Mining Minerals & Metals Share Discussion Threads

[alibongo612] 15/7/2009 08:34

Can't see him raising that money without some significant pain

[share_shark] 14/7/2009 23:28

Might be sensible to check out the modus operandi of Barrack Gold.

I had been watching their operations, prior to the deal with GoldFields.

Interesting and if I see anything that may tantalise,I will post my findings here.

[serpicouk] 14/7/2009 20:23

I find it strange that we're suppose to be seeing the cash rich majors snapping up all the juniors as their own internal production and reserves start to tail off. According to the above, GF no longer want to support juniors into production by investing up front? Strange - and not what GF put on their presentation slides.

Anyway - I take it the $20-$40 million is money to keep GEX running up to and including the BFS on Komana? Have the markets opened up that much? Do they have some sort of pre feasibility study? I can't see HmC securing this finance through conventional means. So I'm expecting some creative tie up with another company.

[share_shark] 14/7/2009 17:55

Thank you for that post 1Waving.Certainly puts a different slant on the story.

[share_shark] 14/7/2009 06:53

I am becoming a little like the poster LBO, methinks.A pain in the you know what.
A stitch in time, saves........? or does Glencar really have a future?.




ld Declines in Asia as Rebound in Global Equities Cuts Demand


By Glenys Sim

July 14 (Bloomberg) -- Gold declined in Asia as a rebound in stocks, driven by optimism that the global economy is recovering, eroded demand for the precious metal as an alternative investment.

The MSCI Asia Pacific Index rose from an eight-week low, tracking gains in the Standard & Poor's 500 Index, after analyst Meredith Whitney recommended shares of Goldman Sachs Group Inc., and said banks may advance 15 percent. Hedge-fund manager Barton Biggs said that China's economic growth would exceed forecasts.

"The equities market is getting some reprieve after the recent declines, which is shifting money out of precious metals," Steven Zhu, head trader at Tonglian Futures Co., said today from Shanghai.

Gold for immediate delivery fell as much as 0.2 percent to $918.15 an ounce and traded at $918.75 at 11:02 a.m. in Singapore. Bullion for August on the Comex division of the New York Mercantile Exchange lost as much as 0.5 percent to $917.80.

Biggs, the former chief global strategist for Morgan Stanley, said in an interview that the U.S. economy is rebounding. "Emerging markets, particularly Asia, are the growth area of the world," Biggs added.

Singapore's government raised its forecast for 2009 as the nation emerged from the deepest recession since independence in 1965, according to second-quarter data released today. Separately, New Zealand Reserve Bank Governor Alan Bollard said "early signs of a global recovery have now emerged."

Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged for a third day at 1,109.81 metric tons as of yesterday, according to figures on the company's Web site.

'Bouncing Around'

"We're going to be bouncing around in this range for the next couple of months, not really going anywhere on the upside but also well protected on the downside," said Patrick Chidley, an analyst at Barnard Jacobs Mellet LLC, referring to gold.

Gold prices also declined after India, the world's biggest consumer of bullion, reported a decline in imports. Purchases in the six months to June 30 plunged to 63.8 tons from 139 tons a year earlier, the Bombay Bullion Association said yesterday. The country imported 12 tons of gold in June.

"The summer months have traditionally been a fairly weak period for the gold price, in the last few years at least," Chidley said in a Bloomberg Television interview. Indian demand tends to increase during the wedding and festivals season, which runs from September to January.

Among other precious metals for immediate delivery, silver was little changed at $12.845 an ounce, while platinum fell 0.3 percent to $1,119 an ounce and palladium dropped 0.4 percent to $235 an ounce at 10:02 a.m. in Singapore.

To contact the reporter on this story: Glenys Sim in Singapore at

[share_shark] 14/7/2009 06:43

Problems in Ghana for some mining companies in that region.

Also one should not discount the French,their history in Ghana and their machinations,STILL,there.



ntinental Goldfields Appeals For Protection
Monday July 13, 2009
By David Adadevoh
Kris Kapoor, Resident Director, Dunkwa Continental Goldfields Limited has appealed to the government to protect the company's $ 46 million investment in the country.

He said the company's properties located at Dunkwa-On-Offin in the Central Region were being encroached by the Upper Denkyira East Municipal Assembly without the consent of the management of the company.

Speaking at a press briefing in Accra on Wednesday he said, "All assets on the concession of Continental Goldfields are our property no one can trespass on it without our authority."

Explaining how the company commenced operations in Ghana, he said the management of Dunkwa Continental Goldfields on May 1994 bought the entire concession, including the liability and assets of the Dunkwa Goldfields Limited owned by the State Gold Mining Company which was placed on divestiture, and began mining activities on the concession.

