30th July 2015

Some Robert Friedland riffs: The “miner’s miner” talks commodities, jurisdictions, markets and majors – by Greg Klein (Resource Clips – July 29, 2015)

http://resourceclips.com/

Getting back to commodities, he argues that Saudis killed the Alberta oilsands
and devastated U.S. shale “but no one can do that to copper.” Friedland
dismisses some copper miners as “little old ladies waiting to die,” saying
some grades fall so low that companies are “practically mining air.”
(Robert Freidland)

A “miner’s miner” was how Rick Rule introduced Robert Friedland. The founder and executive chairperson of Ivanhoe Mines TSX:IVN also serves as executive chair of the Sprott-Stansberry Natural Resource Symposium in Vancouver, where he delivered the opening day’s keynote speech on July 28. That was the original plan, anyway. Instead, a relaxed-looking Friedland eschewed a script to sit back and, in response to questions posed by Rule, discuss commodities, jurisdictional risk, markets and the problem with the majors.

Friedland’s favourite metals? They’re currently copper, platinum, palladium and zinc—stuff for which he sees bright futures and, not surprisingly, the stuff he’s currently pursuing. He also likes diamonds but considers himself “an agnostic on gold.”

“Copper is the metal if you believe in human advancement,” Friedland says. “Gold is the opposite.” Meanwhile this market has either hit bottom “or it’s the end of the world.” He says he’s never seen such a severe devaluation, with stocks “priced for Armageddon.” Read the rest of this entry »

posted in Africa Mining, Canada Mining, Canadian Media Resource Articles, Chromium/Platinum Group Metals, Copper, Zinc and Lead | 0 Comments

30th July 2015

NEWS RELEASE: Barrick Announces Sale of 50 Percent of Zaldívar Mine, Formation of New Partnership with Antofagasta Plc

TORONTO, July 30, 2015 — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (“Barrick” or the “company”) today announced that it has reached an agreement to sell a 50 percent interest in the Zaldívar copper mine in Chile to Antofagasta Plc (“Antofagasta”) for a total consideration of $1.005 billion in cash, forming a new partnership with one of the world’s leading copper companies.

“The sale of 50 percent of Zaldívar is consistent with our strategy to create long-term value for our shareholders. By selling a stake in this non-core asset, we strengthen our balance sheet while maintaining significant exposure to a strong cash-generating operation,” said Kelvin Dushnisky, Co-President of Barrick. “Following a highly competitive auction process, we are pleased to reach an agreement with the ideal partner for Zaldívar. Antofagasta has an outstanding track record of building and operating mines in Chile, and we see this as the first step in an ongoing, collaborative partnership. There are many potential opportunities to benefit from Antofagasta’s experience as Barrick evaluates development projects in the future.”

“We are enthusiastic about partnering with Barrick at Zaldívar. Together, we believe that we are well positioned to enhance the long-term value of the Zaldívar operation through our collective best practices,” said Diego Hernandez, CEO of Antofagasta. “We have consistently been impressed with the workforce at Zaldívar, and look forward to partnering with them. We also look forward to exploring other opportunities to collaborate with Barrick in the future.” Read the rest of this entry »

posted in Barrick Gold Corporation, Canada Mining, Latin America Mining | 0 Comments

30th July 2015

Phase 1 cleanup done at site of B.C.’s Mount Polley mine disaster – by Andrea Woo (Globe and Mail – July 29, 2015)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

One year after a catastrophic dam breach, the Mount Polley Mine in B.C.’s interior has passed the first phase of remediation and resumed operations, with restrictions.

The August, 2014, dam failure sent millions of cubic metres of mine waste and water into area waterways and forced the government to toughen mine permitting requirements. Imperial Metals Corp. has completed Phase 1 cleanup by taking steps to ensure increased water flow at Mount Polley does not result in additional environmental or human health impacts, according to the B.C. Ministry of Environment. The company has also ensured that water quality entering Quesnel Lake meets provincial standards.

Environment Minister Mary Polak said in a briefing on Wednesday that a “significant amount of work” has been done in the past 12 months, but acknowledged full remediation and restoration will take years.

The B.C. government issued the conditional permit allowing the Mount Polley mine to reopen earlier this month. However, the company cannot discharge water until it receives a second conditional permit, likely in the early fall. Read the rest of this entry »

posted in British Columbia Mining, Canada Mining, Mining Environmental Accidents and Pollution | 0 Comments

30th July 2015

Editorial: Commodities rout tests miners’ pain threshold – by John Cumming (Northern Miner – July 29, 2015)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry. Editor John Cumming MSc (Geol) is one of the country’s most well respected mining journalists.  jcumming@northernminer.com

July has been such a brutal month for commodities producers that even last year’s prices are looking pretty good now. The rout in commodities prices in recent weeks has been unrelenting, wide-ranging and driven by macroeconomic factors far beyond the ability of miners to control.

