Archive | Canada Mining

Silver Wheaton Corp wants a name change to reflect that gold makes up more than half its revenue – by Sunny Freeman (Financial Post – March 23, 2017)

http://business.financialpost.com/

TORONTO — Vancouver-based streaming company Silver Wheaton Corp. is proposing a name change to Wheaton Precious Metals Corp. as it seeks a brand that better reflects the increasingly large contribution gold is making to its bottom line.

“A lot of investors judged our book by its cover and so we’ve decided to change the cover,” chief executive officer Randy Smallwood said in an interview Wednesday. “The name change really reflects the fact that we are truly a precious metals company and not just a silver company.”

In 2004, Silver Wheaton pioneered the concept of financing miners upfront in return for a portion of future production at a fixed discounted price. The company started off in the silver space but has seen a marked increase in gold production since 2013. Continue Reading →

COMMENT: New chapter for Canadian diamonds? – by Marilyn Scales (Canadian Mining Journal – March 22, 2017)

http://www.canadianminingjournal.com/

“It’s been 10 years since Falconbridge and Inco were snapped up by Glencore
(then Xstrata) and Vale, respectfully. Canadians are still stinging from
the loss of our world leadership position in nickel production. We still
produce it, but the profits go elsewhere. Those profits include not only
cash from the metal sold but the innovation and proprietary technology
that generate worldwide acclaim.”

This writer has a fondness for Canadian diamonds, as do many CMJ readers. The stones are beautiful, world famous and conflict free – an excellent accomplishment for a sector that didn’t exist 35 years ago.

But could the Canadian diamond industry go the same way our nickel producers did – into foreign ownership?

The Washington Companies have expressed interest in acquiring Dominion Diamond Corp., owner of Canada’s first producer, the Ekati mine, and 40% owner of the Diavik mine (along with Rio Tinto). WashCorps made an offer on March 19 of US$13.50 per share for Dominion in a deal worth US$1.1 billion. Continue Reading →

NEWS RELEASE: Mining Association of Canada welcomes several Budget 2017 measures

Urges swifter action to improve Canada’s investment climate

OTTAWA, March 22, 2017 /CNW/ – The Mining Association of Canada (MAC) welcomes Budget 2017’s planned investments in key areas such as infrastructure and innovation, but encourages the federal government to act quickly on these items to improve Canada’s investment climate.

This is especially important given that Canada has experienced nine consecutive quarters of declining business investment and is facing competitiveness challenges from global developments.

“Budget 2017 contains important steps that have the potential to restore Canada’s place as the world’s top destination for mineral investment and place to do business, including addressing the infrastructure shortage in Canada’s remote and northern regions and supporting industry’s innovation efforts. Continue Reading →

Dominion Diamond, Stornoway held merger talks: sources – by Nicole Mordant and John Tilak (Reuters Canada – March 20, 2017)

http://ca.reuters.com/

VANCOUVER/TORONTO (Reuters) – Dominion Diamond Corp DDC.TO DDC.N and fellow Canadian diamond miner Stornoway Diamond Corp SWY.TO have held talks about a potential merger in recent months, people familiar with the matter said on Monday.

World No. 3 diamond miner Dominion, target of a $1.1 billion bid by U.S. billionaire Dennis Washington, and Stornoway, a small miner with a diamond mine in Quebec, declined to comment. The people declined to be named as the discussions are private.

One of the people said the talks were still ongoing. The talks include Stornoway’s chief executive officer and president, Matt Manson, becoming CEO of the merged group, one source said, adding that the discussions on an all-share merger started in January. Continue Reading →

$5.5 billion private capital ready to invest in mining – by Frik Els (Mining.com – March 20, 2017)

http://www.mining.com/

According to a new report by private capital tracker Preqin, overall fundraising for natural resources investment actually declined declined by a fifth in 2016 to the lowest since 2012.

Coming off a record 2015, 74 funds raised a total of $60bn in 2016 for investment in natural resources, which includes metals and mining, water, timberland and energy. Private providers of capital include pension funds, sovereign wealth funds, endowments, family offices and others.

In 2015 mining and metals made up a paltry portion of funds raised with three funds closing on $1.1 billion in 2015. Last year five funds managed to raise $2.1 billion. 2012 was the peak year for mining fundraising with $4.6 billion of capital commitments from investors. Continue Reading →

Dominion Diamond in play following Washington Cos. takeover proposal – by Andrew Willis (Globe and Mail – March 20, 2017)

http://www.theglobeandmail.com/

Dominion Diamond Corp. is expected to attract interest from the world’s largest diamond miners after being put in play Sunday by a $1.1-billion [U.S.] hostile takeover proposal from conglomerate The Washington Companies.

