Twitter

Gold and Silver

Barrick Gold closes Peruvian mine for one day after violent clashes – by Vanessa Lu (Toronto Star – September 21, 2012)

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 Gold is resuming operations Friday at its Pierina mine in Peru after violent clashes this week between police and nearby villagers left one person dead and four injured.

In an official statement from its Peruvian unit, Barrick, which is the world’s largest gold producer, said its mine operations were suspended Thursday out of mourning for “the unfortunate event.” The dispute centres on a disruption in the local water supply, which Barrick says is out of its control, blaming drought conditions.

The open-pit mine is high in the Andes in north-central Peru at an altitude of 4,100 metres above sea level. While it was once one of Barrick’s bigger mines, Pierina produced 152,000 ounces of gold in 2011, out of a company-wide total of 7.7 million.

Mining is central to Peru’s economy. The country is a key producer of gold, copper, silver and zinc, but opposition has long existed from locals, who worry about environmental problems and possible contamination of the water supply.

Read more

B2Gold to buy Philippine miner for $1.1-billion – by Pav Jordan (Globe and Mail – September 20, 2012)

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.

A small Vancouver miner has struck the first major gold deal in months, marking what may be the start of a new wave of buying in the sector as bullion prices rise within reach of record highs from a year ago.

B2Gold Corp., which prides itself on mining for gold where others do not, said on Wednesday that it reached a $1.1-billion all-stock deal to acquire CGA Mining Ltd., owner of the largest operating gold project in the Philippines.

It is offering 0.74 B2Gold shares for each share of CGA, a 26 per cent premium to CGA’s closing price as of Sept. 17. Gold prices are near $1,800 (U.S.) an ounce, just off record levels near $1,900 an ounce a year ago.

“I think in a more buoyant market like we have now, there is a greater chance of things getting done,” said Jens Mayer, co-head of investment banking at Canaccord Genuity Corp., which advised B2Gold on the deal. “People are getting accustomed to the new world in terms of valuations.”

The B2Gold/CGA deal is one of the largest involving a Canadian company in recent months, adding some shine to what has been a lacklustre year for deal making in the sector.

Read more

Goldcorp says industry primed for mergers – by Liezel Hill (Toronto Star – September 19, 2012)

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.

Bloomberg News – Goldcorp Inc., the world’s second- largest producer of the metal, said mining acquisition targets are looking more attractive as tougher financing conditions have depressed share prices.

“The development-company valuations have come down to where, at least on paper, it looks like there’s some opportunities,” Chief Executive Officer Chuck Jeannes said in a recent interview. “There’s a lot of looking going on.”

Meanwhile Tuesday, Goldcorp said it has signed a deal to sell part of its stake in Primero Mining Corp. in a secondary offering worth $44.2 million. The big gold miner said a syndicate of underwriters have agreed to buy 8.4 million shares of Primero at a price of $5.25 per share.

Exploration and development companies, or so-called juniors, underperformed the large gold miners last year after they struggled to raise funds and investors shunned risky assets. The juniors are on average lagging the seniors again this year, even after rising 25 percent since hitting a two-year low on June 28. The 74 companies in a Bloomberg Industries index of gold explorers now trade at an average 1.54 times book value, versus a three-year average of 2.58.

Read more

Ivory Coast plans windfall tax on gold miners’ profits – by Loucoumane Coulibaly (Globe and Mail – September 14, 2012)

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.

ABIDJAN — Reuters – Ivory Coast plans a windfall tax of 19 per cent on gold mine profits to share in the benefits from soaring world prices for the metal. The decision, revealed in a government document, sets the scene for a possible dispute with foreign companies building up the sector.

West Africa-focused Randgold Resources Ltd., Australia’s Newcrest Mining and Toronto-listed La Mancha Resources all operate mines in the country. In August, the government granted production permits to Canada’s Endeavour Mining Corp. and Occidental Gold, a unit of Australia’s Perseus Mining Limited.

The document, seen by Reuters on Friday, also establishes a rate of 13 per cent, though it does not specify in what circumstances it will be applied. Under the proposal, submitted on Wednesday and adopted during a cabinet meeting, the West African nation will set an indicative cost of production at $615 (U.S.) per ounce, with profits taxed at a rate of 19 per cent.

