|
| 03/21/2009
www.insidemetals.com |
Vol
4, Issue 6 |
|
 |
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 April 4,
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
$956.50/oz
(London
Fix) on
March 19,
2009, a
4.7%
increase
from the
$913.00/oz
(London
Fix)
closing
price on
March 5,
2009, when
data for
the
previous
newsletter
was
gathered.
Silver
closed at
$13.13/oz
(London
Fix) on
March 19,
2009, a
0.2%
decrease
from the
$13.15/oz
(London
Fix)
closing
price on
March 5,
2009.
Platinum
closed at
$1087.00/oz
(London
Fix) on
March 19,
2009, a
2.9%
increase
from the
$1056.00/oz
(London
Fix)
closing
price on,
March 5,
2009.
Palladium
closed at
$203.00/oz
(London
Fix) on
March 19,
2009, a
2.5%
increase
from the
$198.00/oz
(London
Fix)
closing
price on
March 5,
2009.
ONE
YEAR GOLD
vs.
EURO/U.S.
DOLLAR
CHART
The
gold
bullion
vs.
the
Euro/U.S.
Dollar
chart
displayed
below
for
the
last
year
shows
a good
correlation
between
bullion
and
currency.
Gold
values
peaked
in
March
2008
above
$1,000
per
ounce,
consolidated
in the
second
quarter
of
2008
below
$900
per
ounce,
and
then
climbed
briefly
back
above
$950
per
ounce
in
July
as
news
about
the
financial
crisis
intensified
during
the
third
quarter.
The
gold
price
has
risen
from
its
October
low
($712.50)
and
closed
at
$956.50
per
ounce
on
March
19,
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
$900
per
ounce
level.
During
this
rise
in the
bullion
price,
there
were
strong
fluctuations
in the
U.S.
Dollar.
On
January
9,
2009
the
Euro/$
was
1.3684
and
the
dollar
has
increased
in
value
to a
Euro/$
value
of
1.2555
on
March
5,
2009,
due to
a
strengthening
dollar.
Today,
March
19,
2009,
gold
prices
have
resumed
their
rise,
but
recent
action
by the
Federal
Reserve
is
weakening
the
dollar
as the
Euro/$
value
is now
1.3671.
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audience |
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| Gold
& Silver ETF's |
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The SPDR Gold
Trust (GLD)
controls over
35,000,000
ounces of
gold. The gold
holdings have
been steadily
increasing
since October
in spite of
significant
gold price
fluctuations.
The GLD now
holds a record
35,421,831
ounces of
gold.
The
accumulation
of silver
by the
iShares
Silver
Trust
(SLV) has
been
increasing
as silver
prices
have risen
above
$14.00 per
ounce.
Silver
holdings
have been
strongly
building
since
August in
spite of
declining
silver
prices
through
October.
SLV silver
holdings
and the
price of
silver
have moved
upward in
mid-January.
SLV silver
holdings
peaked on
February
23, 2009
with a
record
263,008.023
ounces. As
of March
19, 2009
these
holdings
stand at
257,191,387
ounces as
the silver
price
dropped
below
$14.00 per
ounce.
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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 |
WEAKER
U.S. DOLLAR ...
STRONGER GOLD
PRICES
For most of 2009
gold and the
U.S. dollar have
been rising in
tandem as
investors have
sought safe
havens from
collapsing
global
economies.
Investors have
pushed up the
price of gold
from its 2008
October low of
$712.50, to
briefly peak
above $1,000 an
ounce on
February 20,
2009. The rush
into gold is
reflected by the
continuing
accumulation of
gold by the SPDR
Gold Trust (GLD)
which seems to
establish new
record highs on
a weekly basis.
The GLD now
holds over
35,000,000
ounces of gold,
which represents
a net asset
value of $33.9
billion.
