...there's plenty more near-term upside to come. Just so you know.
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An earworm I've had all week.
On this link. It opened at CAD$0.18.
Here's the NR out just a while ago from Below Sun (BSX.to), announcing its permit award. It starts this way:
TORONTO, ONTARIO--(Marketwired - Feb 2, 2017) - Belo Sun Mining Corp. ("Belo Sun") (BSX.TO) has received the "Licenca de Instalacao" ("LI" or "Construction Licence") for its Volta Grande Gold Project from the Brazilian State Government of Pará under the environmental authority, SEMAS ("Secretaria de Estado de Meio Ambiente e Sustentabilidade do Pará" or "Para State Secretary of Environment and Sustainability").The Construction Licence is the final governmental approval authorizing Belo Sun to proceed with the construction and development of its Volta Grande Gold Project. The project consists of continues
Belo Sun (BSX.to) offers a trade on permit award re-ratingIntroductionI believe there’s an opportunity for a near-term trade in Belo Sun (BSX.to), due to renewed talk that its Volta Grande gold project in Pará State Brazil is about to be awarded the necessary permits for construction and eventual operation by local authorities. I intend to act on this opportunity and buy shares in BSX next week, with a view to a near-term trade (count it in weeks, rather than month) that has a specific price target. Today’s report on BSX will therefore do four main things:
- Set out the current corporate structure at BSX
- Give a little background on the Volta Grande project itself
- Go over the latest developments and the reasons I’m finally interested in this stock (after a long long time just watching it
- Figure out a reasonable, near-term target price for the stock.So without further ado...
My thanks to A. Reader for this one:
New Gold Downgraded to B from B+ on Weaker Liquidity; Outlook Negative: S&P Global Ratings lowered its long-term corporate credit and senior unsecured debt ratings on New Gold to B from B+. The downgrade primarily reflects the expected deterioration in New Gold's liquidity position related to delays at the company's Rainy River development project in Ontario. The company announced it has budgeted an additional $195 million of capital expenditures to achieve commercial production by Nov. 1, 2017--about three months behind schedule. S&P now expects New Gold will face a liquidity shortfall in 2017 if it doesn't raise new funds required to complete the project. Although S&P’s ratings on New Gold have incorporated the risks associated with the new mine development, S&P now believes the company's financial flexibility has materially weakened. (S&P Global Ratings)
And even though this is cold sweat material for the company, I promise you, hand on heart, you'll still get idiots in the market today who see "value in the equity at this price". There are some people who need to learn the hard way what "equity" really means, y'see.
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...this Gran Colombia Gold (GCM.to) sale is one of the interesting ones:
The 2017 edition of Tracking the trends explores the top 10 issues mining companies may face. Once again, Deloitte’s global mining professionals share their experiences to help pinpoint strategies companies can take to succeed in today’s ever-changing market environment. This year, we also included a range of case studies to showcase how some companies are bringing new solutions to life.
This short post is to stop my mailbox from getting full.
(UPDATED) The Philippines mining suspensions are announced and OceanaGold (OGC.ax) (OGC.to) is down 18% in Australia trading
UPDATE: OGC just published this NR.
MANILA, Philippines (UPDATED) – The Department of Environment and Natural Resources (DENR) announced the closure of 15 mining operations on Thursday, February 2."We have decided to close any kind of mining operation in functional watersheds," Environment Secretary Gina Lopez said at a press conference on Thursday.Lopez said the mining operations to be closed are of the following firms:
- BenguetCorp Nickel Mines Incorporated
- Eramen Minerals Incorporated
- LNL Archipelago Minerals Incorporated
- Zambales Diversified Metals Corporation
- Mt Sinai Mining Exploration and Development Corporation
- Emir Minerals Corporation
- Techiron Mineral Resources Incorporated
- AAMPHIL Natural Resources Exploration
- Krominco, Incorporated
- Oriental Vision Mining Philippines Corporation
- Libjo Mining Corporation
- Adnama Mining Resources, Incorporated
- Platinum Group Metals Corporation
- Claver Mineral Development CorporationMeanwhile, Lopez also announced the suspension of the following mining firms:
- OceanaGold Phils Incorporated
- Lepanto Consolidated Mining Company
- Citinickel Mines And Development Corporation
- Berong Nickel Corporation
- Ore Asia Mining and Development Corporation
UPDATE 2: Here's a segment from this report:
Lopez also announced that the operations of four companies were suspended due to violations. They would be allowed to operate once these issues were addressed.Suspended are Oceana Gold Mining Operation in Nueva Vizcaya for causing reduced agriculture production of farmers in the area, Citnickel Mines and Development Corporation in Narra, Palawan for siltation of river and farm lands, Lepanto Mines and Development Corporation for leakage of mine tailings into the river and Ore Asia Mining and Development Corp for siltation of rivers.Lopez said the DENR is “fully aware” that many workers in the mines would be affected, but the welfare of the people in these areas was more important.
There seems to be some confusion regarding environmental permitting of gold projects in Alaska (UPDATED)
"NOVAGOLD's announcement that it is nearing the end of the Environmental Impact Statement process at its 50%-owned Donlin Gold project in Alaska was welcomed by a pair of observers."
