Archive | Canada Mining

[Canadian Mining Links] The Other Clinton ‘Change’ – by Dan Henninger (Wall Street Journal – July 27, 2016)

No one in Philadelphia wants to talk about the Clinton Foundation.

Bill Clinton on Tuesday portrayed his wife as a “change maker” whose life has overflowed with good intentions and commitment to others. No one can spin a yarn like Bill, and for the believers it was a touching portrait.

But if it’s true, why do the polls show that 68% of Americans don’t trust Hillary Clinton? That has to do with the rest of the story, which is how the Clintons have used politics to enrich themselves and retain power.

Nowhere is this clearer than at the words you didn’t hear Mr. Clinton speak: the Clinton Foundation. This supposedly philanthropic operation has become a metaphor for the Clinton business model of crony politics. The foundation is about producing a different kind of “change.” Continue Reading →

Kinross Gold expects to suspend Chilean mine in fourth quarter – by Nicole Mordant (Reuters U.S. – July 28, 2016)

Kinross Gold Corp said on Wednesday it expected to suspend operations at a Chilean gold mine in the fourth quarter as it posted a second-quarter loss that exceeded forecasts.

The world’s fifth largest gold miner by output said in its earnings report that it expected to halt mining at Maricunga and start rinsing residual gold from the heap leach pads, equipment used to extract the metal.

The decision followed an assessment of the mine’s plan in the context of the Toronto-based company’s global capital priorities, it said. Continue Reading →

Gold rally drives impressive results for Canadian miners – by Ian McGugan (Globe and Mail – July 28, 2016)

A flurry of earnings results from three of Canada’s largest gold miners show that this year’s bullion boom is being reflected in major improvements across the industry’s bottom line.

After years of decline, the price of gold has jumped 25 per cent since January as investors have sought refuge from slumping yields on savings accounts and bonds.

The rush to precious metals has given mining stocks a powerful boost. Shares of Barrick Gold Corp. and Kinross Gold Corp. have more than doubled since the start of the year, while Agnico Eagle Mines Ltd. (up 98 per cent) has also achieved eye-popping gains. Results released after the market closed on Wednesday offer hope that more gains may be ahead, although it also hinted at some potential problems. Continue Reading →

Higher prices drive major cash flow gains for Canada’s gold miners – by Peter Koven (Financial Post – July 28, 2016)

The return of the gold bull market in 2016 is driving massive cash generation for Canada’s largest miners of the metal.

The biggest producers reported second quarter results on Wednesday night. And while the results were mixed compared to analyst expectations, a key theme was stronger cash flow and improving margins.

Barrick Gold Corp., the world’s biggest gold miner, had adjusted earnings of US$158 million and a whopping US$274 million of free cash flow. Kinross Gold Corp. and Agnico Eagle Mines Ltd. also reported major improvements in cash flow generation. Continue Reading →

Barrick Gold is considering selling its stake in Acacia, say sources – by John Tilak and Nicole Mordant (Business Day – July 26, 2016)

Reuters – THE world’s largest gold producer, Barrick Gold Corp, is weighing the sale of its majority stake in African unit Acacia Mining Plc and has approached several South African miners, according to sources familiar with the situation.

The potential sale would be part of Barrick’s broader strategy of selling noncore assets to reduce its debt load. The Toronto-based company offloaded stakes in several mines last year.

The talks are at an early stage and there is no assurance a deal will be done, the sources said. Barrick owns 64% of Acacia, a London-listed miner with three producing gold mines in Tanzania: Bulyanhulu, Buzwagi and North Mara. Much of the remainder of Acacia is widely held. Continue Reading →

NEWS RELEASE: Northern Mining Industry Applauds Premiers’ Stance on Carbon Price

(Yellowknife, NT – July 27, 2016) On behalf of the northern minerals industry, the NWT & Nunavut Chamber of Mines applauds the July 21 joint announcement made by the premiers of Nunavut, Yukon and Northwest Territories that Canada’s climate change goals must be met in a way that “does not negatively impact northern costs of living, undermine food security or threaten emerging economies.”

