Showing posts with label Gold Mines. Show all posts
Showing posts with label Gold Mines. Show all posts

Friday, May 1, 2015

Minera IRL receives approval to build gold mine Ollachea

 

Minera IRL Limited is the TSX, AIM and BVL (TSX:IRL)(AIM:MIRL)(BVLAC:MIRL), Lima listed holding company of precious metals mining and exploration companies focused in Latin America. Minera IRL is led by an experienced senior management team with extensive industry experience, particularly in operating in South America. The Group operates the Corihuarmi Gold Mine and the emerging Ollachea Gold Project in Peru as well as the Don Nicolas Project in Argentina.

Peru approved the construction IRL gold gold mine Ollachea, giving the last authorization required for the start of the project in which it plans to invest about 180 million dollars, said Monday that focuses mining production in Latin America.


The mine, located in the southern region of Puno in Peru, the sixth largest producer of gold-, would produce between 100,000 and 115,000 ounces of gold annually in the first years of operation, the company said.


The building permit from the Peruvian Government will let you start the project, "which will be implemented after obtaining the necessary financing for the second quarter of 2015," IRL said in a statement.


According to the latest data from the company, the Ollachea mine has probable reserves of 9.2 million tonnes grading 3.4 grams of gold per tonne of material.
The mine is scheduled to produce 930,000 ounces during the first nine years of life, an average operating cost of about $ 507 per ounce of gold produced, the company said.


The right of use of the site is for 30 years.


The IRL mining, which is listed on the Lima, London and Toronto, operates the small Corihuarmi mine in southern Peru and takes the gold plan folder Don Nicolas in Argentina.

 

pict

The mine, located in Puno, would produce between 100,000 and 115,000 ounces of gold annually in the first years of operation, the company said.

http://www.minera-irl.com

 

Wednesday, October 3, 2012

No easy ride for world's top 10 gold miners

It's tough being at the top and staying there and the world's top 10 gold miners are no exception. They have not been having an easy ride of late.

Author: Lawrence Williams

Nobody ever said mining was easy - all kinds of things can, and probably will, go wrong with an operating mine. And the world's top 10 gold miners, despite their years of mine-building expertise, are no exception, with most of them experiencing significant difficulties with one aspect or another of their operations over the past year or so. Indeed they have, as a group, come in for a significant amount of flak over their poor stock price performances vis a vis the gold price. In part this is because of a perception that ever rising production costs are eating into the profit potential generated by high gold prices, but, in truth, most of them have seen other factors coming into play which have also led to sometimes significant underperformance against the metal price - and even against their own past growth patterns.

But how does one categorise the top 10 gold miners? A common practice is to define them by market capitalisation - see Table 1. below, but this creates some anomalies in the pecking order - notably with companies which produce significant quantities of other metals or minerals. Most, in fact, do so either through co- or by-products which are very significant in some cases. Indeed in our listing by market capitalisation we have included Freeport McMoran in second place (a year ago it would have been top on the basis of the tabulation) which is actually primarily a copper miner, but, as can be seen in Table 2, which lists the major miners by annual gold output, it still classifies as one of the world's top gold producers under any categorisation so has been included nonetheless. In fact, of the global top 10 there are virtually none which could nowadays be classified as a 'pure' gold miner, except perhaps Randgold Resources which has come into the top 10 by market cap through a great growth performance and development pipeline, although remains well out of the listing of top gold miners by gold output.

If one goes through the individual companies in the listings one comes up with a chapter of problems for virtually all - from delayed new project developments (Barrick Gold), major labour disputes/difficulties - Freeport, AngloGold, Gold Fields (which has slipped out of the top 10 by market capitalisation but ranks fourth by mine output), Existing project expansion setbacks (Goldcorp, Newcrest), Geopolitical difficulties (Newmont), Significant underperformance of major strategic asset (Kinross). Indeed the perceived problems are such that so far two CEO heads have rolled (Barrick Gold and Kinross) and there are rumours that others may yet follow.

