01/05/2008
www.insidemetals.com
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Vol
3, Issue 1 |
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In
This Edition...
Precious
Metals Market Update Geopolitical View
Gold
Producer News
Website Updates
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| Dear
Newsletter Subscriber, |
The
newsletter will be published next on January 26, 2008.
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IN
THIS EDITION OF INSIDEMETALS
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In
this, this first edition of the 2008 InsideMetals
Newsletter, we'll take a look at high gold and oil
prices and the weak dollar, 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 $858.85/oz (London Fix) on January 3, 2008.
This is 7.3% higher than the $800.70/oz (London Fix)
closing price on December 13, 2007, when data for the
previous newsletter was gathered.
Silver closed
at $15.38/oz (London Fix) on January 3, 2008. This is
a 5.3% increase from the $14.61/oz (London Fix)
closing price on December 13, 2007.
Platinum
closed at $1535.00/oz (London Fix) on January 3, 2008.
This is a 3.9% increase from the $1477.00/oz (London
Fix) closing price on December 13, 2007.
Palladium
closed at $370.00/oz (London Fix) January 3, 2008.
This price is 6.6% higher than the $347.00/oz (London
Fix) closing price on December 13, 2007.
For the Quarter Ended
December 31, 2007
Gold closed at $836.50/oz (London Fix) on
December 31, 2007. This is 12.7% increase from
$742.50/oz (London Fix) closing prices on October 1,
2007 the first day of the quarter.
Silver closed
at $14.76/oz (London Fix) on December 31, 2007. This
is a 7.0% increase above the $13.77/oz (London Fix)
closing price on October 1, 2007.
Platinum
closed at $1529.00/oz (London Fix) on December 31,
2007. This is 11.0% higher than the $1377.00/oz
(London Fix) closing Prices on October 1, 2007.
Palladium
closed at $370.00/oz (London Fix) on December 31,
2007. This is 5.1% higher that the $352.00/oz (London
Fix) on October 1, 2007.
For the Year Ended
December 31, 2007
Gold closed at
$836.50/oz (London Fix) on the last trading day of the
year December 31, 2007. This is 30.8% increase from
$639.75/oz (London Fix) closing prices on January 2,
2007 the first trading day of the year.
Silver closed
at $14.76/oz (London Fix) on December 31, 2007. This
is a 13.5% increase above the $13.01/oz (London Fix)
closing price on January 2, 2007.
Platinum
closed at $1529.00/oz (London Fix) on December 31,
2007. This is 34.7% higher than the $1135.00/oz
(London Fix) closing Prices on January 2, 2007.
Palladium
closed at $370.00/oz (London Fix) on December 31,
2007. This is 10.8% higher that the $334.00/oz (London
Fix) on January 2, 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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 HIGH
GOLD AND OIL PRICES AND A WEAK DOLLAR
Oil briefly hit a $100 per barrel on Wednesday,
January 2, 2008, on the New York Mercantile Exchange
before closing at $99.62 per barrel. This was the
highest close ever. On the same day gold and platinum
soared to record highs, beating their previous highest
level set 28 years ago.
Agricultural commodities have also risen to multi-year
highs, and have pushed up the price of fertilizer.
John Nadler, Kitco Bullion Dealers' analysts suggests
that funds may have made moves into bullion as a
result of unrest in Pakistan and investor nervousness
about financial markets which have pushed down the
U.S. dollar.
The following chart displays the movement of gold
bullion vs. the Euro/US$ over 2007.
Bullion prices tend to lead currency prices by
about a day. A chart of the 3rd quarter (below)
reflects a period of bullion price consolidation
from early November through mid-December, then a
strong price increase through the end of the
quarter, and to record highs in early January.
With high energy and agricultural prices, a
weakening dollar and geopolitical instability,
gold prices should continue to rise. The easy to
find and develop oil and metals deposits are
dwindling, and gold production is declining. South
Africa, long the world's leading gold producing
country is expected to cede that position to
China. For the first 9 months of 2007, China's
gold production totaled 211 tons which was just
behind South Africa's 212.5 tons.
As the price of oil surged, traders turned to gold
as a hedge against inflation, and several
companies made significant gains on Wednesday,
January 4, 2008. Barrick Gold, Goldcorp, and
Kinross Gold, all InsideMetals.com New York Stock
Exchanged listed Gold Producer Stocks had gains in
the range of 8 to 9.5% in their share price.
