Is KLGDF worth a look? tiny market cap, just announced new gold discovery

I first heard about them on KWN last year and have been watching since. Seems like a technically solid team and again, an efficient operation with tiny market cap.

https://kalogoldcorp.com/2023/09/27/kalo-discovers-new-epithermal-gold-and-copper-mineralization-at-vatu-aurum-gold-project-fiji/

Sumisu Note: Monument Reports First Quarter Fiscal 2022 (“Q1 FY2022”) Results
Gross Revenue of $2.38 Million and Cash Cost of US$1,430/Oz
November 29, 2021


Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) “Monument” or the
“Company” today announced its first quarter of fiscal 2022 production
and financial results for the three months ended September 30, 2021.

All amounts are expressed in United States dollars (“US$”) unless
otherwise indicated (refer to www.sedar.com for full financial
results).

President and CEO Cathy Zhai commented, “2022 fiscal year is full of
challenge and would be rewarding for Monument when the Company stays
focused on execution of the corporate strategies.
During the quarter, the Selinsing flotation plant construction was
kicked off with engineering design near completion, long lead items
procured, and the earthworks at site reached 90% completion.

The Phase 1 drilling at Murchison was completed by overcoming the
shortage of drill rigs.

Peranggih continued to provide additional mill feed that helped to
sustain the cash flow.
The Delays in gold production is anticipated to be caught up after the
monsoon season in the third quarter.”

First Quarter Highlights:

Phase one drilling program completed in Q1 at Murchison Project with 91%
assay results received to date;
Phase 1&2 RC drilling program completed at Peranggih Gold Prospect in
Q1 with positive intercept results;

Selinsing Flotation Plant Project progressing on time in Q1 with 31%
completion to date;
Long lead item contracts awarded to reputable suppliers for Selinsing
Flotation Plant Project;

Selinsing Gold Mine production recovered gradually after the mining ban
lifted due to Covid 19 Pandemic;

1,423 ounces (“oz”) of gold sold for $2.38 million (Q1, FY 2021:
3,100oz for $5.92 million);

Average quarterly gold price realized at $1,829/oz (Q1, FY2021:
$1,909/oz);

Cash cost per ounce sold was $1,430/oz (Q1, FY2021: $923/oz);
Gross margin decreased by 88% to $0.35 million (Q1, FY2021:
$3.06 million);

1,043oz of gold produced (Q1, FY2021: 3,504oz);
All-in sustaining cost (“AISC”) increased to $2,052/oz (Q1, FY2021:
$1,055/oz).

First Quarter Production and Financial Highlights

https://www.monumentmining.com/news-media/news/2021/monument-reports-first-quarter-fiscal-2022-q1-fy2022-results/


https://investorshub.advfn.com/boards/read_msg.aspx?message_id=166907265


$Ep.56 LFTV: Basel III - The Elephant in the Room - Unprecedented Impact
for Gold and Silver
5,311 views Dec 10, 2021

SIGNIFICANT DEVELOPMENTS IN THE PRECIOUS METALS MARKET: Where We Go From Here

Posted by SRSrocco in Economy, News, Precious Metals on October 27, 2017

https://srsroccoreport.com/significant-developments-in-the-precious-metals-market-where-we-go-from-here/

GOLDCORP, INC [GG]



Based on the above chart, the current price has reached its 200-day average. Also, the RSI has risen quite high. I would not buy at this level.

Also, please review Hussman's posts of:

January 16, 2017 titled Cassandra's Song

https://www.hussmanfunds.com/wmc/wmc170116.htm

and then his warning of January 23, 2017 titled Rare Signatures

https://www.hussmanfunds.com/wmc/wmc170123.htm

I believe that the markets will top later this year and investors will protect themselves by even selling precious metals. After a steep market decline, investors will rush back into precious metals again. That is my gut feel.

sumisu

how ya like GG ?????

you are welcome, strong dollar keeps gold in check

Thanks for the Randgold Resources chart!!!

thank you.

