Mining Minerals & Metals Share Discussion Threads

[1waving] 06/2/2009 11:47

Juniors ready for a very sharp move up ?

February 05, 2009
Why Juniors?, Why Now? - Analysis of the Canadian CDNX Index...
by Clive Maund



The charts speak volumes !!








.

[haydock] 05/2/2009 15:53

Exactly, we are ahead of the field in that feeling though.
D
Try my last posting on CEY I think you might find it a treat.

Regards Hay.

[deka1] 05/2/2009 15:47

yes haydock , looks like money is freeing up, and with ths sector moving up as a whole (golds), cant forsee any probs for this little fella on that score

[haydock] 05/2/2009 14:53

Well thats what we knew it would do at the moment, but its a straw in the wind.

Those tinnies are too cheap as well.

[1waving] 05/2/2009 14:41

haydock

Seems to have done jack for their sp

Forget the revival of the tinies -- bring on the revival of the tinnies

We can all drink to that !!

[haydock] 05/2/2009 14:02

The climate is cahnging for the tinies, we shall have news soon.
HIF is also bombed out but has pulled off a deal.




Actually a really sophisticated piece of work which deserves a round of applause on the share price
It shows that cash can change hands & deals are possible.

The revival of the tinies is only around the corner.

[valentine] 05/2/2009 10:08

There is lots to be positive about..and yes it is imminent.
Results of recent visit to Mali site by management

[maty] 05/2/2009 09:15

there are buyers there at the moment, perhaps a little news is imminent, I am in dyor

[1waving] 04/2/2009 14:44

Just before Xmas I asked about news and Hugh said any news that was being released was being sold into, across the board that is, but also mentioned the recent resource upgrade as an example.

'With reference to newsflow, I am afraid that I do not plan to make a release of results prior to Christmas. I am very firmly of the view that the release of any news, no matter how positive, will lead to a fall in the share price. There are still very many distressed sellers out there and the creation of any liquidity in any stock simply allows those distressed sellers to sell into that liquidity, no matter how positive the news. A case in point was the release of our very positive resource report in October last. In spite of the announcement of a 139% increase in the resource, the share price declined after the release. My objective is to preserve as much as possible, the share price and to protect in so far as possible the value of the asset at Komana. I am sorry if this action does not meet with every shareholder's approval, but I believe that in the long run, it is the more prudent approach.'

That situation is always under review so we will get news when Hugh considers it to be prudent.

Drilling has now been underway since early Oct so we are now getting on for 4 months of results.

As far as funds go there are many options such as JV - placement - buy in arrangement - sale of peripheral asset and probably many more options.

At the moment it is a pity that we are short of newsflow but when news is announced there will be plenty to digest.

[deka1] 04/2/2009 13:38

yes haydock, , getting money now for a decent operation, seems to be not as difficult as just a few months ago , if your in gold that is,and with a million to jorc this is way under valued, when they announce they have a deal for another year or so drilling, and we also need a good upgrade as well, then yes it could easy double from here on the strength of a report like that. aimo fingers crossed, and i cant see gold fields not wanting to stay with this, it looks to good for a much larger resourse , over time

[haydock] 04/2/2009 12:35

With cash raising around for paper, the gold price on the up, & the general sentiment for anything gold on the way, I wish I had the funds & guts to buy more at this level.

Things will change here & rapidly this year, there is no reason for the share price to be anything other than upwardly moble 6+ to start with.

Discuss?

[deka1] 04/2/2009 12:25

hi haydock, how are you, looks liks a sector wide rally to me in the small golds, not started in the explos yet as the article says, but its coming imo for the reasons stated above , whats going on here then with GEX, i think they are in the process of arranging money with the big boy, must be getting close to taking bottles back now, and the upgrade is overdue, perhaps waiting to issue funding and grades at the same time , that would do the stock no harm at all , and maybe get it back to a more realistic price, any thoughts

[haydock] 04/2/2009 09:40

Borrowed from HIF bb, where the price like GEX has not moved.
This adds a little perspective to an artificial situation.

Commodity Online 02.02.2009

MUMBAI: You have heard of Peak Oil, as the world is increasingly debating the maximum rate of oil production because oil reserves are depleting in comparison to the rising demand for energy. But have you heard of Peak Gold?

Similar to Peak Oil, we have these days a Peak Gold phenomenon whereby demand for gold is increasing; but the production of the yellow metal is coming down and biggest gold discoveries have already been done.

"While world's mines are depleting their reserves, particularly their high grade ore, the remaining supplies of gold are becoming harder to find," says reputed gold analyst Jon Herring. Demand for gold reached 1,133 tonnes in 2008, an 18% increase from the previous year. In dollar terms, this represented a 51% increase to an all-time record $31.8 billion.

Gold prices are zooming these days. It rose to $926 per ounce last week, prompting analysts to predict that gold prices will easily touch $1000 in a month or two thanks to the global economic meltdown and the free-fall of currencies across several nations led by the US dollar.

While the price of gold has gone up every year since 2001, global production of gold has been falling in comparison to the demand. For instance, gold production in South Africa, the largest producer of gold, has peaked in the 1970s. Brazilian gold production peaked in 1982, Canadian in 1991, Australian peaked in 1997 and US in 1998. All these countries together produce around 40% of the global gold.

New discoveries of gold are becoming smaller and companies are struggling to maintain existing gold reserves thanks to high cost of production. In spite of an estimated $18 billion in exploration expenditure over the past five years, the quality and number of new gold deposits dropped, says a research analysis from the Metals Economic Group.

