|
| 05/23/2009
www.insidemetals.com |
Vol
4, Issue
10 |
|
 |
In
This
Edition...
Precious
Metals
Market
Update
Gold
&
Silver
ETF's
Geopolitical
View
Gold
Producer
News
Website
Updates
|
|
| Dear
Subscriber, |
| The
newsletter
will be
published
next on
June 6,
2009. |
IN
THIS
EDITION
OF
INSIDEMETALS
|
|
In
this
edition
of the
InsideMetals
Newsletter,
we'll
take a
look at
gold
&
silver
ETF's,
production,
pricing
and
news, as
well as
precious
metals
trends,
gold
producer
news and
recent
website
updates,
which
includes
our new
Advertising
and
Media
Kit
information.
|
|
 |
| 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
$937.50/oz
(London
Fix)
on
May
21,
2009,
a
2.8%
increase
from
the
$912.25/oz
(London
Fix)
closing
price
on
May
7,
2009,
when
data
for
the
previous
newsletter
was
gathered.
Silver
closed
at
$14.23/oz
(London
Fix)
on
May
23,
2009,
a
1.6%
increase
from
the
$14.01oz
(London
Fix)
closing
price
on
May
7,
2009.
Platinum
closed
at
$1138.00/oz
(London
Fix)
on
May
23,
2009,
a
2.0%
decrease
from
the
$1161.00/oz
(London
Fix)
closing
price
on,
May
7,
2009.
Palladium
closed
at
$233.00/oz
(London
Fix)
on
May
23,
2009,
a
3.3%
decrease
from
the
$241.00/oz
(London
Fix)
closing
price
on
May
7,
2009.
ONE
YEAR
GOLD
vs.
EURO/U.S.
DOLLAR
CHART
The
gold
price
has
risen
from
its
October
low
($712.50)
and
closed
at
$937.50
per
ounce
on
May
21,
2009.
Gold
has
been
steadily
rising
since
the
October
lows,
and
briefly
popped
over
a
$1,000
per
ounce
in
late
February,
before
declining
to
test
the
$870
per
ounce
level.
During
this
rise
in
the
bullion
price,
there
were
strong
fluctuations
in
the
U.S.
Dollar.
On
January
9,
2009
the
Euro/$
was
1.3684
and
the
dollar
has
increased
in
value
to
a
Euro/$
value
of
1.2555
on
March
5,
2009,
as
the
dollar
strengthened.
Today,
May
21,
2009,
the
Euro/$
value
is
now
1.3771.
The
dollar
is
weakening
compared
to
1.3363,
when
this
newsletter
was
last
published
on
May
7,
2009.
|
| Advertise
to a
world-wide
targeted
audience |
|
| Gold
&
Silver ETF's |
|
The
SPDR
Gold
Trust
(GLD)
controls
over
35,500,000
ounces
of
gold.
The
gold
holdings
have
been
steadily
increasing
since
October
in
spite
of
periodic
gold
price
fluctuations.
The
GLD
reached
a
record
36,255,954
ounces
of
gold
on
April
9,
2009,
and
has
since
declined
to
35,546,729
ounces
even
though
gold
prices
have
recently
moved
back
up to
the
$940
per
ounce
level.
The
accumulation
of
silver
by
the
iShares
Silver
Trust
(SLV)
has
been
steadily
increasing
since
early
2008
in
spite
of
declining
silver
prices
beginning
in
August
through
October.
SLV
silver
holdings
and
the
price
of
silver
moved
upward
in
mid-January.
SLV
silver
holdings
peaked
on
April
3,
2009
with
a
record
270,484,575
ounces.
As
of
May
21,
2009
these
holdings
stand
at
268,400,195
ounces
as
the
silver
price
climbed
above
$14.00
per
ounce.
|
2007
Silver
Nevada
Miner
Bar
- 99.9%
Pure 5
Troy
Ounces
of
American
History
|
|
|
| GEO
POLITICAL
VIEW |
 PAPER,
ROCK ...
SCISSORS?
The
United
States
and
China
have
different
approaches
to
stimulating
their
respective
economies.
China
was one
of the
first
countries
to
announce
a
massive
stimulus
plan. On
November
9, 2008,
the
Chinese
government
announced
a 4
trillion
yuan
($586
billion)
package.