“The price of gold, which was around $300 per ounce in 2002, is today above $1,700, or practically a six-fold increase without any comparable increase in production costs,” read the text of the proposal obtained from government spokesman Bruno Kone.

Read more

Vox: Gold equities: A less than glittery outlook – by David Milstead (Globe and Mail – September 13, 2012)

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.

The Denver Gold Forum should be a happy, happy place, what with the precious metal on a multiyear run to levels above $1,700 (U.S.) per ounce. But the forum is not a convention of hoarders of coins and bars; it’s an investment conference for the companies who pull the stuff out of the ground.

And since gold-producer equities have badly lagged gold’s gains over the past couple of years, there was less celebrating, and more head-scratching and soul-searching, in Denver this week.

Even Franco-Nevada Corp.’s Pierre Lassonde, known widely as an off-the-charts bull on the gold price, titled his talk “The best of times, the worst of times” – with gold prices the former, and gold equities the latter.

Why the disconnect? Well, as one company’s director of investor relations explained to me, it wasn’t so long ago that the typical buyers of the stocks were gold bugs who preferred production capability to profitability.

Read more

Rob McEwen: gold should be in your portfolio and it’s going to $5,000 – by Lawrence Williams (Mineweb.com – September 11, 2012)

www.mineweb.com

In an upbeat presentation at the Denver Gold Forum, Rob McEwen forecast that gold is going to $5,000, while setting out the path forwards for the company which now bears his name – McEwen Mining.

DENVER (MINEWEB) – This year’s Denver Gold Forum kicked off yesterday morning and one of the early speakers was Rob McEwen of McEwen Mining.  He has a great name in the industry due to his long term stewardship of Goldcorp, which was largely responsible for building the gold mining major to the strong position it holds today. 

Nowadays he runs McEwen Mining – a U.S. headquartered and quoted developing gold producer for which he has the avowed intent of bringing into the S&P 500 by 2015 – and with one gold/silver mine in production, a second just starting up with its first gold pour expected in a matter of weeks, a third in permitting and a very significant copper/gold/silver project at the exploration stage he may be well on his way to achieving this aim.
 
But it is perhaps as an avowed believer in gold that McEwen attracts a strong following at a conference of this type, perhaps the most significant annual gold event in the calendar- and he opened his presentation with a strong statement of his beliefs in this respect.

Read more

Gold miner Goldcorp is cornerstone of the Red Lake community

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Ontario Mining Association member Goldcorp’s Red Lake Mines is the cornerstone of its namesake community in the northwestern corner of Ontario.  Though the impact of this mining operation is felt regionally, provincially, nationally and internationally, its role is the most profound within sight of its headframes.

Red Lake, which is located in the Central Time Zone, more than 1,900 kilometres north and west of Toronto, has a current population of about 5,200.  It is comprised of the communities of Red Lake, Balmertown, Cochenour, McKenzie Island, Madsen and Starratt-Olsen.  Goldcorp is the largest employer in the community with approximately 1,000 workers and 500 contractors on board.

Goldcorp’s operations, which are all underground, in this area are supported by four headframes and hoists and two milling facilities with a capacity of 2,800 tonnes per day.  Red Lake Mines is the largest gold producer among Goldcorp’s multiple operations in Canada, the United States and Latin America.  In 2012, Red Lake Mines is expected to produce between 460,000 and 510,000 ounces of gold.  In 2012, Goldcorp’s total production from all of its operations is expected to be between 2.35 and 2.45 million ounces of gold.

Read more

Atikokan showcases itself for new construction – Ian Ross (Northern Ontario Business – September 2012)

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North. Ian Ross is the editor of Northern Ontario Business ianross@nob.on.ca.

A slew of coming new industrial development has the Town of Atikokan rolling out the welcome mat to investors. The sleepy northwestern Ontario town of 3,300 is making early preparations to host one of Canada’s largest open-pit gold mines.
 