Investors
worldwide have
been acquiring
bullion and
buying U.S.
dollars which
are considered
the world's
reserve currency
held by central
banks and
institutions, as
concerns about
other economies
escalate. The
gold price was
up against all
currencies as
gold is no
longer just an
anti-dollar bet,
but a wager
against the
temptation of
governments to
devalue its
currencies.
On March 16th
the Federal
Reserve in an
effort to revive
the U.S. economy
declared that it
would buy as
much as $300
billion of
long-term U.S.
securities over
the next several
months and
hundreds of
billions of
dollars more in
mortgage backed
securities. The
move announced
by the Fed
whacked the
dollar and
spiked a rise in
the gold price.
The announcement
by the Fed sent
gold prices
soaring by over
$50 an ounce in
after hours
trading.
The move by the
Fed will
increase the
money supply and
could be
strongly
inflationary.
The Fed has
already cut its
benchmark
interest rate
target to near
zero. Unable to
go lower, the
Fed is
essentially
printing money
to improve
credit and to
push down long
term rates paid
on mortgages.
The weaker
dollar had an
immediate affect
on commodity
prices and the
stock prices of
a broad range of
resource
producing
companies which
all moved upward
on March 19th
following the
Fed's
announcement. A
significant rise
in oil and gold
prices prompted
robust trading.
In the gold
sector traders
rallied around
Goldcorp Inc.
(GG), Yamana
Gold Inc. (AUY),
and Newmont
Mining Corp.
(NEM). All of
these companies
had significant
option activity.
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| NYSE
GOLD PRODUCER
NEWS |
March
9, 2009:
Harmony
Gold
Mining
Ltd. (HMY)
CEO Graham
Briggs
said
tumbling
energy,
raw
material
and
equipment
costs due
to the
credit
crunch
haven't
yet had a
dramatic
impact on
the
company's
bottom
line.
HMY's view
is that
gold is no
longer
acting as
a
commodity
but as a
store of
wealth.
Briggs
estimated
that HMY's
gold
production
will rise
to 1.6
million
from 1.5
million
ounces in
2007.
March
9, 2009:
Goldcorp.
Inc. (GG)
could beat
its 2009
cost
guidance
due to the
recent
declines
in the
Canadian
dollar and
the
Mexican
peso.
These
declines
should
widen
margins as
energy and
equipment
costs ease
while gold
prices
improve.
GG has
added
currency
hedges at
C$1.25-C$1.26
to the
U.S.
dollar and
at
14.50-15
Mexican
pesos to
the U.S.
dollar.
These
hedges
should
bring its
costs
below the
bottom end
of the
$365-$400
an ounce
cost range
that was
forecast
in January
2009. GG
expects
its gold
production
to reach
23 million
ounces in
2009, and
has
forecast a
rise to
3.5
million
ounces in
2013.
March
10, 2009:
IAMGOLD
Corp.
(IAG)
announced
that it
has
entered
into an
underwriting
agreement
with a
syndicate
of
underwriters
led by
Canaccord
Capital
Corp. and
TD
Securities
Inc., and
other
participants
to sell
34,300,000
common
shares of
IAG at
C$8.75 per
common
share to
raise
gross
proceeds
of
C$300,125,000.
IAG has
granted
the
underwriters
an
over-allotment
option to
purchase
an
additional
5,145,000
common
shares of
IAG,
exercisable
at any
time, and
from time
to time,
in whole
or in
part, up
to 30 days
from the
closing of
the
offering.
March
10, 2009:
Barrick
Gold Corp.
(ABX)
reported
that it
has shut
down one
pit at its
North Mara
gold mine
in
Tanzania,
and cut
200 jobs
due to
unexpectedly
high
operating
costs. In
the past
the mine
has had
disruptions
from theft
and
vandalism.
Late last
year some
200 people
invaded
one of the
three open
pits and
destroyed
equipment
worth $7
million,
causing a
temporary
closure of
the mine.
March
11, 2009:
Kinross
Gold Corp.
(KGC)
reported
that it is
receiving
a steady
stream of
pitches by
investment
bankers
seeking to
connect
KGC with
possible
acquisition
candidates.