Table 1: Top 10 Gold Mining Companies by Market Capitalisation

Rank 2012

Company

Market Cap ($billion)

1

Barrick Gold

41.10

2

Freeport-McMoRan

37.57

3

Goldcorp

36.56

4

Newmont Mining

27.79

5

Newcrest Mining

22.28

6

Yamana Gold

14.27

7

Anglogold Ashanti

13.44

8

Kinross Gold

11.46

9

Randgold Resources

11.30

10

Eldorado Gold

10.87

The bigger the producer, the more pressure there is to develop new output just to maintain production, let alone to expand it, which has been the past pattern. With production from older mines declining through falling grades and/or ore reserve depletion, the pressure for replacement is enormous which means that deposits which would not have been seen as targets, due to grade or location, only a few years ago, are now being brought to production, so it's not surprising there are more problems coming to the fore. Developing a mega-deposit - like Barrick's Pascua Lama for example - creates a host of development and logistical problems that have to be worked through.

These problems of output maintenance through greenfield expansions in more hostile geographical, and sometimes political, environments are at last gaining recognition and it was noticeable that at this year's Denver Gold Forum last month, the CEOs of virtually all the major gold miners emphasised that their companies would not be looking at growth for growth's sake and would be closely examining all their new and existing capital projects.

Table 2.: Top 10 Gold Mining Companies by Gold Output

Rank 2012

Company

Gold production (tonnes)

1

Barrick Gold

239.50

2

Newmont Mining

161.74

3

Anglogold Ashanti

122.75

4

Gold Fields

98.80

5

Goldcorp

78.20

6

Kinross Gold

74.00

7

Newcrest Mining

71.10

8

Polyus Gold

46.66

9

Freeport-McMoRan

42.86

10

Harmony Gold

40.43

If one compares the two listings for the Top 10 gold miners it is particularly noticeable that the volume of output does not necessarily correspond with the company's ranking by market capitalisation and much of this difference, on closer examination, relates to the perceived political risk element.

It's not for nothing that the three top gold primary producers by market capitalisation (i.e. ignoring Freeport) all generate the vast bulk of their production from areas that are deemed politically safe - mostly North America and Mexico, although Newmont drops down the list a bit because of significant output from Peru and Indonesia. The company has been running into some problems in both these jurisdictions.

But the political risk element really comes to the fore with the South African gold miners - AngloGold Ashanti, Gold Fields and Harmony. All three appear in the gold production top 10, but only AngloGold remains in the top 10 by market cap and at a relatively low 7th place despite it being the world's third largest gold producer after Barrick and Newmont. Gold Fields, the fourth largest gold producer by output, fell out of the top 10 by market cap this year due to its share price being knocked back sharply by the South African labour disputes, which have been taking a really ugly turn, and nationalisation debate, while Harmony - Number 10 in the gold output table - would be well down the list in market cap. Unlike AngloGold and Gold Fields, it currently has no significant production outside South Africa, although is looking to gold mining at Wafi and Golpu in Papua New Guinea to provide this - but significant output there is still a few years off. Indeed, Harmony is probably the most vulnerable of the South African miners to gold price weakness as it has the highest cost base given it was built through the consolidation of the assets of mostly lower grade marginal producers. Conversely, it has perhaps the highest upside potential should the gold price really take off.

Interestingly, developing miners Eldorado Gold and Randgold Resources squeeze their way into the top 10 miners by market capitalisation, although both would fall well down the listing of gold miners by output. Both have pretensions to grow into significant producers - and despite their main growth operations being in areas which some would consider as having a significant political risk element, they have strong followings among gold investors.

As for the big producers themselves they have been stung by criticisms from the financial community regarding their performance and their treatment of shareholders. As a result they have virtually all become more transparent in their reporting and have also implemented more generous dividend policies to try and improve their appeal to investors. There is thus a good chance that in the months ahead, assuming the gold price remains relatively strong and they follow the policies their CEOs are promoting, that they could once again outperform the gold price rise. They should be generating good cashflow at current gold prices, and dividends should continue to rise as a result. They may not offer the share price growth prospects of the better juniors in a rising gold market, but remain a much safer investment in a flat or declining one - and offer a yield that is comparable with that of many banks and other financial institutions nowadays.

