12/15/2007
www.insidemetals.com
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Vol
2, Issue 24 |
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In
This Edition...
Precious
Metals Market Update Geopolitical View
Gold
Producer News
Website Updates
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This
newsletter will be published next on January 5, 2008.
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IN
THIS EDITION OF INSIDEMETALS
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In
this edition of the InsideMetals Newsletter we'll take
a look at third quarter 2007 financial and operating
summaries for Gold Producer Stocks, precious metals
trends, Geopolitical issues, gold producer news and
recent website updates.
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| In
This Issue |
| Precious
Metals Markets Update |
| 2007
Silver Nevada Miner Bar |
| Geopolitical
View |
| Whitney
& Whitney Inc. |
| NYSE
Gold Producer News |
| AMEX
Gold Producer News |
| NASD
Gold Producer News |
| InsideMetals.com
Website Updates |
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PRECIOUS
METALS MARKET UPDATE
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Gold
closed at $800.70/oz (London Fix) on December
13, 2007. This is less than 1.0% higher than the
$794.50/oz (London Fix) closing price on November 29,
2007, when data for the previous newsletter was
gathered.
Silver closed
at $14.61/oz (London Fix) on December 13, 2007. This
is a 1.6% increase from the $14.38/oz (London Fix)
closing price on November 29, 2007.
Platinum
closed at $1477.00/oz (London Fix) on December 13,
2007. This is a 2.4% increase from the $1443.00/oz
(London Fix) closing price on November 29, 2007.
Palladium
closed at $347.00/oz (London Fix) December 13, 2007.
This price is 1.0% higher than the $343.50/oz (London
Fix) closing price on November 29, 2007.
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2007
Silver Nevada Miner Bar - 99.9% Pure 5 Troy
Ounces of American History
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GEO
POLITICAL VIEW
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 THIRD
QUARTER 2007 GOLD PRODUCER STOCK'S FINANCIAL &
OPERATING SUMMARY
All of the Gold Producer Stocks included in the
InsideMetals.com have now reported their 3rd quarter
2007 results. The results can largely be summarized
according to the stock exchange where the companies
trade. Companies listed on both the NYSE and NASDAQ,
have been profitable. Gold Producer Stocks listed on
the AMEX have largely been unprofitable.
The following tables summarize the results.
The NYSE and NASDAQ Gold Producer Stocks were largely
profitable because they sold a lot of ounces at high
bullion prices in the 3rd quarter. The NYSE Gold
Producer Stocks tend to have production from more than
one mining operation, often in multiple regions of the
world. Having production from more than one region can
insulate a company from crippling geopolitical
impacts. The NASDAQ companies also reported strong net
earnings and have multiple operations and are well
capitalized.
The average price of gold in the 3rd quarter of 2007
was $681.12 per ounce. The average price of silver in
the 3rd quarter of 2007 was $12.70 per ounce and the
average price for platinum/palladium was a combined
$1,604.27 per ounce. These metal prices compare,
respectively, to the 3rd quarter of 2006 average price
of $621.52 for gold, $11.70 for silver, and $1,539.04
for combined platinum/palladium. All of the above
prices were historical London Fix monthly averages for
the respective quarters.
For the NYSE Gold Producer Stocks, production of gold,
silver and platinum/palladium in the 3rd quarter of
2007 was down from the year-earlier period. For the
AMEX and NASDAQ Gold Producer Stocks, production of
gold, silver and platinum/palladium in the 3rd quarter
of 2007 was up from the year-earlier period.
Refer to the table below for production details.
The table above indicates that the NYSE Gold Producer
Stocks had declines in production, while the AMEX and
NASDAQ Gold Producer Stocks had significant gains.
These significant gains were largely the result of a
couple AMEX companies expanding production at existing
mines, and a 40% increase in silver production by a
NASDAQ company.
The InsideMetals.com Gold Producer Stocks had
increased revenue in the 3rd quarter of 2007, as
indicated in the table below, but only the NYSE Gold
Producer Stocks had increased average earnings
(18.3%). The AMEX and NASDAQ Gold Producer Stocks had
increased revenue as a result of high metal prices.
