Juniors need more time to grow up: Cairns
August 11 - 17, 2008
BLAND public comments from managing directors are a dime a dozen which is why the sort of strident criticisms of capital markets from the likes of Integra Mining’s Chris Cairns are a refreshing change – even if they are perhaps a little wishful and short on solution.
Frog's Leg advantage could be with La Mancha
August 11 - 17, 2008
‘GRADE is king’ is the catchcry of the moment and it applies especially to the beleaguered gold sector. Erosion of the benefits of a good mine resource grade should be sacrilege but that is precisely what is happening with the million-ounce Frog’s Leg deposit 25km west of Kalgoorlie.
Golden challenge
August 11 - 17, 2008
WHILE there is undeniably a ‘chicken and egg’ aspect to it, gold exploration could currently be considered little more than a pastime for self indulgent geologists on the basis that it’s cheaper to acquire ounces than find them. Does this partly explain investor exasperation with the sector?
M&A or no M&A, that is the question
August 11 - 17, 2008
IT’S the ideal time for the adventurous and well-connected gold management team to buy a project. Undoubtedly there are a number of opportunities currently being created in an ambivalent investment climate for gold. In fact, it’s an ambivalent climate for most investments.
Hopes rise on Cigar Lake fall
August 11 - 17, 2008
BAD news for Cameco at its Cigar Lake project in Canada is naturally expected to benefit the rest of the uranium sector, but struggling markets generally and uranium’s recent run in the sun means analysts and investors aren’t tripping over themselves to jump back on the yellowcake bandwagon.
Lady starts to sing
August 4 - 10, 2008
THE merger between CopperCo and Mineral Securities is nearing completion against a backdrop of platinum corporate action and a copper development in Queensland described by an experienced mining man as the best of its type he has been involved with.
Growing up is the aim
August 4 - 10, 2008
THE number of mining companies transferring their listings across to London’s Main Market will continue to increase as miners outgrow AIM, according to London lawyer Alexander Keepin.
Blocking out risk
August 4 - 10, 2008
FORMER Snowden consultant Jon Bell has unveiled a new way for broadly assessing the implied sovereign risk discount in mining and exploration project transactions. Involving a financial derivation of the conventional block modelling used by geologists, the method is said to allow for rapid assessment of macro-investment trends and preferences for in-situ gold acquisitions in various geopolitical environments.
Value in services
August 4 - 10, 2008
NEVERMIND the current equity market malaise, the next 12 months should prove a very strong period for the mining services sector as it becomes apparent to all that the commodity boom isn’t going to unwind.
Newmont on the improve
August 4 - 10, 2008
OFTEN considered one of the ugly cousins of the gold majors, Newmont Mining is an improved beast that deserves revisiting, according to investment bank Credit Suisse.
European awaits return of confidence
July 28 - August 3, 2008
POSITIVE feasibility results at the Certej gold-silver project in Romania have given European Goldfields a much needed shot in the arm following a torrid five months on the markets, which have seen about £440 million wiped off its value. The stock was trading at £3.50 a share in late January but has since fallen by more than 50%.
Merger makes emerging mid-tier
July 28 - August 3, 2008
THE Norton Goldfields-Bellamel Mining merger seems a logical proposition, though shareholders of Bellamel would be more than hopeful that Norton doesn’t ultimately play out as yet another Australian gold company struggling with tired old assets.
Naughty gold still a safety net
July 28 - August 3, 2008
THE gold price has experienced a minor correction recently and has also showed signs of uncharacteristic volatility, but trigger-happy investors need not panic – the fundamentals for gold are as strong, if not stronger, than at any time in recent history.
Ironbark joins OTCQX money trail
July 28 - August 3, 2008
LOOKING for a conduit to the deep North American market without the cost and compliance issues of the conventional exchanges in Toronto and New York? Try the International OTCQX in New York. Ironbark Gold is.
Resources race is not run yet
July 21 - 27, 2008
IT’S almost time for the starter’s gun to go off in Beijing, but there are few signs of nerves – at least outwardly – from explorers and miners who have heard that the closing ceremony at the Olympics will spell the end of the current commodities boom more times than TV commentator Bruce McAvaney’s sickly “special” call.
Apex looks beyond gold
July 21 - 27, 2008
MARK Ashley is clearly a big fan of gold but it’s become increasingly evident in more recent times that the company he leads won’t necessarily be betting its entire future on the precious metal as it closes in on production from its flagship Wiluna gold operation in Western Australia.
QGX deals sheds little light on pricing
July 21 - 27, 2008
PRICING junior explorers is a dark art that investors should treat with caution. The $C259 million transaction this week involving Canadian junior QGX, Merrill Lynch and private Asian holding companies Kerry Holdings and MCS Holding is a case in point.
Time for some magic from deal wizards at OZ
July 21 - 27, 2008
WITH the merger complete, attention has now turned to what OZ Minerals plans to do with its pile of cash. Given the equity market downturn, the timing would seem rather more opportune than it has in recent times, but competition for major assets at the more rarefied end of town isn’t like to slacken to any great extent.
A blast for Orica break-up
July 21 - 27, 2008
ONE onlooker definitely not rushing to join the hosts at this week’s Orica de-merger announcement party was Credit Suisse, which blasted a show-and-tell by management and queried the rationale for Orica’s $A900 million equity raising.
Trinity brings New Gold to market
July 14 - 20, 2008
ROBERT Gallagher likes the outdoors and likes keeping busy. Currently he is trotting the globe to get to know the various properties and people he has working for him as the CEO of New Gold,the company with the heavyweight board and clearly one of the more promising mid-tier producers currently emerging in the rather callow gold space.
Demand, prices point to rich Mosaic
July 14 - 20, 2008
KEY fertiliser bellwether, North American company Mosaic, believes it is the “calm before the storm” in terms of pricing, with inventories at record lows, demand strong, farm income up, and, most importantly, rising input costs.
Lihir could take heat out of majors' costs
July 14 - 20, 2008
POOR Telfer performance and geothermal-power exposure suggest Lihir Gold might be a more interesting target for gold corporates than fellow significant Australian independent producer Newcrest Mining.
Selling services still easy, on the one hand
July 14 - 20, 2008
MINING service sector analysts say some excellent buying opportunities have emerged in an “oversold” section of the market, with demand for engineering services in particular showing no signs of abating and earnings upgrades increasingly likely on the back of strong work flows and new acquisitions.
Bear market will sort wheat from chaff
July 14 - 20, 2008
TAKE heart all you directors of junior mining companies cowering in your trenches and thinking the world has come to an end just because your share prices have been falling.
Friedland talking copper and gold: is he barking or what?
