Mining Minerals & Metals Share Discussion Threads

[serpicouk] 10/6/2009 19:37

The lack of any significant stake in GEX by its board has always concerned me...but rewarding a torrid year (in terms of share price performance and meters drilled) by giving them millions of shares isn't what I was looking for.

It may not be quite up there with the bankers 'rewards for failure' but in today's climate you would imagine they'd be more sensitive around such issues.

And as spaceparallax says - does nothing to motivate the board to outperform.

Heydock - hopefully the regions GEX are interested in will be revealed at the AGM. The annual report suggests don't expect anything outside Mali...but agree, it would be a missed opportunity to diversify our weather.

[wispaman] 10/6/2009 16:58

so with these new awarded options (for what I ask, as awards are usually for achieving something good), it will pay more (if taken-up and then sold later), to have a low share price at the start (now), and rise to who knows the true valuation of GEX on future grades found over the next 5 years.

I would much prefer the offer of buying them now at today's price rather than wait and see if money can be made.

I am not saying the share price has been kept low on purpose.

We have been starved of news over the previous months, which did not do the share price any good.

lol wispa

[haydock] 10/6/2009 15:40

Somebody ask H.McC to take some interest in this item please:

As I said there would be opportunities in Eyypt & it does not rain, on this proven gold province!!!

[spaceparallax] 10/6/2009 11:11

Agreed. I find it hard to understand how such option prices incentivise anyone - certainly not lowly shareholders.

[1waving] 10/6/2009 10:46

Those options grants look as though they are to replace some options that expired in 2008 and more that are due to expire in Aug 2009, probably at nil value. Replacing expired options but at a very generous exercise price.

Check the numbers on page 28, note 3.3, of the 2008 annual report.

[1waving] 10/6/2009 10:28

RNS just out:--

Glencar Director/PDMR Shareholding

TIDMGEX

The Board of Glencar Mining plc ("Glencar" or the "Company") has
awarded options over ordinary shares of EUR0.031 under the Company's
Share Option Scheme to Directors of the Company as follows:
Hugh McCullough 3,000,000 shares
Kieran Harrington 2,000,000 shares
Sean Finlay 750,000 shares
William Cummins 750,000 shares
Philip O'Quigley 750,000 shares
All the options are exercisable from today for a five year period
until 9 June, 2014 at an exercise price of EUR0.045 per share.

=--END OF MESSAGE---

[maniac3] 10/6/2009 07:31

Chart looking negative despite the promising fundamental situation.

[1waving] 09/6/2009 09:39

Looks like weather OK until Friday -- then forecast for the rains to come in

[bongo bwana] 09/6/2009 09:24

Thanks SS.

[share_shark] 09/6/2009 07:12

Now then.
Could Goldfields be raising cash(selling profitable stakes) to buy out Glencar Mining ?. ;-) and I am jesting too.



Gold Fields Sells Stake in Top Chinese Miner
Mon. June 08, 2009; Posted: 04:32 PM
Are you looking to increase your ETF knowledge?
Johannesburg, Jun 08, 2009 (Business Day/All Africa Global Media via COMTEX) -- ELGDF | Quote | Chart | News | PowerRating -- GOLD miner Gold Fields has made a potential profit of 77m on its investment in Chinese gold miner Sino Gold by selling its 19,9% stake to Eldorado Gold Corporation for 282m, investor spokesperson Nikki Catrakilis-Wagner said yesterday.
Gold Fields has spent 205m on Sino Gold to date, she said. The figure of 282m is based on Eldorado Gold's closing share price on Tuesday.

The move to exit Sino Gold is surprising as China has overtaken SA as the world's biggest gold producer in the past two years and Sino Gold is one of the most advanced foreign miners in the country.

The company, which is listed in Australia and Hong Kong, owns 82% of the Jinfeng mine, which will be one of China's biggest gold mines when it reaches full production of 180000oz a year.

Gold Fields took an initial 8% in the company several years ago which it raised to 14% in 2006 and 19,9% a year ago.

Sino Gold's shares were trading at A6,50 this week but were above A8 early last year.