The average increase for the AMEX was a significant
1,712%. The average increase for the NASDAQ was 22.4%,
but the earnings for both of these exchanges were down
significantly from the year-earlier quarter. Refer to
the table below for details.
The mining sector in general has suffered a decrease
in earnings in the 3rd quarter largely as a result of
the increase in the cost of mining; especially as a
consequence of high fuel and materials costs. The NYSE
Gold Producer Stocks have been able to weather the
rise in costs better because of the scale of their
operations.
On a year-to-date basis, an equal dollar amount
invested in each of the InsideMetals.com, NYSE Gold
Producer Stocks would have returned a gain of 16.8%;
the AMEX Gold Producer Stocks would have resulted in a
-11.3% gain; and the NASDAQ Gold Producer Stocks would
have resulted in a 22.1% gain.
Paid subscribers to InsideMetals.com can view the
Performance Tables to see how the included individual
companies have performed year-to-date, and over 2005
and/or 2006 to date. The Performance Tables also
include a Ranking Number for each company. The
companies with positive ranking numbers were
profitable in 2006 based on audited financials, and
those with greater positive ranking numbers should
result in superior gains over time.
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Whitney
& Whitney Inc. - A Nevada Based Management
Consulting Firm
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NYSE
GOLD PRODUCER NEWS
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 December
3, 2007: Gold Fields Ltd (GFI) completed the
sale of its Venezuelan assets to Rusoro Mining Ltd.
GFI received $180 million in cash and 140 million
Rusoro shares, or about 37% of the company's
outstanding shares. GFI valued the deal, at about $532
million which they first announced in October 2007.
December 5, 2007:
Iamgold Corp (IAG) announced results from 5 drill
holes on the ongoing drill program at the Westwood
project, an advanced stage exploration project located
within the Company's Doyon mine property in Northern
Quebec. These results include intercepts at a vertical
depth of approximately 7,454 feet in drill hole
R14281B-07, which is 2600 feet deeper than
mineralization previously intersected. This hole was
specifically planned to test the depth potential and
includes 33.0 feet averaging 0.335 ounces per ton of
gold and 16.5 feet averaging 0.671 ounces of gold.
These results are significant given the previously
delimited 3.3 million ounce resource was found above
4,920 feet. Full results can be seen in the press
release.
December 10, 2007:
Barrick Gold Corp (ABX) has completed the acquisition
of the Kainantu gold mine from Highlands Pacific
Limited. The acquisition includes over 1,800 square
miles of prospective exploration licenses in Papua New
Guinea, from Highlands Pacific Limited. The
transaction was previously announced on October 25,
2007, when both companies entered into a purchase and
sale agreement. ABX now plans to start a comprehensive
exploration program on this land that includes a
number of advanced porphyry copper-gold and epithermal
gold targets and review opportunities at the Kainantu
mine.
December 10, 2007:
Coeur d'Alene Mines (CDE) announced shareholders have
approved the proposal to acquire Palmarejo Silver and
Gold Corporation and Bolnisi Gold NL. The Palmarejo
project is expected to begin production in early 2009
at an estimated annualized rate of10.4 million ounces
of silver and 115,000 ounces of gold per year at a
cash costs, net of gold bi-product, at an estimated
$0.41 per ounce of silver and an initial mine life of
nine years.
December 12, 2007:
Hecla Mining Co (HL) has made a public offering of
1.75 million shares of its mandatory convertible
preferred stock for $100.00 per share. The Preferred
Stock will be converted into shares of HL common stock
on January 1, 2011. The underwriters have an option to
purchase up to an additional 262,500 shares of
Preferred Stock to cover over-allotments, if any. HL
currently intends to use the net proceeds from this
offering for general corporate purposes, possible
acquisitions of assets, properties, and mining
projects.