The
Chinese
government
began to
see
opportunities
developing
from the
global
economic
crisis.
The
approach
in the
U.S. was
based on
bailing
out
financial
institutions
that
were
viewed
as too
big to
fail.
The U.S.
economy
was in
trouble
because
of all
the
creative
paper
that was
produced:
stacks
of
bundled
subprime
mortgages
and
accompanying
derivatives.
The
creative
paper
was
followed
by
monthly
paper
statements
that
reported
to
investors
declining
balances
in their
brokerage,
IRA and
401K
accounts.
The
dwindling
investment
accounts
were
soon
followed
by
notices
of job
terminations
and
foreclosures.
The U.S.
Treasury
responded
with
bail-out
dollars
to AIG,
Citibank,
Bank of
America,
Wells
Fargo
Bank,
Merrill
Lynch,
General
Motors,
Chrysler,
and
others.
The U.S.
Treasury
acquired
paper in
the
above
companies,
various
combinations
of debt
and
equity.
The
approach
taken in
the U.S.
will
undoubtedly
end-up
with the
Federal
Reserve
printing
more
paper
dollars
with
less
purchasing
power.
The
Chinese
recognized
that
they
could
take
advantage
of the
global
slowdown
by
increasing
their
interest
abroad
while
commodity
prices
were low
and
companies
were
seeking
capital.
The
Chinese
strategy
takes
the long
term
view
that
there
will be
an
economic
recovery,
and when
it
occurs,
China
will be
in a
more
secure
position.
For
years
China
has been
looking
for ways
to
reduce
its
holdings
of U.S.
Treasury
securities,
to
expand
its
resource
base,
and to
expand
its
markets
beyond
the U.S,
and to
encourage
domestic
consumption.
The
Chinese
strategy
is based
on
building
upon a
bedrock
foundation
of
acquiring
mineral
resources
(rocks)
to feed
their
manufacturing
industries
The
Chinese
government
has
backed
the
$19.5
billion
investment
in mega
miner
Rio
Tinto
Plc
(RTP) by
the
Aluminum
Corporation
of China
(Chinalco)
and
China
Minmetals
Corporation's
$1.7
billion
investment
in
Australia's
OZ
Minerals.
Completion
of the
RTP deal
upon
approval
of the
Australian
government
will
give
Chinalco
a stake
in some
of RTP
mining
assets
as well
as notes
to
double
its
equity
stake in
RTP to
18%.
In
addition
to
backing
Chinese
companies,
the
government
is now
taking a
more
direct
role in
foreign
acquisitions.
The
China
Development
Bank
(CDB)
has
begun to
make
loans to
acquire
natural
resources.
On May
21,
2009,
State
-owned
Brazilian
oil
giant
Petroleo
Brasileiro
SA
(Petrobras)
announced
that an
agreement
to
secure a
$10
billion
loan
from
China in
return
for an
oil
supply
had been
executed.
Per
agreement
with
CDB,
Petrobras,
under
terms of
the 10
year
loan
would
supply
China
Petrochemical
Corp,
known as
Sinopec,
150,000
barrels
of oil
per day
for the
first
year,
rising
to
200,000
barrels
per day
for nine
more
years.
China
has also
entered
into a
$10
billion
agreement
with an
energy
producer
in
Kazakhstan,
and a
$25
billion
deal
with
Russian
oil and
pipeline
companies.
All of
these
deals
could
lead to
additional
future
beneficial
commerce
for all
parties.
The
Chinese
stimulus
package
provides
them
real
assets
and
leverage.
The
stimulus
programs
being
advanced
by China
will
undoubtedly
provide
significant
economic
returns.
The
stimulus
program
being
advanced
by the
U.S.
Treasury
will
create a
lot of
paper
which
perhaps
should
have
gotten
the
scissors
treatment.
|
Advertise
to a
world-wide
targeted
audience
|
|
Whitney
&
Whitney
Inc.
- A
Nevada
Based
Management
Consulting
Firm
|
|
|
| NYSE
GOLD
PRODUCER
NEWS |
 May
11,
2009:
Harmony
Gold
Mining
Ltd.
(HMY)
said
that it
expects
a better
June
quarter
than its
third
quarter
which
ended
March
31,
2009. In
Q3'09,
HMY
produced
349,801
ounces
of gold,
which
was 3.4%
less
ounces
than was
produced
in
Q2'09.
