Gold and Silver – Page 200 – Republic of Mining

Billionaire George Soros buys US$263.7 million stake in Barrick Gold – by John Shmuel (Financial Post – May 17, 2016)

May 17, 2016

http://business.financialpost.com/

Soros Fund Management made a big bet on Barrick Gold Corp. in the first quarter, scooping up a US$263.7 million stake in the miner. The fund, chaired by billionaire investor George Soros, disclosed that it now owns 19.4 million shares in Barrick, making it Soros’ largest U.S.-listed holdings and giving him a 1.7 per cent stake in the miner.

The bet on gold and Barrick has certainly been profitable. Barrick’s stock is up 138 per cent this year, making it one of the best performers on the TSX.

Barry Allan, senior mining analyst at Mackie Research Capital Corporation, said that the acquisition is part of the big move back into gold miners that has become one of the hottest rallies of the year. Many managers on Bay Street had emptied out of Barrick and other gold names over the past couple of years, leaving the companies heavily undervalued.

Digging for Careers: Mining is in Megan Tibbals blood – by Marianne Kobak McKown (Elko Daily Free Press – May 14, 2016)

May 17, 2016

http://elkodaily.com/

CARLIN – The mining industry may run in Megan Tibbals DNA. She has worked at Newmont Mining Corp.’s Gold Quarry Mine for 14 years, but she has been around the industry all her life.

Tibbals said five people in her family have been miners — her great-grandfather, grandfather, father, uncle and herself. Her father moved the family around while he worked for mining companies in several states, and he still works in the industry. Most of his career was spent working for smaller mining companies

“I think when we were young he moved to Goldfield and my mom said she wasn’t moving there,” Tibbals said. “So we stayed in Denver a little while longer.” After her father got a job working for a mine near Winnemucca the family moved, and that’s where Tibbals grew up.

Eldorado Gold Corp to exit China in US$600 million deal with Yintai Group affiliate – by Peter Koven (Financial Post – May 17, 2016)

May 17, 2016

http://business.financialpost.com/

Eldorado Gold Corp. is finally making its long-awaited exit from China.

The Vancouver-based miner unveiled a deal Monday to sell its White Mountain, Tanjianshan and Eastern Dragon operations in China for US$600 million in cash. The buyer is an affiliate of the Yintai Group, a large Chinese conglomerate involved in many different industries.

Just three weeks ago, Eldorado agreed to sell its Jinfeng mine to China National Gold Group for US$300 million. The result of these two transactions is that Eldorado gets completely out of China for US$900 million. Eldorado was also studying an initial public offering of its Chinese assets, but these two sales make for a quicker and cleaner exit.

Eldorado has been trying to divest its Chinese business since 2014. The mines are smaller than its core projects in Turkey and Greece, and the company is facing a challenging political environment in Greece that requires management’s full attention.

Before investing in gold, three factors to consider – by Ian McGugan (Globe and Mail – May 16, 2016)

May 16, 2016

http://www.theglobeandmail.com/

Before you buy into the current fad and start purchasing gold, you should stop and ask what the market’s new darling is worth – and why. It’s a fascinating question to tackle, because gold possesses the rare distinction of being both next to useless and highly valuable.

The metal has few practical applications. Electronics, dentistry and industrial uses account for less than 8 per cent of global gold sales. More frivolous, unpredictable sources of demand are the true drivers of the bullion market. Last year, for instance, jewellery buyers generated around 57 per cent of sales, while investors and central banks were responsible for about 35 per cent of demand.

The enthusiasm of these key buyers can fluctuate wildly, depending on everything from wedding seasons to perceptions of economic uncertainty. For all the talk about gold as a store of value, the market for the metal moves on gusts of emotion.

South Africa: Understanding the Silicosis Judgment – by Paul Lewis (All Africa.com – May 16, 2016)

May 16, 2016

http://allafrica.com/

Hundreds of thousands of families could benefit from the class action lawsuit that can now take place. On Friday, Judge Phineas Mojapelo handed down the court’s findings on the landmark silicosis judgment.

In the case of Bongani Nkala and 68 Others v Harmony Gold Mining Company Ltd and 31 Others, Mojapelo and two other judges addressed this question: can mineworkers and former mineworkers bring action for damages as a class, against gold mining companies for negligence as a result of which they were exposed to dust that caused silicosis and/or TB.

The litigation could run into billions of rands. All the big mining companies are affected, including Anglo American, Anglogold, Gold Fields, Harmony Gold, Randgold, DRDGold, and African Rainbow Minerals. Anglo American has described the case as “without precedent in South African law and indeed in any other jurisdiction in the world”.