He said under the project agreement, signed between his company and the government of Ghana in 1995, Continental Goldfields have the right to venture into other activities such as agriculture and manufacturing apart from mining.

"By virtue of the same project agreement our company became the lawful owner and operator of the assets and operations of Dunkwa Goldfields Limited.

It was not a lease agreement between the two parties but rather an outright sale of the company's assets and liabilities," he said.

Mr. Kapoor said the company mined gold on the concession for only four years and stopped when gold prices plunged in 1999, adding that since the company under the agreement was allowed to venture into other sectors, it began operations in the agro-business sector.

On November 7, 2005, the Ministry of Lands Forestry and Mines was purported to have terminated the project agreement on the grounds that the company had breached the Mining Law 1986 by venturing into agro business.

However, Mr. Kapoor said, "the fact that we are not into mining again does not mean that our assets must be taken over unlawfully".

He said the continuous encroachment of the company property was affecting its operations, adding that the agreement gives the opportunity to any aggrieved signatory to the agreement to seek international arbitration.

A source at the Upper Denkyira East Municipal Assembly confirmed to Times Business that the assembly had taken over some of the bungalows and the hospital built by the State Gold Mining Company, which had been neglected by the management of Continental Goldfields, for a nursing college and a primary school for the area.

The source argued that the properties seized to be the assets of Continental Goldfields since 2005 when the Ministry of Lands, Forestry and Mines revoked their license and took possession of all properties.

"This company has failed to bring the needed development to Dunkwa.

There is no need to continue to see them as the owners of the company," it said.


Posted under
Business News

[serpicouk] 13/7/2009 20:25

It's startling how similar Glencar and Adamus are...past/present...and may be future? They're probably a year or two further advanced than we are.

I'll be looking intently at how they finance their mine over the summer and the effect on their share price.

They do have an ace in the hole with that shallow depth gold oxide which should make start up instantly more profitable (and probably less troublesome) than sulphide recovery. They're targeting to effectively recovery financing costs after just 2 years production (100,000oz pa).

[haydock] 13/7/2009 09:14

I think the above is in a different league to any ramblings I could add.

However the deal did seem to be impressively drafted, & it seemed to be with a company that was in the right place going forward. Not just an add on for the future.They had just received a full write up on Minesite, which i think I transferred on to this bb.

[serpicouk] 12/7/2009 22:32

1W - I have contacted HmC on several occasions with regard to operational concerns and I attend the AGMs. I receive the usual pleasantries and platitudes, along with the typical 'difficult business environment' and the optimistic forward looking statements. I suspect the same is given to most PI's.

True, I've never; and have no intention of; broaching the subject of pay. But that is only because it would serve no purpose other than to reduce what little information HmC provides on the other subjects.

re: Ghana. Technically we don't have the 2% NSR royalty until Adamus buy the remaining 30%, but that in itself won't be for two years. After that appraisal period a mine is another two years away at the earliest so I'm not factoring in any revenue from that stream for at least 4 years. The capital gains from our 2% stake in Adamus (value ~$1M) may be reduced depending on the equity portion of any finance deal they secure for the ~$90M they need. But it seems reasonable to expect we could make several million over the next couple of years assuming their mine is a success.

Incidentally, for those that want to know more about the types of mine royalty options:

[1waving] 12/7/2009 19:35

Serp -- you have misinterpreted my post. At no point have I said that it is not pertinent to discuss openly directors past performance and pay. Your opening statement is wrong.


The point was that if you have a problem with directors packages there's nothing wrong with making your views known on a BB, but have you addressed your problem directly to the people concerned - the directors. That is where you will get your answers from.

Have you put your points directly to the people you are having a go at ?
I hope you do.



Haydock -

Was looking through the Ghana/Adamus deal on Friday and it looks very well framed with shares of Adamus coming to Glencar, with Adamus scheduled to start production late 2010 their value should be on the increase. Didn't see a timescale for when Adamus may process ore from Asheba for the NSR to kick in so that could be many years away, would like to see a timescale on that. You are into the royalty model with APF, how does the proposed JV stack up in your view ??

[serpicouk] 12/7/2009 11:44

1W - I've no intention of getting into posts like (5036). I'm sorry you don't feel it's pertinent to discuss openly directors past performance and pay.

Regarding (5037) - I assume you are implying they are taking a greater personal financial risk than most ordinary shareholders? If so:

Over the last eight years shareholders have footed a $2.4 million remuneration for HmC alone.

Since 2001 he has only aquired shares in GEX once.