Yellowknife-based Dominion owns stakes in the Ekati and Diavik diamond mines in the Northwest Territories, and caught the eye of the private Montana-based company controlled by billionaire Dennis Washington, who made his fortune in construction and now owns tugboats, trains and copper mines.

Washington held takeover talks with Dominion that stretched over three weeks, but broke down earlier this month. Washington went public Sunday with a plan to buy the diamond miner for $13.50 a share, a 36-per-cent premium on Dominion’s Friday closing price. Dominion stock prices jumped 20 per cent yesterday on news of the offer. Continue Reading →

PDAC 2017: What’s wrong with hedging? – by Trish Saywell (Northern Miner – March 14, 2017)

http://www.northernminer.com/

Barrick Gold (TSX: ABX; NYSE: ABX) pioneered gold hedging more than two decades ago, but the company endured sharp criticism when the strategy became a liability, and management eventually closed out its fixed-price hedge book at a significant cost in 2009.

The pros and cons of hedging remain the subject of debate to this day, and the topic came up during a discussion at the recent Prospectors & Developers Association of Canada convention in Toronto, when a participant asked a panel of bankers whether they thought the practice was a useful tool for the industry.

Egizio Bianchini of BMO Capital Markets — who prefaced his remarks by pointing out that BMO has the smallest commodity desk of all the banks represented on the panel, making him “the least conflicted” to answer the question — responded with an emphatic yes. Continue Reading →

OPINION: We need to start calling out corporate ‘redwashing’ – by Clayton Thomas-Müller (CBC News Opinion – March 20, 2017)

http://www.cbc.ca/news/opinion/

Redwashing is when corporations paint themselves as good neighbours by sponsoring Indigenous initiatives

Have you ever wondered why corporations and banks provide sponsorship for so many Indigenous educational, cultural and artistic institutions? Are they really good neighbours? Socially responsible corporate citizens? It seems like everywhere you look, there they are: sponsoring our Indigenous award shows, our schools, our pow wows — the list goes on.

In my own territory in northern Manitoba, we see the presence of Manitoba Hydro in just about every aspect of our community, including sponsorship of school barbecues and Treaty Days celebrations.

In Fort Chipewyan, Alta., Syncrude sponsors the local youth centre, where Dene, Cree and Métis youth go to learn and socialize. In northern Saskatchewan, uranium giant Cameco makes sure to report about the millions it spends on initiatives for aboriginal youth. Continue Reading →

Dominion Diamond Surges on Offer by Billionaire Washington – by Scott Deveau (Bloomberg News – March 20, 2017)

https://www.bloomberg.com/

Dominion Diamond Corp. headed for the biggest gain in eight years after billionaire Dennis Washington went public with a $1.1 billion offer for the Canadian company after weeks of private talks hit an impasse.

Closely held Washington Cos. made the proposal to acquire Toronto-based Dominion Diamond for $13.50 a share on Feb. 21. Dominion’s board has stalled on the offer, Washington Cos. said in a statement Sunday. The bid carried a 36 percent premium to Dominion’s closing price on Friday. The stock rose 24 percent to $12.29 at 9:48 a.m. in New York Monday.

Washington Cos., which has interests in mining, marine and rail transportation and heavy equipment distribution, said it has a long track record of making businesses grow throughout North America, with expertise in the mining industry and the Canadian market. The company said Dominion’s board has refused to let it perform due diligence, which might lead to an increased offer. Continue Reading →

Canadian mining companies turn bullish on Congo, despite its violence – by Geoffrey York (Globe and Mail – March 20, 2017)

http://www.theglobeandmail.com/

JOHANNESBURG – The Democratic Republic of the Congo, the vast war-torn country in the heart of Africa, has fascinated the world’s miners for decades. Its reputation for violence and corruption has long deterred most investors – but a growing number of Canadian miners are now convinced that the rewards outweigh the risks.

Companies such as Ivanhoe Mines Ltd., Banro Corp. and Alphamin Resources Corp. are expanding their operations in Congo, betting that the country’s huge mineral resources and improving transport links will unlock profits. Political unrest and lawlessness, however, are still major concerns for many companies in the country.