July 14 - 20, 2008
IT WAS a few weeks ago now, but it will take far longer for the memory to fade – the memory of Ivanhoe Mines executive chairman Robert Friedland barking like a dog while expressing his views about gold, onstage at the World Mining Investment Congress in London.
Mirabela attraction could grow
July 7 - 13, 2008
DESPITE Vale holding a 9% stake in Mirabela Nickel, there are a handful of other companies that may well be interested in the emerging miner who is said to be on the verge of locking up financing for its Santa Rita nickel project in Brazil.
Brockman eyes development path
July 7 - 13, 2008
BROCKMAN Resources supporter Patersons believes size will matter in any new “open access” era for smaller Pilbara iron ore producers close to existing rail infrastructure in the region.
Steel support for WA magnetite
July 7 - 13, 2008
ESCALATING costs are shining an even brighter light on the economics of proposed major magnetite iron ore projects in Western Australia, though proponents are claiming that there is no shortage of potential backers if first-choice partners retreat from the front line.
Stronger for longer copper
July 7 - 13, 2008
CITI’S major upgrade to its copper price outlook means a “buy” tag on better copper equities would seem the default position for all investors confident of the general situation in China. Goldman Sachs JBWere (GSJBW) on the other hand has some general doubts.
Uranium One step away
July 7 - 13, 2008
CANADIAN company Uranium One looks looks in a strong position to benefit from Kazakhstan’s aim to emerge as a major uranium power over the next 20 years with leverage to all facets of the industry.
Bonwick casts several lines
June 23 - 29, 2008
INDEPENDENCE Group is one of those handful of Australian nickel miners that has absolutely creamed it over the past few years by being a quality operator during a period when the nickel price reached for the stars. It’s also a company that is now actively seeking to take the next step.
Technology key ingredient in new Cook coal plan
June 23 - 29, 2008
TECHNOLOGY is being promoted by an increasing number of mining companies as a mining cost and, potentially, a value differentiator. Now it seems analysts are warming to the theme with ABN-Amro Morgans citing Caledon Resources as one company that could profit and grow by successfully applying technology.
Prophet Vendt lets off some steam over Monarch
June 23 - 29, 2008
MICHAEL Kiernan’s departure from the Territory Resources board has been the signal for release of some pent-up frustration about the company’s support for Monarch Gold.
Ivanhoe IPO has plenty of value in store
June 16 - 22, 2008
IVANHOE Australia’s $A125 million IPO next month doesn’t include a single delineated copper resource pound nor gram of gold. Curiously, resources for three projects on granted mining leases are set to be reported in August following the completion of the IPO in late July.
Credible numbers
June 16 - 22, 2008
FOLLOWING an absolute horrendous three months on the market as investors reacted with sell orders to a major capital cost increase at the Didipio copper-gold project in the Philippines, developer OceanaGold now represents a “compelling” investment opportunity. For retail and institutional investors, and, possibly, corporates too.
Juniors still glowing in the dark: Deutsche
June 16 - 22, 2008
ANOTHER investment bank has backed the case for uranium, with Deutsche Bank selecting a handful of companies it believes stand to benefit given its belief that the world is on the verge of a “uranium renaissance” – with a price recovery beginning in the second half of 2008.
Old mines, troubling signs
June 9 - 15, 2008
THE biggest winner in the St Barbara Mines saga of the past decade or so has been a Denver-based private equity outfit called Resource Capital Funds (RCF) run by the prescient Australian James McClements. No doubt a few others would now be wishing they’d followed James out the door when he and RCF exited St Barbara in January.
Panoramic vision
June 9 - 15, 2008
WHILE it seems almost every second resource company these days talks about building a significant mining business, the re-named Sally Malay Mining has got a track record over the past seven years that puts evidence on the bones of rhetoric. And it’s actively recruiting additional professionals at present to boost its due diligence team as it seeks its next mining asset.
Barrick could unload non-gold assets
June 9 - 15, 2008
THREE feasibility studies due to be completed this year on non-gold assets could see the world’s number one gold producer Barrick Gold Corp spin out a major nickel and platinum group metal company.
Raising a dollar will depend on interest
June 2 - 8, 2008
BAD luck for companies that have either mistimed their run at the capital markets or chose the wrong commodity to chase. It could get a whole lot harder for many to raise capital if broad IPO trends are indicative.
Tampakan no lemon ... or orange
June 2 - 8, 2008
UNIMPRESSED with suggestions that copper transactions in South America give any credence to the takeover offer lobbed by Xstrata, Indophil has offered up various counter examples that claim to show the boys from Zug are cheapskates.
China uncertainty, strong demand support moly
June 2 - 8, 2008
INVESTMENT bank UBS doesn’t see new supply derailing the molybdenum price any time soon, despite the increasing flow of the metal from copper mines lifting output in response to high copper prices.
Pala forces Gemcom stakes up
June 2 - 8, 2008
SWISS-CONTROLLED Pala Investments AG has forced US private equity groups JMI Equity and The Carlyle Group to raise last month’s $C180 million offer for mining software leader Gemcom to $C190 million.
Minnows attract Chinese interest
May 26 - June 1, 2008
WHILE iron ore and coal assets have been the main focus for Chinese investment in Australia, two interesting minnows outside the “bulks” space have recently also been attracting Chinese interest.
PanAust has no problem with Thai knots
May 26 - June 1, 2008
DESPITE Kingsgate Consolidated’s travails in Thailand in recent times, PanAust’s confidence in the country can be simply measured by the number “seven”.
Copper, gold prices highlight Tampakan value
May 26 - June 1, 2008
WHILE long-time Indophil Resources supporter ABN AMRO Morgans has given short shrift to Xstrata’s $A1 per share bid for the junior, transactions in South America over the past 12 months are perhaps less damning of the pricing by the boys from Zug.
Deacon a good sign
May 26 - June 1, 2008
THE strong nickel exploration potential of Sally Malay Mining’s Lanfranchi and Tramways tenements near Kambalda in Western Australia is yet to be fully appreciated by the market.
Moly output set to climb
May 26 - June 1, 2008
MOLYBDENUM producers and contenders will be wondering about the long term moly price given the likely positive decision at Rio Tinto’s Kennecott Copper (KUC) business to develop an autoclave processing route that will add 30 million pounds of annual moly production from late 2010 and double that from mid-next decade.
Wild West poised for tungsten shoot-out
May 19 - 25, 2008
THE shift in the global tungsten market has created an opportunity for western miners to demand a high price for their tungsten concentrate, while turning up the heat on end-users outside of China to secure their future supply, according to a director of junior tungsten player, Ormonde Mining. Ireland-based Ormonde’s historic high-grade Barruecopardo project in Spain is one of a handful of tungsten developments worldwide.