KGC
recently
strengthened
its
balance
sheet with
a $415
million
stock
offering.
KGC is
seeking
development
properties
rather
than
operating
mines.
March
10, 2009:
Barrick
Gold Corp.
(ABX)
signed a
definitive
agreement
with
Midway
Gold Corp.
(MDW) to
explore
MDW's
Spring
Valley
gold
project in
Pershing
County,
NV. ABX
will have
the right
to earn a
60%
interest
in the
property
by
spending
$30
million on
the
property
over five
years. ABX
is
required
to spend
$4 million
in the
first
year. ABX
may
increase
its
interest
to 70% by
spending
an
additional
$8 million
in the
year
immediately
after
vesting at
60%. At
MDW's
election,
ABX can
earn an
additional
5% by
carrying
MDW to a
production
decision
and
arranging
financing
for MDW's
share of
construction
expenses.
Spring
Valley
contains
an updated
NI 43-101
compliant
inferred
resource
of 87.75
million
tons
grading
0.021 opt
Au, which
contains
1.84
million
ounces at
a 0.006
opt Au
cutoff.
March
11, 2009:
Silver
Wheaton
Corp.
(SLW)
announced
it has
signed a
definitive
agreement
to
purchase
all of the
shares of
Silverstone
Resources
Corp.
(TSX-V:
SST), by
way of a
plan of
arrangement,
whereby
each
common
share of
Silverstone
will be
exchanged
for 0.185
common
shares of
SLW. Based
on the
20-day
volume
weighted
average of
SLW common
shares at
C$8.58,
the
transaction
value of
SST common
shares is
C$1.59.
The total
value of
this
transaction
is C$208
million.
This
represents
a 40%
premium
for SST
shareholders.
March
11, 2009:
Newmont
Mining
Corp.
(NEM)
reported
that its
new
Boddington
mine in
Australia,
should
produce
300,000 to
500,000
ounces of
gold in
2009, and
could
account
for 20% of
the
company's
total
production
some time
in 2010.
Boddington
will be
the
biggest
gold mine
in
Australia
and will
have a 20
year mine
life, and
will begin
production
in the
second
half of
2009. CEO
Richard
O'Brien
told the
Reuters
Global
Mining and
Steel
Summit
that he
sees gold
trading in
a range
between
$900 and
$1,200 per
ounce over
the next
few years,
supported
by lower
industry
output and
inflation
concerns.
March
11, 2009:
Barrick
Gold Corp.
(ABX)
expects
mining
costs to
rise in
2009, and
could
enter into
currency
hedges to
lock in
advantages
of a
stronger
dollar.
ABX
reports
that it
has no
plans to
exit its
higher-cost
operation
in
Tanzania.
ABX also
has hopes
for its
massive
Pascua
Lama
project
(with 18
million
ounces)
which
straddles
the
Chile/Argentina
border.
The
project
has been
held up
pending
resolution
of tax
disputes
between
the two
countries.
The
economic
slowdown
has
increased
the
willingness
of both
countries
to resolve
the
dispute
and get
tax
revenue
flowing.
March
12, 2009:
Gammon
Gold Inc.
(GRS) and
Capital
Gold Corp.
have
entered
into a
letter
agreement
relating
to the
proposed
all-share
acquisition
by GRS of
all of the
shares of
Capital
Gold,
subject to
satisfactory
completion
of due
diligence
and the
negotiation
of
definitive
documentation,
receipt of
Capital
Gold
shareholder
approval
and
regulatory
approval.
The letter
specifies
the
issuance
of 0.1028
GRS shares
for each
of the
outstanding
shares of
Capital
Gold. The
exchange
ratio
implies a
value for
each
Capital
Gold share
of $0.76,
and
represents
a premium
of 29% to
Capital
Gold
shareholders.
Capital
Gold is a
gold
production
and
exploration
company
which owns
100% of
the El
Chanate
gold
property
in Sonora,
Mexico.