The
company
is
likely
to
produce
for the
year
ending
June 30,
2009,
less
than the
1.6
million
ounces
for the
year
that had
been
forecast.
Group
revenue
dropped
4.5% to
R3.0
billion
for
Q3'09
compared
with
Q2'09,
and net
profits
fell 26%
to R972
million
because
an
unusual
profit
of R868
million
was made
in the
comparative
December
quarter
arising
from the
sale of
the
Cooke
assets.
May
13,
2009:
Joint
Venture
Partners
Compania
de Minas
Buenaventura
SA (BVN)
and
Newmont
Mining
Corp.
(NEM)
reported
that
protestors
in Peru,
angry
over the
handling
of a
mercury
spill in
2000,
have
blocked
the road
to the
Yanacocha
mine.
The
protestors
are
asking
for
greater
compensation.
The road
has been
blocked
for
approximately
one
week.
The
operation
may have
to be
halted
if the
blockade
continues
for more
than two
weeks.
May
13,
2009:
Gammon
Gold
Inc.
(GRS)
reported
unaudited
financial
results
for
Q1'09.
Net
earnings
for
Q1'09
were
$2.63
million
on
revenue
of
$47.35
million.
Net
earnings
for
Q1'08
were
$8.49
million
on
revenue
of
$51.37
million.
The
decrease
in
revenue
was a
result
of lower
metal
prices
even
though
gold
production
increased
11% to
36,829
ounces,
and
silver
production
increased
3% to
1.35
million
ounces.
The
realized
price of
gold
sold in
Q1'09
was $903
per
ounce
compared
to a
realized
price of
$928 per
ounce
received
in
Q1'08.
The
realized
price of
silver
in Q1'09
was
$12.63
per
ounce
compared
to a
price of
$17.69
per
ounce
for
silver
sold in
Q1'08.
The cash
cost for
Q1'09
decreased
12% to
$430 per
gold-equivalent
ounce
compared
to a
cash
cost of
$491 per
gold-equivalent
ounce
for
Q1'08.
During
Q1'09
GRS
completed
over
76,000
feet of
drilling
which
successfully
intercepted
gold and
silver
mineralization.
Refer to
the
press
release
for
details
on the
completed
exploration.
May
14,
2009:
IAMGOLD
Gold
Corp.
(IAG)
reported
that its
Q1'09
profit
jumped
53%
compared
to Q1'08
due to a
sizeable
tax
gain.
Net
earnings
rose to
$52.5
million
compared
to $34.4
million
in
Q1'08.
Revenue
dropped
to
$188.6
million
in Q1'09
from
$208
million
in
Q1'08.
The tax
gain for
Q1'09
was
$24.4
million
on the
sale of
gold
bullion.
The tax
gain was
partially
offset
by a
foreign
exchange
loss of
$5.3
million
on a
stronger
Canadian
dollar.
For the
quarter,
IAG had
gold
production
of
212,000
attributable
ounces
compared
to gold
production
of
232,000
attributable
ounces
in the
year-earlier
quarter.
Higher
production
at
Rosebel,
due to
higher
mill
throughput
following
mill
expansion
was
offset
by lower
production
at
Mupane,
Tarkwa,
Yatela,
and the
closing
of the
Sleeping
Giant
mine
which
was
closed
in
Q4'08.
IAG
maintained
its
full-year
production
forecast
of
880,000
ounces.
IAG
completed
the
acquisition
of
Orezone
Resources
Inc. in
February
which
added
2.8
million
ounces
of gold
reserves,
a 29%
increase.
May
15,
2009:
AngloGold
Ashanti
Ltd.
(AU)
reported
for the
quarter
ended
March
31,
2009,
adjusted
headline
earnings
of $150
million,
a 43%
increase
from
$105
million
earned
in the
year-earlier
quarter.
The
improved
earnings
are due
to
higher
spot
gold
prices,
a lower
hedge
discount
and
weaker
local
currencies.
Production
in the
quarter
totaled
1.1
million
ounces
of gold,
down
7.8%
from the
year-earlier
quarter.
Total
cash
cost
during
the
quarter
was $445
per
ounce,
an
increase
of 3.5%
from the
year-earlier
quarter.
May
18,
2009: Barrick
Gold
Corp.