Wednesday, September 26, 2012

Gold Market Report - 26 September

"Buy the Dips" in Gold & Silver Advise Bank Analysts as South Africa's Mining Strikes Spread

WHOLESALE gold prices in US Dollars dipped beneath $1760 per ounce for the 3rd time this week in London on Wednesday morning, gaining against the Euro and Sterling as those currencies fell faster and rising back towards last week's new all-time high versus the Swiss Franc.
World stock markets extended Tuesday's late plunge in US equities, knocking 2.4% off the French CAC40 index as the Euro dropped to a 2-week low beneath $1.2850.
After anti-austerity protesters clashed last night with police in Madrid, a general strike in Greece brought the country "to a standstill" according to BBC reports, with tens of thousands of people gathered outside parliament in Athens.
Commodity prices fell, with crude oil dropping to a 7-week low.
Silver bullion held below $34.00 per ounce, trading just above Tuesday's 8-session low.

"It's bullish when gold goes up in other currencies than the Dollar," Bloomberg today quotes Mitsubishi Corporation's precious metals strategist Matthew Turner, "because it means it's a fundamental story rather than a currency issue.
"We've been waiting for QE3 in gold for over a year now and now it's happened."
US central banker Charles Plosser, president of the Philadelphia Federal Reserve, warned Tuesday that the Fed's new monthly purchases of $40 billion in mortgage debt are "unlikely to see much benefit to growth or employment."
"Plosser threw a wet rag on hopes that the Fed's quantitative easing would stimulate the US economy," says Marc Ground at Standard Bank in London.
"[But the] accommodative monetary policy stance from the Fed will support precious metals, particularly gold and silver, well into 2013."

Analysts at Bank of America-Merrill Lynch also "remain secular bulls on gold," says technical strategist Stephen Suttmeier, adding that "The breakout above the year-long downtrend line completes the correction within the longer-term uptrend.

"Gold prices point to a stronger rally to $2050-2300 and up to $3000 longer-term."
Last week, Suttmeier's BAML colleague MacNeil Curry – head of foreign-exchange technical strategy – told CNBC that he sees gold hitting $3000 to $5000 an ounce, but "not in the next few months."

On the demand side, "Physical demand still remains fairly limp presently," says today's note from Swiss refiner and financiers MKS's Australian dealers, "and there is certainly an increase in scrap this month which is skewing physical flows to the downside.
"The one respite is that typically Q4 shows a bounce back in physical demand following summer holidays [as the] Chinese and Indian gift giving and festival season begins."
Gold prices in India – where mid-November's Diwali festival will mark the typical gold buying peak for the world's #1 consumers – today edged higher by 0.3%, the first such rise in a week according to Bloomberg but only 2.5% off this month's new record highs.
Central banks "are likely to continue to buy gold for the remainder of this year," writes Eugen Weinberg, head of commodity research at Commerzbank in Frankfurt today, "thereby stripping supply from the market and contributing to climbing gold prices."

Gold is "currently also finding support from concerns about supply in South Africa," says Weinberg of the world's former #1 producer, still sitting on the biggest underground reserves.
"Strikes [by miners] are now concentrated on the gold industry, while the platinum industry has recently calmed down again."
The world's 4th largest gold mining firm, Gold Fields, said Tuesday that workers remained on illegal strike at two of its South African mines, "ignored the agreement reached Friday night," according to a spokesman.
World No.3 listed miner AngloGold Ashanti said Wednesday morning that illegal strike action at its Kopanang mine had spead to involves "most" of South African workforce.
Holding the world's second-largest unmined gold reserves, however, Russia could accept tenders to work Siberia's Sukhoi Log, the country's biggest untapped gold deposits – "in the near future" said deputy prime minister Arkady Dvorkovich, speaking at Reuters Russia Investment Summit in Moscow Tuesday.
Adrian Ash

BullionVault

Gold price chart, no delay | Buy gold online at live prices

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can buy gold today vaulted in Zurich on $3 spreads and 0.8% dealing fees.