An equal dollar investment in all the
InsideMetals.com listed Gold Producer Stocks by
exchange in 2007 would have produced the following
gains:
- NYSE Gold Producers Stocks: 20.9%
- AMEX Gold Producer Stocks: 19.5%
- NASDAQ Gold Producer Stocks: 36.1%
Paid subscribers to InsideMetals.com can view the
stock price performance of all of the listed gold
Producer Stocks, year-to-date from 2005, 2006, and
2007.
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to a world-wide targeted audience
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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
19, 2007: Barrick Gold Corp (ABX) has acquired
40.7 million common shares of Arizona Star Resource
Corp. (AZS). These shares were validly deposited with
ABX by AZS shareholders responding to ABX's offer to
acquire all of the outstanding shares of Arizona Star.
These shares represent over 94% of the common shares
of Arizona Star on a fully diluted basis. ABX's
intention is to acquire all outstanding Arizona Star
common shares not tendered to the offer by way of a
compulsory acquisition. Arizona Star owns a 51%
interest in the Cerro Casale deposit in the Maricunga
district of Chile; Kinross (KGC) owns the remaining
49%. Cerro Casale is one of the world's largest
undeveloped gold and copper deposits.
December 21, 2007:
Coeur d'Alene Mines (CDE) completed the acquisitions
of Bolnisi Gold NL and Palmarejo Silver and Gold
Corporation; thus creating the world's leading silver
company. Silver production by the merged company is
expected to nearly triple to 30 million ounces. The
Palmarejo Project is expected to begin production in
2009 at a yearly rate of approximately 10.4 million
ounces of silver and 115,000 ounces of gold, with an
estimated cash cost of $0.41 per ounce of silver net
of by-product credits and an initial mine life of nine
years. Exploration continues on the large land package
with measured and indicated mineral resources of 88.7
million silver ounces and 1.0 million gold ounces and
an additional 61.4 million ounces of inferred silver
mineral resources and 0.7 million inferred gold
ounces.
December 21, 2007:
Goldcorp Inc (GG) has completed the transaction with
Kinross Gold Corp (KGC) to acquire KGC's 49% share of
the Porcupine gold mines in northeastern Ontario and
its 32% share of the Musselwhite gold mine in
northwestern Ontario. In exchange, KGC received GG's
50% stake in the La Coipa silver-gold mine in Chile
and $200 million in cash.
January 2, 2008:
Harmony Gold Mining Ltd (HMY) has appointed Graham
Briggs as Chief Executive Officer (CEO) of HMY with
effect from January 1, 2008.
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AMEX
GOLD PRODUCER NEWS
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 December
20, 2007: Golden Star Resources Ltd (GSS) has
appointed Mr. Tom Mair as Interim President and CEO
effective January 1, 2008. Mr. Peter Bradford will be
stepping down as President and CEO of the Company. Mr.
Mair has more than 25 years of international
experience in the resource industry, and prior to
joining GSS as CFO, he was employed by Newmont Mining
Corp. in a number of key roles.
December 20, 2007:
Northgate Minerals Corp (NXG) has announced assay
results from 13 additional drill holes from the
Young-Davidson property near Matachewan, Ontario.
Drilling continues to produce outstanding results,
including drill hole YD07-42B, on the eastern flank of
the Lower Boundary zone, which intersected 1.365
ounces of gold per ton over 30 feet. Full results can
be seen NXG's press release.
December 31, 2007:
Gammon Gold Inc (GRS) announced that they anticipate
achieving over a 6.0% increase in fourth quarter
production over third quarter results. GRS was on
target to meet a 10-15% production increase in the
fourth quarter until a temporary labor interruption
was experienced between Christmas and New Years at
their Ocampo mine in Chihuahua. Regardless of the
stoppage GRS was still able to achieve an increase in
production in the fourth quarter.
January 3, 2008:
Endeavour Silver Corp (EXK) has appointed W.R. (Bill)
Franklin, CGA, to the position of Chief Financial
Officer (CFO). Mr. Franklin replaces John Watkins who,
due to family reasons, has submitted his resignation,
effective January 25, 2008.
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| NASDAQ
GOLD PRODUCER NEWS |
 December
18, 2007: Drdgold Ltd (DROOY) announced a new
SAMREC compliant Measured Resource for the Ellensburg
Tailings Complex joint venture (ERGO) JV) with
Mintalis Ltd. of Australia. SAMREC is the South
African Code for reporting Mineral Resources and
Mineral Reserves. The ERGO JV was established to
explore, evaluate and process approximately 1.87
billion tons of surface gold, uranium and sulfur
bearing tailings on the East and Central Rand
Goldfields of South Africa. The ERGO JV will refurbish
and utilize the full ERGO plant which previously
produced significant quantities of gold, uranium and
sulfuric acid. The new resources estimate found 189.1
million tons of ore at an average grade of 0.009
ounces of gold per ton yielding 1.67 million ounces of
gold.