Interestingly, probably, you have not have heard of any new gold reserves discoveries in the recent past. The Metals Economic Group says there has only been four world class gold discoveries in the last 15 years. Also, in the last 15 years, top five gold producing companies in the world have each produced between 3.5 and 7 million ounces per year.

Thus, while demand for gold has been increasing day by day along its price, production or supply of gold has been falling.

So where are the new supplies of gold going to come from? Herring says mining is a depleting business and if a company does not replace the reserves it sells each year, that company will someday cease to exist. "The major producers are voraciously hungry for new gold reserves. But they can't go out and find them by themselves. The best exploration geologists no longer work for the big companies. They work for and own the smaller, more nimble outfits - the junior resource companies. In fact, of all new discoveries, 75 percent are made by the juniors," points out Herring.

According to Herring, in 2008, the gold exploration industry was decimated due to the worldwide bear market. "They are selling at a greater discount to gold than they were even when the gold bull market began, when gold was roughly $600 cheaper than it is today. In fact, many of these companies are trading well below their cash value. The bull market in gold is fully intact and only shows signs of heating up in the years ahead. The demand for the metal is at record levels and growing. Production has been falling steadily for nearly a decade. And the major mining companies are starved for new reserves and they do not currently have the resources to discover them on their own," adds Herring.

[share_shark] 03/2/2009 20:07

robbi. Seems that it has been cancelled. My apologies.



The golden future: gold miners to own for 2009

Dear UK-Analyst.

Financial instability and the efforts of state authorities to correct it usually lead to a flight to gold among investors. Yet although we are currently in the middle of one of the greatest financial crises the world has ever seen, the response from gold has thus far been strangely muted. Why?

Since flirting with prices of around $1,000 in March 2008, gold retraced as economic conditions steadily worsened. The main reason behind this can be put down to the simple fact that it is an exceptionally liquid asset - there is always a market for gold - and those individuals and institutions that found themselves in financial difficulties during the hectic months of the second half of 2008 were offloading it simply because they had to. There is also the point that the threat from inflation was abating as the global economy began to slow, and it was inflation that was behind the recent rally to $1,000.



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However, gold prices are now beginning to recover, and it is likely that gold will be one of the star performers among commodities in 2009, with many commentators predicting prices in excess of $1,000 by the end of the year. It is clear that the concerted fiscal and monetary stimulus undertaken by governments throughout the world will have huge inflationary consequences over the longer term. Indeed, quantitative easing (printing money in layman's speech) is already prompting many wealthy individuals to scramble for the yellow metal to protect their wealth, according to Merrill Lynch. The US bank, which is predicting that gold will hit $1,150 by June.

Apart from holding the physical asset, which increasing amounts of investors are demanding they do, there is the option of buying into ETFs (Exchange Traded Funds) or funds which hold the commodity for you. However, savvy investors are waking up to the potential benefits of holding stock in the actual gold production companies. If gold does continue to rally in 2009, then the holders of shares in gold miners stand to gain exponentially due to the wonders of operational gearing. Put simply, this means that any given rise in the gold price will have its effect amplified when it comes to the firm's bottom line. For example, if a miner produces 100,000 ounces of gold at a production cost of $500 per ounce and the gold price is $800, it stands to make a gross margin of $30 million. However, if gold prices rise to $1,000 per ounce, at the same levels of cost and production the firm stands to make a gross margin of $50 million, thus increasing profits by two thirds compared to a mere 25% rise in the gold price.

Peter Hambro Mining (POG)

[robbi123] 03/2/2009 18:30

ss - cant see this programme you are talking about?

[haydock] 03/2/2009 10:48

This is the key to the share?Certainly makes the share price look very strange copared to a year or so ago.Way out of line with the cash raising news & now this opinion.

[share_shark] 03/2/2009 08:40

Excellent programme on BBC2 at pm. tonight on gold.
Had had a preview and it does look interesting.

[deka1] 02/2/2009 08:09

thanks haydock i like the look of it , will wait till we see how the market moves first, a lot expecting another big fall soon , dont wish to sound a prophet of doom , but very wary at the mo, and another big correction , if it happens will hit everyone, but i think the golds will recover quickly and first
thanks for you help hay ,

[haydock] 01/2/2009 22:24

If you want to follow the Canadian Coal in APF then it's 2928 following to 2933 0n the bb.
Piedro is the resident Guru who updates the holdings & everything else on a daily basis.
Every bb should have one.
Anyway nuff said.
DYOR.

[bongo bwana] 01/2/2009 20:49

WHATS THE CURRENT share price AND MARKET CAP. OF APF?

[haydock] 01/2/2009 20:43

Dekal:

Everthing about APF will look really great, particularly the dividend.

Rated as one of the best classic value shares on the market recently, in a Money Observer, article.

However the real story is hidden & not at all obvious.

The balence sheet contains a whole heap of coal, about half of B.C. in Canada,
at virtually no value, if you can find it at all, perhaps £120.000

Things are moving along in this area, it will take years, but it was estimated by Piedro the other week if you read back, at about the same as the market value of the share.£100.million +

Not a ramp I came to it years ago by Minesite, spilling the beans, a story often not known today.

Regards Hay.

[deka1] 31/1/2009 11:47

cheers haydock i will have a look at it thanks

[haydock] 31/1/2009 11:13

Dekal:
Look at APF for the ultimate class act;
Six men & a part time lady in Aus, may be a few more now for the Canadian coal, but thats the overheads & the lot for a £ multi-million main market company with real dividends. A royalty company, unusual in the U.K.

Mind you the share has fallen like all other miners, just to addd balence.
No ramp,although i could.It's a pity they have no interest in GEX their type of situation, maybe someday soon,but I think they are not too keen on Africa.

DYOR.