Gold and Silver – Page 267 – Republic of Mining

COLUMN-China’s single-handed gold support act may not last – by Clyde Russell (Reuters U.S. – November 19, 2013)

November 19, 2013

http://www.reuters.com/

Clyde Russell is a Reuters market analyst. The views expressed are his own.

LAUNCESTON, Australia, Nov 19 (Reuters) – The most frightening concept for a gold miner or trader currently would be to contemplate a world without China.

Global gold demand fell to the lowest in four years in the third quarter, according to the World Gold Council, and the 21 percent drop from the same quarter in 2012 would have been far worse if it wasn’t for China. China is set to overtake India as the top gold consumer this year, and is already ahead on a rolling four-quarter basis.

Demand in China rose to 209.6 tonnes in the third quarter, up from 177 tonnes in the same quarter last year, largely driven by a 29 percent jump in jewellery demand.

In contrast, India’s consumption slumped 32 percent to 148.2 tonnes in the third quarter from the same period in 2012, as the government’s efforts to restrict imports became more effective.

NEWS RELEASE: Goldeye and Sandy Lake First Nation Sign Exploration Agreement

November 18, 2013

(L to R) Blaine Webster, President and CEO of Goldeye Explorations Limited and Chief Bart Meekis of Sandy Lake First Nation with signed Exploration Agreement.

Goldeye Explorations Limited (TSX VENTURE:GGY)(“Goldeye” or “the Company”) is pleased to announce that it has entered into an exploration agreement (the “Agreement”) with Sandy Lake First Nation (“SLFN”) regarding Goldeye’s mineral exploration activities on its Weebigee Project at Sandy Lake (the “Project”) in the Red Lake Mining District, Northwestern Ontario. The mineral claims comprising the Project are located within SLFN’s traditional lands.

Blaine Webster, President and Chief Executive Officer of Goldeye comments, “This exploration agreement is a milestone in the relationship between Goldeye and Sandy Lake First Nation and provides a positive example for how exploration companies and First Nations in Ontario can work together for the mutual benefit of both parties. We look forward to working in a spirit of partnership with SLFN to advance the Weebigee Project and build value for Goldeye’s shareholders including SLFN.”

The agreement will strengthen the relationship between SLFN and Goldeye by, among other things, providing a framework for on-going dialogue and information sharing respecting the Project. The Agreement has an overall term of five (5) years, with an initial term of one (1) year renewable on the same terms for two (2) additional two (2) year terms.

Miners hope Czech election will end gold extraction moratorium – by Jan Marchal (Business Day – November 18, 2013)

November 18, 2013

http://www.bdlive.co.za/ [South Africa]

CZECH gold deposits are whetting the appetites of foreign prospectors hoping to see the new government lift a mining moratorium in the aftermath of snap elections.

But rather than a dream come true, the prospect of a gold rush is a nightmare for environmentalists and residents of the hilly region south of the capital, Prague, a popular resort area that holds the biggest deposit.

“No one wants an open-cast mine here, in this wonderful natural setting near the Vltava River,” says Jiri Stastka, mayor of the village of Chotilsko. A few hundred metres from the village, the Vesely Vrch wooded hill and its surroundings conceal about 140 tonnes of the metal worth an estimated 100-billion koruna ($5bn ).

Known as the Mokrsko deposit, this is just more than a quarter of the Czech Republic’s estimated 380-400 tonnes of gold, which is about 1% of the globe’s deposits. But locals fear irreversible environmental damage, particularly the pollution of groundwater since toxic cyanide is used in the extraction of gold.

Republicans Asserting Reliance on Gold as World Loses Faith – by David J. Lynch & Peter Robison (Bloomberg News – November 14, 2013)

November 15, 2013

http://www.bloomberg.com/

As the price of gold hit new highs following the 2008 financial crisis, Republicans saw the yellow metal’s steady ascent as a sign of trouble ahead.

To Representative Paul Ryan of Wisconsin, record gold prices in 2010 heralded “a lower standard of living for many Americans.” Representative Ted Poe of Texas foresaw “a blast of inflation that will crush the middle class” adding: “Where gold prices go, other prices follow.” Fellow Texas Representative Ron Paul, a perennial critic of the Federal Reserve, warned that “confidence is being lost in the entire fiat monetary system,” a reference to money created by central banks.