The Bloomberg Commodity Index has returned to levels not seen since 2002 — implying that the much talked-about “Commodities Supercycle,” sparked and sustained by unprecedented demand growth stoked by China’s booming economy, is effectively over.

The state of the Chinese economy is foremost in the minds of commodity price forecasters, and all signs point towards slowing growth rates and further sharp corrections in the Chinese stock markets in the months and years ahead. On July 27, the Shanghai Composite Index suffered its worst one-day drop (8.5%) in eight years, and it would have been worse without the 10% daily maximum-loss limits on blue-chip stocks and the strong-arm tactics of the Chinese government to buy shares and pressure companies into buying shares.

The other two dominant negatives at the macro level are the ongoing Greek debt crisis, and broad consensus that the U.S. Federal Reserve will raise interest rates later this year, further driving up the U.S. dollar and sinking commodities priced in U.S. dollars. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles | 0 Comments

30th July 2015

Kinross Gold Corp, Agnico Eagle Mines Ltd report lower Q2 earnings but maintain financial strength – by Peter Koven (National Post – July 30, 2015)

The National Post is Canada’s second largest national paper.

Falling gold prices took a big bite of out of second quarter earnings at Kinross Gold Corp. and Agnico Eagle Mines Ltd., but both miners generated solid cash flow and maintained strong balance sheets.

Those two factors are crucial right now. The gold price has taken a nosedive this month, falling below US$1,100 an ounce for the first time since early 2010. Investors want evidence that companies can maintain strong liquidity in case gold remains at these levels for a prolonged period, or goes even lower.

Toronto-based Kinross said it has slightly more than US$1 billion of cash and equivalents on its balance sheet. The company has relatively high costs compared to its rivals, with all-in sustaining costs of US$1,011 an ounce in the second quarter.

But chief executive Paul Rollinson said the firm is well positioned to withstand market volatility, with plenty of options on the table to reduce spending. Kinross announced on Wednesday afternoon that it is in the midst of a “comprehensive spending review” to reduce costs. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles, Gold and Silver | 0 Comments

29th July 2015

Flight simulator firm CAE selling mining division – by Bertrand Marotte (Globe and Mail – July 28, 2015)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

MONTREAL — Five years after placing a bet that entering the mining sector would pay off handsomely as a smart diversification move, flight simulator manufacturer CAE Inc. is selling its mining division.

The Montreal-based company said on Monday that Constellation Software Inc. has acquired its CAE Mining unit for an undisclosed amount, which one analyst estimates is slightly below the asset’s net book value of $47-million.

CAE had been carrying CAE Mining on its books as discontinued operations for the past year. The company had been looking for a buyer for about a year and chief executive officer Marc Parent said at the time that the division would not be sold at a fire-sale price.

CAE Mining, whose main brand name is Datamine, provides technology and services for the management of mining operations, including exploration data management and ore-body modelling. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles | 0 Comments

29th July 2015

Sherritt CEO sees brighter future in Cuba – by Lisa Wright (Toronto Star – July 29, 2015)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

The Toronto miner reports weak Q2 results amid severe downturn in nickel, oil

Toronto-based miner Sherritt International Corp. is taking a beating as nickel and oil prices plummet, but the chief executive sees a silver lining for his company as U.S. and Cuba relations continue to thaw.

David Pathe, who delivered weak second-quarter results Wednesday, said he visited the firm’s operations in the island nation last week as the U.S. reopened its embassy in Havana after 50 years under renewed diplomatic ties.

“There’s a tremendous amount of optimism in Cuba at the moment, and a lot more interest in Cuba internationally,” Pathe said in an interview. “We’ve been in Cuba for over 20 years and it’s a remarkably stable place to do business,” he said.

Sherritt produces approximately two-thirds of Cuba’s oil and also owns a 50 per cent interest in the Moa nickel and cobalt joint venture with the Cuban government, which includes mining, processing and refining operations. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles, Latin America Mining, Nickel Laterites | 0 Comments

29th July 2015

Gold miners set to report Q2 earnings, but investors zero in on other issues – by Peter Koven (National Post – July 29, 2015)

The National Post is Canada’s second largest national paper.

