| 06/19/2010
www.insidemetals.com |
Vol
5, 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 26, 2010.
|
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 |
| 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
$1217.50/oz (London Fix) on June 10,
2010, a 2.1% increase from the
$1192.00/oz (London Fix) closing price
on May 20, 2010, when data for the
previous newsletter was gathered.
Silver closed
at $17.98/oz (London Fix) on June 10,
2010, a 0.3% increase from the
$17.93oz (London Fix) closing price on
May 20, 2010.
Platinum closed
at $1530.00/oz (London Fix) on June
10, 2010, a 1.0% increase from the
$1515.00/oz (London Fix) closing price
on May 20, 2010.
Palladium closed
at $450.00/oz (London Fix) on June 10,
2010, a 7.1% increase from the
$420.00/oz (London Fix) closing price
on May 20, 2010.
GOLD vs. EURO/U.S. DOLLAR
CHART
Gold closed at $1217.50 on June 10, 2010.
The metal traded in a narrow range between
$1075.00, since mid-February and $1150.00
through mid-April then gold started to climb
and established a new record high close of
$1246.00 (London Fix) on June 8, 2010.
During the mid-February to mid-April period
of consolidating gold prices, the US dollar
began to climb in value with respect to the
euro. The dollar then began to soar in value
to the euro in mid-May, as concerns about
the economies of several European countries,
principally Greece and Portugal grew.
The Euro/$ value on April 22, 2010 was
1.3339, and on June 8, 2010 it was 1.1942.
The above chart reflects the usual
parallel movement in the price of gold and
the value of the U.S. dollar since early
2008, until early 2010. In the last couple
of months there has been a steady increase
in the dollar while the gold prices have
fluctuated with respect to the U.S. dollar
as indicated by the strong divergence in
the two lines.
|
| Advertise to
a world-wide targeted audience |
 
|
| Gold
& Silver ETF's |
The SPDR Gold Trust (GLD) now controls a
record 41,993,616 ounces of gold. The gold
holdings that have been steadily increasing
since October 2008 have been recently
consolidating as gold prices have risen from
$925 in July 2009 to current levels above
$1,200 per ounce. GLD holdings were
39,229,093 ounces when this newsletter was
last issued.
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 2008
through October
2008. SLV silver
holdings and the
price of silver
moved upward in
mid-January.
Silver prices and
SLV silver
holdings had been
steadily rising
since July 2009
and reached a
record 305,893,368
ounces on December
3, 2009, when the
price of silver
closed above
$19.00 per ounce
(London Fix).
After several
months of
consolidating
silver prices and
a decline in
ounces controlled
by the SLV, there
has been a recent
rise in the silver
price above $19.50
per ounce and a
decline in the
number of ounces
controlled by the
trust. The SLV
currently holds
297,540,665 ounces
of silver, an
increase of
approximately
2,031,290 ounces
since the
newsletter was
last published.
Both the GLD and
SLV are
maintaining their
positions in spite
of recent sharp
fluctuations in
gold and silver
prices. This
suggests that
investors continue
to believe in the
long term
prospects for gold
and silver.
|
2007
Silver Nevada Miner Bar -
99.9% Pure 5 Troy Ounces of American History
|
|
|
| GEO POLITICAL
VIEW |
A 40% RESOURCE TAX IMPACTS
INVESTMENT AND JOBS
As governments around the world
scramble to find revenue to shore
up the burdens of increasing
entitlements, will the commodity
sector that has benefited from the
demand of resources become the low
hanging fruit that will be picked
clean to provide the necessary
juice? A country with a tree full
of heavy fruit is Australia.
In 2010 Australia was ranked as
the fifth most competitive economy
in the world according to the
annual report published by the
World Competitiveness Yearbook
study. The study was based on
criteria which measures how
nations maintain conditions that
favor business and investments.
The criteria used to compute the
rankings are grouped into four
main factors and 20 sub-factors.
The four main factors include
economic performance, government
efficiency, business efficiency,
and infrastructure.