UPDATE: Thanks for the mail Michael, and so quick to write in too! It's certainly nice to know you care. Will you be seeking damages?
Shocked! Shocked ah wuz!
Isn't that cute!
Minera IRL has been granted final approval for listing on the CSE. We’re waiting for the Company to confirm their preferred listing date.Regards,Rob Theriault
PS: Oh yeah, nearly forgot: "...Randall Oliphant to step down as Executive Chairman..."
...gold bullion inventory at GLD, the main gold ETF, U.S Presidential election to date:
Dearest Otto,What does the Aura Gold Transaction by Yamana in 2010, have in common with the Brio Gold conundrum today? The Aura one was an asset sale which cost shareholders of YRI-AUY hundreds of millions, while the Brio one is..., well. The Brio one is...good?"Aura has agreed to purchase 3 open-pit heap leach gold mines in Brazil and Honduras from Yamana Gold (AUY-NYSE, $9.50). The acquisition cost has an assumed total value of $257.1 million. This purchase price comprises $90 million in cash (two instalments), 100 million in common shares (pre-rollback), a $70 million promissory note and up to $40 million of contingent royalties, based on production. The net present value of this transaction is slightly less than $250 million.If the change in Yamana's market cap is to be considered a proxy for the transaction, Aura appears to have picked up assets on the cheap. One view regarding the low sale price may have to do with the fact that several key Yamana Gold executives work for Aura Mining.The deal was considered to be at arm's length and passes a cursory test. In the real world, however, some arms are much shorter than others."In addition, it gets even funnier when you take in the multiple conflicts of interest by Mr. Marrone and his jolly crew.
COLORADO SPRINGS, CO--(Marketwired - Jan 30, 2017) - Gold Resource Corporation ( NYSE MKT : GORO ) (the "Company") is saddened to report that an employee was fatally injured at its Arista Mine in Oaxaca, Mexico on January 29, 2017. The accident involved the operation of heavy equipment inside the mine.The Company has voluntarily suspended mining and milling operations and expects to allow up to 48 hours before resuming operations to provide time to review and strengthen safety policies, procedures and protocols at all operations. Investigations by both the Company and the government into the circumstances surrounding the accident are currently underway.This accident follows a recent unrelated fatality of a worker employed by a narrow-vein mine contractor at the Arista Mine as a result of a ground fall event.
The IKN tribute: Many people consider this 2006 article by DFW as the greatest piece of sports writing ever. And as I've read it at least 20 times in my life and did so again this morning, yup you can count me as one of them. Here's how it starts:
Almost anyone who loves tennis and follows the men’s tour on television has, over the last few years, had what might be termed Federer Moments. These are times, as you watch the young Swiss play, when the jaw drops and eyes protrude and sounds are made that bring spouses in from other rooms to see if you’re O.K.The Moments are more intense if you’ve played enough tennis to understand the impossibility of what you just saw him do. We’ve all got our examples. Here is one. It’s the finals of the 2005 U.S. Open, Federer serving to Andre Agassi early in the fourth set. There’s a medium-long exchange of groundstrokes, one with the distinctive butterfly shape of today’s power-baseline game, Federer and Agassi yanking each other from side to side, each trying to set up the baseline winner...until suddenly Agassi hits a hard heavy cross-court backhand that pulls Federer way out wide to his ad (=left) side, and Federer gets to it but slices the stretch backhand short, a couple feet past the service line, which of course is the sort of thing Agassi dines out on, and as Federer’s scrambling to reverse and get back to center, Agassi’s moving in to take the short ball on the rise, and he smacks it hard right back into the same ad corner, trying to wrong-foot Federer, which in fact he does — Federer’s still near the corner but running toward the centerline, and the ball’s heading to a point behind him now, where he just was, and there’s no time to turn his body around, and Agassi’s following the shot in to the net at an angle from the backhand side...and what Federer now does is somehow instantly reverse thrust and sort of skip backward three or four steps, impossibly fast, to hit a forehand out of his backhand corner, all his weight moving backward, and the forehand is a topspin screamer down the line past Agassi at net, who lunges for it but the ball’s past him, and it flies straight down the sideline and lands exactly in the deuce corner of Agassi’s side, a winner — Federer’s still dancing backward as it lands. And there’s that familiar little second of shocked silence from the New York crowd before it erupts, and John McEnroe with his color man’s headset on TV says (mostly to himself, it sounds like), “How do you hit a winner from that position?” And he’s right: given Agassi’s position and world-class quickness, Federer had to send that ball down a two-inch pipe of space in order to pass him, which he did, moving backwards, with no setup time and none of his weight behind the shot. It was impossible. It was like something out of “The Matrix.” I don’t know what-all sounds were involved, but my spouse says she hurried in and there was popcorn all over the couch and I was down on one knee and my eyeballs looked like novelty-shop eyeballs.Anyway, that’s one example of a Federer Moment, and that was merely on TV — and the truth is that TV tennis is to live tennis pretty much as video porn is to the felt reality of human love.
Dedicated to Roger of course, and reader 'C'.