| 04/05/2008
www.insidemetals.com |
Vol
3, Issue 7 |
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In
This Edition...
Precious
Metals Market Update Geopolitical View
Gold
Producer News
Website Updates
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| Dear
Brandon, |
The
newsletter will be published next on April 26, 2008
|
IN
THIS EDITION OF INSIDEMETALS
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In this edition of the
InsideMetals Newsletter, we'll take a look at a first
quarter gold market summary, as well as precious
metals trends, gold producer news and recent website
updates, which includes updates on our InsideMetals
Quarterly Gold Stocks ScoreCard.
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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 $896.50/oz (London Fix) on April 3, 2008.
This is 3.2% lower than the $925.75/oz (London Fix)
closing price on March 20, 2008, when data for the
previous newsletter was gathered.
Silver closed
at $17.15/oz (London Fix) on April 3, 2008. This is a
2.2% decrease from the $17.53/oz (London Fix) closing
price on March 20, 2008.
Platinum closed at $1975.00/oz (London Fix) on April 3, 2008. This is 8.3% higher than the $1823.00/oz (London Fix) closing price on March 20, 2008.
Palladium closed at $437.00/oz (London Fix) on April 3, 2008. This price is 1.6% higher than the $430.00/oz (London Fix) closing price on March 20, 2008.
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| Advertise
to a world-wide targeted audience |
|
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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 FIRST
QUARTER GOLD MARKET SUMMARY
The
recently completed 1st quarter has been volatile, and
there are signs that financial markets are ready to
calm down as the DOW had a strong weekly close in
spite of declining employment numbers. The DOW started
the year at 13,044 and closed the quarter at 12,263,
down 781 points, a 6% decline. The DOW has bounced
back after closing below 12,000 five times and has
gained approximately 312 points since its mid March
quarter low of 11,951. The DOW closed the week at
12,609.
NYMEX Crude Oil opened the quarter at approximately
$95/barrel and closed the quarter at $101.58/barrel, a
change of 1.7%. During the quarter crude dropped to a
low of $85.00/barrel in mid-January, and reached a
high of $110.35 in early March.
Gold opened the year at $840.75/oz, and closed the
quarter at $933.50/oz. (London Fix). During the
quarter gold had a closing high of $1011.25/oz in mid
March. The gold price during the quarter averaged
$926.77/oz. (London Fix). This was approximately
$140.00 an ounce above the average price of gold for
the 4th quarter.
Silver opened the year at $14.93/oz, and closed the
quarter at $17.99/oz. (London Fix). During the quarter
silver had a closing high of $20.92/oz reached in
early March. The silver price during the quarter
averaged $17.68/oz. (London Fix). This was
approximately $3.46 an ounce above the average price
of silver for the 4th quarter.
Platinum opened the year at $1541.00/oz, and closed
the quarter at $2040.00/oz. (London Fix). During the
quarter platinum had a closing high of $2230.00/oz in
early March. The platinum price during the quarter
averaged $1877.30/oz. (London Fix). This was
approximately $429.00 an ounce above the average price
of platinum for the 4th quarter.
Palladium opened the year at $370.00/oz, and closed
the quarter at $445.00/oz. (London Fix). During the
quarter gold had a closing high of $582.00/oz in early
March. The palladium price during the quarter averaged
$424.03/oz. (London Fix). This was approximately
$64.41 an ounce above the average price of palladium
for the 4th quarter.
From the beginning of the year, the U.S. dollar has
declined 8.2% against the euro. Refer to fig. 1 below,
Gold vs. Euro/US$, to view the relationship between
gold and the dollar over the 1st quarter of 2008. The
weakening dollar and rising oil prices contributed to
the strong rise in the price of gold.
Note in the Fig. 1, above the steep decline in the
price of gold that took place on March 17th, as
the markets were rocked following the Bear Stearns
financial crisis and the intervention of the
Federal Reserve.