The Republicans’ confidence in gold as an economic and financial barometer proved ill-founded. Five years after the crisis, the dollar’s value measured against the currencies of major U.S. trading partners is little changed. Prices have risen at an annual 1.4 percent rate, less than half the 50-year average and lower than the Fed’s 2 percent target.

By July, gold had slid 36 percent from its September 2011 high of more than $1,900 an ounce, the steepest percentage decline since prices plunged by 58 percent over 21 months ending in June 1982.

Every Sunday, There’s a Protest Outside Billionaire John Paulson’s Enormous Townhouse – by Kristen French (New York Magazine – November 14, 2013)

November 15, 2013

http://nymag.com/

On a blustery Sunday in November, the wind tore down East 86th Street from the hills of Central Park, whipping leaves and debris around a handful of protestors gathered in front of the 28,500-square-foot townhouse of hedge-fund billionaire John Paulson, one of America’s wealthiest men and biggest gold investors. Silvia Pena, 32, a tall, big-eyed beauty from Bucharest who came to New York from Romania three years ago to attend the Stella Adler Studio of Acting, held a giant poster board aloft.

It bore photographs of a pensive Paulson, a verdant Romanian valley, the moon-faced landscape of an open-pit gold mine, and a scowling stick figure with one arm pointing fiercely off the page, “GTFO” scrawled in red block letters beneath it. “Get the fuck out,” Silvia explained with a curled smile and a wink in her eye.

Silvia and a coterie of Romanian expats were assembling in front of Paulson’s home for the seventh Sunday in a row to demand that the billionaire withdraw his investment from Gabriel Resources. The Canadian company has been trying for fourteen years to get the Romanian government to green-light its development of Europe’s largest open-pit gold mine in a picturesque and historic town called Rosia Montana. (Hundreds of lawsuits from NGOs over the years have held it up.)

As Kinross revamps, profit plunges 80 per cent – by Rachelle Younglai (Globe and Mail – November 14, 2013)

November 14, 2013

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.

Kinross Gold Corp.’s third-quarter profit sank 80 per cent as a result of lower bullion prices, but the company further slashed costs and said it would produce more gold than previously expected from its mines in the Americas, West Africa and Russia.

The improved outlook for Kinross is good news for a company that has seen its share price plummet after it spent a year writing down much of its expensive acquisition of Red Back Mining Inc. and its Tasiast gold project in the Mauritanian desert.

The company cut its total capital expenditures for the year to $1.4-billion (U.S.) from $1.45-billion and said it expects its expenses to fall even further in 2014 to between $800-million and $900-million.

“We continue our focus on reducing capital and other costs in a lower gold price environment,” Kinross chief executive officer J. Paul Rollinson said in a statement announcing the company’s third-quarter results.

The Federal Reserve’s Centennial Birthday – The Hundred Years’ War Against Gold and Economic Common Sense – by Nick Barisheff (November 13, 2013)

November 13, 2013

Nick Barisheff is the founder, president and CEO of Bullion Management Group Inc., a company dedicated to providing investors with a secure, cost-effective, transparent way to purchase and hold physical bullion.

As anyone who has read my recent book, $10,000 Gold: Why Gold’s Inevitable Rise Is the Investor’s Safe Haven knows, I am a firm believer in sound money, free markets and the negative impact of central banks. I also stand firmly against global deficit spending and its major proponent, the U.S. Federal Reserve. I am a strong supporter of Austrian economics.

On December 13, 2013, the Federal Reserve will celebrate its 100th birthday. Undoubtedly, there will be many articles forthcoming about the Fed between now and that infamous date, and I expect most, like this presentation, will be highly critical.

Today I will be speaking about the effects central banking and the Federal Reserve have had on our lives, our society and, most important, on the way we think and act. I know many feel overwhelmed by the economic forces that have essentially taken full control of our markets since 2008, but I am here to remind you that the light shines much brighter today than it did when I first began seriously exploring this subject several decades ago.

