revenue was $2.32-billion.

The paper loss was outweighed by an impressive performance in reducing both costs and debt. Earnings excluding one-time items were 11 cents a share, beating the seven cents a share that analysts had expected.

“Overall, it was a very good quarter,” said Sid Subramani, an analyst at Veritas, an independent investment researcher in Toronto.

Goldcorp Inc reports Q3 loss, but maintains guidance – by Peter Koven (National Post – October 29, 2015)

October 29, 2015

The National Post is Canada’s second largest national paper.

Goldcorp Inc. reported a loss in the third quarter as it dealt with weak gold prices and struggled to ramp up production at the new Eleonore mine in Quebec.

However, the Vancouver-based miner maintained its production and cost guidance and said it generated a healthy US$168 million of free cash flow despite low gold prices.

Goldcorp said it had an adjusted loss of US$37 million in the quarter, or four cents a share. After stripping out one-time items (including stock-based compensation charges), Goldcorp had a profit of three cents a share, which was still below the average analyst estimate of four cents. It earned nine cents a share (on an adjusted basis) in the same quarter a year ago.

Production from Eleonore reached 86,700 ounces in the quarter. That was double the result in the second quarter, but was still lower than expected as Goldcorp continues to have some challenges with gold recoveries. On the other hand, the company delivered solid results from its Penasquito, Cerro Negro and Musselwhite operations.

Hydro One sale could cost Ontario $500-million a year in lost revenues: budget watchdog – by Ashley Csanady (National Post – October 29, 2015)

October 29, 2015

The National Post is Canada’s second largest national paper.

The Ontario Liberals’ plans to sell Hydro One could cost the treasury $500-million annually and will eventually increase the province’s net debt, the financial accountability officer has found.

Stephen LeClair’s inaugural report slams the Liberal government’s plans to sell 60 per cent of the utility — which transmits most electricity in the province — as a short-sighted cash grab that will cost more than it makes in the long run.

The report notes that, in the short term, the sell-off will make it easier for Ontario to balance its budget by its planned deadline of 2017/18, but the lost revenues will hurt the bottom line over the longer term and make it harder to balance future budgets. The plan is to sell a 15 per cent stake in the Crown corporation each year until 2019, when the province’s stake will be reduced to 40 per cent.

“Once the full 60 per cent has been sold, the province would experience an ongoing negative impact on budget balance from foregone net income and payments-in-lieu of taxes from Hydro One,” the report notes, putting that number at $100 million annually.

Iron ore price crashes through $50 – by Frik Els (Mining.com – October 28, 2015)

October 29, 2015

http://www.mining.com/

The price of iron ore dropped for the 12th session in a row on Wednesday falling through the psychologically important $50 a tonne level as bearish fundamentals overwhelm the sector.

On Wednesday the benchmark 62% Fe import price including freight and insurance at the Chinese port of Tianjin declined 2.6% to $49.50 a tonne, the lowest since mid-July and down 11% in just two weeks according to data provided by The SteelIndex. In July, the steelmaking raw material on a spot price basis, fell to a record low of $44.10.

China forges 46% of the world’s steel and consumes for more than 70% of the world’s seaborne iron ore trade, but years of overproduction and unprofitability at the country’s giant state-owned mills are now bringing 30 years of growing output to screeching halt.

China’s largest steel producers had combined losses of CNY28 billion yuan ($4.4 billion) in the first nine months of 2015, according to the China Iron and Steel Association as mills struggle to remain profitable amid a saturated domestic market.

U.S. challenges China’s sovereignty claim to artificial islands – by Nathan Vanderklippe (Globe and Mail – October 28, 2015)

October 28, 2015

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

BEIJING — The U.S. is pledging to sail more warships past the shores of artificial islands in the South China Sea as the world’s most powerful military seeks to strip away the expansionist claims of China and other nations in waters crucial to the global movement of goods.

Early Tuesday morning, the guided-missile destroyer USS Lassen deliberately came within 12 nautical miles of Subi Reef, one of the places in the Spratly Islands that China has transformed into a sizable air and sea outpost from a reef that once vanished at high tide.

In so doing, the ship breached the exclusion zone that would apply to territorial waters and underscored the U.S. position that China cannot claim that exclusion around its manufactured lands. The move escalates the conflict over who controls a sea the size of India that constitutes the maritime heart of East Asia. It provoked an angry response from China, which dispatched a missile destroyer and a patrol boat to shadow and attempt to warn off the Lassen.

In Beijing, China summoned U.S. Ambassador Max Baucus over the patrol, which vice-foreign minister Zhang Yesui called “extremely irresponsible,” while other officials warned of a Chinese retaliation.

Alberta NDP’s budget will force the oilpatch to fend for itself – by Claudia Cattaneo (National Post – October 28, 2015)

October 28, 2015

The National Post is Canada’s second largest national paper.

Alberta Finance Minister Joe Ceci tabled a “shock absorber” tax, spend and borrow budget Tuesday for Canada’s top oil and gas producing province to ease the impact of low commodity prices on provincial finances.

But if you are in the energy sector, and taking the brunt of that price shock and slashing spending and laying off people, the best you can hope for from the left-leaning NDP government is that you still have a viable business if and when oil prices recover.

In its first budget since unseating Alberta’s Conservative dynasty last May, the NDP government had harsh words for the previous regime for “squandering resource revenue” instead of saving it and for failing to “diversify” Alberta’s economy.

Ceci said his government is prioritizing stable funding for health care, education and social services as the province battles a mild recession, plans to return to a balanced budget by 2019/2020, and will help with job creation and economic diversification in areas like petrochemicals, agriculture, tourism, technology, creative industries and manufacturing.

Declining copper prices a large factor in Zambia’s economic tumble – by Geoffrey York (Globe and Mail – October 27, 2015)

October 27, 2015

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

JOHANNESBURG — Just three years ago, Zambia was the darling of international investors. Its debut euro bond was oversubscribed by a spectacular 15 times, attracting orders of nearly $12-billion (U.S.), even though it was offering lower interest rates than some developed-world bonds.

The copper-rich African country, newly anointed at the time as a “middle income nation” by the World Bank, had become a favourite of Canadian mining companies, including Barrick Gold Corp. and First Quantum Minerals Ltd., both of which were among Zambia’s biggest private employers.

Swiss-based mining giant Glencore PLC was another major player in Zambia as the country became the second-biggest copper producer in Africa. Copper accounted for 70 per cent of Zambia’s export earnings and there seemed no end to the boom.