Investors usually care about basic things such as how much revenue and income companies earned when they report quarterly results. After all, these are essential building blocks to valuing a stock.

But in the case of Canada’s gold industry, they have become largely irrelevant.

The second-quarter earnings season for the gold miners begins Wednesday afternoon, and experts said there will be little-to-no interest in the actual profits. Instead, all the focus will be on liquidity and the overall health of balance sheets.

“It’s going to be about who is most aggressive in trying to defend their balance sheets,” said Greg Taylor, portfolio manager at Aurion Capital. This is a direct result of the recent chaos in the gold market.

Gold averaged just under US$1,200 an ounce in the second quarter, which ended June 30. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles | 0 Comments

29th July 2015

Canadian miner Sherritt posts wider loss as nickel prices drop (Reuters Canada – July 28, 2015)

http://ca.reuters.com/

(Reuters) – Canadian miner Sherritt International Corp S.TO reported a bigger loss for the second quarter, hurt by lower nickel prices.

The Toronto-based company said on Tuesday its adjusted net loss from continuing operations widened to C$75.2 million ($58.2 million), or 25 Canadian cents per share, in the three months ended June 30 from C$56.2 million, or 19 Canadian cents per share, a year earlier.

Sherritt operates nickel mines in Madagascar and Cuba. Average realized prices for nickel fell about 19 percent to $7.13 per pound in the quarter, the company said.

Sherritt, which also produces oil and gas, said its combined revenue fell about 12 percent to C$268.4 million.

Sherritt said it expected total production of 78,000-82,000 tonnes of nickel in 2015, down from a previous estimate of 80,000-86,000. The company cut the estimate for the Ambatovy mine in Madagascar to 45,000-48,000 tonnes from 47,000-52,000. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles, Latin America Mining, Nickel Laterites | 0 Comments

28th July 2015

UPDATE 1-Zambia power cuts hit Canada’s First Quantum, Barrick – by Chris Mfula (Reuters U.S. – July 28, 2015)

http://www.reuters.com/

(Reuters) – Power cuts in north-western Zambia, Africa’s second-biggest copper producer, have affected production at mines run by Canada’s First Quantum Minerals and Barrick Gold, an industry body said on Tuesday.

Zambian power utility Zesco Ltd is limiting power it supplies to customers, including mining companies, after water levels at its hydro-electric plants dropped due to drought.

“Power was reduced to both First Quantum Minerals and Lumwana over the weekend,” Jackson Sikamo, President of the Zambian Chamber of Mines said.

Lumwana is Barrick’s open-pit copper mine.

First Quantum said in a statement its Kansanshi mine, smelter and its greenfield Sentinel project were running at reduced capacities. Read the rest of this entry »

posted in Africa Mining, Barrick Gold Corporation, Canada Mining, International Media Resource Articles | 0 Comments

28th July 2015

Fresh bloodletting among gold mining stocks – by Frik Els (Mining.com – July 27, 2015)

http://www.mining.com/

Hedge funds bet record 340 tonnes the gold price will continue to fall as bears rip into majors – Barrick falls to 1989 level, Goldcorp at 11-year low

Renewed fears about Chinese equity markets after the worst points loss in Shanghai for eight years gave the gold price a lift on Monday.

But the metal continues to trade close to five-year lows after settling at $1,093, up only $7.40 from Friday’s close. An earlier move above the psychologically important $1,100 level turned out to be brief. A return to its recent dip below $1,180 would represent a 50% retracement of the metals 12-year bull run.

The gold market has turned overwhelmingly bearish with so-called managed money investors such as hedge funds going short – placing bets that the gold price will decline – to the tune of 12.1m ounces or 340 tonnes, a new record high.

According to the Commodity Futures Trading Commission’s Commitment of Traders data for the week to July 21, large speculators now hold a net short position for the first time since at least 2006, when the data was first being tracked. Read the rest of this entry »

posted in Barrick Gold Corporation, Canada Mining, Canadian Media Resource Articles, Gold and Silver, Goldcorp Inc. | 0 Comments

28th July 2015

Canadian investors have to take China’s growth seriously – by Scott Barlow (Globe and Mail – July 28, 2015)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

The stomach-churning plunge in Chinese stocks is taking a heavy toll on Canadian markets, and Beijing’s failure to stanch the bleeding threatens further volatility in the weeks ahead.

China’s Shanghai composite tumbled 8.5 per cent Monday – that’s the equivalent of a 1,200-point drop in Toronto – as government support of equity markets could not stop the majority of stocks from falling by the maximum 10 per cent limit.