KunstlerCast 285 — Byron King of Rickard’s Gold Investor

http://kunstler.com/podcast/kunstlercast-285-byron-king-rickards-gold-investor/

thank you lots my friend/

re;

https://www.hussmanfunds.com/weeklyMarketComment.html


This Week:
Judging Economic Policy
If you net out all the assets and liabilities in an economy, you’ll find that the nation’s accumulated stock of real investment is the only thing that remains. That’s the central driver of a nation’s productivity, and the true basis for a nation’s wealth. Broadly defined, it includes a nation’s accumulated stock of real private investment (e.g. housing, capital goods, factories), real public investment (e.g. infrastructure), intangible intellectual capital (e.g. education, inventions, organizational knowledge and systems), and its endowment of basic resources such as land, energy, and water. Encourage, incentivize, and protect all of those, and you’ll find an economy that delivers prosperity. Fail to encourage productive investment at every level, and you’ll find an economy in long-term decline. The primary source of failure in the U.S. economy over the past 15 years has been a policy environment aimed at encouraging consumption over productive investment. Those policies have been dominated by the Federal Reserve’s quest to punish saving, fuel debt-financed consumption, and produce an illusory “wealth effect” from financial speculation. If you’re looking for the root of U.S. economic stagnation, there’s your trouble.
By John P. Hussman, Ph.D.
President, Hussman Investment Trust

What I removed from my 401K plan was basically wiped out. But a kept most of my money in the 401K plan.

I have much little time for investments with my gardening, tutoring, and hobbies.

But I do follow the markets and find it disturbing.

I like to follow this weekly Market Comment.

https://www.hussmanfunds.com/weeklyMarketComment.html

sumi

i can appreciate your stlye always. yes wipe out ????? many and is man made,

Been out of the stock market for years; money diverted to my gardens. 2008 about wiped me out, mick.

GOLD PPO could spike big.

got any low pprice ones ?????

yes Australia is going digital couple days ago city bank C IS DOING THIS NOW.

END OF PAPER MONEY AND COINS.

RE;
Wow, I hear talk of digital currency, but it would be dangerous for Internet use. People are not ready for it nor are the controls.

sumi

Wow, I hear talk of digital currency, but it would be dangerous for Internet use. People are not ready for it nor are the controls.

sumi

thoughts for digital currency ????? no more cash or coins in our pockets.

been awhile, gold could go through the roof city bank just going digital currency in austrilia.

Santa Fe Gold and Canarc Resource Announce Strategic Share Exchange; Commitment for $22 Million Gold Bond Financing

http://ih.advfn.com/p.php?pid=nmona&article=62916328

The global economy is in a very fragile state. Major economic hubs are facing issues. China, India, Australia, the eurozone, and the U.S. economy show bleak economic performance. Just look at how bad the U.S. December jobs numbers were.

Source: http://www.profitconfidential.com/gold-investments/golds-bad-investment-country-buying-150/

Building a New Gold Mine in California’s Mother Lode SGM Fact Sheet -



http://www.suttergoldmining.com/i/pdf/FactSheet.pdf

WAKING UP TO $4,000/OZ GOLD…AND NOTHING OFFERED
MAY 21, 2013 BY THE DOC 23 COMMENTS

http://silverdoctors.com/waking-up-to-4000oz-gold-and-nothing-offered/

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=88210326
God Bless

Ps.
Thanks Clint good info

Sutter Gold will go to $3-5 Share in the next..

2 YEARS

I've been slowly accumulating these shares over time. Bought in at
.07 up to .38, I'm not worried about the price fluctuations at all.
This is a LONG TERM play with the highest Grade out of any
Gold Mine.
The company's debt structure isn't pretty but they should be able
to get out of it within a year after full production, that
gives 4 years of EPS to the company and shareholders.


The company is waiting to release News PR. They are going to wait
until they are IN PRODUCTION to announce another PR. WHY?

Because this is a HUGE MILESTONE, in turn the stock will skyrocket,
most likely to the .7-$1.00 level.
Watch it sell off back down to .6-.9, then make another move near
the end of the year around November / December
once they meet FULL PRODUCTION.
I've talked to the CFO, the company also uses its waste / Dirt and
sells it to Agricultural companies, another revenue stream.

