|
| 04/25/2009
www.insidemetals.com |
Vol
4, Issue 8 |
|
 |
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 May
9, 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
$897.50/oz
(London
Fix)
on
April
23,
2009,
a
slight
decrease
from
the
$897.75/oz
(London
Fix)
closing
price
on
April
2,
2009,
when
data
for
the
previous
newsletter
was
gathered.
Silver
closed
at
$12.43/oz
(London
Fix)
on
April
23,
2009,
a 3.5%
decrease
from
the
$12.88oz
(London
Fix)
closing
price
on
April
2,
2009.
Platinum
closed
at
$1177.00/oz
(London
Fix)
on
April
23,
2009,
a 3.3%
increase
from
the
$1139.00/oz
(London
Fix)
closing
price
on,
April
2,
2009.
Palladium
closed
at
$213.00/oz
(London
Fix)
on
April
23,
2009,
a 2.7%
decrease
from
the
$219.00/oz
(London
Fix)
closing
price
on
April
2,
2009.
ONE
YEAR
GOLD
vs.
EURO/U.S.
DOLLAR
CHART
The
gold
price
has
risen
from
its
October
low
($712.50)
and
closed
at
$897.50
per
ounce
on
April
23,
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,
April
23,
2009,
gold
prices
have
closed
just
below
$900
per
ounce
and
the
dollar
has
increased
slightly
as
the
Euro/$
value
is
now
1.2932
as
compared
to
1.3392,
when
this
newsletter
was
last
published
on
April
2,
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
35,509,158
ounces as
gold
prices
have
declined
and
recently
moved back
up to the
$900 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
have moved
upward
since
mid-January.
SLV silver
holdings
peaked on
April 3,
2009 with
a record
270,484,575
ounces. As
of April
23, 2009
these
holdings
stand at
270,484,575
ounces as
the silver
price
dropped
below
$13.00 per
ounce.
|
2007
Silver
Nevada Miner
Bar -
99.9% Pure 5
Troy Ounces
of American
History
|
|
|
| GEO
POLITICAL
VIEW |
SPDR
GOLD TRUST
& CHINA
INCREASE
THEIR GOLD
HOLDINGS
Gold
holdings of
the SPDR
Gold Trust
(GLD), the
world's
largest
gold-backed
exchange
traded fund
reached a
record
36,355,954
ounces on
April 9,
2009. These
holdings
remained at
this level
for several
days, and
started to
decline on
April 15,
2009. As of
April 23,
2009, these
gold
holdings
have
declined to
35,509,158
ounces
(1104.45
tonnes).
Gold
holdings in
the GLD have
been
climbing
rapidly in
2009 as a
safe haven
to the
turmoil that
has affected
the global
economy. The
GLD is now
the 6th
largest
holder of
gold in the
world behind
the United
States, the
number one
holder with
8,133.5
tonnes,
followed in
order by
Germany, the
IMF, France
and Italy.
For the
first
quarter
2009, the
gold price
ended up at
$916.50 per
ounce
(London
Fix), which
represents a
4% increase
compared to
a 12%
decline in
DOW over the
same period.
Since the
end of the
first
quarter gold
prices have
softened and
have been
consolidating
with a
double
bottom
bouncing off
of $870 per
ounce on
April 6th
and again on
April 17th,
before
rising back
to a current
price of
$897.50 per
ounce.
The recent
drop in the
gold price
probably
corresponds
to a
strengthening
U.S. dollar,
but the
longer term
view is that
the stimulus
package will
require the
injection of
more money
into the
system and
this will be
inflationary,
and thus
weaken the
purchasing
power of the
dollar. A
weakened
dollar will
result in
higher gold
and
commodity
prices.
On April
24th, China
reported
that it has
increased
its gold
reserves to
1054 tonnes,
which is
valued in
U.S. dollars
at $30.9
billion. Hu
Xiaolian,
head of the
State
Administration
of Foreign
Exchange,
told the
Xinhua news
agency, in
an
interview,
that the
country's
gold
holdings had
increased by
454 tonnes
from the 600
tonnes
reported in
2003, when
China last
adjusted its
gold
reserves.
Only six
countries
hold more
than 1000
tonnes, and
China is now
the fifth
ranked
country in
terms of
gold
reserves,
and ranks
seventh when
the IMF and
the GLD are
considered.
China's
bullion
buying is an
indication
of its
efforts to
diversify
its nearly
$2 trillion
stockpile of
foreign
exchange
reserves and
an
indication
of its
concerns
over the
value of
holdings of
U.S.
dollars.
China will
undoubtedly
purchase
more gold in
order to
increase its
foreign
reserve
portfolio.
The recent
increase in
the gold
holdings of
the GLD and
the Chinese
government
reflects
investor
concerns
about the
U.S. economy
and the
purchasing
power of the
dollar.
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Firm
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|
| NYSE
GOLD
PRODUCER
NEWS |
April
6,
2009:
Goldcorp.
Inc.
(GG)
announced
its
fourth
monthly
dividend
payment
for
2009,
of
$0.015
per
share,
for
shareholders
of
record
on
April
16,
2009.