Mining and exploration today constitutes the major share of the territories’ economies by employing thousands of workers, investing billions of dollars into northern business and paying significant taxes to public and Aboriginal governments. Mining and exploration have helped build a northern middle class. However, a significant infrastructure deficit and high operating costs put the North at a competitive disadvantage to southern Canada and other jurisdictions.

“Like our communities, our exploration and mining industry faces costly challenges, including a heavy reliance on diesel energy for heat and power,” says Chamber President Gary Vivian, “and this adds significantly to higher costs. Thus our concern with any new initiatives that propose to increase operating costs and that reduce our ability to compete globally for capital investment funding.” Continue Reading →

Sherritt International Corp says more than 60% of global nickel output underwater despite recent price rally – by Peter Koven (Financial Post – July 27, 2016)

TORONTO — Nickel prices have jumped almost 40 per cent since bottoming out in January, yet most miners of the steelmaking metal are still bleeding cash at a rapid rate.

Canadian nickel miner Sherritt International Corp. noted this week that more than 60 per cent of global output is losing money on a simple cash margin basis. Once capital spending and other costs are added in, the actual percentage of production underwater is even higher.

The nickel price rally has accelerated over the last few weeks, which has injected some hope back into the industry. But Sherritt’s disclosure shows that the sector is still in the midst of a severe crisis. Nickel is currently worth about US$4.69 a pound, compared to a peak of more than US$24 in 2007. Continue Reading →

Nunavut hunters pleased but not surprised that feds rejected Areva’s uranium mine – by Sima Sahar Zerehi (CBC News North – July 27, 2016)

Feds said no to Areva’s Kiggavik uranium mine, backing Nunavut Impact Review Board

The Baker Lake Hunters and Trappers Organization says it’s pleased but not surprised by the minister of Indigenous and Northern Affairs’s decision to back the Nunavut Impact Review Board and reject Areva’s Kiggavik uranium mine. “We are pleased with the minister’s decision but not surprised,” said Joan Scottie, the HTO’s manager on behalf of chair Jamie Seekeenak.

The review board’s final report on the proposed mine near Baker Lake in the spring of 2015 rejected Areva Resources proposed Kiggavik mine on grounds that it lacks a definite start date and a development schedule. The board concluded that without this information it was impossible to assess the environmental and social impacts of the mine.

In her July 14 letter, Carolyn Bennett, the minister of Indigenous and Northern Affairs, echoed the decision made by the review board. Continue Reading →

Victoria’s other Nellie: Entrepreneur Nellie Cashman searched for gold and saved lives during the gold rush – by Patrick Perry Lydon and Donna Chaytor (Victoria Times Colonist – July 24, 2016)

The story of gold-rush entrepreneur Nellie Cashman, who is best known as “the Miners’ Angel,” is full of courage, fortitude, faith and determination. Cashman loved Victoria and returned here to die. She was buried in 1925 in Ross Bay Cemetery.

Cashman displayed an unquenchable concern for the sick and those in need. Her life declaration was: “We pass this way but once and we must help those who need our assistance.”

She was born in Midleton, Cork, Ireland, in August 1845, when great famine, starvation and despair ravaged Ireland. With her father dead, Cashman, her mother and her sister fled to America as refugees and settled in Boston. Cashman received a good basic education and her penmanship was excellent. Continue Reading →

Feds say no to Kiggavik uranium mine, back Nunavut Impact Review Board – by By Sima Sahar Zerehi (CBC News North – July 26, 2016)

Indigenous and Northern Affairs Minister supports the Nunavut Impact Review Board’s decision

The minister of Indigenous and Northern Affairs has reviewed the Nunavut Impact Review Board’s final report on the proposed Kiggavik uranium mine and agreed with the board: “the project should not proceed at this time.”

The review board issued its final report on the proposed mine near Baker Lake in the spring of 2015.