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AMEX
GOLD PRODUCER NEWS
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 November
29, 2007: Glencairn Gold Corp. (GLE) announced
that it has changed its name to Central Sun Mining
Inc. (SMC), and implemented a share consolidation on a
1 to 7 basis. Refer to the press release for details
of common stock issuance and purchase warrants.
December 13, 2007:
Apollo Gold Corp (AGT) has provided and update on its
Black Fox Project. AGT has completed 39 surface core
holes and 22 underground holes for a total of 28,465
feet drilled in connection with the infill core
drilling program at Black Fox. Assays for 5 core holes
have been completed or partially completed to date.
Several 3 ft. intercepts have provided assays
exceeding 0.120 ounces of gold per ton. Full results
can be seen in AGT's press release.
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| NASDAQ
GOLD PRODUCER NEWS |
No press releases were issued.
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INSIDEMETALS.COM
WEBSITE UPDATES
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 As
per the Glencairn Gold Corp. press, the website will
be updated with the new company name: Central Sun
Mining Inc.
QUARTERLY SUMMARY:
The 3rd quarter financial and operating data for all
of the InsideMetals Gold Producer Stocks has been
compiled into a concise table that presents quarterly
Revenue, Net Earnings, Precious Metals Production, and
Precious Metals Sales (ounces). The table also reports
the previous quarter's results, the year-earlier
quarter, and the percent change from the year earlier
quarter. This table allows investors to quickly assess
the quarterly performance of all of the included
companies. The value of this compilation is that by
the time the quarterly data has been released, the
current quarter may be one-third or more over, and
companies that were profitable in the reported
quarter, have a good chance of being profitable in the
upcoming quarter; especially if gold prices are
rising. Companies that were profitable in Q3'07, with
a 3rd quarter average gold price of $621.50, have an
excellent chance of being profitable in Q4'07, since
gold in the 4th quarter averaged $755 for October and
over $800 for December to date.
These Quarterly Summaries will be soon available for
online purchase. Details will be presented in the
website.
GOLD & MINERAL
EXPLORATION SHOPPING MALL: On December 5, 2007,
InsideMetals.com announced the addition of 4 Junior
Gold Companies to its gold and Mineral Exploration
Shopping Mall. The companies are listed by their stage
of development (prospector, Explorer, and Developer)
and by stock exchange where they are traded.
Gold
Explorers
Romios Gold Resources Inc., listed on the
Toronto Venture Exchange, is actively exploring for
gold and copper deposits in Canada.
Queenston Mining Inc.,
listed on the Toronto Stock Exchange, is actively
exploring for gold and copper deposits in Canada.
Gold
Prospector
Bayfield
Ventures Corp., listed on the Toronto Venture
Exchange is actively exploring for gold deposits in
Canada.
Logan Resources Ltd.,
listed on the Toronto Venture Exchange is actively
exploring for gold deposits in Canada.
MINERAL PRODUCER
STOCKS: On December 11, 2007, InsideMetals.com
announced its new website information content area
featuring diversified mineral and metal producer
stocks listed on U.S. and Canadian stock exchanges.
Mineral Producer Stocks generate a majority of their
revenue from non-precious metals resources such as
base metals, coal, uranium, and diamonds. These
companies are often large, diversified, international
mining companies that trade on numerous world stock
exchanges.
The 4 newly featured companies are described below:
Anglo American Plc:
listed on the Nasdaq Stock Exchange, produces Copper,
Gold, Iron, Nickel, Platinum, Zinc, Coal, and
Diamonds.
BHP Billiton Ltd:
listed on the New York Stock Exchange, produces
Aluminum, Copper, Gold, Nickel, Uranium, Coal,
Diamonds, and Oil.
Freeport McMoran
Copper & Gold Inc: listed on the New York
Stock Exchange, produces Copper, Gold, and Molybdenum.
Rio Tinto Plc:
listed on the New York Stock Exchange produces
Aluminum, Copper, Gold, Iron Silver, Molybdenum,
Uranium, Coal, and Diamonds.
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We
hope you have enjoyed our newsletter.
This newsletter will be published next on January 5,
2008.
Sincerely,
InsideMetals
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