Payment
will
be
made
to
shareholders
of
record
on
April
24,
2009.
April
8,
2009:
Gold
Field
Ltd.
(GFI)
reported
that
the
investment
banking
division
of
Absa
Capital
raised
R568
million
on
behalf
of GFI
under
the
miner's
Bond
Exchange
of
South
Africa's
listed
R10
million
domestic,
medium-term
note
program.
April
8,
2009:
Gammon
Gold
Inc.
(GRS)
reported
its
3-year
operational
outlook
to
2011.
GRS
expects
2011
production
of
gold-equivalent
ounces
to
range
between
365,000
to
395,000
ounces.
This
would
be an
increase
of
between
45% to
56%
increase
over
2008
total
production
of
252,000
gold-equivalent
ounces.
The
cash
cost
of
production
is
expected
to
drop
from
$525
per
gold-equivalent
ounce
to a
range
of
$305
to
$340
per
gold-equivalent
ounce
in
2011.
As of
March
31,
2009,
GRS
was
added
to the
S&P
TSX
Global
Index.
April
8,
2009:
Kinross
Gold
Corp.
(KGC)
reported
that
Teck
Cominco
Ltd.
(TCK)
sold
approximately
5.6
million
common
shares
of KGC
acquired
in
January
2009
on the
sale
of
TCK's
60%interest
in the
Lobo
Marte
property
in
Chile
to
KGC.
TCK
received
$18
per
share
or
gross
proceeds
of
$101
million
on the
sale
of
this
KGC
common
stock.
April
9,
2009:
Barrick
Gold
Corp.
(ABX)
and
Kinross
Gold
Corp.
(KGC)
reported
that
massive
capital
costs
escalations
will
undoubtedly
delay
development
of the
jointly
owned,
low
grade
copper-gold,
Cerro
Casale
deposit
located
in
northern
Chile.
ABX
has a
51%
interest
in the
project
while
KGC
holds
a 49%
interest.
KGC
recently
filed
a
technical
report
that
estimated
construction
costs
at
$3.6
billion.
This
is an
increase
of 86%
over
the
August
2006
estimate
of
$2.0
billion.
KGC is
now
conducting
a
feasibility
study
which
should
be
completed
in the
third
quarter.
Cerro
Casale
contains
reserves
of
more
than
21
million
ounces
of
gold
and 5
billion
pounds
of
copper.
April
14,
2009:
Gammon
Gold
Inc.
(GRS)
reported
preliminary
first
quarter
2009
operating
results.
In the
first
quarter
of
2009,
GRS
produced
28,356
ounces
of
gold
and
989,038
ounces
of
silver.
This
compares
to
first
quarter
of
2008
production
of
22,779
ounces
of
gold
and
843,462
ounces
of
silver.
Total
cash
cost
per
gold-equivalent
ounce
for
the
first
quarter
of
2009
was
$391
compared
to a
cash
cost
per
gold-equivalent
ounce
in the
first
quarter
of
2008
of
$462.
Quarterly
production
is
expected
to
grow
significantly,
as a
result
of the
strategic
decision
to
accelerate
the
commissioning
of the
Phase
II
mill
expansion
at
Ocampo
during
the
first
quarter
of
2009.
Refer
to the
press
release
for
details
of
operations
in the
quarter.
|
| AMEX
GOLD
PRODUCER
NEWS |
April
7, 2009: Minefinders
Corp.
(MFN) said
it expects
metal
production
at its
flagship
Dolores
mine in
Mexico to
continue
increasing
in the
second
quarter,
helped by
improved
gold and
silver
extraction.
In March
gold
production
rose 26.4%
compared
to
February,
while
silver
production
at the
mine
increased
9%. MFN's
production
for the
first
quarter
was 14,149
ounces of
gold and
282,429
ounces of
silver.
This was
the mine's
first full
quarter of
production
(includes
pre-production
initiated
in
November
of 2008).
April
9, 2009:
Claude
Resources
Inc. (CGR)
announced
that it
has
completed
the
private
placement
offering
announced
on March
23, 2009
(with
amended
March 26,
2009
terms).
The
offering
consisted
of two
parts. The
first part
involved
the
issuance,
on an
underwriting
private
placement
basis to a
syndicate
of
underwriters,
including
National
Bank
Financial
Inc.,
Dundee
Securities
Corp., and
Toll Cross
Securities
Inc., a
total of
8,599,100
units, at
a price of
$0.75 per
unit for
gross
proceeds
of
$6,449,325.
Each unit
consisted
of one
common
share of
CGR and
one-half
of one
transferable
common
share
warrant.
Each whole
warrant
entitles
the holder
to acquire
one common
share at a
price of
$0.90 for
a period
of 18
months
from the
date of
purchase.
The second
part of
the
offering
involved
the
issuance,
on a best
efforts
private
placement
basis,
5,333,000
flow-through
shares at
a price of
$0.80 per
flow-through
share, for
gross
proceeds
of
$4,266,400.
The
proceeds
from the
issuance
of units
will be
used to
repay a
portion of
CGR's
outstanding
debentures
and for
general
corporate
purposes.