The US has topped the list for the
past 16 years, but dropped to
third in 2010. The first position
is taken by Singapore, and
followed by Hong Kong. Switzerland
is ranked fourth. China continues
its rise in the survey and is now
ranked 18th, and is no longer
dependent on foreign markets to
buy up its cheap exports. India is
ranked 31st, and Brazil 38th.
Debt-laden Greece improved its
2010 ranking by six places and
climbed to 46th. Venezuela
continues to be ranked last for
the fifth year in a row.
The Australian economy is expected
to grow by approximately 4% in
2010, reflecting the impact of
monetary and fiscal stimulus, high
levels of business and consumer
confidence, the rebound in wealth
and higher export prices. A strong
turnaround in business investment
is expected in contrast to the
business slump of 2008-2009, as a
large number of mega-projects are
advancing in the resource sector.
The top 10 projects alone have an
estimated cost of $24 billion.
Reasons for an optimistic outlook
concerning the long term economic
outlook for Australia include the
vast mineral resources that have
been discovered in the country and
the potential of major export
markets which include high growth
Asian countries (including China,
its biggest export market).
The popularity of the Australian
government at home has plummeted
since the announcement in April of
a Resources Super Profits Tax
(RSPT), and concerns regarding the
continuance of high paying mining
employment.. The RSPT will be
payable at a rate of 40% on the
realized value of resource
deposits, measured as the
difference between revenues
generated from resource extraction
and associated costs. The RSPT
will be a deductible expense for
income tax purposes, thus the
effective rate of the RSPT will be
less than 40%.
Since the announcement of the
RSPT, several large mining
companies have announced their
concern about the tax and have
issued statements that work on
projects could be placed on hold.
Global miner Xstata PLC threatened
on June 2, 2010 to scrap its
proposed $5.4 billion coal and
copper projects. In May, Xstata
halted copper exploration in
Queensland, and immediately
suspended it's A$586 million
expenditure on its Wandoan Thermal
coal project and the A$600 million
expansion of its Ernest Henry
copper mine. Xstrata CEO Mick
Davis said "neither project
will be viable if the tax is
imposed."
In May, Fortescue Minerals Group
suspended its iron ore projects in
Western Australia worth around $15
billion, even though they were in
earlier stages of planning then
the Xstrata projects.
Rio Tinto PLC Chief Executive Tom
Albanese said the planned RSPT is
the biggest sovereign risk issue
the company faces across its
global portfolio of assets and
would hurt investment in the
industry. Rio Tinto is carrying
out reviews of all its planned
capital investments in Australia
in light of the planned tax. The
proposed RSPT will damage
Australia as a place to invest.
The proposed levy would see
companies taxed at a rate of 40%
on profits, and in conjunction
with a corporate income tax of
28%, this will result in a
significant increase in the total
effective tax rate.
Some resource-rich countries like
Canada, Chile, Russia and
Kazakhstan will likely resist the
temptation to raise their taxes in
order to increase their share of
mining investment. Companies will
pursue the best sources of
resource, and this also includes
the best locations where profits
can be made. Keep in mind that
resource-rich countries like
Venezuela are not favorable
competitive locations.
|
Advertise to
a world-wide targeted audience
|
|
Whitney
& Whitney Inc. -
A Nevada Based Management Consulting Firm
|
|
|
| NYSE
GOLD PRODUCER NEWS |
May 24,
2010: Newmont
Mining Corp. (NEM)
said that it expects
to start production
at its Conga gold
mine in Peru in late
2014 or late 2015,
upon securing the
needed $2.5 billion
to $3.0 billion in
required financing.
The mine has
reserves of about 12
million ounces of
gold and some 3
billion pounds of
copper. In the first
5 years of
operations the
company expects to
produce between
650,000 and 750,000
ounces of gold, and
between 160 million
and 210 million
pounds of copper.
May 25,
2010: AngloGold
Ashanti Ltd. (AU)
will be granted a
water permit for
exploratory work
on the La Colosa
gold project once
water levels in a
key river basin
rise in the Tolima
province in
Colombia. Colombia
has experienced a
drought since
September because
of the El Nino
weather
phenomenon. AU
said that if it
obtains the permit
soon, work at La
Colosa to finish
feasibility
studies could
finish in late
2012. Mine
construction could
start in 2014, and
gold production
could start in
2016 or 2017.