The report rejected Areva Resource’s proposed Kiggavik mine on the grounds that it lacks a definite start date and a development schedule. The board concluded that without this information it was impossible to assess the environmental and social impacts of the mine. Continue Reading →

De Beers unlikely to find buyer for Snap Lake mine, says analyst – by Guy Quenneville (CBC News North – July 26, 2016)

Current diamond prices a deterrent to buyers

Groundwater problems, weakened diamond prices and a thinning crowd of diamond producers mean De Beers is “very unlikely” to find a buyer for the Snap Lake mine before the company floods it later this year, says one diamond industry analyst.

“I don’t see somebody buying it and turning it back on and producing at current prices,” says Paul Zimnisky. He says his data indicates diamond prices are only up about five per cent since De Beers halted production at the N.W.T. mine in December.

If a junior mining company does agree to purchase Snap Lake, it will likely do so under a “call out option” — acquiring and sitting on a mine for the express purpose of reselling it once prices improve. Continue Reading →

AfroCan mine investment in South Africa falls apart amid dispute – by Geoffrey York (Globe and Mail – July 23, 2016)

JOHANNESBURG — It was a saga that riveted South Africans: rescue workers blasting through tons of rock in a dramatic effort to save three miners who were trapped underground when they plunged into a giant sinkhole.

Despite weeks of struggle by the rescue workers, the miners were never found. And then the mine itself was closed, leaving 900 workers jobless – until a Canadian company emerged as a “white knight” to invest in the gold mine and restore it to operation.

But today the planned $11.3-million (U.S.) investment has fallen apart in a storm of recriminations, and the Vancouver-based company is facing an onslaught of criticism from South African trade unions and the mine owner. Continue Reading →

Gold producers’ big test: Time to end the restraint? – by Ian McGugan (Globe and Mail – July 25, 2016)

It’s showtime for the hottest sector of the Canadian stock market. After markets close on Wednesday, four major gold producers – Agnico Eagle Mines Ltd., Barrick Gold Corp., Goldcorp Inc. and Kinross Gold Corp. – will roll out their second-quarter results within minutes of one another.

The flurry of reports will indicate how the industry is coping with an unexpected outbreak of prosperity and offer important clues about whether Canada’s biggest gold producers are prepared to open their wallets and start spending again.

Gold and gold stocks had stagnated for years before suddenly reversing course in January and reaching for the stratosphere. Each of the four big Canadian producers has gained at least 50 per cent since then. Barrick and Kinross have more than doubled, thanks to improving operations and a firmer gold price. Continue Reading →

Armed men attack Agnico’s La India mine in Mexico, steal gold – by Ian McGugan (Globe and Mail – July 22, 2016)

Armed men have attacked a Mexican mine owned by Agnico Eagle Mines Ltd. of Toronto and stolen an unspecified amount of gold, adding to recurring concerns about the level of violence that faces miners operating in the country.

A security guard suffered a minor leg injury in the attack early Tuesday, but the La India mine in northwestern Sonora state is now back to normal operations, Agnico said in a news release. It declined further comment.

The theft echoes a similar incident last year in which heavily armed men stole 900 kilograms of gold-bearing concentrate, containing about 7,000 ounces of gold, from the El Gallo 1 mine in northwestern Sinaloa state. McEwen Mining Inc. of Toronto, the owner of the mine, estimated the stolen concentrate – enough to fill the back of a heavy-duty pickup truck – was worth about $8-million (U.S.). Continue Reading →

Canada’s junior mining sector unearthing new prospects – by Ian McGugan (Globe and Mail – July 21, 2016)

After four years of hard times and grinding retreat, Canada’s junior mining sector is once again attracting fresh capital and new investors.

The recent outburst of enthusiasm is centred on gold miners, says Michelle Grant, senior vice-president at consultants Ernst & Young and leader of its mining and metals transactions team in British Columbia.She expects acquisition activity in the sector to pick up speed in the months ahead as companies look for ways to ride the upswing in precious metals prices.

“There’s a new fear of missing out,” she says. She has talked to several mining executives who already regret not bidding more for potential acquisitions last year, given the big run-up in gold miners’ shares since the start of the year. Continue Reading →