| 04/26/2008
www.insidemetals.com |
Vol
3, Issue 8 |
|
 |
In
This Edition...
Precious
Metals Market Update Geopolitical View
Gold
Producer News
Website Updates
|
|
| |
| Dear
Brandon, |
This
newsletter will be published next on May 10, 2008.
|
| IN
THIS EDITION OF INSIDEMETALS |
|
In this edition of the
InsideMetals Newsletter, we'll take a look at gold
dropping below $900, as well as precious metals
trends, gold producer news and recent website updates,
which includes updates on our InsideMetals Quarterly
Gold Stocks ScoreCard.
|
|
 |
| 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 |
|
| |
| PRECIOUS
METALS MARKET UPDATE |
 Gold
closed at $895.50/oz (London Fix) on April 24,
2008. This is less than 1.0% lower than the $896.50/oz
(London Fix) closing price on April 3, 2008, when data
for the previous newsletter was gathered.
Silver closed
at $17.09/oz (London Fix) on April 24, 2008. This is
less than a 1.0% decrease from the $17.15/oz (London
Fix) closing price on April 3, 2008.
Platinum
closed at $1993.00/oz (London Fix) on April 24, 2008.
This is less than 1% higher than the $1975.00/oz
(London Fix) closing price on April 3, 2008.
Palladium
closed at $440.00/oz (London Fix) on April 24, 2008.
This price is less than 1% higher than the $437.00/oz
(London Fix) closing price on April 3, 2008.
|
| Advertise
to a world-wide targeted audience |
|
| 2007
Silver Nevada Miner Bar - 99.9% Pure 5 Troy
Ounces of American History |
|
|
| GEO
POLITICAL VIEW |
 GOLD
DROPS BELOW $900
June gold futures contracts fell as low as $884.50, an
ounce, on Thursday, dropping to a 4-month low, after
the U.S. dollar rose against the euro and crude oil
prices dropped from record highs that approached $120
per barrel. Stocks rallied as investors became aware
of a drop in weekly unemployment claims, and
stronger-than-expected results from Ford Motor Co.,
and they tended to overlook the expected weak housing
figures, and cautious comments from retailers.
Ford reported a $100 million profit in the first
quarter. It was the first profitable quarter reported
by Ford since the second quarter of 2007. The positive
results were largely from strong sales in Europe and
South America.
The U.S. Department of Labor reported a surprise drop
of 33,000 in the number of Americans filing jobless
claims, suggesting that the economy may be showing
modest signs of improvement.
On Tuesday the U.S. dollar hit an all-time low against
the euro of $1.6019. On Wednesday the euro traded as
low as $1.586 as speculation that the Federal Reserve
will slow the rate of interest rate cuts, thus
strengthening the dollar. On Thursday the dollar
strengthened to $1.5668 after government data showed
the U.S. economy may be stabilizing. Refer to Figure 1
below (Gold vs. EURO/US$ 4/24/2007 - 4/24/2008).
Figure 1 displays a good correlation between the gold
price and the EURO/US$ ratio over the last year. Note
the times when gold and the EURO/US$ were
consolidating and effectively trading sideways (early
June 2007 to early September 2007, and mid-November
2007 to early January 2008), these periods were
followed by strong upward movement in the gold price.
Fig. 1
Refer
to Figure 2 below (Gold vs. EURO/US$ 1/2/2008 -
4/24/2008) to see the strong decline in the gold
price compared to the EURO/US$ ratio that
commenced about March 20, 2008. This decline in
the gold price initiated the most significant
divergence of the plotted data over the last year.
Based on Figure 2, the decline in gold prices and
the decline in the price of gold mining stocks
over the same period, InsideMetals.com is
expecting to see shortly, a re-bound in bullion
prices and a re-bound in the stock prices of
precious metals mining companies.
On Friday, April 25, 2008, 60% of the InsideMetals
Gold Producer Stocks had gains as the market
closed.
Fig.
2
The stronger dollar gave investors reasons to sell
metals that are traditionally held as a hedge
against inflation. Other commodities are declining
in addition to crude oil include silver, copper,
and most agriculture future contracts. A decline
in certain costs such as fuel, electricity, steel,
and other building materials is necessary to bring
down rising mining costs.
Gold bullion prices tend to rise when global
interest rates rise.
The World Gold Council's (WGC) Investment Digest
reported that gold jewellery demand dropped 17% in
the 4th quarter of 2007 upon high bullion prices.
The WGC also expects gold jewellery demand to
remain low in the first quarter of 2008 based on
record high bullion prices reached in mid-March.
When precious metals reach high levels the
jewelers tend to use other metals as alloys in
their creations, thus managing their costs.
|
| Advertise
to a world-wide targeted audience |
|
| Whitney
& Whitney Inc. - A Nevada Based Management
Consulting Firm |
|
|
| NYSE
GOLD PRODUCER NEWS |
 April
16, 2008: Hecla Mining Co (HL) completed a
transaction with Rio Tinto subsidiaries that held a
70.27% interest in the Greens Creek silver mine and
joint venture located near Juneau, Alaska. HL had
previously owned 29.73% of the Greens Creek mine, and
now controls 100%. Greens Creek is believed to be the
fifth largest silver mine in the world in terms of
annual production. This transaction is expected to
double silver production to 11 million ounces
annually, increase silver reserves by 150%, increase
gold reserves by 140%, and increase operating cash
flows and lower cash costs. The total purchase price
was $750 million, in which $700 million was cash, and
$50 million in HL common stock.
April 18, 2008:
Iamgold Corp (IAG) reported a mandate has been passed
in Ecuador by the Constituent Assembly which may
result in the suspension of large-scale mining
exploration projects in the country for 180 days. This
mandate will affect IAG's Quimsacocha mine. The
company is closely monitoring the situation and will
seek clarification from authorities as to any impact
on the project. IAG is in position to advance the work
necessary to complete the prefeasibility study
scheduled for July 2008.