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INSIDEMETALS.COM
WEBSITE UPDATES
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 Paid
Subscriber's Resources: The Business Summaries
for AngloGold Ashantii Ltd (AU), and Central Sun
Mining Inc. (SMC) have been updated on the website to
reflect their recently reported operating and
financial results for 3rd quarter 2007. SMC was
formerly known as Glencairin Gold Corp.
Paid subscribers can view this update by clicking the
"All Gold Stocks" button bar under the
"Subscribers Resource" area on the left
margin of the website. This will take the user to the
Index of listed gold companies where the subscriber
can then use the "Quick Nav Bar" on the
Index Page and then click on "B" to view the
Business Summary for the requested company.
Potential subscribers can learn more about the Reports
and the "Gold Company Quick Nav Bar" by
going to "Tutorials" and clicking on the
"About the Reports Bar." Clicking on the
"How to use InsideMetals" bar in the
Tutorials section will explain many of the useful
features that InsideMetals.com offers to both Free and
Paid Subscribers.
Gold & Mineral
Exploration Shopping Mall: Since the last
newsletter, InsideMetals.com announced that it added 8
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(s) where they are
traded (NASDAQ, American Stock Exchange,
Over-the-Counter Bulletin Board, Toronto Exchange, and
Toronto Venture Exchange).
The companies added
include:
Gold
Explorers
Axmin Inc.: On December 11, 2007, Axmin
announced a 25% increase in the gold resource
identified at its Kofi Gold Project in western Mali
during January through July 2007 drilling program.
Indicated ounces have more than doubled to 293,000
ounces; Inferred ounces remained essentially unchanged
at 368,000 ounces.
Cassidy Gold Corp.:
On December 4, 2007, Cassidy Gold announced that
drilling resumed at the company's 100% owned Kouroussa
Gold Project in Guinea, West Africa.
Luiri Gold Ltd.:
On December 11, 2007, Luiri Gold announced a C$3
million private placement to support its exploration
program at Luiri Hill project in Zambia, and to pursue
acquisitions.
Gold
Prospector
Riverstone
Resources Inc.: On December 12, 2007,
Riverstone Resources reported positive Phase 3
drilling on its Kao Exploration Permit in Burkina Faso
in West Africa that continues known areas of
significant near surface mineralization.
Mineral
Prospector:
Alberta Star
Development Corp.: listed on the Toronto
Venture Exchange. On December 5, 2007, Alberta Star
announced the intersection of 1.11% copper over 36.7
meters at its Contact Lake discovery in the NWT.
Mineral
Explorers:
Independent Nickel
Corp.: listed on the Toronto Stock Exchange. On
December 6, 2007, Independent Nickel announced the
filing of a positive pre-feasibility study for
reopening its Lynn Lake, Manitoba, Nickel mine.
Playfair Mining Ltd.:
listed on the Toronto Venture Exchange. On November 8,
2007, Playfair announced the extension of its Granite
Lake, Newfoundland drilling program into December
based on promising looking tungsten-molybdenum
mineralization.
Selwyn Resources
Ltd.: listed on the Toronto Venture Exchange.
On December 11, 2007, Selwyn announced the expansion
of high grade zinc-lead mineralization in the HC West
deposit of its Don Valley area of the Selwyn project
in the NWT.
The Gold & Mineral Exploration Shopping Mall is
available to all viewers of the website and can be
accessed by clicking on its icon located on the right
side of the website's Home Page. The Gold &
Mineral Exploration Shopping Mall contains the names
of 97 exploration companies and links to each
company's website. The companies are categorized as to
whether they are exploring for "Gold"
(precious metals) or "Other" (copper, lead,
zinc, molybdenum, and/or industrial minerals), and are
classified as Prospector, Explorer, or Developer to
reflect the stage of their project's progress toward
becoming a producing company. The exchanges where the
companies trade at are also listed and linked for easy
access.
The grouping of companies by classification on the
website allows the user to easily compare companies at
comparable stages of development. Some companies are
listed more than once as they trade on multiple
exchanges or they have projects other than precious
metals.
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We
hope you have enjoyed our newsletter.
This newsletter will be published next on January 26,
2008.
Sincerely,
InsideMetals
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