(c) BullionVault 2012

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Thursday, September 20, 2012

High rand gold price a ray of light for SA gold miners

The rand-denominated gold price broke through its all time high during intra day trade but, and could provide some welcome good news to the sector.

Author: Geoff Candy

The rand gold price broke through its all time high made in September 2011 during trade Thursday before dropping back to around the R472 500 per kilogram level.

Gold in all currencies has benefitted from last week's announcement from the US Federal Reserve of an open-ended third round of quantitative easing, but South African producers have also been benefitting from a weak rand:dollar exchange rate.

The rand, which has benefitted from the signing of a wage agreement at Lonmin, has since seen that boost subside somewhat as the pleasure over the agreement gives way to concerns about the precedent that the deal might set.

The rand weakened 1.7% over the day against the dollar, partly as a result of dollar strength, partly on concerns around the mining sector and, partly on the back of the South African Reserve Bank's decision to keep rates on hold.

While the decision itself was of little doubt, the dovish tone to the statement caught some commentators a little by surprise. And, one that is likely to keep the currency volatile and on the back foot.

Assuming then a currency that remains on the weaker side, and an expectation that gold prices in dollar terms are likely to continue higher as more liquidity is pumped into the global financial system, the expectation is that rand gold prices should remain roughly around current levels.

This will be welcome news to the local mining sector which has had its fair share of troubles of late but, it will perhaps have less of an impact across the board as it once might.

Producers like AngloGold Ashanti and Gold Fields, as they have grown their international operations, have become less dependent on the rand price of gold. Currently Harmony Gold, although its sights are firmly focused on Papua New Guinea still produce most of their current production in South Africa and will see a benefit from the stronger rand price of gold.

But, it will be the smaller producers like Pan African Resources, DRDGold, Gold One and Village Main that will be hoping the trend continues.

Many of these operations run marginal mines that have been under particular strain from increased rand-denominated costs like electricity and wages. So, a higher rand price of gold will fall rather far down to the bottom line.

Wednesday, July 4, 2012

State of Emergency declared in Peru after 3 killed in mining clash

Peru's government declared a state of emergency in three provinces after three people died and at least 21 suffered injuries Tuesday in a violent protest against a gold mining project that is the South American nation's biggest investment.

It was the second time in five weeks that the government has declared an emergency after anti-mining protests produced fatalities.

Justice Minister Juan Jimenez announced the emergency, which suspends civil liberties, after several thousand protesters attacked a provincial town hall and battled police and soldiers.

Police guarding the municipal building in Celendin, a town in the northern state of Cajamarca, fought back when the protesters attacked and later got help from soldiers, officials said.

Jimenez said two police officers and a solder were wounded by gunfire. Authorities did not say whether police or troops used their weapons.

Three male civilians were killed during the fight, at least two of them by gunshots to the head, Reynaldo Nunez, Cajamarca's health director, told The Associated Press by phone. Most of the injured had received blows, he said.

Nunez said he did not know whether police or soldiers were among the injured.

The local prosecutor said 15 people were arrested.

Celendin is a stronghold of opposition to the proposed $4.8 billion Conga gold mine, which many locals fear will hurt their water supplies. The mine's majority owner is Newmont Mining Co., a U.S. company based in the state of Colorado.

It is one of two main recent flashpoints of opposition against mining in Peru to fall under a government-declared state of emergency. The other is the highlands province of Espinar, near the former Incan capital of Cuzco. The government declared a 30-day state of emergency there on May 29 after two people were killed in a protest against a Swiss-owned copper mine.

In Cajamarca, protesters backed by the regional president, Gregorio Santos, have refused to accept a compromise on Conga proposed by President Ollanta Humala that his government says will protect water supplies.

The compromise includes the construction of four reservoirs to replace reservoirs that are to be destroyed by the project.

Celendin's town manager, Moises Silva, told the AP that violence broke out when construction workers arrived at the town hall and began kicking its main door, prompting police officers to fire tear gas.