Gold Fields said in a regulatory statement it had exchanged its stake in Sino Gold for 27,8-million Eldorado Gold shares, equivalent to 7% of Eldorado. Catrakilis-Wagner said the lock-up period on the shares, which refers to the minimum time Gold Fields has to hold them, was four months.

Asked whether Gold Fields would be a long-term investor in Eldorado Gold, she said "you can draw your own conclusions from the fact that we hold only 7%".

Eldorado Gold is listed on the Toronto Stock Exchange and, apart from its operations in China, is involved in mining and exploration in Turkey, Brazil and Greece.

In China, it holds 90% of the Tanjianshan Mine in central China, which is expected to produce about 100000oz of gold this year at a cost of 385/oz.

Gold Fields CEO Nick Holland said the transaction did not alter the group's objective of growing its global production in west Africa, South America and Australasia to about a million ounces a year in each region within three to five years.

Although Gold Fields was selling its equity stake in Sino Gold, it would retain its exploration joint ventures with the company, some of which had delivered positive results so far, Catrakilis-Wagner said.

The group was also not diluting its exposure to China by investing in a more diversified resources group, she said, because it intended to deploy its own team in the country.

They would be looking for both grassroots opportunities and operational mines but had not yet found anything that offered value for shareholders.

The transaction requires regulatory approval, including from the SA Reserve Bank. It is expected to be completed by the end of August.

Gold Fields shares closed 4% or 424c weaker at R104,36 yesterday, slightly more than the 1%-2% falls seen in AngloGold and Harmony's share prices, as the gold price shed 0,5% to 9 76/oz and the rand remained strong at R8,08/dollar.

For full details for ELGDF click here.

[serpicouk] 08/6/2009 23:09

As for the rain - still looks bone dry out there. Only been 2.7cm of rainfall so far this month (monthly norm is 121.2cm).

[serpicouk] 08/6/2009 21:12

Forgot to mention that whilst we might end up with 30% of an operating mine with no further funding calls, Goldfields will recover our pro rata cap ex obligation from our share of the revenue stream - depending on many factors, not least the profitability of the mine, it could be some time before it's appropriate to factor in any income from Komana.

[1waving] 08/6/2009 12:53

Think Hugh has saved one or two revelations for the AGM

Bada and Sindo were hardly mentioned in the latest release but Bada, the extension between Sanioumale and Komana, in particular is significant as it creates continuity for the JV with Gold Fields along the Sankarani shear zone for about 40 kilometres or more.

From Gold fields quarterly report to end March 2009, released 7th May:--
'At Bada, bed rock sampling delineated a three kilometre long gold in soil anomaly that is ready for initial drilling. The anomaly coincides with NE-SW shear zone mapped out from the magnetic image.'

The 40km or so of strike includes from the South, Gonka, Komana East, Bada, Sanioumale East & West then Fingouana. That does not include the recent Bokoro strike. There are more targets to be drilled and current deposits to be developed. That is one hell of a shear zone which reminds me of the initial string of pearls at Komana, only now it is far more major and contains substantial deposits. This is the major string of pearls.

In addition the 6kms of strike at Bokoro add further, and Sindo on the Sanioumale license could be progressing at the moment.

From the Gold Fields quarterly report to end September 2008:--
'Assay results from drilling the Sindo target outlined gold-in-bedrock anomalism coinciding with a northeast-southwest shear-zone.'

Should have further drill results to come from Sindo in the current season as Hugh mentioned in an email to me on 8th May that it was being drilled -- we haven't seen the results yet, assays should be forthcoming, maybe at the AGM. Also further drilling at Komana and Solona results to come. Must be very close to the end of the drill season now.

The AGM presentation will be very interesting -- just hope someone can get there.

[1waving] 08/6/2009 10:55

Some new additional drill plan / drilling location maps are now on the website on the Sankarani and Yanfolila project pages.

The drill plan of the 6km of strike at Bokoro looks very significant and impressive.

Komana areas drilled along the shear zone looks good, as expected from Komana, and Kabaya South areas drilled location map also there.

[haydock] 08/6/2009 08:13

All good points Serpico:

Under what circumstances do you see less than 30%.