Candente half peers' take-out price
May 19 - 25, 2008
FORMER Normandy Mining, Teck Cominco and PacMin Mining executive Steven Dean chairs a Canadian junior whose copper project in northern Peru is said to have all the hallmarks of a “company-maker”.
Zambezi appeal grows
May 19 - 25, 2008
WHETHER or not European investors get a different version of the news about shifting southern African mineral royalties and power-supply uncertainty than their Australian counterparts is probably a moot point. Having recommended Zambezi Resources to its “European mining members” last year, Fat Prophets now thinks the time is right for Australian investors to take a keener interest in the company.
Winning and losing sum
May 12 - 18, 2008
GLENCORE has added another would-be base metal producer to its books, while speculation about the private metals trader and miner’s future in Zambia unsurprisingly suggests the Zambian Government has one very unhappy investor on its hands.
Discreet Ivanhoe backing Exco
May 12 - 18, 2008
PETER Reeve has joined the board of budding Cloncurry copper junior Exco Resources but he remains as coy as ever about details of the listing of the big ticket Cloncurry copper contender that takes up 99%-plus of his time, Ivanhoe Australia.
Heard in Miami
May 12 - 18, 2008
MERRILL Lynch’s Global Metals Mining & Steel Conference held in Miami this week featured all the usual suspects. Some of the more interesting macro and micro comments reported by Merrill analysts included …
Avoca searching for a spotlight
May 5 - 11, 2008
GIVEN the pressures suffered by gold miners around the world, just how long can the only standout gold opportunity in Australia remain free from the clutches of the acquisitive and ambitious Canadians?
Straits to narrow
May 5 - 11, 2008
DESPITE indications to the contrary, Milan Jerkovic remains a true believer in diversified mining companies. The Straits Resources – Straits Asia de-merger he argues, is merely the result of history and a response to vulnerability.
Sphere back down to earth
May 5 - 11, 2008
DESPITE the incredibly buoyant iron ore sector, the market continues to be sceptical of Sphere Investments, with the would-be Mauritanian magnetite miner trading this week below its net present value and at a significant discount to upside valuation estimates.
Uranium hot ... or cold
May 5 - 11, 2008
FORGET about seeking guidance from the so-called experts on whether uranium represents a sector investors should be re-considering. There’s diametric disagreement, with poster stock Paladin Energy a simple case in point.
Lundin calling
April 28 - May 4, 2008
DOCTOR Kevin Moriarty has been making it abundantly clear that the current board sees itself as the best option for growing shareholder wealth at emerging zinc producer Terramin Australia. So just how much cash Canadian company Lundin Mining or some other potential predator might have to stump up to test shareholders’ faith in Moriarty is the obvious question after Lundin’s recent emergence on Terramin’s share registry.
Coppers to follow peerless nickel peers
April 28 - May 4, 2008
IT MUST make a lot of investors wonder why they bother given copper equities have generally been rather lame performers of late. Especially given the metal they produce is trading at or near record levels. However, perhaps that could change if the explosive outlook forecast by some in the copper market comes to bear in the months ahead.
A change we weren't banking on
April 28 - May 4, 2008
BOART Longyear was judged last year’s “Exit of the Year” at the private equity Buyouts Awards in New York – a gong for former owner Advent International which might have carried a hint of menace for shareholders who climbed on board the $A2.35 billion Boart ASX float early in 2007. Many of them won’t be as sanguine about CEO Paul Brunner’s surprise departure this year.
Traders on tin tacks in Hong Kong
April 21 - 27, 2008
TIN guru Peter Kettle unsettled traders at a tin conference in Hong Kong last week with his prediction that new mine production outside of China and Indonesia will need to double in the next five years to satisfy increasing demand. Chinese and Indonesian producer representatives confirmed neither country, at this stage, would be adding export capacity during the period.
The long haul back
April 21 - 27, 2008
SMALL-cap mining service and supply companies will need to deliver on full-year growth and earnings projections during the coming reporting period or face an extended stint in purgatory while better-performing peers possibly climb back on the M&A bus, according to the co-author of a research report on the sector.
Intrepid hits the road
April 21 - 27, 2008
BRAD Gordon this week kicked-off the Intrepid Mines roadshow, with the CEO of the low profile Australian-Canadian gold miner able to tell brokers and investors a tale of low cost production growth being overseen by reputable management who are set to actively grow the business.
Mirabela remains on track: Poll
April 21 - 27, 2008
FINANCING for the Mirabela Nickel’s Santa Rita project in Brazil continues to look assured according to management at the company, as does it would seem the potential for a large-scale underground mine.
Show me the mining
April 14 - 20, 2008
IF YOU want to compare how the Philippines rates for Western-based mining and exploration companies compared to other risky investment destinations, then start with the balance sheet of Democratic Republic of Congo copper miner, Anvil Mining. There’s the best part of $A300 million cash sitting in Anvil’s bank, and if you thought you could find a peer in the Philippines that’s made even a fraction of that, you’d be well and truly mistaken.
Grange within range
April 14 - 20, 2008
SURGING oil prices don’t usually cause miners to smile. But Grange Resources chairman Anthony Bohnenn was still sounding pleased on the phone from Amsterdam about last week’s news that infrastructure spending in the Middle East was set to drive major increases in steel demand, starting this year.
Emery confident about bigger Yandera picture
April 7 - 13, 2008
ANOTHER small company with a potentially world-class project insists debt and equity markets remain supportive of quality projects. Marengo Mining’s managing director Les Emery is nevertheless satisfied that he’s got a kitty full of funds to progress the Yandera copper-molybdenum venture to definitive feasibility stage.
Mincor, Western Areas attract support
April 7 - 13, 2008
CRITICISM of Mincor Resources short mine life is not justified by the facts, according to an analyst report that says there is no fundamental reason why the miner has been the worst performer of comparable Australian-listed nickel companies this year.
No need for heroes
March 31 - April 6, 2008
DESPITE plenty of positive noise for the future of the gold price, hedging fan Sean Russo of the aptly titled Noah’s Rule outlines a compelling case for producers to use protection. Think beach houses and school fees, suggests Russo.
Flow sheet gains still to be recognised
March 31 - April 6, 2008
CASHFLOW from the Palabora copper project in South Africa is imminent for innovative new processing company Metals Finance Corp (MFC) – not that you’d know it given the company’s market capitalisation this week was equivalent to its cash balance. Still, such are the casualties of the broad market malaise.
Miners better at conserving cash reserves
March 31 - April 6, 2008
WHILE miners are said to have a history of poor capital management, one blue chip investment bank has given the resources sector a nice pat on the back for its much improved efforts in the current cycle.