That was last year when he excised 2,000,000 shares at E0.031. That was about a 60% discount to what the rest of us shareholders had to pay. The total excise price represented only ~3.75% of his remuneration since 2001.

That 2,000,000 excise of options represents 75% of his total share holding. Prior to that acquisition he only held 975,000 shares in GEX.

The rest of the board are even worse.

All looks like a very nice risk:reward profile to me. Hardly putting their necks on the line. Suspect that in percentage terms quite a few ordinary shareholders have put up similar or more but without the safety net of buying at huge discounts.

[1waving] 11/7/2009 10:23

One thing to add to the above --
The directors are backing the company very strongly in the same way that we as shareholders do, in fact, more strongly than most shareholders.

[haydock] 10/7/2009 19:37

Well if I was trying I could find a i.25m oz field with more to come quite interesting in todays gold mining environment.
Bit to come there perhaps.

The j/v was a very sophiticated deal & a valid near miss.
More like that in a year or so & they would have earned their corn.

Makes interesting reading though, that list in the cold light of day.

Very much into directors this week, in the light of my trading week.

Glad that some of you can look them in the eye, believe me it could count.

[serpicouk] 10/7/2009 17:24

Unfortunately, having held for nearly 4 years the 'long term' never seems to get any closer.

Looking back over nearly 4 years I attribute the following to the Board: (Figures are just crude approximations and may not be that accurate)

Increased the share base by 90m shares.
Raised £6m.
Spent $2.5m on Admin.
Spent $2m on equipment.
Spent $2.5m on operations.
Spent $7m on intangible assets.
Progressed Komana from a first pass drilling to a jorc of 1.25m oz.
A very early JV of Sankarani to GF, still no jorc.
A JV of our Ghana property to another junior.

The Boards have picked up $3M for the above 4 years 'work'.

The GF deal, whilst giving away 70%, at least guaranteed a certain rate of progress with a company with a financial interest in getting a mine at the earliest opportunity.

As we know, the Boards remuneration package means they don't have any real incentive to progress activities at anything above a snails pace - so long as they can raise enough to cover their salaries.

Extrapolating that past performance into the future doesn't fill be with confidence.

But may be I'm being too hard on GEX...? The problem is, whenever anyone talks positively its always about what they might do at an undisclosed time in the future...happy to hear a positive spin on their actual recent past performance.

[1waving] 10/7/2009 16:16

Serp -- thanks for the suggestion. Will be buying more and regard this as a longer term play.

[willyworm2] 10/7/2009 16:07

sadly I'm with serps, I can't see how this was such a good deal two weeks ago and now we are better off without it.

[serpicouk] 10/7/2009 16:06

1W --- suggest you buy !!!!!! :)

[1waving] 10/7/2009 15:43

Serp --- suggest you sell !!!!!!

[1waving] 10/7/2009 13:48

The share price was marked down very quickly on small volume following the announcement of the GF deal not going ahead, seem to be allowing it back up on little volume as the initial move was overdone.

Glencar are still in a good position with cash, a very strong management, the Sankarani JV with Gold Fields, Komana & Solona, JV option for the Ghana license in place with what looks avery good deal for both parties and the JV in Uganda should be announced shortly.

Gold Fields advanced the Sankarani project rapidly last season and continue to have a strongly positive view on Sankarani. Should at least bring in JORC resources this coming drill season.

Bring on the drill season and further resources at Komana and new resources at Solona.

With the GF deal dead and buried think that will spur the efforts of management somewhat and we can look forward to strong and rapid development.

[1waving] 09/7/2009 16:08

SAFE HAVEN REPLACEMENT FOR DISCREDITED DOLLAR

Gold price poised for spectacular and prolonged rally - Peter Schiff

Gold bullion and gold-related investments, especially gold mining stocks, will be the best bets in the protracted and severe inflationary environment likely to result from current global monetary policies.

Author: By Marc Davis
Posted: Wednesday , 08 Jul 2009

Vancouver, BC (BNW Business News Wire) -

Gold prices are poised for a "spectacular" and prolonged rally as the recession deepens and investors finally become disillusioned with the U.S. dollar.

So says renowned Wall Street financial forecaster and economist Peter Schiff, who loudly warned of the October 2008 stock market crash and accompanying recession as far back as 2006.

Since the global economic meltdown, the president of the Connecticut-based investment firm Euro Pacific Capital has struck a chord with rattled investors who have lost faith in America's bedrock financial institutions. Hence, his well-received television media blitz in recent months has focused on extolling the virtues of owning gold bullion or gold equities, as well as urging Americans to get out of U.S. denominated investment assets.
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Full Article:--

[investinggarden] 09/7/2009 09:41

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