March
16, 2009:
Coeur
d'Alene
Mines
Corp.
(CDE)
announced
that 100%
of its $75
million of
Senior
Secured
Floating
Rate
Convertible
Noted due
2012 have
been
converted
into
common
stock.
March
16, 2009:
Stillwater
Mining
Company
(SWC)
reported
that it
lost
$131.9
million
during the
4th
quarter of
2008. The
4th
quarter
results
include
impairment
charges of
$70.7
million
and
amounted
to $1.41
per share,
on
revenues
of $187
million.
Revenue in
2007 was
$162.4
million,
which
resulted
in a
reported
net income
of
$100,000.
SWC
reported
for 2008 a
net loss
of $112.7
million.
or $1.21
per share,
on revenue
of $855.7
million,
which
compares
to a 2007
loss of
$15.5
million,
or $0.17
per share
on revenue
of $673
million.
March
17, 2009:
AngloGold
Ashanti
Ltd. (AU)
reported
that Anglo
American
Plc has
sold all
of its
remaining
interest
in AU for
$1.28
billion.
The
39,911,282
shares
were sold
for $32.00
a share.
March
17, 2009:
Barrick
Gold Corp.
(ABX) will
pay $24
million to
settle a
lawsuit in
which
investors
claim the
company
misled
them by
saying a
hedging
program
didn't
hurt
profits as
gold
prices
rose.
Insurers
of ABX
will
probably
cover most
of the
settlement,
said Vince
Borg, an
ABX
spokesman.
ABX must
conclude
negotiations
over
coverage
with
insurers
before
signing
the
settlement
agreement.
The
settlement
covers
investors
who bought
stock from
Feb. 14 to
Sept. 26,
2002, when
ABX issued
a
statement
cutting
its
earnings
forecast
for the
year by a
third. The
stock
dropped by
11% that
day.
March
18, 2009:
Newmont
Mining
Corp.
(NEM)
expects
that an
arbitration
committee
will
announce a
decision
during the
first half
of the
year on
the
details on
NEM's
obligations
to sell
stakes in
its Batu
Hijau
copper/gold
mine in
Indonesia
to local
investors.
NEM owns
45% of PT
Newmont
Nusa
Tenggara
which owns
Batu
Hijau, and
its
partner,
Nusa
Tenggara
Mining
Corp
(owned by
Japan's
Sumitomo
Corp.)
owns 35%.
The
balance is
owned by
an
Indonesian
company.
In 2008,
NEM's
share of
gold sales
from Batu
Hijau
totaled
135,000
ounces of
gold and
130
million
pounds of
copper.
March
19, 2009:
AngloGold
Ashanti
Ltd. (AU)
reported
that it
expects to
get the
green
light from
Colombian
authorities
to resume
drilling
at its La
Colosa
gold
project by
June 2009.
The
project
located
near
Cajamarca
would be
the
country's
largest
gold mine.
The
project
contains
more than
an
estimated
12 million
ounces of
reserves.
La Colosa
could be
in
production
in five
years with
government
approvals.
AU
currently
has 21
operations
on four
continents,
and
expects to
boost
production
to 6
million
ounces
annually
by 2013,
and 7
million
ounces by
2015.
March
19, 2009:
Kinross
Gold Corp.
(KGC)
announced
a $150
million
deal to
acquire a
minority
stake in
the
high-grade
Diavik
diamond
mine in
the
Northwest
Territories,
along with
a 19.9%
stake in
Harry
Winston
Diamond
Corp., the
biggest
Canadian
diamond
supplier.
KGC is
taking
advantage
of the
diamond
market
collapse
to make
its first
foray into
the
diamond
industry.
|
| AMEX
GOLD PRODUCER
NEWS |
March
6, 2009:
Western
Goldfields
Inc. (WGW)
reported 2008
gold sales of
110,880 ounces
at an average
cost of sales
of $508 per
ounce. Gold
production for
the year was
108,325
ounces. Gold
revenue for
the 4th
quarter of
2008 was
$24.47 million
compared
revenue of
$660,000 for
the 4th
quarter of
2007. Net
income for
2008 was $14.0
million,
including an
after-tax
mark-to-market
gain on gold
forward sales
contracts of
$8.0 million.