Xanadu turns focus to Oz
March 31 - April 6, 2008
MARKET vagaries aside, Mongolia-focused junior Xanadu Mines remains confident of raising significant pre-IPO funds from Hong Kong and mainland Chinese investors for a pre-feasibility study at its Khar Tarvaga coal project. However, a proposed Hong Kong listing is stretching the company’s patience, and the Australian market is now looking a likely shorter term alternative.
Finning starts new chapter
March 31 - April 6, 2008
MAJOR Caterpillar equipment dealer Finning International’s new chief is expected to provide a clearer indication of the outlook for business in the company’s key market areas in the 2008-09 year when he addresses his first annual general meeting early next month.
Armenian setback
March 24 - 30, 2008
NOT surprisingly, Hugh Callagahan didn’t sound overly happy talking down the line from London given the market punishment meted out to Tamaya Resources following deferral of the Lichkvaz development in Armenia. But he remains adamant the Lichkvaz project will ultimately prove a valuable development in 2009.
Search turns to reliable cash source
March 17 - 23, 2008
WHEN one of Australia’s best explorers recently concluded that cashflow was now a critical requirement, perhaps it should have been a signal to many of the thousands of exploration juniors world-wide that the clock is now ticking loudly.
It's a mad, mad, mad world
March 17 - 23, 2008
ANALYSTS at Goldman Sachs JBWere (GSJBW) have put their thinking caps on and proffered five themes that strategists at mining and exploration companies should keep in mind should they concur with the premise that emerging companies will continue to buoy commodity demand despite the economic slowdown in the OECD countries.
Value in stricken CopperCo
March 17 - 23, 2008
SMASHED by the market since last October, new miner CopperCo has been representing outstanding value of late, according to Citigroup, with its earnings and current enterprise value currently making it a “self financing acquisition for a cash-rich mid-tier miner looking to add 30,000 tonnes of copper production to its portfolio”. There would seem a good few possibilities on that score.
At your service
March 10 - 16, 2008
IF YOU are confident of the ongoing health of the resources sector over the next couple of years, then you can expect to see earnings growth in the Australian mining and engineering sector average at least 15-20% in fiscal 2009.
A merger of equals
March 3 - 9, 2008
ANDREW Michelmore has done a fair old impersonation of US general Douglas Macarthur with his return to the Australian resources sector atop the as yet unnamed Zinifex-Oxiana. And rest assured, the market can expect one or two big conquests in the short-to-medium term by the new $A12 billion company.
Zircon to the rescue?
March 3 - 9, 2008
MANAGEMENT at Iluka Resources remains confident of the company’s future despite a macro economic environment that looks increasingly likely to decimate the earnings of the mineral sands major in 2008. A potential increase in the price Iluka receives for zircon is one of the few mitigating possibilities in the short-to-medium term, with much of the sector under severe pressure.
Credit Suisse likes Goldminex ground
March 3 - 9, 2008
YOU have clearly got something special when you’re a very early stage grass roots explorer in Papua New Guinea that is already attracting investment banks from the big end of town.
Cash in to straighten AIM
February 25 - March 2, 2008
THE beautifully named Bill Cash has some tough months ahead to negotiate as he tries to right AIM Resources after the horrendous market slip-up the company suffered over the course of the second half of 2007.
New hands change Adamus mix
February 25 - March 2, 2008
RAMSAY’S Kitchen is the TV analogy Mark Bojanjac uses to describe what’s happened at Adamus Resources over the past year. The shakeout, which saw the exit of the previous managing director and technical director, and the strong gold price, sees managing director Bojanjac adamant the company will now be taking big development strides at its Southern Ashanti gold project in Ghana.
Bank gets Tiger by the tail
February 25 - March 2, 2008
WHILE $A6.3 million makes less of dent in the bank balance of Macquarie Bank than those of your average retail investor, Macquarie’s willingness to outlay the sum on an investment in the Democratic Republic of Congo (DRC) during this period of added uncertainty is clearly a positive sign for the junior concerned. Think a targeted one million tonnes of contained copper.
Nickel miners resist bearish mood
February 11 - 17, 2008
NICKEL producers believe analysts who are forecasting significantly lower nickel prices than current levels are grossly mistaken.
Equinox faces uranium, completion questions
February 11 - 17, 2008
EQUINOX is publicly unconcerned about the fiscal regime that may be levelled at its mooted uranium project in Zambia despite the background noise coming out of the African country, and says it is looking at various “initiatives” to fund development given cashflow from its pending copper project will not be available.
Bogolyubov just needs to be patient
February 11 - 17, 2008
UKRAINIAN billionaire Gennadiy Bogolyubov is one shareholder who will be keen to see the share price of former glamour stock Jabiru Metals rebound, as well as those of aspiring iron ore and tungsten producers BC Iron and Vital Metals, respectively. Jabiru has been badly oversold since October last year, according to Fat Prophets’ Gavin Wendt.
Paladin uranium could rival Rio iron, says Aitken
February 4 - 10, 2008
PALADIN to be as dominant in the uranium market as Rio Tinto is in the iron ore market, was the bold claim made this week by Southern Cross Equities commodity bull Charlie Aitken.
Amdel IPO still on track
February 4 - 10, 2008
THE CEO of leading analytical services group Amdel says the timing of the company’s planned initial public offering has been altered by “weeks not months” by the tremors on the Australian Securities Exchange and general investor skittishness, with a prospectus still expected to be lodged by June pending progress on other fronts.
Golden future, but not for Newcrest
February 4 - 10, 2008
ANALYSTS continue to highlight the positive outlook for gold, with Citigroup’s Australian team the latest to ratchet up its forecasts for both the precious metal and the associated junior stocks it covers. It was however far less impressed with the likes of Newcrest Mining.
Cat sees bounce in US machine sales
February 4 - 10, 2008
CATERPILLAR, the world’s dominant manufacturer and supplier of construction and mining machinery, doesn’t see a US-led global economic slowdown biting it on the tail this year, declaring that it expects growth in international markets to continue to offset sluggish domestic sales.
Costs jump up, but nickel optimism still there
January 28 - February 3, 2008
SENTIMENT towards nickel heap leach projects won’t have been helped by Heron Resources’ shock decision to knock its Jump Up Dam development on the head, though the other contenders maintain their projects remain viable.
Banfora interest builds
January 28 - February 3, 2008
WHEN Newmont Mining knocks on the door wanting to buy shares in your company, it’s probably pretty fair to assume that you’re onto a good thing. Ongoing results from Gryphon Minerals’ ground in Burkina Faso are confirming that intuitive assessment, and are likely to be providing the company’s managing director Steve Parsons with an easy story to sell in Cape Town at next week’s Indaba conference.
Take the money and run
January 28 - February 3, 2008
SHOULD Independence Group cash in its Tropicana gold project by selling out, or is the promise of a stake in a long life, low cash cost operation a more alluring prospect for the ambitious nickel miner?