Congo’s enormous mineral wealth has been estimated to be worth trillions of dollars. With more than 1,100 minerals and precious metals identified, including the world’s largest cobalt reserves and huge deposits of gold and copper, it has “the potential to become one of the richest countries on the African continent and a driver of African growth,” the World Bank says. Continue Reading →

PDAC Take-Away. Optimism for gold and mining in general – by Lawrence Williams (Sharps Pixley.com – March 20, 2017)

https://www.sharpspixley.com/

The annual Prospectors and Developers Association of Canada (PDAC) Convention is truly something special. Although unable to attend this year I have been watching reports on the event with considerable interest as it is very much a bellwether of the mineral exploration sector – and that is itself a great indicator of the strength, or otherwise, of the global mining industry and where it is headed. This year’s PDAC took place from March 5th-8th inclusive.

I had been attending the PDAC since 1977 and it has always been one of the industry’s highlights. Back then the whole event took place in the Royal York Hotel and attendance rose to around 7-8,000 at its peak before it transferred to the nearby Toronto Convention Centre, since when it has grown enormously to become what is probably the world’s biggest annual mining event.

Numbers of attendees peaked four years back at around 32,000 when the industry – and gold mining in particular – had been riding high, although had been beginning to turn down. Gold exploration and mining has always been the principal driver of PDAC sentiment – and attendance. Continue Reading →

Lithium is the latest hot metal commodity, but investor fever could be cooling – by Sunny Freeman (Financial Post – March 18, 2017)

http://business.financialpost.com/

Lithium, the lightest metal on earth, has become such a heavyweight in commodities markets that it is increasingly being mentioned in the same sentence as rare earths or vanadium. It’s not a compliment.

Once red hot, those commodities are just the most recent metals to experience a boom/bust cycle of quickly rising prices and a subsequent rush by miners into the space, only to end in burst bubbles.

Demand for lithium, a silvery-white metal called “the new gasoline” by Goldman Sachs, rose 26 per cent in 2016 and is predicted to climb another 39 per cent in 2018. By 2025, demand is projected to increase by 73 per cent as electric vehicles become more viable and an increasing number of countries, including China, tighten restrictions on gas- and diesel-powered cars. Continue Reading →

Barrick Gold Corp is exploring selling part or all of one of its flagship mines in Peru, sources say (Financial Post/Reuters – March 17, 2017)

http://business.financialpost.com/

TORONTO — Barrick Gold Corp, the world’s biggest gold producer, is exploring options for its Lagunas Norte mine in Peru, including the sale of part or all of the asset, three people with knowledge of the matter told Reuters.

Barrick, which is working with Toronto Dominion Bank , may prefer to hold 50 percent of Lagunas Norte, but it was unclear if the company wanted to keep control of the open-pit mine as operator, the people added.

The mine could be worth about $1.4 billion, according to industry experts, based on about two times the net asset value ascribed to high-quality gold mines. A Credit Suisse analyst put the mine’s NAV at $711 million. Continue Reading →

Optimism on minerals seen seeping down to grassroots explorers – by Henry Lazenby (MiningWeekly – March 15, 2017)

http://www.miningweekly.com/

VANCOUVER (miningweekly.com) – Noting the optimism exhibited at the recent Prospectors and Developers Association of Canada (PDAC) international convention, held in Toronto, project generator Transition Metals says the fundamental shift in confidence it saw over the past year is consistent with this.

“If you look at the optimism at the conference, everyone is upbeat and excited about the months ahead. When you look at the service industry, we are just full of business right now and receiving a lot more calls right now,” Transition president and CEO Scott McLean told Mining Weekly Online in a recent interview.

“We are seeing a lot more interest in our stock and a lot more inquiries on our projects to option them. There is a fundamental difference and I feel the interest in the industry is now starting to descend down into the exploration plays as well, where we are well positioned,” he noted. Continue Reading →

Chile’s Supreme Court casts shadow over Barrick’s plans to restart Pascua-Lama – by Cecilia Jamasmie  (Mining.com – March 15, 2017)

http://www.mining.com/

Plans by Barrick Gold (TSX, NYSE:ABX) to revive its Pascua Lama gold, silver and copper project straddling the border between Chile and Argentina may once again be postponed after Chile’s Supreme Court revoked this week a temporary closure permit granted by the country’s mining regulator Sernageomin in 2015.

Such decision sought to relax certain requirements for Barrick to obtain a new environmental licence for the project, which the top court qualified as an irresponsible measure.

“It authorizes the temporary closure of Pascua-Lama mining operations, without having the necessary measures in place to ensure the physical and chemical stability of the water sources affected by the project,” the judge said according to local paper Diario Financiero (in Spanish). “[Sernageomin also failed to previously determine] the extent of the damage caused by the project through its innumerable environmental violations,” it added. Continue Reading →