(ABX)
reported
that its
Porgera
mine in
Enga
province,
in Papua
New
Guinea
maintained
its high
gold
production
performance
by
contributing
0.15
million
ounces
at a
total
cash
cost of
$470 per
ounce
during
the
first
quarter.
ABX
reported
Q1'09
production
from its
Australian
Pacific
business
unit is
on track
to
produce
0.49
million
ounces
of gold
and its
total
cash of
$610 per
ounce
should
improve
in
subsequent
quarters.
May
18,
2009:
Coeur
d'Alene
Mines
Corp.
(CDE)
was
placed
on the
Standard
&
Poor's
Rating
Services
CreditWatch
with
positive
implications,
but
warned
that the
company
may
require
additional
funding
to
maintain
its
capital
spending
requirements.
Standard
&
Poor's
expects
improving
metal
prices
to
improve
CDE's
cash
flows.
May
19,
2009:
AngloGold
Ashanti
Ltd.
(AU)
announced
the
terms of
its $650
million,
3.5%
convertible
bond
offering,
which
comes
due in
2014.
The
bonds
would be
convertible
into
American
Depository
shares
(ADS) of
AU
common
stock.
Each ADS
currently
represents
one
ordinary
share of
AU.
Conversion
of the
bonds,
at the
initial
conversion
price of
$47.16
per ADS,
and
without
taking
the
option
into
account,
would
result
in the
issuance
of 13.6
million
ADS
shares.
The
proceeds
from the
bond
offering
would be
used to
refinance
AU's
debt
facilities
and
general
corporate
purposes.
May
19,
2009:
Coeur
d'Alene
Mines
Corp.
(CDE)
announced
that its
Board of
Directors
has
authorized
a
one-for-ten
reverse
split of
all its
common
stock,
effective
May
26th.
One of
the
purposes
of the
split is
to meet
the New
York
Stock
Exchange's
minimum
share
price
criteria
that an
issue
not drop
below
$1.00
per
share
over a
30-day
period.
May
20,
2009: AngloGold
Ashanti
Ltd.
(AU)
announced
that it
had
extended
an
option
to
increase
its
recent
bond
offering
to
$732.5
million,
to
refinance
debt.
|
| AMEX
GOLD
PRODUCER
NEWS |
May
8, 2009:
Northgate
Minerals
Corp.
(NXG)
reported
that its
Q1'09
earnings
increased
8.8% to
$21.41
million
compared
to Q1'08
earnings
of
$19.67
million.
Earnings
increased
as a
result
of
higher
gold and
copper
prices.
Total
revenue
advanced
43.8% to
$121.82
million
from
$86.09
million
in the
year-earlier
period.
Total
gold
production
in the
quarter
increased
21.6% to
107,477
ounces
from
88,366
ounces,
while
the
realized
gold
price
declined
2.8% to
$935 per
ounce
form
$962 per
ounce in
Q1'08.
Copper
production
in Q1'09
increased
by 4.4%
to 15.01
million
pounds
from
14.38
million
pounds,
while
the
realized
copper
price
dropped
to $2.07
per
pound
from
$3.68
per
pound in
the
year-earlier
quarter.
NXG
expects
2009
gold
production
to reach
392,000
ounces
and 54
million
pounds
of
copper.
May
13,
2009:
Aurizon
Mines
Ltd.
(AZK)
reported
its
unaudited
financial
and
operating
results
for
Q1'09
based on
information
as of
May 11,
2009.
Earnings
for the
quarter
were
$5.0
million.
Adjusted
earnings
for the
quarter
were
$7.1
million.
Earnings
for the
year-earlier
quarter
resulted
in a
loss of
$3.8
million.
Revenue
for
Q1'09
was
$41.57
million
compared
to
revenue
of
$35.13
for
Q1'08.
Gold
production
in Q1'09
at the
Casa
Berardi
mine was
38,966
ounces
at a
total
cash
cost of
$379 per
ounce
compared
to
42,074
ounces
produced
in Q1'08
at a
total
cash
cost of
$422 per
ounce in
Q1'08.
In
Q1'09,
AZK sold
37,400
ounces
at a
realized
average
price of
$888 per
ounce
compared
to
39,611
ounces
sold in
Q1'08 at
an
average
price of
$877 per
ounce.
May
14,
2009:
Endeavour
Silver
Corp.