The above decline of approximately $100 an ounce
in the price of gold should result in buying
opportunities for investors of gold mining
companies. In the previous newsletter the
suggestion was made that InsideMetals.com Gold
Producer Stocks, Barrick Gold Corp., Goldcorp
Inc., Kinross Gold Corp., and Yamana Gold Inc.,
which had declines in the range of approximately
15.6% to 21.2%, as of the close on March 20th
have become undervalued. The table below
shows the gains that have taken place since March
20th.
The above quality Gold Producer Stocks should
continue to advance as precious metals prices
resume their climb. Gold closed up today,
Friday, April 4th at $913.70/oz., and platinum
moved back above $2,000.00/oz. to $2,018.00.
|
Advertise
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
|
 March
31, 2008: Goldcorp Inc (GG) announced the El
Sauzal mine in Mexico has become the first gold mine
in Mexico to be fully certified under the
International Cyanide Management Code for
manufacturing, transporting and using cyanide in the
production of gold. The El Suazal mine is the largest
gold producer in Mexico, producing over 300,000 ounces
in 2007.
April 1, 2008:
Coeur d'Alene Mines (CDE) has started the
commissioning of the San Bartolomé silver mine in
Bolivia. CDE anticipates processing ore shortly, with
the first doré expected to be poured before the
month's end. CDE expects to produce over 6 million
ounces of silver with a cash cost of $4.10 per ounce.
The mine has 153.0 million ounces of silver and an
expected mine life of 14 years.
April 3, 2008:
Silver Wheaton Corp (SLW) announced their proven and
probable silver reserves increased by 239% to 346.4
million ounces as of December 31, 2007. Measured and
indicated resources increased by 244% to 160.2 million
ounces, and inferred resources increased 48% to 416.9
million ounces over the same period. Reasons for
growth during 2007 include the acquisition of 25% of
the life of mine silver production from the Penasquito
Project in Mexico, and 100% of the life of mine silver
production from the Stratoni Mine in Greece. There has
also been reserve and resource growth at all of SLW's
other operations.
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AMEX
GOLD PRODUCER NEWS
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 March
26, 2008: Apollo Gold Corp (AGT) has signed a
non-binding letter of intent where St Andrew will sell
its Stock Mine property, including its mill and
related equipment, infrastructure, laboratory and
tailings facilities, located near Timmins, Ontario, to
AGT for $20 million. The purchase amount will be paid
in two installments; the first installment of $1.5
million to be paid on closing with the balance to be
paid around June 30, 2008. AGT will also be
responsible for the refund to St Andrew of its bonding
commitment at the Stock Mine of approximately $1.2
million. The Stock Mill was in operation until May
2007 and processed, in the past, approximately 1.1
million tons of ore from the Glimmer mine.
March 27, 2008:
Richmont Mining Corp (RIC) and Mountain Lake Resources
Inc. have fulfilled all requirements to exercise the
Option Agreement dated July 13, 1998, with Xstrata
Copper, to acquire a 100% interest in the Valentine
Lake Property, located in Newfoundland. In relation to
Mountain Lake's exercise of the option to acquire
title to the Property, RIC has acquired a 70% interest
in the Property, and Mountain Lake retains a 30%
interest. RIC and Mountain Lake will now explore and
develop the Property on a joint venture basis.
March 28, 2008:
Central Sun Mining Inc (SMC) has been issued full
environmental permitting by the Nicaraguan Government
for the Orosi Mine Project. The permits allow for
construction, operation, and maintenance for the
project which includes process plant upgrade and
tailing management facility. The Orosi Mine is located
68 miles east of Managua. SMC is currently converting
the mine from a heap leach operation to a conventional
milling operation. The Orosi mine is expected to
produce 125,000 ounces of gold per year beginning in
2009.