During what I believe are the final years of the U.S. dollar’s rule as the world’s de facto reserve currency, desperation is confirming what only a few years ago would have been dismissed as conspiracy theories of the lunatic fringe.

PRESS RELEASE: Rosia Montana-Report of the Special Committee of Parliament-New Romanian Legal Framework for Gold and Silver Mining Proposed

November 13, 2013

TORONTO, CANADA, Nov 12, 2013 (Marketwired via COMTEX) — Gabriel Resources Ltd. (“Gabriel” or the “Company”) CA:GBU +7.32% announces that the report (“Report”) of the Joint Special Committee of the Chamber of Deputies and the Senate (“Special Committee”) on the draft legislation related to its majority owned Rosia Montana gold and silver project (“Project”) and the development of mining activities in Romania (“Draft Law”) has been published.

The Company will issue a further market update in due course once it has had the opportunity to consider fully all findings, proposals, conclusions and recommendations of the Report. This notwithstanding, the Company notes that the conclusions of the Report include:

— recognition that the existing mining law is not sufficient to legislate
for the scale and complexity of the Project;
— a recommendation for the creation of a new legal framework applicable to
gold and silver mining projects and consequently a rejection of the
Draft Law;
— a positive assessment of the economic benefits of the proposed
amendments to the agreement and legislation promoted by the Romanian
Government; and

Gabriel Resources still confident of way forward for Rosia Montana – by Alex Williams (Mineweb.com – November 12, 2013)

November 13, 2013

http://www.mineweb.com/

While Romania’s parliamentary committee voted overwhelmingly against legislation that would have fast tracked the mine, CEO, Jonathan Henry remains positive.

LONDON (MINEWEB) – Rosia Montana has a future as a gold mine, Gabriel Resources CEO, Jonathan Henry, told Mineweb on Tuesday. “I’m confident that there’s a way forward,” he said. “We just need to see it.”

On Monday a parliamentary committee overwhelmingly voted against legislation that would have fast-tracked the mine’s construction by declaring it a “public utility.”

However, the company views Monday’s committee decision as a rejection of the legislation supporting Rosia Montana, rather than a rejection of the project itself. The committee has left open the possibility of a wide-ranging review of its mining laws, under which Rosia Montana could technically be approved in the future.

Romania shuts door on Gabriel’s giant Rosia Montana gold mine – by Armina Ligaya (National Post – November 12, 2013)

November 13, 2013

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

The last lifeline for Gabriel Resources Ltd.’s controversial mining project in northwestern Romania went dead on Monday, after a parliamentary commission voted down a draft bill which would have allowed Europe’s largest open pit gold mine to move forward.

The rejection of the draft bill, which would have finally set out a course for development of the mine, came after 14 years of waiting for permits amid mounting political turbulence.

The news sent the Canadian mining company’s already-depressed stock down 10%, or 9.3¢ to close at 82.7¢ on the Toronto Stock Exchange Monday. Jonathan Henry, the chief executive of Gabriel Resources, however, said he was “confident” there could still be “a potential path forward” for the project.

The draft bill specific to Rosia Montana was rejected, he said, but Romania may go forward with a general gold and silver mining bill which could leave the door open for Gabriel’s project, he said Monday.

Gabriel Resources’ Romanian mining project suffers setback – by Eric Reguly (Globe and Mail – November 12, 2013)

November 12, 2013

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.

Rome – Gabriel Resources Ltd.’s 15-year effort to develop Europe’s biggest gold mine suffered yet another setback when a Romanian parliamentary commission overwhelmingly rejected a draft law that, if passed, would have allowed construction of the $1-billion (U.S.) project.

But Toronto-listed Gabriel said the rejection of the draft bill does not mean that the proposed Rosia Montana mine in Transylvania is dead.

A spokesman noted that the draft law was turned down because Romania wants broader legislation to deal with all gold and silver mines, not just the Rosia Montana project. The draft bill dealt only with Rosia Montana.

“The commission believes the bill under consideration does not entirely meet all the complex requirements on the conduct of business in mineral resources exploitation in Romania and therefore proposes its rejection,” Attila Korody, one of the 19 lawmakers on the commission, told Reuters Monday evening.