May 28,
2010: Gammon
Gold Inc. (GRS)
has agreed to buy
shares and
warrants in Golden
Queen Mining
Company Ltd. for
C$8 million
through a private
placement. GRS
will acquire
5-million units,
each unit will
comprise one
Golden Queen
share, and
one-quarter of a
share purchase
warrant
exercisable at
C$1.75, and an
additional
one-quarter
purchase warrant
exercisable at
C$2.00 for a
period of 18
months from the
closing date of
the transaction.
Each unit is
priced at C$1.60.
GRS will hold
about 5.3% of
Golden Queen's
issued and
outstanding
shares, or 7.5% on
a fully diluted
basis. The
transaction should
close on or before
June 1, 2010.
Golden Queen's
principal asset is
their 100%
interest in the
pre-development
stage gold-silver
Soledad Mountain
property located
in Kern County in
Southern
California.
May 28,
2010: Gold
Fields Ltd. (GFI)
has found at least
1.25 million
ounces of gold in
its Komana
prospect in Mali.
GFI said
geological studies
on the property
are ongoing and
additional details
regarding a
reserve will be
completed by
year-end.
June 2,
2010: AngloGold
Ashanti Ltd. (AU)
reported that it
has partially
suspended
operations at its
Moab Khotsong mine
in South Africa
after a worker was
killed at the gold
mine following a
fatal ground fall.
June 2,
2010: AngloGold
Ashanti Ltd. (AU)
will cut its
exploration
spending in
Australia if a
proposed tax on
mining profits is
approved. AU
reported that its
global exploration
spending is about
$180 million, of
which 10% to 15%
would have been
allocated for
exploration in
Australia. CEO
Mark Cuifani said
if the tax is
approved, AU will
not commit to
exploration
spending at
previous planned
levels. AU has
been developing
the $500 million
Tropicana project
in Western
Australia. The
proposed tax makes
the project
questionable.
June 3,
2010: Gammon
Gold Inc. (GRS)
reported that
unionized workers
at its El Cubo
mine in Mexico
have disrupted
operations
following a
dispute over a
profit-sharing
agreement. The
unionized workers
are barring
contract workers
and other union
members from
entering the mine
site. GRS said the
action has not
affected
operations at the
Peregrina mine
which is located
within the El Cubo
mine complex. GRS
says the union's
actions are
illegal, and the
company is
reviewing all
avenues of legal
recourse.
June 3,
2010: New
Gold Inc. (NGD)
announced it has
received
notification that
the FTSE Gold
Mines Index
Committee will
include NGD into
the index
effective on June
21, 2010.
Eligibility is
based on the
quantity of gold
produced by the
company. NGD is
expected to
produce between
330,000 and
360,000 ounces of
gold in 2010,
growing to over
400,000 ounces in
2012.
June 4,
2010: Newmont
Mining Corp. (NEM)
reported that it
has not yet
received a counter
offer from the
Indonesian
government after
offering to sell
its final 7% stake
in its Batu Hijau
copper/gold mine,
as required by a
contract of work
agreed to in 1986.
NEM valued its 7%
interest at $444
million. Under the
work contract,
Newmont and
Sumitomo agreed to
sell 51% of the
project to local
Indonesian
entities in stages
over an agreed
timeframe. The
divestiture has
been ongoing in
tranches since
2006. The 2009
divestiture
completed in March
2010 leaves NEM a
direct 31.5%
interest in the
mine, but the
company owns an
effective 48.5%
interest because
PT Pukuafu Indah,
which owns 20% of
the mine, pledged
its holdings and
all its shares as
collateral for a
loan provided last
year by Newmont.