Further take on Ox gold vehicle
January 21 - 27, 2008
CREATION of a hybrid vehicle similar to Canada’s Silver Wheaton has been suggested as a possible option for the spinning out of Oxiana’s gold business.
Dudfield leaves Canadian door open
January 21 - 27, 2008
TIGHT capital structures ain’t what they used to be on the Canadian market, according to Energy Metals executive director Lindsay Dudfield, who said the promising uranium company was still considering a Toronto listing despite the currently planned three-for-one share split.
Southern awaits Cambodia results
January 21 - 27, 2008
MACQUARIE Bank and the colourful Ken Talbot of Talbot Holdings can be reassured of at least a couple of things with their investment in Southern Gold. They have first mover exposure to a promising geological environment in Cambodia, and they’re involved with a company whose managing director is a model of discretion.
HK backing for tin mine
January 14 - 20, 2008
METALS X has got the cash for re-starting its Renison tin operation in Tasmania after Hong Kong listed APAC Resources and Chinese nickel producer Jinchuan agreed to tip in $59.4 million of equity capital.
The long boom to come
January 14 - 20, 2008
MURMERINGS of uranium’s return to form are being heard from both demand and supply perspectives, potentially spelling good news for investors left holding equities after the heat rapidly dissipated from the sector in mid-2007.
Costs dampen tungsten revival
January 14 - 20, 2008
THE RAPID rise and subsequent stabilisation of tungsten prices over the past three years, and louder calls for new mine supply, isn’t going to be enough to bring many long-dormant, significant projects out of hibernation, according to market research by Perth-based Goodall Business and Resource Management (GBRM).
Stronger, but for how much longer?
January 14 - 20, 2008
IT LOOKS more likely by the week that the stronger for longer thesis professed as mantra by a mini-generation of mining professionals and investment banker types will come under some scrutiny over the course of 2008. Macquarie, for one, remains bullish.
Apex to debt-fund growth
December 17 - 23, 2007
PROGRESSIVE new gold miner Apex Minerals could require about $A150 million order to reach targeted annual production rates of 350,000 ounces per annum in 2010-11.
FMG: the new view
December 17 - 23, 2007
SOLD on the “drive and determination” of people on the ground, though still not buying the whole Fortescue Metals Group story – particularly the bits about resource quality, surface miner production rates and expansion costs. But Goldman Sachs JBWere now says Fortescue Metals Group is at least a stock worth holding.
OceanaGold's longer-term lustre
December 17 - 23, 2007
INVESTORS will look for an improved performance all round – production, development and share price – in 2008 from one of the companies the soaring gold price has left behind in the latter stages of this year, OceanaGold Corporation.
Treasure maps a different path
December 10 - 16, 2007
IF EXPLORATION is your strong suit, does it make sound business sense to then try and become a developer and operator when you find something potentially worth mining? Tony Treasure of Metals Finance Corp (MFC) could understand if you answered “no”, and, funnily enough, he could also suggest a solution.
Lihir raises buying power
December 10 - 16, 2007
LIHIR Gold is currently finalising a debt facility that could be used to pursue another corporate or project acquisition, while work at the company’s namesake operation to increase production to one million ounces per annum envisages using turbines from World War II battleships to power the expanded processing plant.
Equinox keeping eyes on Lumwana
December 10 - 16, 2007
EQUINOX is remaining very tight lipped on how it plans to deal with the surprise arrival on its share register of First Quantum Minerals, offering little other than the standard management fare about concentrating on building its Zambian copper mine and growing shareholder value.
Perilya gets busy
November 26 - December 2, 2007
FLINDERS, Mount Oxide, and Rio Tinto’s outgoing Northparkes project all figure on the radar of Perilya Mines as its strategy of diversifying its revenue stream away from Broken Hill continues with the assistance of corporate adviser UBS.
The view from London
November 26 - December 2, 2007
THE mood at an industry get together in London last week was much as would be expected – cautious. Looking beyond the current skittish malaise seems to be the course ascribed, though explorers shouldn’t be expecting too much capital to come their way until the situation becomes a whole lot clearer.
Backing for big platinum mine
November 26 - December 2, 2007
PLATINUM developer Platmin is raising up to $C93 million in new equity after reaching agreement with joint underwriters RBC Capital Markets and GMP Securities.
Food for thought
November 26 - December 2, 2007
GOING “long” on the agricultural sector is a clarion call that’s been getting louder in recent times, with Robert Friedland amongst those who have been publicly making positive noises about the sector’s investment prospects. The implications for the mineral inputs used in fertilisers are correspondingly positive, particularly in the case of phosphorous.
Vale CVRD
November 26 - December 2, 2007
BRAZILIAN mining giant Vale – ex Companhia Vale do Rio Doce – sees a $US59 million image makeover (yes, all those developing smallish projects, you read it right) helping its recruitment, public relations and seemingly inexorable global expansion efforts.
Worth the wait
November 19 - 25, 2007
INCREASED junior and mid-tier activity and a new exploration office on the cards for major CVRD suggests trepidation with Indonesia’s proposed new mining law is receding, with an experienced explorer in the country suggesting the decentralised essence of the law could be both its biggest strength and potentially its greatest weakness.
Drilling for rabbits
November 19 - 25, 2007
EXPECT Ed Eshuys to pull a rabbit out of the hat inside the next two-to-three years is more or less the message from analysts who have recently started assessing emerging gold miner St Barbara Mines.
Gemcom plugs into mining boom
November 12 - 18, 2007
LEADING mine software group Gemcom Software International is on track to exceed $C50 million ($US52 million) of fiscal 2008 revenues after posting a 61% year-on-year rise in the September quarter to $C13 million.
An Oxiana-Zinifex breakdown
November 5 - 11, 2007
THERE is a compelling strategic case to be made for the merger of Oxiana and Zinifex, according to a recent in-depth study. But the investment bank that made the assessment does have problems making the numbers stack up on an earnings accretive basis, leading it to see some comparisons with the negative “Normandy model”.
Clock still ticking
October 29 - November 4, 2007
NEWMONT Mining’s $C1 billion IPO of Franco Nevada could be viewed in some quarters as the first strong signal the top of the equity market is nigh according to the investment clock often referred to by Lion Selection. However, chief clockmaker Robin Widdup is far less certain the alarm bells are ringing.
Copper lot of shortfalls
October 29 - November 4, 2007
COPPER miners and contenders continue to struggle to deliver into the voracious market, with production problems, construction slippage, and cost blowouts being suffered across the globe.
COW changes may not be noticed
October 29 - November 4, 2007
A POSITIVE, though admittedly “non consensus” report on the long awaited and much feared new mining law in Indonesia believes miners have nothing to be apprehensive about, with claims that the new regulatory regime will be “largely irrelevant” to the majority of Indonesia’s mining companies.