The Chinese benchmark has now declined by 28 per cent since its mid-June high.

The market collapse underscores a significant slowdown in China that is rippling through the global economy. Trade activity in Asia is declining rapidly. For example, the CPB merchandise: Asia import volume index (the CPB Netherlands Bureau for Economic Policy compiles the most widely used trade benchmarks) has slid 12 per cent so far in 2015. Sluggish trade activity strongly suggests China’s gross domestic product growth is slowing, and lends support to those questioning the validity of government reports on the economy. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles | 0 Comments

28th July 2015

NEWS RELEASE: Ned Goodman Rejoins Excellon Board of Directors

TORONTO, ON–(Marketwired – July 28, 2015) – Excellon Resources Inc. (TSX: EXN)(OTC: EXLLF) (“Excellon” or the “Company”), Mexico’s highest grade silver producer, is pleased to announce that Mr. Ned Goodman has rejoined the Company’s Board of Directors, effective immediately. Mr. Goodman served as a board member of Excellon from April 2013 to February 2014 and Special Advisor to the board until recently.

“We are delighted to welcome Ned back on the Board,” stated Brendan Cahill, President and Chief Executive Officer. “His experience as an industry leader and company builder is invaluable. He returns to the Board at a vital time, as we upgrade Platosa into one of the lowest cost silver mines in the industry and position the Company to take full advantage of the opportunities afforded by current market conditions.”

Mr. Goodman has made transformative and enduring contributions to Canada’s minerals industry and capital markets as a company-builder, merchant banker and investment advisor during a dynamic career spanning almost half a century. He applied his geological training and business acumen to help build several successful mining companies — notably International Corona and Kinross Gold — and nurtured many other mineral producing companies through astute and timely investments.

He is considered one of the leading architects of Canada’s investment management industry. Read the rest of this entry »

posted in Canada Mining, Gold and Silver, Latin America Mining | 0 Comments

24th July 2015

Commentary: Fulfilling CSR goals without violating anti-corruption laws -by Mark N. Sills and Jennifer L. Egsgard (Northern Miner – July 22, 2015)

The Northern Miner, first published in 1915, during the Cobalt Silver Rush, is considered Canada’s leading authority on the mining industry.

Corporate social responsibility (CSR) is increasingly important to successful business operations. Yet CSR initiatives are often developed without attention to possible liability under anti-corruption laws.

CSR once referred primarily to a company’s voluntary philanthropic projects, such as donating to a local charity or building a school. While these types of projects are still important, today the term CSR refers more broadly to a corporate responsibility to understand and address the various impacts a company’s operations may have on its stakeholders in the economic, social and environmental spheres, as well as their relationships in the workplace, the marketplace, the supply chain, the community and the public policy realm.

An example of this newer concept of CSR is set out in the widely endorsed UN Guiding Principles on Business and Human Rights. These “Guiding Principles” state that businesses have a responsibility to respect all internationally recognized human rights by avoiding infringement on the human rights of others, conducting due diligence to monitor rights impacts and addressing adverse human rights impacts that may arise out of their operations.

CSR and anti-corruption initiatives are often approached differently both conceptually and within companies, yet they are linked. Read the rest of this entry »

posted in Canada Mining, Canadian Media Resource Articles, Corporate Social Responsibility | 0 Comments

24th July 2015

Canadian firms cry foul over Kenyan government as Obama visits – by Peter Koven (National Post – July 24, 2015)

The National Post is Canada’s second largest national paper.

U.S. President Barack Obama’s visit to Kenya, which begins on Friday, is an event that country’s government has awaited for years.

With the world’s attention focused on Kenya, the birthplace of Obama’s father, the East African nation has an opportunity to show it welcomes foreign investment and does not tolerate corruption. As such, one of the last topics the government wants anyone to bring up is Canadian resource companies that are fighting it in court.

Two small companies, Vanoil Energy Ltd. and Pacific Wildcat Resources Corp., have begun international arbitration cases against Kenya, claiming they lost access to their properties under very peculiar circumstances. Vanoil is seeking US$150 million (and is threatening additional litigation), while Pacific Wildcat wants more than US$2 billion, according to a report.

Interviews with executives at the two companies paint a troublesome portrait of Kenyan government officials willing to push out companies that own concessions. Kenya has traditionally been viewed as one of Africa’s most attractive places to invest, but political risk, along with a tenuous security situation, are harming that perception. Read the rest of this entry »

posted in Africa Mining, Canada Mining, Canadian Media Resource Articles | 0 Comments

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