June 7,
2010: Goldcorp
Inc. (GG) reported
that its Marlin
mine in Guatemala
has received an
adverse ruling
from the
Inter-American
Commission on
Human Rights,
which has called
for the project to
be shut-down
pending an
investigation into
alleged human
rights abuses and
environmental
problems. The
commission which,
is part of the
Washington-based
Organization of
American States,
considers its
ruling binding on
member
governments. Media
reports say the
country's
president, Alvaro
Colom, opposes the
closing of the
mine. GG has not
received a formal
indication from
the government
concerning the
commission's
ruling. The
government has 20
days to respond to
the commission's
ruling, which was
released on May
20, 2010. The
Marlin mine
produced abut
275,000 ounces of
gold last year, or
about 11% of
Goldcorp's output
along with 4.1
million ounces of
silver, worth a
combined $416
million at current
prices.
June 7,
2010: Goldcorp
Inc. (GG) declared
its sixth monthly
dividend payment
for 2010 of $0.015
per share.
Shareholders of
record at the
close of business
on Thursday, June
7, 2010 will be
entitled to
receive payment on
Friday, June 25,
2010.
June 8,
2010: Newmont
Mining Corp. (NEM)
reported that its
Canadian
subsidiary has
acquired 2 million
shares of Eurasian
Minerals Inc. via
a private
placement. NEM
paid C$4.169
million for the
shares. Newmont
Canada now owns
about 10.18% of
Eurasian Minerals.
June 8,
2010: Silver
Wheaton Corp.
(SLW) announced
the closing of its
May 17, 2010
private placement
investment in
Ventana Gold Corp.
SLW purchased 1.8
million units at a
price of $11.50
per unit for gross
proceeds of $20.7
million. Each unit
is comprised of
one common share
and one-half
common share
purchase warrant,
with each warrant
entitling SLW to
purchase one
common share of
Ventana at a price
of $15.00 until
June 7, 2011.
Ventana will use
the proceeds from
the offering to
fund further
exploration and
development of its
La Bodega and
Cal-Vetas projects
and general
corporate
purposes.
June 10,
2010: Goldcorp
Inc. (GG). CEO
Chuck Jeannes said
that the
allegations by the
Inter-American
Commission on
Human Rights
(IACHR) regarding
human rights
abuses and
environmental
issues at
Goldcorp's Marlin
mine are entirely
without merit.
Jeannes said that
Goldcorp is proud
of its record of
safe and
responsible
operations. The
government of
Guatemala has
requested an
extension of 15
days to respond to
IACHR.
|
| AMEX
GOLD PRODUCER NEWS |
|
May
26,
2010: Aurizon
Mines
Ltd.
(AZK)
announced
that
it
has
signed
a
Letter
of
Intent
(LOI)
with
Azimut
Exploration
Inc.
regarding
Azimut's
Rex
South
property
in
Nunavik,
Quebec.
Per
the
LOI,
AZK
can
earn
a
50%
interest
in
the
property
by
incurring
exploration
expenditures
of
$5.0
million
over
a
5-year
period,
including
5,000
meters
of
drilling.
AZK
will
make
a
payment
of
$150,000
on
signing
and
make
additional
cash
payments
of
$580,000
over
four
years.
AZK
will
expend
$1,000,000
in
the
first
year
on
exploration.
AZK
can
acquire
an
additional
15%
interest
upon
delivery
of
a
bankable
feasibility
study
and
making
additional
payments
of
$350,000
over
five
years
and
minimum
expenditures
of
$700,000
over
five
years.
The
Rex
South
property
is
42
km
long
by
15
to
20
km
wide
and
includes
an
extensive
multi-element
geochemical
footprint
in
lake-bottom
sediments,
a
geophysical
signature
indicative
of
a
major
structural
boundary
and
several
mineralized
prospects.
June
7,
2010: Apollo
Gold
Corp.
(AGT)
reported
that
an
increase
in
gold
production
and
grade
helped
boost
the
performance
at
its
Black
Fox
mine
during
the
months
of
April
and
May.
The
company
also
expects
this
production
trend
to
continue
in
the
second
half
of
2010.
For
the
full
year,
AGT
expects
to
produce
90,000
to
100,000
ounces
of
gold
at
a
total
cash
cost
of
between
$500
and
$550
per
ounce.