I agree fully with the mali problem, but with the cash flow & the weak situation for tiddlers, they can now look for opportunities over the next year.

Still think Egypt will be worth a look when the new mining laws are out & plots are on offer, over then next year or two?

Why do we need J/v's on ther other sites now,& are they all year drilling?

How much gold have we altogether in the ground, what will it be pre plant?

Can we hypothesise on basic figs returns at this stage, What will 30% look like in profit?
How many years would first pour take? Under 5?

All thoughts that could be answered at the AGM?

[share_shark] 07/6/2009 13:04

Sunday Stabroek News.




Mining sector performance 'excellent'
By Stabroek staff | June 7, 2009 in Local News – gold, diamond declarations exceed projections
Buoyed by high prices and continuing off a strong performance last year, the local gold and diamond mining sector has so far, performed excellently, with declarations well over projections.

Executive Director of the Guyana Gold and Diamond Miners Association (GGDMA) Edward Shields, in an interview with Stabroek News last week said that up to the end of April, gold declarations were over 78,000 ounces and diamond declarations were approximately 60,000 carats. He said that the contributions in terms of royalties amounted to $497 million for the first four months of the year, exceeding the projections by 12%. Meanwhile $554 million have been paid for the same period in rentals, exceeding the projections by 30%. Rentals are the annual fees paid on among other things, claim licenses.

Shields believes that the importance of the sector is often not appreciated, pointing out that for over half of the past ten years, the gold and diamond sector contributed more to the Gross Domestic Product than sugar, which is often said to be a mainstay of the economy. Last year, sugar exports brought in US$133.4 million while gold exports brought in US$203.7 million and diamonds brought in US$31.2 million.

Shields said that the earnings so far can be attributed to the high gold prices and more miners entering the sector. He added that more gold is being sold to the Guyana Gold Board and it is envisaged that the sector's regulatory body, the Guyana Geology and Mines Commission (GGMC) will be collecting much more royalties for the latter part of the year. In terms of rentals, Shields attributed the increase to the fact that the GGMC is much stricter with leases, with persons being given a certain period in which to pay their fees, uplift the leases and begin work or else the permit could be cancelled.

Meanwhile, the security situation in the interior has improved, he said. The Miners Association official pointed out that the GGMC and the police have set up certain checkpoints in the interior, which are fully supported by the GGDMA though this is not fully implemented as yet. One of the issues being examined is a form of identification for persons going into the interior, he said.

Regarding the security of mining camps, Shields stated that most of the large-scale miners have been able to employ some sort of security and they are working closely with the police, with some of the personnel being supernumerary ranks. He added that obtaining firearms for the owners is easier. "Once the security force is approved by the police, the owners have no difficulties in obtaining the necessary firearm licences," he commented drawing a distinction with experiences in the past when the process was "rather bureaucratic". Shields attributed this to meetings with the Commis-sioner of Police and the Ministry of Home Affairs, which he said, had expedited the process. He noted though that the decision on whether or not to grant firearm licences to individuals is strictly a decision of the Commissioner of Police.

Meantime, however, Shields stated the "major problem" of illegal shops or Kayamoos, persists. "These shops are the ones that harbour most of the criminal elements as well as a lot of illegal activities are conducted (there)," he asserted. While underlining that the GGDMA has no objections to shops, he stated that there is a protocol that must be complied with. He noted that the GGMC has identified areas where shops can be set up, 'Landings', and persons have to apply to the regulatory body for permission. "This need to be rigidly enforced... this will minimize the criminal activity in the interior by at least between 40 to 60 per cent," he declared.

Shields emphasized that overall security has improved and it is now more of a joint effort, noting that miners could not depend on just the police. The GGDMA Executive Director observed that a lot of the individual miners have taken up the opportunity to secure their operations and there are a lot of exercises done by the joint services. He added that now there is also better communication between the camps and the coast.

Meantime, according to him, about 80% of Brazilians in the mining sector are undocumented. The GGMC is currently carrying out regularization activities for illegal miners and this is something it is trying to do on a more regular basis, he said. He stated that officials are targeting those undocumented Brazilians, to ensure that they have permits and other documents.