The municipality has released an accommodations study to entice builders to beat a path down Highway 11 to the former iron ore mining town, 180 km west of Thunder Bay. With a new mine on the horizon and several other job-creating developments on the schedule, the town anticipates a surge of construction workers arriving in the very near future, followed by the more permanent jobs in mining, power generation and wood pellet manufacturing.
 
A report by Crupi Consulting of Thunder Bay said Atikokan is facing a severe shortage of housing with “almost zero availability” for homes and rental units. Five major development projects, plus an addition onto the hospital, could create an estimated 1,500 to 1,700 construction jobs over the next five to seven years, followed by the promise of as many as 800 to 1,000 permanent jobs.

Read more

Detour Gold set to open Canada’s biggest gold mine – Pav Jordan (Globe and Mail – September 10, 2012)

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.

Detour Gold is closing in on the opening of Canada’s largest gold mine in January, just as rallying gold prices set the stage for fat profits. “We’re in the last stretch,” said founder Gerald Panneton, a geologist and industry veteran who worked at global gold mining giants such as Barrick Gold Corp. before starting his own company in 2006 and taking it public in January, 2007. “We foresee that we will be completely finished building by the end of the year.”

The Detour Lake mine in the Cochrane, Ont., area marks the strongest sign yet of a trend toward massive, open-pit gold mining in Canada on a scale more commonly seen in desert geographies in Nevada or Chile or on the African continent. Other examples include Osisko Mining Corp. and its Malartic project in Quebec and San Gold Corp.’s Rice Lake mine in Manitoba.

“They really spearheaded this movement of going into old camps where you had traditionally high-grade narrow-vein type mines, and looking at the bigger picture and seeing whether or not that can be developed into a very large, open-pit style low-grade deposit,” said Mike White, chief executive officer of IBK Capital, the boutique investment bank that helped broker the consolidation of Detour Gold’s exploration properties for their former owner, Pelangio Mines Inc.

Read more

South African police, security shoot and injure 4 at gold mine in latest mining clash – by Michelle Faul (The Associated Press/Regina Leader-Post – September 4, 2012)

http://www.leaderpost.com/index.html

JOHANNESBURG – South African police and security guards fired rubber bullets and tear gas Monday at sacked gold miners who were attacking colleagues to block them from working, the mine owner said. Police said four people were wounded at the mine that used to be partially owned by the president’s nephew.
 
The clash at the Gold Fields mine east of Johannesburg, reported by police and Neal Froneman, the CEO of Gold One International, was the latest violence to hit South Africa’s mines in months of unrest.
 
Company spokesman Sven Lunsche said some 12,000 of the company’s workers “continue to engage in an unlawful and unprotected strike” that began Wednesday. He said it involved an internal dispute between local union leaders and members of the National Union of Mineworkers, the country’s largest union.
 
After apartheid ended in 1994, South Africa pressed to share the country’s vast mineral wealth with its impoverished black majority. But the hoped-for result has not occurred. A small black elite has become billionaires off mining while most South Africans continue to struggle against mounting unemployment, deeper poverty and a widening gap between rich and poor that makes the country one of the most unequal on Earth.

Read more

The fundamental attraction of gold and gold stocks – Don Coxe – by Peter Byrne (Mineweb.com – September 1, 2012)

www.mineweb.com

Don Coxe* explains how demographic shifts are affecting the price of gold and delves into the logic of investing in gold as a long-term strategy. Interview with The Gold Report.

TORONTO –  The Gold Report: What fundamentally attracts you to gold?
 
Don Coxe: There are many serious reasons why I like gold, but one very important reason has to do with the shift in the share of world gross domestic product away from the highly industrialized nations toward emerging economies in Asia. For thousands of years, people in China and in India have respected gold. The Western countries, on the other hand, were captivated some decades ago by economists who claimed that gold had become irrelevant as money. But the Chinese and Indian people hoard gold as a store of value and trade it as a treasured commodity.
 
TGR: Are the pricing mechanisms for gold shifting toward control by the East?
 
DC: Consider an art auction. If a bidder who 10 years ago only bought one painting suddenly buys 50 paintings, that bidder will greatly influence subsequent bids for the art. In China and India there are suddenly many more wealthy people than they’ve had for millennia.