The
proceeds
raised
from the
issuance
of
flow-through
shares
will be
used for
exploration
expenses
as
permitted
by
Canadian
tax laws.
April
16, 2009:
Eldorado
Gold Corp.
(EGO)
updated
the
permitting
and
general
development
of the
Perama
Hill
Project in
Northern
Greece,
which is
managed
through
its 100%
owned
subsidiary,
Thraceann
Gold
Mining
(TGM).
Perama
Hills is a
low
sulfidation
oxide
deposit
well
suited for
open pit
mining.
The
deposit
currently
contains
an
indicated
resource
of
1,360,000
ounces of
gold with
an
additional
552,000
ounces in
the
inferred
category.
TGM is
currently
compiling
a
Pre-Environmental
Impact
Assessment
(PEIA),
which is
scheduled
to be
submitted
to the
government
by mid
June 2009.
TGM
expects
approval
of the
PEIA prior
to the end
of 2009,
followed
by the
submission
of the
full EIA
in the
first
quarter of
2010. The
review of
the full
EIA is
expected
to be
completed
by the
second
quarter of
2011
April
21, 2009:
Claude
Resources
Inc. (CGR)
reported
new drill
results
from its 8
Zone
underground
drill
program at
the
Marsden
Project at
Red Lake,
Ontario.
Drilling
continues
to
intercept
high grade
gold
mineralization
down
plunge of
the 8
Zone, as
well as
confirming
the
development
of a
sub-parallel
footwall
target.
Four
recently
completed
holes
suggest
that the 8
Zone
structure
may be
improving
with depth
as
demonstrated
by the two
deepest
intercepts
to date
that
returned
0.97
oz/ton
over 8.17
feet, and
0.75
oz/ton
over 25.92
feet. This
recent
drilling
was
launched
in
December
2008, as
Phase 1 of
a planned
39,360
feet
underground
drilling
program
from the
10th level
of the
mine to
target the
plunge and
strike to
test for
extensions
of the 8
Zone.
|
| NASDAQ
GOLD
PRODUCER
NEWS |
April
8, 2009:
Royal Gold
Inc.
(RGLD)
announced
that it
has agreed
to sell
6.5
million
shares at
$38 per
share, and
will use
the
proceeds
to finance
its
acquisition
of a stake
in gold
produced
from the
Andacollo
mine in
Chile.
RGLD said
that it
expects
the
offering,
net of
commission,
to raise
$235.3
million.
The
offering
will close
on April
14th.
RGLD is
paying for
the
Andacollo
gold stake
with $100
million in
cash, plus
4.45
million
shares
valued at
about $200
million.
April
14, 2009:
Endeavour
Silver
Corp.
(EXK)
reported
that
silver
production
from the
company's
two
operating
mines in
Mexico,
Guanacevi
in Durango
State, and
Guanajuto,
in
Guanajuto
State,
came in on
target in
the first
quarter of
2009, with
production
totaling
609,548
ounces.
This
production
was up 21%
over the
first
quarter of
2008. Gold
production
also rose
73% in the
first
quarter to
2,481
ounces
compared
to the
first
quarter of
2008.
April
14, 2009:
Lihir Gold
Ltd.
(LIHR)
announced
plans to
streamline
operations
at the
Ballarat
gold mine
in
Victoria
following
mixed
results
previously
reported
from early
mining in
the
southern
and
central
zones of
the
goldfield.
Following
delayed
completion
of the
underground
ventilation
infrastructure,
LIHR has
resumed
development
work to
open up
the larger
ore zones
located in
the
northern
areas of
the mine.
Ore
production
is
expected
to be
lower than
planned in
2009 as
contract
mining
ceases and
processing
is scaled
back to
accommodate
the north
areas
development
plans.
These
changes
along with
completion
of capital
infrastructure
projects
will
reduce
costs and
current
operating
losses.
Mining and
processing
in the
current
year is
expected
to produce
up to
50,000
ounces.
Reaching
this level
of
production
is
dependent
on the
development
of
effective
mining
techniques
in the
central
and
southern
zones and
achieving
commercial
production
in the
northern
areas. The
LIHR group
expects to
produce
1.0 to 1.2
million
ounces in
2009, with
first
quarter
production
exceeding
300,000
ounces.
April
22, 2009:
Lihir Gold
Ltd.
(LIHR)
announced
it has
successfully
completed
its Share
Purchase
Plan (SPP)
on April
15, 2009.
Applications
were
received
for
approximately
A$25
million
for new
common
shares.
Successful
applicants
will be
issued
shares at
an issue
price of
A$2.82 per
share. The
issue
price
under the
SPP was
set as
A$3.00
less a 5%
discount
to the
volume
weighted
average
price of
ordinary
shares
traded in
the
ordinary
course of
business
on the ASX
in the
five
trading
days up
to, and
including
the day on
which the
SPP was
closed
(April 15,
2009).
|
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We
hope you
have enjoyed
our
newsletter.
The
newsletter
will be
published
next on
May 9,
2009.
Until next
time!!!,
InsideMetals
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