April 22, 2008:
Harmony Gold Mining Ltd (HMY) and Australasia's
largest gold company, Newcrest Mining Limited,
announced they have created a joint venture where
Newcrest will be able to earn a 50% interest in HMY's
Papua New Guinea operations. The operations include
HMY's Hidden Valley complex and the Wafi Golpu
gold-copper deposit. Newcrest will earn its 50% in the
JV by contributing a maximum of US$525 million.
Newcrest is required to make an initial payment of
$180 million by June 30th to acquire a 30.01%
interest, and to repay US$45 million to HMY for
project expenditures. Newcrest will have additional
commitments of approximately US$300 million. The
Hidden Valley operations are expected to produce over
250,000 ounces of gold and 3.6 million ounces of
silver per year over a 14 year mine life. Production
is expected to commence in mid-2009.
|
| AMEX
GOLD PRODUCER NEWS |
 April
15, 2008: Apollo Gold Corp (AGT) announced the
results of a bankable feasibility study at their Black
Fox Project located near Timmins, Ontario, in Canada.
Highlights of the study include a net present value of
$302 million based on $750 gold, with annual
production of 150,000 ounces with and estimated cash
cost of $326 per ounce. The Black Fox contains a
Probable reserve of 1.33 million ounces of gold. The
bankable feasibility study does not include any of the
inferred resource ounces included in the NI 43-101.
April 15, 2008:
Northgate Minerals Corp (NXG) announced the assay
results for 7 diamond drill holes completed in the
Golden Gift 6 exploration area at its Stawell Gold
mine in Australia. Drilling has located 2 zones of
gold mineralization within 690 ft. of existing
reserves, below existing workings. These zones consist
of mineralization at a basalt contact, and stockwork
zones. These zones extend over 885 ft. along strike
and over 425 ft. in vertical height. Assays from these
holes include intervals that range between 40 to 70 ft
in width, and contain gold grades ranging between
0.227 to 0.327 ounces of gold per ton.
April 16, 2008: Aurizon
Mines Ltd (AZK) has signed a letter of intent with
Radisson Mining Resources Inc where Radisson agreed to
grant Aurizon an option to acquire an undivided 50%
right, title and interest in Radisson's
O'Brien/Kewagama Property, located in northwest Quebec
in the Abitibi gold belt. AZK will incur exploration
expenses, and make cash payments, of $5,000,000 over a
24 month period to earn a 25% interest. During the 24
month period AZK will have to complete a
pre-feasibility study followed by a bankable
feasibility study feasibility study.
April 21, 2008:
Claude Resources Inc (CGR) has announces the results
from a NI 43-101 compliant resources estimate from the
Santoy 8 deposit located on the Seabee mine property.
The resource study has identified an indicated
resource estimate 802,095 tons at a grade of 0.262
ounces per ton gold, and in inferred resource of
355,090 tons at a grade of 0.236 ounces per ton gold
using a 0.087 ounce per ton gold cut-off.
April 21, 2008:
Eldorado Gold Corp (EGO) intends to make an offer to
acquire all of the outstanding shares of Frontier
Pacific Mining Corporation. Frontier Pacific owns the
Perama Hill gold project in Northeastern Greece. The
acquisition will accelerate EGO's growth strategy and
strengthen its competitive position in southeastern
Europe. The proposal is valued at approximately
CDN$148 million or CDN$157 million on a fully diluted
basis. Frontier Pacific shareholders will receive
0.122 of an EGO common share for every common share of
Frontier Pacific based on the closing prices of both
companies on Friday, April 18, 2008. The proposal
values each Frontier Pacific share at CDN$0.90 and
represents a premium of 28.6% to Frontier Pacific
shareholders.
April 22, 2008:
Aurizon Mines Ltd (AZK) announced new results from a
drill program from its East Block of its Joanna
Property. To date AZK has drilled 186 holes totaling
nearly 233,333 feet at Joanna with hopes of verifying
results from older drilling and extend the continuity
of known mineralization. The most recent results from
are from 24 holes including holes, JA-139 and JA-93,
which returned respectively, 0.137 ounces of gold per
ton over 97 feet and 0.090 ounces of gold per ton over
168 feet. |
| NASDAQ
GOLD PRODUCER NEWS |
 April
9, 2008: Royal Gold Inc. (RGLD) announced that
it will report it third quarter 20089 fiscal results
on May 1, 2008.
April 21, 2008:
Pan American Silver Corp. (PAAS) announced that its
financial results for the first quarter of 2008 will
be released on Tuesday, May 13, 2008.
|
| INSIDEMETALS.COM
WEBSITE UPDATES |
 Paid
Subscriber's Resources: Western Goldfield Inc.
(WGW), has been added to the InsideMetals.com website.
The Business Summary for WGW can be viewed to see its
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.
|
|
| |
 30
Day No Risk Offer to Our Premium Subscription
InsideMetals provides unique coverage of over 35 major
publicly traded gold producers across the NYSE,
NASDAQ and AMEX: everything from full business
summaries, financials, production and reserve reports,
news, tools and more.
Not only do you receive these great benefits, you get positive
and negative ranking numbers for each gold stock
that indicate investment potential... empowering you
to make educated and informed investment decisions.
Why not see for yourself how valuable InsideMetals is
by taking full advantage of our 30 Day No Risk Offer?
Get
your 30 Day No Risk Subscription Now! |
|
|
We
hope you have enjoyed our newsletter.
This newsletter will be published next on May 10,
2008.
Until next time!!!,
InsideMetals
|
|
|