April 3, 2008:
Eldorado Gold Corp (EGO) released its first quarter
2008 operating results. Since the Kisladag Mine
reopened on March 6, 2008, 27,228 ounces of gold, at a
cash cost of $219 per ounce, have been produced. The
mine has also sold 23,129 ounces generating record
revenue of $22.3 million. Designed production rates
are expected to be reached in the second quarter. The
Tanjianshan Mine in China produced 40,005 ounces of
gold at a cash operating cost of $229 per ounce. Gold
sales for the quarter totaled 50,475 ounces of gold
generating revenue of $46.0 million. EGO is confident
that production levels for the two mines in the first
quarter are on track for the 2008 forecast of 300,000
ounces of gold at a cash operating cost of
approximately $240 per ounce.
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| NASDAQ
GOLD PRODUCER NEWS |
 April
2, 2008: Randgold Resources Ltd (GOLD) reported
that its attributable measured, indicated and inferred
resources rose from 12.55 million ounces at the end of
2006, to 13.5 million ounces in 2007. Proven and
probable reserves increased from 6.29 million ounces
to 7.78 million ounces. The increases are mainly
attributable to continuing exploration at the GOLD's
Loulo complex in Mali and at the Tongon project in
Cote d'Ivoire.
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INSIDEMETALS.COM
WEBSITE UPDATES
|
 InsideMetals
Quarterly Gold Stocks ScoreCard: Coming soon,
precious metals investors will be able to purchase an
InsideMetals compilation which presents a Summary of
4th Quarter 2007 Operating & Financial results as
a PDF file that will be e-mailed to you. This Gold
Stocks Scorecard for the 4th quarter presents in a
concise manner, revenue, earnings, ounces produced,
ounces sold during the quarter, and a forecast of
ounces produced in the 1st quarter based on company
forecasts.
Companies that were profitable in the 4th quarter
should report profits in the 1st quarter since the
average price of gold in the 1st quarter ($926.77
London Fix) was $140 per ounce higher than the average
price of gold in the 4th quarter ($787.89 London Fix).
The same is true for silver producing companies as the
price of silver was $3.46 an ounce higher in the 1st
quarter. Silver prices in the 4th quarter averaged
$17.68 an ounce (London Fix) while silver in the 4th
quarter averaged $14.22 an ounce (London Fix).
The data for the 34 Gold Producer Stocks is presented
as in the 3rd quarter 2007 example below for Pan
American Silver Corp. Compiling this data for all 34
companies represents a significant number of hours and
can be purchased for only $49.95
At the beginning of the 3rd quarter PAAS could have
been purchased for ~$26.75 per share, and could have
been sold at year end for ~$35.00 per share. This
would have resulted in a 30.8% gain. On January 10th,
the share price of PAAS reached as high as $38.10. A
PAAS share price of $37.00 would amount to an
additional gain of $2.00 per share or an additional
7.4%. PAAS had forecast that its 4th quarter
production would exceed its 3rd quarter production. PAAS
reported a record 4th quarter production of 5.1
million ounces of silver on January 23rd, and the
stock moved back up $37.58 before a month end sell
off. The 3rd Quarter Gold ScoreCard forecast
that for the 4th quarter of 2007 that 15 of the 34
companies would equal or exceed their 4th quarter
forecast. Companies exceeding their forecasts are
likely to have positive stock price gains.
Investors interested in purchasing the Quarterly Gold
Stocks ScoreCard and receiving the PDF by e-mail can
check the Home Page of the InsideMetals.com website
for a Shopping Cart link, which will soon be
established. Investor's who wish to order the PDF with
their credit card by telephone can call 775 689-7650
in Reno, Nevada
Paid Subscriber's
Resources: Apex Silver Mines Ltd. (SIL), has
been added to the InsideMetals.com website. The
Business Summary for SIL can be viewed to see Apex's
reported operating and financial results for the 4th
quarter of 2007.
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.
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We
hope you have enjoyed our newsletter.
The newsletter will be published next on April 26,
2008
Until next time!!!,
InsideMetals
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