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Tagged with: 2012

Sept 2011 - Focus Minerals Ltd

Focus Minerals Ltd (FML) – Building its Current operations (Coolgardie & the Mount) up to 100,000ozpa to 150,000ozpa for >5years

Mar 2012 - Epithermal Deposits

Epithermal deposits appear to extend much deeper...

...than previously perceived. As part of our/ERA visit to Extorre (XG)'s Cerro Moro and Mariana's Las Calandrias projects in September 2011, we also visited Anglogold Ashanti's Cerro Vanguardia (CVSA JV). All of these projects and operations are located near Puerto Deseado in the Deseado Massif of Santa Cruz Province in Argentina's Patagonian region.

Mar 2012 - BITE!!!

So you realise that you have been bitten...

...now what do you do ? That was the dilemma I faced in early November 2011 in China. It is so easy in hindsight as to what I should have done, but at the time there was little available guidance.

The following is based on personal experience and there may be other solutions.

Mar 2012 - Year End & China

  • As the Wall Street Journal commented on 6 March 2011, "Canadian stocks posted a sharp loss on Tuesday as concerns over the global economic outlook weighed down markets, and worries about resources demand from China pushed down prices of commodities producers....index slumped 4% (-4.3%)...copper producers fell amid concerns about demand from China after it lowered its growth projection to 7.5% from 8% on Monday 5 March 2011" (China's Premier Wen Jiabao stated that a level of 7.5% was more sustainable and efficient). And again on the morning of 21 March 2012,"....stocks decline on China growth concerns...".
  • The economists must be cheering "at last !, China is (appears to be) showing signs of slowing down". After they first predicted it to occur in April 2004, following China's reduced target of 7%pa in mid-March 2004, resulting in commodity prices falling - whereas the growth rate has often been ~10%pa since then.
  • So it should be recognised that 7.5% is still a target, and hence may not be achieved. The reality is that China is being rebuilt, and a vast number of its citizens are becoming increasingly wealthy. At the China Mining Conference in November 2011, it was very clear that China appears likely to continue to fuel the commodities boom for at least the next 10 years, but does not want to pay high commodity prices, and will try and pay lower prices any way it can. We (ERA) thought that it may take ~2 years before the market begins to gloss over possible "sabre-rattling" by China trying to reduce commodity prices (it took ~2 years for the market to realise that there were no significant Russian gold or platinum stockpiles).
  • In the Equatorial Resources presentation that was made to the Sydney Mining Club on 1 March 2012, an ambitious quote was given by Wu Xichun of the China Iron & Steel Association that "By 2015, China wants to import 50% of its iron ore from Chinese owned mines elsewhere in the world".

Apr 2012 - TSX ??

Are you sure you want to join the TSX

This report is based on observations that we have made, in that many non-Canadian companies have joined the TSX (Toronto Stock Exchange) for access to funding and potential rerating of their stocks. However, for many it has been a share price blip, while acquiring the NI (National Instrument) 43-101's "ball and chain", and additional or replaced reporting.

May 2012 - Gryphon Minerals

Gryphon Minerals Limited (GRY) – Finalising Completion of a DFS by end SQ2012, to Commence Production at >200,000ozpa from 2014

May 2012 - Convergent Min

Convergent Minerals Limited (CVG) – Targeting an Upgraded Resource from its Blue Vein Prospect by September Qtr. 2012

Jun 2012 - Broken Hill

From Broken Hill's Wild West

More than 550 delegates attended this year's Symposium's Annual Resource and Energy Symposium (t : #RES2012) held in Broken Hill, NSW from 21 to 23 May 2012. Aside from their own transport, delegates arrived by regular Rex regional flights from Sydney, charter flight from Adelaide, flights from Melbourne to Mildura and then a 3 hour drive to Broken Hill (a direct flight is expected to be scheduled for next year, and possibly even one from Perth), the Connie Super Constellation, train, or a 2-day coach ride from Sydney.

Jun 2012 - Phoenix Gold Ltd

Phoenix Gold Limited (PXG) – Targeting Resources of ~2.5moz by DQ 2012, while Self-funding its Exploration

Jul 2012 - MacPhersons Res

MacPhersons Resources Ltd (MRP) –Bringing the Nimbus Silver Mine back into Production

Aug 2012 - Transform Focus P1

The Transformation of Focus - part 1

After Diggers 2012, we visited Focus Minerals' (FML's) operations spending 3 days at each of its Coolgardie and Laverton operations. Over the past year, Focus has integrated the Crescent Gold (CRE) operations into Focus Laverton gradually replacing the board and management - why,  because Crescent resembles something reminiscent of a column by Trevor Sykes' Pierpont.

Aug 2012 - DeGrussa Jewellery

Mining the DeGrussa Jewellery Box

We visited Sandfire's DeGrussa mine ~900km north of Perth in WA, ahead of Diggers 'n Dealers 2012 as part of a group of about 76 people (~6 were SFR personnel) on a 100-seater Cobham aircraft that flew to the new airstrip in about 1.5hours.

Aug 2012 - Kingsgate Cons

Kingsgate Consolidated Limited (KCN) – Establishing a Gold Production Base of ~250,000ozpa Ahead of Bringing its Silver Mine Projects on-Stream

Sep 2012 - Enter The Dragon

 Enter the Dragon

The placement of 4.55bn shares in Focus Minerals (FML) to Shandong Gold International at 5c per share, raising $227.5m, marks a further advance by a Chinese gold company taking a different kind of position in an Australian gold producer.

Nov 2012 - Chesser Res

Chesser Resources Limited (CHZ) – Preparing for its Scoping Study at its Kestanelik Gold Project in Western Turkey