After Five Years, Gold Miners Start to Bet on Growth Again – by Stephanie Yang (Wall Street Journal – May 12, 2016)

May 16, 2016

http://blogs.wsj.com/

Gold mining companies are getting ready to do something they haven’t done in half a decade.

As precious metal prices have fallen steadily over the past few years, miners have been forced to cut back on costs and abandon new development projects. Now some analysts say mining companies are ready to pour money back into growth.

“This is something we haven’t seen in five years,” said Jessica Fung, a metals analyst at BMO Capital Markets. “It’s starting to look interesting again.” Many miners have decreased their debt and improved their ability to generate cash flow over the last couple years, which can now be used to revisit production plans, Ms. Fung said. This development, combined with a rally in precious metals, has redeemed mining companies for some investors.

150 miners’ names added to McIntyre powder registry – by Ron Grech (Timmins Daily Press – May 14, 2016)

May 16, 2016

http://www.timminspress.com/

TIMMINS – Janice Martell walked into the room where volunteers had gathered in preparation for a two-day miner’s health clinic starting the next day in Timmins. It was a gratifying and emotional moment for her. There were 50 volunteers from different health organizations and local unions. “It just hit me we’re not alone anymore,” said Martell.

It was a far cry from the way she felt just a few years ago when she reluctantly withdrew her father’s application for Workman’s Compensation on a claim he was suffering neurological effects from repeated exposure to McIntyre Powder aluminum dust while working as a uranium miner Elliot Lake.

“I withdrew my dad’s claim because I realized there was no way to win,” Martell recalled. “When you’re an individual person and you apply for WSIB (Workplace Safety & Insurance Board benefits), you feel so isolated.

Timmins presents itself as model mining town – by Alan S. Hale (Timmins Daily Press – May 13, 2016)

May 13, 2016

http://www.timminspress.com/

TIMMINS – The creation of a new gold mine in the heart of Timmins is something other city planners in Canada are curious about and it’s something that Timmins planning manager Cindy Welsh is pleased to explain and endorse. Welsh believes that with good planning and good policies, almost anything it possible.

That’s what Welsh was explaining Thursday at the annual conference of the Federation of Northern Ontario Municipalities (FONOM) conference at the McIntyre building in Timmins, where more than 200 mayors and councillors from across the North have gathered.

Welsh was one of the workshop speakers who raised a few eyebrows when she outlined the planning process involved in the creation of the new open pit gold mine in the heart of the city.

Demand for gold skyrockets, but skepticism remains – Ian McGugan (Globe and Mail – May 13, 2016)

May 13, 2016

http://www.theglobeandmail.com/

Gold fever is back, a sign of investors’ growing – but perhaps misplaced – anxiety about what lies ahead for the global economy. The World Gold Council, the marketing arm of the gold industry, announced on Thursday that demand for the precious metal hit its second-highest level on record during the first quarter of the year.

Meanwhile, Bank of Montreal analysts boosted their forecast for gold. They say they now expect the metal to begin next year at around $1,400 (U.S.) an ounce. That is well above its current level of roughly $1,270 and far ahead of the bank’s previous forecast of $1,200.

In another indication of the growing optimism around bullion, Goldcorp Inc. said on Thursday that it was acquiring Kaminak Gold Corp. for $520-million (Canadian) in stock. Kaminak’s key asset is the Coffee gold project about 130 kilometres south of Dawson, Yukon.

Goldcorp Inc makes first move into Arctic with $520 million deal to buy Kaminak Gold Corp – by Peter Koven (Financial Post – May 13, 2016)

May 13, 2016

http://business.financialpost.com/

The $520-million sale of Kaminak Gold Corp. marks yet another success for mining entrepreneur Eira Thomas, whose companies have been on a major winning streak of late. “I’m really fortunate that I’ve had the opportunity to be involved in some terrific projects,” Kaminak’s chief executive said in an interview.

Ms. Thomas, 48, is known as the “Queen of Diamonds” because she discovered the Diavik diamond mine in the Northwest Territories in 1994. But her recent track record is just as notable.

She co-founded Lucara Diamond Corp., which made headlines around the world last year when it discovered the second-largest gem-quality diamond in history. Stornoway Diamond Corp., which she co-founded and led for several years, is close to bringing Quebec’s first diamond mine into production. They are two of the mining sector’s only bright spots of the past few years.