For
the
June
through
December
period,
AGT
expects
to
sell
between
32,000
and
43,000
ounces
of
its
estimated
gold
production
at
spot
market
prices,
with
the
balance
for
delivery
into
the
hedge
book,
which
would
be
reduced
to
142,685
ounces
of
gold
by
year-end
2010.
AGT
also
reported
that
it
expects
its
merger
with
Linear
Gold
Corp.
to
close
by
the
end
of
June.
June
7,
2010: Northgate
Minerals
Inc.
(NXG)
plans
to
take
a
majority
interest
in
a
gold
mine
owned
by
Nevada
Exploration
Inc.
(TSXV:
NGE)
for
$4.5
million.
NXG
will
acquire
a
51%
interest
in
NGE's
Awakening
gold
project
located
in
Humboldt
County,
Nevada.
NXG
will
be
required
to
spend
$4.1
million
on
exploration
over
5
years
and
make
additional
payments
totaling
$436,000.
NXG
may
acquire
an
additional
14%
interest
by
completing
a
feasibility
report
on
the
property.
The
Awakening
project
consists
of
450
claims
totaling
approximately
35
square
km.
The
project
is
located
about
50
km
northwest
of
Winnemucca,
Nevada
on
the
northwest
flank
of
the
Slumbering
Hills,
near
the
Sleeper
Mine.
June
10,
2010: Richmont
Mines
Inc.
(RIC)
announced
that
as
a
result
of
positive
assay
results
from
its
Phase
1
surface
drilling
program
at
its
100%-owned
Cripple
Creek
property
located
west
of
the
Timmins
Gold
Camp
in
Ontario,
it
will
commence
on
June
14,
2010
a
3,500
meter
second
phase
drilling
program.
Drilling
will
target
lateral
extension
of
Zone
16
with
6
holes
planned
to
a
depth
of
350
meters,
including
a
deepening
of
drill
hole
CC-10-47,
in
order
to
confirm
the
extent
of
the
alteration
envelope.
The
Mahoney
Zone
will
not
be
drilled
in
this
phase,
as
surface
conditions
are
more
amenable
to
winter
drilling.
Results
are
expected
in
the
4th
quarter
of
2010.
The
Phase
1
drilling
program
identified
two
east-west
trending,
sub-vertical
areas
in
Zone
16
(16
Zone
North
and
16
Zone
South)
and
included
a
true
width
interval
of
5
meters
assaying
73.5
g/tonne
gold.
|
| NASDAQ
GOLD PRODUCER NEWS |
May 25, 2010: Royal
Gold Inc. (RGLD)
announced that its
Board of Directors has
declared a third
quarter dividend of
$0.09 per share of
common stock, payable
on July 16, 2020, to
shareholders of record
at the close of
business on July 2,
2010.
June 4,
2010: Royal
Gold Inc. (RGLD)
announced an updated
estimate of its
reserves, additional
mineralization, and
calendar 2010
production for its
royalty portfolio as
of December 31,
2009. At the end of
calendar year 2009,
precious metals
reserves subject to
RGLD's royalty
interests include
78.6 million ounces
of gold and 1.3
billion ounces of
silver. This update
reflects a net gain
of 14.4 million
ounces of gold and
139 million ounces
of silver,
representing a 22%
increase in gold
reserves and a 12%
increase in silver
reserves over the
prior calendar year.
Refer to the press
release for details
of RGLD's
reserve/royalty
portfolio and 2010
production
estimates.
|
| INSIDEMETALS.COM WEBSITE
UPDATES |
InsideMetals has
added to the Home Page of its website, an Advertising
& Marketing Guide link
for readers who may be interested in
advertising their business on the
InsideMetals website, or in the
newsletter. The website has been visited
by readers from more than 184 countries.
The Advertising
& Marketing Guide contains
basic demographic information as to the
regions in the world from which the
website is viewed; information as to
banner advertisements and placements in
the website and in the newsletter; and
special Gold
and Silver Medallion Advertising
Programs that
are available to mining and exploration
companies.
If interested, please visit the following
links for more information:
|
|
| |
 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.
The newsletter will be published next on
June 26, 2010.
Until next time!!!,
InsideMetals
|
|
|