(EXK)
reported
financial
and
operating
results
for
Q1'09.
EXK
operates
two
high-grade
underground
mines in
Mexico,
the
Guanacevi
mines in
Durango
State,
and the
Guanajuato
mines in
Guanajuato
State.
Silver
produced
in Q1'09
rose 13%
to
572,785
ounces.
Gold
produced
in the
quarter
jumped
63% to
2,335
ounces.
Precious
metals
sales in
the
quarter
totaled
$8.5
million.
Sales
were
down 21%
compared
to sales
of $10.7
million
in
Q1'08.
Sales
declined
as a
result
of lower
realized
silver
prices
even
though
the cash
cost had
declined
as a
result
of
increased
tonnage
processed.
The cash
cost for
Q1'09
was
$7.56
per
ounce
compared
to
$10.01
per
ounce
for
Q1'08.
EXK
expects
Q2'09
silver
production
and cash
costs to
be
comparable
to
Q1'09,
as
previously
forecast.
May
14,
2009:
Western
Goldfields
Inc.
(WGW)
shareholders
approved
the
previously
announced
business
combination
with New
Gold
Inc.
(NGD).
The
transaction
is
subject
to
approval
by the
Ontario
Superior
Court of
Justice
(Commercial
List),
scheduled
to take
place on
May 27,
2009.
Per Plan
of
Arrangement,
NGD will
be the
surviving
company.
May
15,
2009: Apollo
Gold
Corp.
(AGT)
reported
a net
loss of
$24.8
million,
or $0.11
per
share
for the
first
quarter
of 2009,
as
compared
to net
income
of $3.7
million,
or $0.02
per
share
for the
first
quarter
of 2008.
The
first
quarter
loss
includes
$17.7
million
as
charged
to an
unrealized
loss on
the
company's
gold and
foreign
exchange
hedge
positions.
AGT has
monthly
gold
forward
sales
contracts
at $876
per
ounce of
gold for
part of
its
estimated
production
covering
the
period
May 2009
until
March
2013
amounting
to
250,400
ounces.
These
contracts
are
marked
to
market
at the
end of
each
quarter.
Progress
has been
made at
the
Black
Fox mine
in
Ontario
which is
on
schedule
and
within
budget.
As of
May
2009,
265,000
tons of
material
has been
mined,
which
includes
83,000
tons of
ore.
Approximately
17,650
tons of
this ore
has been
crushed
and
shipped
to the
Black
Fox
mill.
The mill
is
located
approximately
12.5
miles
west of
the
mine.
The
first
gold
pour
should
take
place
before
the end
of the
month.
May
21,
2009:
Minefinders
Corporation
Ltd.
(MFN)
reported
that
final
results
from
recent
metallurgical
tests
confirm
the high
amenability
of La
Bolsa
ores to
standard
heap-leach
recovery
of gold
at
moderate
to
coarse
crush
sizes.
La Bolsa
is
located
in
Sonora,
Mexico.
Column-leach
gold
recoveries
average
78.8%
for the
-3/8"crush,
74.3%
for the
-5/8"
crush,
and
73.1%
for the
-1"
crush
size.
These
metallurgical
results
and
results
from
current
drilling
will be
incorporated
into an
updated
resource
model
and
pre-feasibility
study
expected
to be
completed
before
year
end.
|
| NASDAQ
GOLD
PRODUCER
NEWS |
May
20,
2009: Royal
Gold
Inc.
(RGLD)
reported
updated
estimates
for
ore
reserves,
additional
mineralization,
and
calendar
2009
production
forecasts
for
its
royalty
portfolio.
At the
end of
December
31,
2008,
RGLD's
reserves
subject
to
royalty
interests
include
64.2
million
ounces
of
gold
and
1.2
billion
ounces
of
silver.
RGLD's
increase
in
reserves
is
14.7
million
ounces
of
gold,
a 30%
increase
and
167
million
ounces
of
silver,
a 16%
increase
over
2007.
.
|
| INSIDEMETALS.COM
WEBSITE
UPDATES |
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Resources:
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Corporation
Ltd.
(MFN)
has
been
added
to
the
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InsideMetals
Gold
Producer
Stocks.
The
Business
Summary
for
MFN
has
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the
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to
reflect
operating
and
financial
results
for
the
first
quarter
of
2009.
InsideMetals
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The
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