Golden retrievers
October 29 - November 4, 2007
LEFT in the market shade by the major diversified miners, the gold heavyweights have been variously engaging in unshackling themselves of hedging, bringing in new blood, and operating on the M&A margins as they’ve awaited the precious metal renaissance that now seems finally underway.
Lion at the table
October 29 - November 4, 2007
AUSTRALIA, Africa and Asia offer different propositions and risks for resource investment company Lion Selection, which this month initiated new investments in two juniors while continuing to note strong outside interest in its minority held Cracow gold project in Queensland.
Hong Kong beckons for tin miner
October 22 - 28, 2007
THE Hong Kong stock market’s increasing importance as a first port of call for burgeoning Chinese investment funds, coupled with Asia’s centrality in the expanding tin universe, makes a HKSX dual listing a near certainty for Metals X once it restores the Renison operation in Tasmania to full production and moves into positive cash flow territory.
Sun setting on Iluka west
October 22 - 28, 2007
A RISING Australian dollar was the chief suspect in the holding cells last week when Iluka Resources admitted to its profit downgrade, but according to at least one market detective there’s circumstantial evidence that points the finger elsewhere.
Ashley keen to keep think-time
October 15 - 21, 2007
AS THE ambitious Apex Minerals hits more gold at Wiluna and initiates drilling south of Jubilee Mines’ money printing Cosmos nickel operations, well-performed managing director Mark Ashley remains on the lookout for opportunities but cognizant of ensuring management and staff aren’t overloaded and have space to “think”.
Perilya search continues
October 15 - 21, 2007
UNDEMANDING valuation multiples aren’t likely to be helping Perilya Mines in its stated-hunt for an acquisition or merger, with the company undoubtedly hoping the market’s search for value and related increased broker coverage will improve the hitting power of its scrip.
Straits back on acquisition path
October 8 - 14, 2007
STRAITS Resources will position itself for further acquisitions by restructuring its debt facilities after it closes out $A90 million of out-of-the-money copper hedges tied to its expanding Tritton copper operation in New South Wales.
Wright provides Paris score update
October 8 - 14, 2007
FRONTING your banker with yet another cost increase for a project that’s sat stymied in the starting blocks for the best part of two years wouldn’t be an especially sought after task for a company director, though there could be worse times to be doing it than in Paris during the rugby world cup.
Image not yet clear
October 8 - 14, 2007
ANOTHER month, another purchase of shares in mineral sands hopeful Image Resources by the company’s managing director, George Sakalidis. Which is what you’d expect from someone who believes they’ve got a world class find on their hands. The thing is, neighbour Iluka Resources hasn’t batted an eyelid at the claim, and in a sector where market share equals pricing power, that would seem a tad bewildering.
Marengo low on peer scale
October 8 - 14, 2007
MARENGO Mining Ltd is a long-shot punt on copper prices and China’s demand for the metal, but will be in good company if it can get a secondary listing in Toronto early next year, according to Shaw Stockbroking.
Heaps of pluses
September 24 - 30, 2007
MURRIN Murrin’s proposed heap leach project could potentially cost a whole lot more than some of the lower capital cost estimates that floated around the market last year, but Peter Johnston, the chief executive of 60% owner Minara Resources, maintains that such estimates were merely guesstimates and that the scope of work has significantly changed following operation of the demonstration plant.
Getting the message
September 24 - 30, 2007
JUST in case non-North American-based resource companies harbour any illusions as to their profile in the grand scheme of things in the investment world, consider the case of Centamin Egypt.
Reading the signs
September 24 - 30, 2007
THE China story lessens comparisons between commodity markets and aggressive US Federal rate cuts in 1987 and 2007. But it does appear current risks are positively asymmetrical for miners – at least in the short term.
The best of times, the worst of times
September 17 - 23, 2007
GIVEN current metal prices and most forecasts for the rest of the decade, the situation for mine developers would intuitively seem very bright. But that’s so long as said developers have got mine permitting and fiscal regimes in place, as well as an A-team expeditiously managing a fixed-cost construction that was priced ... last year. In the real world though, it seems most would-be miners have got their work cut out for them.
Manganese war heats up
September 17 - 23, 2007
IT’S BEEN billed as Gilbertson vs Kiernan vs Bogolyubov vs anyone else who wants to step into the ring, but as Consolidated Minerals chief Rod Baxter has been arguing the real star of the show is Woodie Woodie, which means the current $A1 billion asking price for ConsMin is steep.
Golden opportunities
September 10 - 16, 2007
LOOKING for some global leverage to gold outside the majors and the handful of emerging billion dollar-plus mid-cap producers? Successful explorers and those closing in on production or expansions represent obvious candidates.
Emperor's new clothes - coming soon
September 10 - 16, 2007
GET set for something big to happen at Emperor Mines. That seems the obvious conclusion to be drawn from the company’s imminent divestment of the Tolukuma gold mine in Papua New Guinea.
Sentiment weighs down Mineral Sands
September 10 - 16, 2007
DESPITE the backing of the Keith Liddell and Robert Champion de Crespigny-led Mineral Securities, Australian junior explorer Mineral Sands Ltd has got away to a less than inspiring start to publicly listed life.
Marengo to push for rail funding
September 10 - 16, 2007
MARENGO Mining Ltd may need the benefit of a major reversal of attitudes toward Papua New Guinea’s political and economic settings, and governance standards, by the World Bank or another potential backer of the country’s first significant internal railway to help shift a big component of its proposed $US1.1 billion Yandera copper-molybdenum project off its balance sheet. Accordingly, the corporate minnow is factoring in the full capital cost of a railway into its bankable feasibility study.
Bank lashes iron majors
September 3 - 9, 2007
GIVEN the cash BHP Billiton and Rio Tinto have been rolling in of late, criticism of the performance of the two company’s key iron ore divisions might seem churlish. But from a strategic point of view, lost market share and the sub-market iron ore prices achieved by the two, suggests any criticism bears closer scrutiny – especially in the case of Rio.
Sally Malay aims higher
September 3 - 9, 2007
DESPITE what many consider the precipitous outlook for nickel, Sally Malay Mining aims to continue to please its owners by significantly increasing output at its two production centres over the next couple of years.
Staying calm ... under fire
August 27 - September 2, 2007
THE BBC’s “Guide to Comedy” describes the classic Dad’s Army line “Don’t panic Mr Mannering” as “perversely alarming”. It seems a particularly apt characterisation of the credit crunch backdrop facing commodity investors, despite the best calming efforts of investment banks.
