Sunday, 21 October 2012

Cancelling Government Debt held by Central Banks

A theme seems to be emerging discussing this possiblity.

Frank Giustra at the Canaccord Recources Conference - Gold - Mother of all Bubbles - About to witness the greatest transfer of wealth in history

Wide ranging discussion.
"We are about to witness the greatest transfer of wealth in the history of mankind, in a way so stealth most people won't notice, through inflation, people will wake up one day and find their wealth has been destroyed. People will wake up looking for the culprits. A great illusion, Bernanke pointing to the benefits of QE, setting the stage for the transfer of wealth by inflation. People will look for scapegoats"

Junior Gold Merger - Blue Gold with Riverstone

More signs of M&A activity in the junior gold mining and exploration stocks with the announcement that Blue Gold Mining (BGX.v) will merge with Riverstone (RVS.v).

Junior Gold Miner M&A - Eike Batista's AUX acquires Calvista and Galway in Colombia

Brazilian billionaire Eike Batista acquired Ventana in February of 2011 for $1.5bn , with Ventana citing a lack of other options after speculation of higher bids. Ventana's La Bodega / La Mascota was a major discovery of the last junior gold cycle, with a high grade gold discovery in Colombia.

Tuesday, 16 October 2012

As money hides away, Gold heads for a blow off top

Interesting views to be expressed in the FT, although in the FTfm sub-section, from John Dizard who often has a different perspective. Usually worth following the "comments" at the FT.
Dizard points to the real mania being in sovereign debt and its end being potentially the stimulus for gold's own blow off. Sounds like he reads Sinclair !

Gold Junior Miner M&A - Argonaut Gold buys Prodigy Gold

Junior Producer Argonaut Gold (AR.TO), who I would categorise as a "growth consolidator" in the gold junior space, led by respected ex Meridian management to a near $1bn market cap with only 100k oz pa current production in Mexico, are to acquire Prodigy Gold (PDG.v) who recently increased resources at their Magino Deposit in Canada ~ 6m oz, relatively low grade - although as Prodigy point out, ranking quite high grade alongside other deposits available for development......

Points to Ponder on Junior Mining Stocks

At Canadian Mine Analysis

Saturday, 13 October 2012

IMF Game changer? - Enough of that Austerity already

While Central Bank leadership applicants suggest more radical printing policies (see below) the IMF suggests Austerity is damaging growth.

UK Financial Times : UK needs to talk about helicopters - Adair Turner Mansion House Speech

Adair Turner's pitch for the job of Governor of the Bank of England in his Mansion House speech referred to more extreme monetary policy options, taken by many to imply full monetisation of government debt, UK Gilts........

Thursday, 11 October 2012

Pimco Turn Goldbug

Mainstream investment houses continue to come to recognise the case for gold......

Carlos Slim's Minera Frisco Buys More Gold & Silver in the Ground from Aurico

Carlos Slim's Precious Metal Mining company, Minera Frisco, announced the purchase of Aurico's Ocampo mine and exploration assets in Chihuahua state Mexico for $750m.
Ocampo was the old Gammon Gold mine.

Aurico's stock jumped 20% higher, they will focus on Young Davidson in Canada and the former Capital Gold assets in Mexico.

So why did the world's richest man want a mine which has always struggled to fulfil its promise under Gammon and Aurico?

Mines & Money - Australia / London

Upcoming conferences and presentations in October and December 2012

Sunday, 7 October 2012

Australian Gold Miners & Juniors

A vast topic for one post, I shall revisit this post as more is added.

See also RIU sydney Post for watchlist and charts
See Charts on this page

For whatever reasons the Canadian mining sector seems to be far better known outside its own borders than the Australian, perhaps it is more "promotional".
Yet the Aussies are a major force in global mining, exploration and production, with a leading position in recent African discoveries and seeing significant levels of merger and acquisition activity.
The Australian sector seems to perhaps have a clearer focus on cashflow and production than some Canadian juniors who look to drill, develop and sell to the majors.

Some useful links.

Thursday, 4 October 2012

Stan Bharti - Sulliden - Forbes Manhatten - Aberdeen Management

Stan Bharti's groups of companies have been avoided by some gold investors due to generous management payments, incentives and company structures where Aberdeen float deals from Forbes Manhatten.

This analysis of Sulliden at the Inca Kola blogspot made it to BNN and saw over 6m shares traded in SUE.TO, down 16%

Torex - Morelos Gold Project BFS and raise $350m

Torex (TXG.TO) have demonstrated that there is an appetite for investment in junior gold developers with a fund raising for $350m to progress mine development for production by the end of 2015, hitting 375k oz pa production by 2017. This follows on from their recent Bankable Feasibility Study (BFS)

Hitting $2bn NPV at $2000 gold there is limited leverage to the current $800m market cap.

However this is seen as a safe project, relatively low capex and high margin due to the 5m oz deposit being relatively high grade.....

Wednesday, 3 October 2012

Gold: Adjusting for Zero - Deutsche Bank go Goldbug

When mainstream banks propose the case for gold it may mark the march of mainstream institutional investors into the relic.

Brent Cook interviewed at Toronto Conference by Tommy Humphreys

Good Discussion

The key, an explorer identifying a big system, getting better.

Investors with a short term mentality get fleeced all the time.

Long term holders, patience to test an idea, move on when thesis disproved.
Big money staying in for a long time on something that is working.

Analyst Junior Gold Stock Picks - Brent Cook - Adam Graf - Ron Stewart

A recent review at "Mining Markets" of some big recent discoveries and developers from Brent Cook, Adam Graf at Dalman Rose, Ron Stewart at Dundee