Osisko realizing Canadian Malartic’s potential – by Northern Miner (November 8, 2013)

November 12, 2013

Since 1915, the Northern Miner weekly newspaper has chronicled Canada’s globally significant mining sector.

Osisko Mining (TSX: OSK) released some impressive third quarter results, which it believes should put any doubts about its Canadian Malartic mine in Quebec to bed for good.

“With the millionth ounce of gold production we have proven beyond a doubt that Canadian Malartic is a solid producer,” president and CEO Sean Roosen said in a conference call.

But it isn’t just the volume of gold that the mine has turned out that is impressive. The mine’s economics continue to improve with each passing quarter and that is protecting from severe effects of lower gold prices. Net earnings remained positive at $9.8 million, or 2¢ per share, and while that was less than the 7¢ per share it reported for the same period last year, it shows the mine is able to perform in tough price environments.

Even more reflective of the mine reaching its potential are cash flows from operating activities, which are often considered a better gauge of a company’s economic health. Those cash flows rung in at an impressive $70.7 million, beating last year’s tally of $55.8 million.

Barrick’s Peter Munk: Stubborn, proud and leaving on his own terms – by Peter Koven (National Post – November 8, 2013)

November 12, 2013

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

Five years ago, the Financial Post asked Peter Munk when he planned to retire from Barrick Gold Corp. His response: “When they kick me out.” But that wasn’t really true.

Mr. Munk is as stubborn and proud a businessman as there is. And despite the numerous calls for him to step aside in recent years, he was always going to leave on his own terms.

On Friday, Mr. Munk’s 86th birthday, Barrick disclosed that he plans to retire. No timeline was provided, though sources said the departure will most likely come at next year’s annual meeting, when the company plans to introduce new directors in a long-awaited overhaul of its board.

Investors have gotten increasingly fed up with the board in recent years, as it has made some awful strategic errors and approved some outlandish pay packages for company insiders. Mr. Munk, the founder and chief authority at Barrick for 30 years, was the key figure behind every move and the natural lightning rod for investor dissent.

Peter Munk’s extraordinary career of booms and busts – by Rachelle Younglai and Brent Jang (Globe and Mail – November 9, 2013)

November 9, 2013

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 and VANCOUVER — Peter Munk, a refugee from Hungary who built Canadian businesses in real estate, oil and electronics, is getting ready to bid farewell to the company he transformed into the world’s largest gold producer.

The fedora-sporting tycoon, who turned 86 on Friday, is about to leave Barrick Gold Corp. The industry behemoth he started with a small stake in a Northern Ontario mine is now struggling to regain investor confidence following two years of declines in prices for the precious metal.

Booms and busts have defined Mr. Munk’s life. He was born into a wealthy banking family in Budapest, but the Nazi occupation of his homeland during the Second World War forced them to flee. The Munks used most of the family fortune, held in cash and gold, to board a train in 1944 to Switzerland. About four years later, Mr. Munk left England for Toronto, where he lived with his aunt and uncle.

In Toronto, he helped found sound electronics maker Clairtone Sound Corp., whose high-fidelity products were promoted by the likes of Hugh Hefner and Frank Sinatra.

Peter Munk to step down as Barrick chairman – by Boyd Erman, Tim Kiladze and Rachelle Younglai (Globe and Mail – November 9, 2013)

November 9, 2013

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.

Barrick Gold Corp. publicly announced the pending retirement of chairman Peter Munk on Friday, after a week in which bankers faced a tepid response to the company’s $3-billion (U.S.) share sale.

Barrick said Friday that it expected to update investors before year-end on various initiatives to renew its board, following discussions this year between directors and institutional shareholders regarding compensation practices and governance. The initiatives include “succession in the chairman role at the company, consistent with Mr. Munk’s desire to retire as chairman,” Barrick said.

The message that Mr. Munk would announce his retirement by year-end had been quietly conveyed by some bankers working on Barrick’s big share sale over the past week, according to sources familiar with the situation. Some investors had indicated they wanted more clarity on the board revamp before agreeing to buy any stock.

One asset manager, speaking on condition of anonymity, said he was told by a banker advising Barrick on Monday that an announcement on Mr. Munk’s future would come by year-end.