Quinn decides not to persevere
August 27 - September 2, 2007
TEN years after he packed his bags at Newcrest Mining, John Quinn has announced he’ll be leaving Perseverance Corp following the difficulties the Victorian gold miner has got itself into developing the Fosterville underground gold operation. The emergence of a predator would now appear one clear possibility.
Nickel flood looms
August 27 - September 2, 2007
YET another mega nickel project has begun looming larger on the horizon with debt financing agreements worth $US2.1 billion executed late last week by Sherritt International Corp for the Ambatovy development in Madagascar.
Bang goes plant cost, schedule
August 27 - September 2, 2007
PETER Richards, chief executive of leading mine explosives supplier Dyno Nobel Ltd, ticked five of the six boxes on the cover page of a presentation wrapping up the company’s 2007 first-half results – an appraisal deemed overly radiant by analysts at UBS and Goldman Sachs JBWere.
Cash is king ... again
August 20 - 26, 2007
COMPANIES with cash enjoy an enhanced position when sector wide sell-offs hit the markets, though whether that translates into hostile bids in an era when unfriendly deals are castigated for destroying value, or merely acts as a catalyst for discussions already underway, remains to be seen.
Mirabela's Canadian tears
August 20 - 26, 2007
MIRABELA Nickel investors out of Canada who backed the big spending company to the tune of $C183 million a mere four months ago will be hoping for a major change in fortune, with the stock having been smashed almost ever since the large equity raising was completed in May.
The underside of 40
August 13 - 19, 2007
BIBLICAL references to the number 40 are many, and if copper miners have the 40 months of $US3 per pound or better currently being predicted by at least one of the big investment banks, they will indeed feel as if they have enjoyed a near-religious experience. As its name suggests CopperCo is one such company set to enjoy the good times, though it is noteworthy that it’s not leaving everything in the lap of the gods.
Platinum potential underlined
August 13 - 19, 2007
ROUTED markets last week showed little interest in emerging platinum producer Platmin on news that Xstrata was paying $US1 billion for new independent PGM miner Eland Platinum. However, continuing M&A in the small but lucrative world of platinum producers looks a reasonable expectation.
Sojitz bids for tungsten mine
August 6 - 12, 2007
JAPANESE industrial and trading group Sojitz Corporation has moved to secure a stake in the long-term supply of tungsten outside of China with its $C54 million ($US51.3 million) offer for Canadian miner Primary Metals Inc.
Flawless Gem deal
July 30 - August 5, 2007
WHILE there is little to gain in being too effusive about a takeover target until the deal is signed, sealed and delivered, Gem Diamonds will be very confident its operational and marketing form will ensure the Kimberley Diamond Co’s struggling Ellendale operation turns out to be very nice earner indeed for the London-backed raider.
Time to look at Widdup's clock
July 30 - August 5, 2007
LION Selection’s investment guru Robin Widdup is confident the resources sector remains a healthy destination for investors, with the future corporate decisions of the likes of Rio Tinto seen as key indicators of the sector’s continuing well being.
Cameco pressured
July 30 - August 5, 2007
INVESTMENT bankers and M&A types must smile smugly at times at how easily the media can be used to do their bidding for them, with the recent coverage of uranium heavyweight Cameco Corp looking a possible case in point.
Shutdown brings uncertainty
July 30 - August 5, 2007
THE RISKS today’s globetrotting junior miners take leaving home are again under a spotlight following Canadian company Eldorado Gold Corporation’s announcement earlier this month that it had been ordered to shut down its one-year-old Kisladag heap leach gold operation in western Turkey by August 20.
Bubbling over
July 23 - 29, 2007
GRESHAM Private Equity has added its name to the resources boom stronger-for-longer cheer squad with its investment in underground mining contractor Barminco. But the deal is seen in some quarters as a further sign the mining services sector is becoming a “dot-com bubble”.
Central Africa the new Chile
July 23 - 29, 2007
HALCYON days for copper appear set to continue into the next decade as another investment bank hops onto the red metal bandwagon with forecasts of more than $US3 per pound for the next few years. Short of a dramatic downturn in demand, Central Africa is pointed to as the real key for the metal’s future and, by proxy, miner’s fortunes.
Rio spring sale looms
July 23 - 29, 2007
LOOKING to buy an asset during a once-in-a-generation resources boom? Then step right up and take a look at what’s potentially on offer from Rio Tinto and, more importantly, what you might have to pay to get a piece of the hot mining action.
Cat growth slows
July 23 - 29, 2007
THE WORLD’S largest manufacturer and supplier of construction and mining equipment has jacked its full-year revenue forecast back up despite a continuing slowdown in activity in the US domestic market.
BHPB rides strong demand
July 23 - 29, 2007
VERY strong coking coal output and good levels of iron ore production were among the highlights of a June quarter performance by BHP Billiton that capped off a record year in 2006-07. On the flipside, a strong Australian dollar looks likely to nip earnings in the next couple of years.
Equigold hits Birmian trail
July 16 - 22, 2007
WELL performed, cashed up gold miner Equigold has made it clear it intends being a corporate player in Canadian-dominated West Africa, with growing market support for the company in recent times reflecting the new development underway at the quality Bonikro project in Cote d’Ivoire.
In no hurry to change
July 16 - 22, 2007
BUREAUCRATIC decision-making in Thailand continues to be an inordinately slow work in progress, though on the plus side, the likes of Kingsgate Consolidated should be reassured by the likelihood that any new government is not expected to change the investment parameters.
Hecla eyes rest of Greens Creek
July 16 - 22, 2007
NORTH America’s oldest precious metals miner has confirmed it is interested in buying Rio Tinto’s 70% stake in the Greens Creek silver-gold-zinc-lead mine should it become available. A Rio divestment has been speculated as the major seeks to reduce its gearing post the Alcan transaction.
Ox may move in Rio carve-up
July 16 - 22, 2007
RIO Tinto’s Northparkes block cave copper-gold mine in New South Wales could prove a tempting target for Oxiana should the major decide to divest the operation in the wake of its acquisition of Alcan and its stated aim to reduce its debt.
Rough diamond's lost sparkle
July 16 - 22, 2007
WHATEVER happens on the corporate front at Kimberley Diamond Co (KIM), the Ellendale production centre in northern Western Australia looks a very tough, low margin proposition based on recent operating numbers.
Releasing the brake
July 9 - 15, 2007
JUST about everyone else in the gold space seems to be doing it, and the numbers evidently look totally compelling for one of the real kings of the hedging caper, Newcrest Mining, to now follow suit.
Wheel of fortune
July 9 - 15, 2007
AS THE potential for the uranium spot price to hit $US200 per pound next year continues to be flagged by investment banks, arguments for a long-term low of $US25/lb provide a sobering riposte to those who talk of new paradigms and the like.