"After that, a fierce battle began between the protesters and police, and also soldiers who intervened in support of the police," he said. "You could hear gunshots."

The violence came just days after Yanacocha, the company in charge of Conga, began work on the new reservoirs.

The anti-mining protesters accuse Humala, who was elected one year ago, of betraying a campaign promise he made in Cajamarca that access to clean water would come before mining.

The regional president, Santos, called Tuesday's deaths "the dramatic cost that is paid in politics when one doesn't keep one's word."

Humala's modified message after taking office and moving from left to center on the political spectrum holds that responsible mining can co-exist with environmental protection and provides important revenues that can help lift rural Peruvians from poverty.

Mining accounts for more than 60 percent of Peru's export earnings and has been the engine of a decade-long economic boom.

Tuesday, June 12, 2012

Reserves in ground make gold stocks incredibly cheap - Coxe

During a recent conference call, BMO's Don Coxe stressed gold stocks are a solid investment-in the long run and that gold will gain in importance as banking crisis drags on.

In recent conference call to clients, BMO Global Strategist Don Coxe advised, "One way or another I think gold is going to be more important from now on than it is today, and I'd like to see you people share in that."

As the entire banking system in the Eurozone remains at risk from Eurozone crisis, Coxe doesn't "see a way of getting out of this without bringing gold back in somehow-I will applaud them if they can find a way to do that-- but in the meantime it's another reason for our continued support of investing in gold..."

However, Coxe believes "the best way to do this is no longer the bullion, it's the stocks, and we've given you a variety of reasons for it."

"The miners hold all the future gold," he observed. "The big advantage you have is you acquire unhedged reserves in the ground in politically secured areas of the world."

"Another way of looking at that is not to use the figures the gold mining companies use, (which they are required to) which is the average price of the metal over the last three years," Coxe advised. "It's better to use the gold futures curve, which is in contango and that if you could use that, and I am not saying legally you could, but you as an investor can say, "The contango is saying that gold prices are going to be stronger in the future than they are today, and I get all these ounces of gold when I buy a good mining company."

Coxe stressed gold stocks are a solid investment-in the long run...

"So not only are they incredibly cheap, (relative to their earnings) which means out of the current price of gold, but the real value relative to buying the GLD or just bullions is all those years and years of reserves in the ground," he noted.

Gold no longer four-letter word for elitists

"I believe the elites for a long, long time have regarded gold as irrelevant and a nuisance, but what is interesting is that despite that, these countries didn't dispose of their gold and in fact central banks have been nibbling away at adding to their reserves," Coxe observed.

"One way or another I think gold is going to be more important a year from now than it is today, and I'd like to see that you people share in that," he concluded.

Friday, June 1, 2012

Laconia completes Peru mine buy

Perth-based explorer Laconia Resources has acquired the Rasuhuilca gold/silver project, in Peru, in a share and option exchange with Gold Mines of Peru.

Laconia recently received shareholder approval for the transaction, which was announced in November last year, after completing a due diligence on the project.

The ASX-listed explorer would now issue 42-million ordinary shares, and 14.5-million performance shares to Gold Mines of Peru. Some A$500 000 would also be paid to Gold Mines of Peru from production revenue, if production revenue was reached within five years, while a A$120 000 payment would be made over the next six months to a third party.

Laconia said in a statement on Friday that the acquisition represented a major milestone for the company and established it as an emerging precious and base metals developer. The Rasuhuilca project also complemented the company’s existing portfolio of precious and base metals projects in Western Australia.

The project has an inferred resource estimate of some 360 000 t, at 1.97 g/t gold and 179 g/t silver. A prefeasibility study was completed in 2008, and Laconia would now look to update and reaffirm the parameters of that study.

The developer would immediately start an exploration programme at the project area, with a maiden drilling programme on the existing resource to be completed by the fourth quarter of this year.

Exploration for larger mineralised systems on the broader tenement package would also start in July this year.

Source: Creamer Media Reporter