For the 4th
quarter of
2008, gold
sales totaled
30,625 ounces
at an average
cost of sales
of $522 per
ounce. WGW
produced
28,378 ounces
of gold during
the 4th
quarter. 2008
gold
production was
below
expectations
due to a
combination of
factors
including;
equipment and
parts
availability,
optimization
of process
solution flow,
a delay in
placing the
second ore
lift and the
focus on
stripping in
the later part
of the year
under the
revised mine
plan. These
production
challenges
along with
industry wide
costs affected
the 2008
re-start of
the Mesquite
Mine following
acquisition by
WGW in 2003.
March
10, 2009:
Endeavour
Silver Corp.
(EXK)
announced its
2008
production
review and its
production
outlook for
2009. EXK
reported its
fourth
consecutive
year of
increasing
silver
production.
Silver
production for
2008 was 2.3
million
ounces, up 9%
from 2007.
Silver
production in
the fourth
quarter was
695,000
ounces. This
was the fourth
consecutive
quarter of
declining cash
costs of
production, as
costs declined
from $11.09
per silver
ounce in the
4th quarter of
2007, to an
estimated
$7.50 per
silver ounce
in the 4th
quarter of
2008. In 2009,
EXK expects to
produce a
fifth
consecutive
year of
increasing
silver
production
with a +20%
increase to
the 2.7-2.9
million ounce
range
(includes
approximately
10,000 ounces
of gold) as
three new
mines under
development at
Guanacevi are
expected to
enter
production in
2009.
March
11, 2009:
Aurizon Mines
Ltd. (AZK)
announced its
unaudited
financial
results for
the year ended
December 31,
2008. AZK
reported
record revenue
of $144
million in
2008, a 21%
increase over
2007. In 2008
AZK produced
158,830 ounces
of gold from
its Casa
Berardi mine
in Quebec. The
average
realized price
of gold
produced in
2008 was $847
per ounce,
while the
total cash
cost of
production was
$399 per
ounce. In the
4th quarter,
AZK produced
38,363 ounces
at a total
cash cost of
$356 per
ounce. The
average
realized price
of gold sold
in the 4th
quarter of
2008 was $793
per ounce. AZK
expects 2009
gold
production
from Casa
Berardi to
produce
approximately
150,00 -
155,000 ounces
at an
estimated
total cash
cost of $390
per ounce. AZK
will invest
approximately
$1.5 million
to drill
approximately
32,800 ft. at
Joanna. AZK
expects to
complete a
pre-feasibility
study at
Joanna in the
3rd quarter of
2009.
|
| NASDAQ
GOLD PRODUCER
NEWS |
March
16, 2009:
Pan American
Silver Corp.
(PAAS)
announced that
it has
celebrated the
official
inauguration
of its
Manantial
Espejo silver
and gold mine
in southern
Argentina.
Manantial
Espejo poured
its first
silver and
gold dore in
late December,
and during the
first two
months of 2009
has produced
over 415,000
ounces of
silver and
more than
7,000 ounces
of gold. The
mine is
expected to
produce over
4.3 million
ounces of
silver and
60,000 ounces
of gold in
2009, and to
provide direct
employment to
over 400
people during
its 10 year
mine life.
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WEBSITE UPDATES |
Minefinders
Corporation
Ltd.
(NYSE
Alternext
US: MFN) has
reported
inauguration
of
production
at its
Dolores gold
and silver
mine in
Mexico on
February 18,
2009. The
mine is
expected to
produce in
excess of
1.7 million
ounces of
gold and 64
million
ounces of
silver over
a more than
15-year mine
life. MFN
will be
added to the
list of
InsideMetals
Gold
Producer
Stocks.
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The newsletter
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