Extra latitude
July 9 - 15, 2007
THE timing could not have been better. In the same week that heavyweight Teck Cominco was buying Aur Resources and describing Chile as “the best country for mining and long term growth”, the ambitious copper miner Tamaya Resources added significantly to its Chilean portfolio by acquiring copper assets from AIM-listed Latitude Resources.
Confessions of a bull
July 9 - 15, 2007
TWENTY-five things BHP Billiton CEO elect Marius Kloppers reportedly commented on to London-based analysts at investment bank UBS recently:
Angostura funding kick
July 9 - 15, 2007
GREYSTAR Resources Ltd has raised $C39.6 million for development of the Angostura gold-silver project in north-eastern Colombia via a private placement of eight million shares at C60c through a syndicate led by RBC Capital Markets.
Asleep at the wheel
July 2 - 8, 2007
BHP Billiton and Rio Tinto stand accused of fiddling while Rome burns, with the aggressive response of competitors to high commodity prices putting the two majors’ pre-eminent positions in the sector at long-term risk.
SOG value is evident
July 2 - 8, 2007
THE dark years spent convincing institutions of the merits of investing in mining are long gone for Denver-based private equity firm Resource Capital Fund (RCF), though the challenge of finding value is conceivably tougher these days given the rise in commodity and equity prices.
Dual focus
June 25 - July 1, 2007
DUAL-listed Western Areas appears cognoscente the nickel-space in Canada is wide open in terms of market opportunity, and that the rewards on offer are likely to be especially rich for any junior able to snare a significant local Canadian discovery. Corporate activity is similarly on the agenda.
Rejuvenating Wiluna
June 25 - July 1, 2007
THE mine that has been a flea ridden hound in recent times finally looks to have found a loving home where it can get the attention it requires and, in particular, a decent feed.
Running low on relevance
June 25 - July 1, 2007
GOLD equities are on notice to significantly lift their game if they want to continue to attract investor interest in an investment world that is increasingly running out of patience, not to mention reasons, to invest in them.
Iron wagon to keep rolling
June 25 - July 1, 2007
A PILBARA visit has underlined the robust earning and expansion potential of Rio Tinto’s most important business to Deutsche Bank. It believes Rio Tinto Iron Ore (RTIO), even without spreading its wings in Guinea, Brazil or India, could be a $US100 billion business by 2015.
Nickel exploration goes above ground
June 18 - 24, 2007
WILL the expected sharply falling and more rational nickel price ahead be the catalyst for either BHP Billiton or the big Russian bear Norilsk to grab control of a junior they both would likely covet?
Newcrest-Lihir marriage a 'compelling' union
June 11 - 17, 2007
NEWCREST Mining Ltd is trying to acquire a porphyry deposit in Fiji and has compelling reasons to both buy out its hedging and consider merging with the only other Australian sector heavyweight, Lihir Gold.
Monarch lists in Dubai
June 11 - 17, 2007
MICHAEL Kiernan has opened a new investor support window for his gold vehicle, Monarch Gold Mining Company Ltd, as part of a plan to create a significant Australian gold mining house. Monarch’s chairman wants 15% of the company’s shareholders to be based in the United Arab Emirates, where it has become the third international gold group to list on the Dubai International Financial Exchange (DIFX).
Gold's lost lustre
June 4 - 10, 2007
WONDER no more why a gold stalwart such as Newmont Mining Corporation is looking at iron ore in West Africa and diamonds in Canada. Or why Barrick Gold Corporation chairman Peter Munk recently stated the company may consider expanding further into other non-gold precious or base metals production. Gold stinks!
Bulk prices up-rated
June 4 - 10, 2007
BUY BULK. That’s the latest signal from Citigroup, with the bank further upgrading its bullish rating on iron ore and coal after posting a none-too-retiring appraisal only two months ago.
Iluka holds the line
June 4 - 10, 2007
BEING lopped from the S&P/ASX 100 index and copping a dreaded “sell” recommendation from a blue chip broker all in the space of the past week illustrates the tough times at Iluka Resources Ltd. Management at the mineral sands heavyweight, however, remain confident.
Nickel costs heading north
June 4 - 10, 2007
THE nickel price could “easily halve” in coming months according to Citigroup, however, the structure of the industry is improving leading the investment bank to increase its long term price by 50% to $US6 per pound.
Fosterville needs to deliver
May 28 - June 3, 2007
PERSEVERANCE Corp may be labouring behind schedule at its Fosterville gold development in Victoria, but an analyst positive on the stock has maintained his faith after visiting the operation earlier this month.
Lean and mean
May 21 - 27, 2007
CRITICS can snipe that Xstrata’s bet on strong commodity prices has thus far proved a spectacular success, and that its relationship with Glencore has allowed it freedoms available to very few for growing a mining business. Fans though attribute Xstrata’s success to the use of a different business model and strong entrepreneurial streak that clearly sets it apart from its peers.
Going north
May 21 - 27, 2007
FROM a headline perspective, it looks expensive. But the evidence is compelling that a primary listing on the Toronto Stock Exchange (TSX) is the best way to go to ensure full company stock value, according to gold-copper growth company OceanaGold.
Varied approaches lead to Dublin
May 21 - 27, 2007
THE Merrill Lynch shindig in Dublin this month featured optimistic majors, 320 somewhat sceptical institutional investors, and different approaches to growing a mining business, including a “significant change of course” for Anglo American.
Pigs are flying
May 21 - 27, 2007
NICKEL producers revelling in the astounding price environment they find themselves with have been given another significant warning by the budding nickel pig iron industry.
Bucyrus ready for battle
May 14 - 20, 2007
BUCYRUS International Inc president Tim Sullivan’s promise that “the best is yet to come” after an impressive 2006 for the American mining equipment manufacturer will be fulfilled if China’s coal industry continues to open up to foreign suppliers, the US coal market recovers and Canada’s oil sands investment materialises. They are three big “ifs” Sullivan didn’t care to ponder too far into the future as he basked last week in the glow from the company’s $US731 million acquisition of Germany’s DBT.
Monarch offers gold to eastern kingdom
May 14 - 20, 2007
EMERGING Australian gold producer Monarch Gold Mining Company Ltd has confirmed it is exploring the possibility of listing on the Dubai International Financial Exchange (DIFX). As reported in HighGrade previously (March 8, 2007), Monarch is aiming to shift a substantial part of its support base to the United Arab Emirates.
Funds are still flowing
May 14 - 20, 2007
THE market appetite for growth stories in the resources sector continues unabated, enabling copper miner Anvil Mining and gold producer St Barbara Mines to complete big capital raisings hot on the heels of Mirabela Nickel’s $C183 million placement earlier this month.
Silver jubilee
May 7 - 13, 2007
NORM Seckold will hold nearly 6% of the world’s biggest silver miner upon completion of