Shields said there are lots of individuals who have good intentions but because of the language barrier, they are being misled by "brokers" who take money to process documents but this is never done.

He urged those persons to do the right thing and contact the GGMC, where they would be advised about the documentation needed. Shields explained that the regulatory body would recommend them to the Ministry of Home Affairs if they qualify. Once this was done, he said, the ministry would normally grant the necessary approval and the process usually took no more than two weeks from application to approval.

The regularization exercise currently being done is a "one-stop exercise", comprising personnel from the GGMC and the Home Affairs Ministry. The GGDMA Executive Director noted that in the past, some of the brokers attempted to "sabotage" such exercises and the Brazilians would hide as they felt that the exercises were attempts to trap and deport them. He encouraged the affected persons to be a part of the exercise.

Shields said too that they are working on improving the environmental aspect of mining and have several ongoing projects to assist miners in better mining practices.

He noted that the sector has come a long way and contributes in a major way to other sectors as well. The Miners Association director pointed out that billions of dollars circulate within the industry, which supports the aircraft industry, shops, fabrication businesses, and heavy equipment companies among others. Heavy equipment sellers such as MACORP, he stated, attribute about 90% of their sales to miners. Such was the volume of business done with those in the industry, he commented, that the companies have asked to become associate members of the association. Further, he pointed out, in the past miners found it difficult to get loans but now banks, notably Scotiabank, are on board, and encourage miners to take out loans.

Importantly too, he added, employment in the sector is high with 15,000 to 20,000 persons directly involved and they support their families as well.

[bongo bwana] 07/6/2009 12:32

Be a bit more specific PM5L and a fair bit less cryptic too please - purely to assist in decision making, you understand.

[pm5l] 07/6/2009 11:59

wait and see how they close their shorts :)


fat be the only one adding to his short.... ps feel free to quote me if Im wrong :)

[bongo bwana] 07/6/2009 10:57

SS - take that as a hint to contact the inimitable Smit @ SCSW.

GEX's business model or what I think it is, is becoming clearer. I detect the genius of POQ who should be a happier observer of Irishness this weekend.

Im finding that now Im so glad to have acquired my holding at current levels because when the rise comes it could be close to exponential - once that institutional seller is out of the way.

[haydock] 07/6/2009 10:13

Exactly:
A good find ss.

This transaction shows the lack of interest, in the market value of GEX.

The value of the company is already there for those who look, gold in the ground is a valuable & marketable asett.

GEX will eventually be re-assessed by firstly the tip-sheets.The story reads like a tip sheet dream & will get better as they drill or wheel & deal with the cash flow.

Finally the market in a wider context will come to value the gold in the ground & the future cash flow position.
Even more so if the price of gold moves exponentially upwards over the next few years.

[share_shark] 07/6/2009 09:19

As I spanned the globe for information, I came across this. It is of minor interest of course ,unless you have your eye on Eldorado Gold. ;-)



Gold Fields to sell 19.9% stake in Sino Gold Mining to Eldorado Gold
Thu. June 04, 2009; Posted: 02:36 PM

Jun 04, 2009 (Datamonitor Financial Deals Tracker via COMTEX) -- SIOGF | Quote | Chart | News | PowerRating -- Gold Fields Limited has entered into an agreement to sell its 19.9% stake in Sino Gold Mining Limited, an Australia-based company engaged in mining and processing of gold, to Eldorado Gold Corporation for approximately $282 million.
Gold Fields is a South Africa-based company engaged in exploring and mining of gold, copper, and coal. Eldorado Gold is a Canadian gold producer.

Gold Fields will receive 48 Eldorado shares for every 100 shares held in Sino Gold, on a fully diluted basis. Upon the completion, Gold Fields will own 27.82 million shares, representing approximately 7% stake, in Eldorado.

In addition, Gold Fields will hold a top-up right for a period of 18 months, under which Eldorado will acquire an additional 5% stake or more of the outstanding shares of Sino Gold, with an exchange ratio of 0.48 Eldorado shares per Sino Gold share received by Gold Fields.

The transaction is expected to close by the end of August 2009.