South Africa allows silicosis class action against gold firms – by TJ STRYDOM AND ZIMASA MPEMNYAMA (Reuters U.S. – May 13, 2016)

May 13, 2016

http://www.reuters.com/

JOHANNESBURG – South Africa gave the green light on Friday for class action suits seeking damages from gold companies for up to half a million miners who contracted the fatal lung diseases silicosis and tuberculosis underground.

The High Court decision sets the stage for protracted proceedings in the largest class action suits in Africa’s most industrialized country. Analysts have said the suits could cost the gold industry hundreds of millions of dollars.

Judge Phineas Mojapelo said workers who had died of the diseases could be included in the suits, with any damages paid to family members, and that each mining company should be held liable separately for any damages.

NEWS RELEASE: Goldcorp Announces Acquisition of Kaminak Gold Corporation

May 12, 2016

VANCOUVER, May 12, 2016 /CNW/ – Goldcorp Inc. (“Goldcorp”) (TSX: G, NYSE: GG) and Kaminak Gold Corporation (“Kaminak”) (TSX-V: KAM) are pleased to announce that they have entered into a definitive arrangement agreement (the “Arrangement Agreement”) pursuant to which Goldcorp has agreed to acquire, by way of a plan of arrangement (the “Arrangement”), all of the outstanding shares of Kaminak. The total consideration offered for all of the outstanding shares of Kaminak is approximately C$520 million.

Under the Arrangement, each common share of Kaminak will be exchanged for 0.10896 common shares of Goldcorp. Based on the closing price of Goldcorp’s common shares on the Toronto Stock Exchange on May 11, 2016, the transaction values each Kaminak share at C$2.62. The consideration received by Kaminak shareholders represents a 40% premium over the 20-day volume-weighted average share price of Kaminak from all trading on Canadian exchanges for the period ending May 11, 2016 and a premium of 33% over Kaminak’s closing share price on the TSX Venture Exchange on May 11, 2016.

The number of Goldcorp shares to be issued under the Arrangement will be approximately 21.6 million based on the issued and outstanding shares of Kaminak as of the announcement date, but will be subject to adjustment depending on the number of Kaminak options that may be exercised prior to the completion of the Arrangement.

Singer Says Gold Rally Just Beginning as Goldman Sees Losses – by Katia Porzecanski and Simone Foxman (Bloomberg News – May 11, 2016)

May 11, 2016

http://www.bloomberg.com/

Billionaire hedge fund manager Paul Singer said that gold’s best quarter in 30 years is probably just the beginning of a rebound as global investors — including Stan Druckenmiller — weigh the ramifications of unprecedented monetary easing on inflation.

“It makes a great deal of sense to own gold. Other investors may be finally starting to agree,” Singer wrote in an April 28 letter to clients. “Investors have increasingly started processing the fact that the world’s central bankers are completely focused on debasing their currencies.”

Gold for immediate delivery rallied 16 percent in the first three months of the year, the biggest quarterly surge since 1986, as the Federal Reserve refrained from tightening and central banks in Europe and Japan pressed on with negative interest rates.

Kinross upbeat on turnaround of Tasiast project in West Africa – by Ian McGugan (Globe and Mail – May 11, 2016)

May 11, 2016

http://www.theglobeandmail.com/

Kinross Gold Corp., one of the hottest companies on the Toronto Stock Exchange this year, says it is on track with its plan to turn around its problem-plagued Tasiast project in West Africa.

The Toronto-based miner announced on Tuesday that it has completed a prefeasibility study for the second phase of an expansion that it says has the potential to transform the project into the company’s largest mine.

In March, Kinross committed to an initial phase of the project. The goal is to revive the fortunes of Tasiast, which has been a steady money loser since Kinross’s previous management bought the mine in Mauritania near the height of the mining boom in 2010 for $7.1-billion (U.S.).

Kinross’s share price has soared more than 180 per cent since the start of January.

Silver Wheaton confident despite rivals adopting streaming model – by Ian McGugan (Globe and Mail – May 10, 2016)

May 10, 2016

http://www.theglobeandmail.com/

Silver Wheaton Corp. acknowledges that competition is growing in the red-hot business of funding cash-strapped miners, but says its size and experience will allow it to defend its turf against newer rivals.

So-called streaming companies such as Silver Wheaton provide mining companies with cash today in exchange for metal tomorrow. The streamers buy the right to purchase “streams” of a mine’s future production at a fixed, heavily discounted price. Silver Wheaton pioneered such transactions 12 years ago, but now faces a horde of rivals, including well-established firms such as Royal Gold Inc.

Newer entrants ranging from Sandstorm Gold Ltd. to private-equity firms have also shouldered their way into the space.