Read more

Gold, China and the commodities super cycle – Jim Rogers – by Geoff Candy (Mineweb.com – August 29, 2012)

www.mineweb.com

“The Chinese will buy a lot more gold over the next decade”

GEOFF CANDY: Welcome to this week’s edition of Mineweb.com’s Gold Weekly podcast. Joining me on the line is Jim Rogers – he’s a renowned author, commentator and investor. Jim, gold prices in dollars hit their highest point since mid-April on Monday, largely on hopes of further stimulus from the Federal Reserve. Are we likely to see these hopes dashed once more, do you think or are we likely to see something different post the Jackson Hole meeting?
 
JIM ROGERS: Well I have no idea what’s going to happen at Jackson Hole. I do know that the Federal Reserve is going to continue to print more money, whether they announce it or not because that’s all they know to do, it’s the wrong thing to do for all of us – for the world, but they don’t know any better. So whether they announce it or whether they call it something different, who knows. Until the world economy gets better these guys don’t know anything else to do so they’re going to print more money.
 
GEOFF CANDY: Is there any way to get the world economy better – one gets the sense that we’re almost at an impasse at this stage?

Read more

Harper’s chief of staff faces scrutiny over Barrick Gold links – by Joan Bryden (Globe and Mail – August 28, 2012)

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.

Ottawa — The Canadian Press – Pointed questions are beginning to swirl around Nigel Wright, Prime Minister Stephen Harper’s chief of staff, and whether he used his position to further the financial interests of friends at Barrick Gold Corp.

Ethics commissioner Mary Dawson is following up with Mr. Wright after the disclosure that he was lobbied twice by Barrick, the world’s largest gold producer, in May.

Mr. Wright has known Barrick founder and board chairman Peter Munk for years and is particularly close to his son, Anthony, who sits on Barrick’s board of directors.

Indeed, in a 2011 magazine article, Peter Munk disclosed that Mr. Wright is godfather to Anthony Munk’s son. Mr. Wright worked with Anthony at Onex Corp., the private equity investment giant from which Mr. Wright has taken a leave of absence to work for Harper.

Read more

Golden tour of Goldcorp – by Kyle Gennings (Timmins Daily Press – August 24, 2012)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – When most people think of industrial tours, they are often reminded of the story of Willy Wonka and the fabled golden ticket.
 
Standing outside of the Timmins Chamber of Commerce, with a ticket for the Goldcorp industrial tour, I laughed to myself about how true this golden ticket scenario was in my particular case. The humour carried me all the way to my seat and the less than comfortable school bus that would be our chauffeur for the afternoon.
 
“We will be touring the Dome open pit,” Nicole Charbonneau said as she addressed the bus load of people. “Then we will move out into the McIntyre, Conarium and Gillies reclamation sites, along with an overview of the Hollinger Pit preparations.”
 
Charbonneau, a environmental biologist for Goldcorp would be the guide for this three-hour golden tour. Her role in the management and continued development of the reclamation sites behind the McIntyre’s No. 11 headframe made her the perfect voice to speak on behalf of Goldcorp.

Read more

AuRico Gold’s official opening of the Young-Davidson Mine spruces up regional economy

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

Approximately 850 people were on hand for the official opening of Ontario Mining Association member AuRico Gold’s Young-Davidson Mine recently.  The new precious metals producing operation, which completed its first gold pour in April, is located near Matachewan in northeastern Ontario about 60 kilometres west of Kirkland Lake.

Rain didn’t spoil the enthusiasm of visitors from taking mill tours and visits to the open pit and a display site for underground mining equipment.  Guests included employees and their families, contractors and suppliers, seasonal cottagers, local First Nations residents, politicians from various levels of government and special guests associated with the history and development of the Young-Davidson property.

Various departments at the mine, including geology, environment, surveying and mine rescue, had booths set up to showcase what they do on the job.  A gold bar was on site, which proved to be particularly popular for photograph opportunities.  The local newspaper “Northern News” reported that “Young-Davidson employees, who were leading tours and at various displays, volunteered their time to be there.  That shows the pride the employees have in the mine.” 

Read more