Ironically, they are sitting on the "MOTHER LOAD" and the stock sits
at mere Pennies.

Watch this company because a buzz word after full production hits and
the ETF Gold market shapes back up to the $1,7000- $2,000 range.

All the major banks covered their shorts and now are buying back
future calls on Gold.
Pure manipulation play on the banks, but watch how
Sutter Gold will be in the right spot at the right time with
Full Production hitting along with new Gold Highs.

Cheers ,

Clint

http://stockcharts.com/h-sc/ui

SNEY....
http://www.dailymarkets.com/stock/2013/04/30/sunergys-president-and-ceo-garrett-hale-heads-to-sierra-leone-to-advance-operations-on-the-140-sq-km-pampana-river-rare-earths-gold-recovery-project-in-sierra-leone/

Is Sovereign Debt Crisis Contained to Subprime?

by Peter Schiff, Euro Pacific Capital | May 7, 2010

http://www.financialsense.com/fsu/editorials/schiff/2010/0507.html

As Americans observe the chaos in Greece, most assume that the strength of our currency, the credit worthiness of our government, and the vast expanse of two oceans, will prevent a similar scene from playing out in our streets. I believe these protections to be illusory.

Once again the vast majority fails to see a crisis in the making, even as it stares at them from close range. Just as market observers in 2007 told us that the credit crisis would be confined to the subprime mortgage market, current analysts tell us that sovereign debt problems are confined to Greece, Spain, Portugal, and perhaps Italy. They were wrong then, and I believe that they're wrong now.

During the housing boom, subprime and prime borrowers made many of the same mistakes. Both groups overpaid for their homes, bought with low or no down payments, financed using ARMs instead of fixed rate mortgages, and repeatedly cashed out appreciated home equity through re-financings. The market largely overlooked the glaring similarities, and instead merely focused on FICO scores. Yes, prime borrowers had better credit, but their losses on underwater properties were no less devastating. As the magnitude of home price declines intensified, prime borrowers defaulted in levels that were almost as high as the subprime crowd.

So when mortgage backed securities started to go bad, it wasn't as if the problems emanated in subprime and subsequently "contaminated" the rest of the market. All borrowers were infected with the same disease, but the symptoms merely expressed themselves sooner in subprime. The same is true on a national level, whereby Greece plays the part of the subprime borrower. Though the U.S. is considered to be the highest order of "prime" borrower, based on historic precedent, our debt to GDP levels are at crisis levels, and are not that much lower than Portugal or Spain. When off-budget and contingency liabilities are properly accounted for, one could argue that we are already in worse financial shape than Greece.

Most importantly, like Greece (and homeowners who relied on adjustable rate mortgages), we have a high percentage of short-term debt that is vulnerable to rising rates. The one key difference is that while Greece borrows in euros, a currency it cannot print, America borrows in dollars, which we can print endlessly. In reality however, this is a distinction with very little substantive difference.

What if Greece had not been a member of the euro zone and had instead borrowed in their former currency, the drachma? First, given its past history of fiscal shortfalls, Greece would not have been able to borrow nearly as much as it had (They may well have been forced to borrow in euros anyway). Under those circumstances, creditors would have been more reluctant to lend without the possibility of a German led bailout. Had Greece never adopted the euro as its currency, but nevertheless borrowed in euros, it would now face the same difficult choices, but would not be offered the carrots or sticks provided by other euro zone nations that are worried about the integrity of their currency. The IMF would have been Greece's only possible savior.

Many of our top economists now argue that all would be well in Greece if the country was in charge of its own currency. In such a scenario, Greece would indeed have had no problems printing as many drachmas needed to pay its debts. However, would this really be a "get out of debt free" card for Greece?

The main reason the Greeks are protesting in the streets is that they do not want their benefits reduced or taxes raised to repay foreign creditors. But despite the likely domestic popularity of a drachma-printing policy, would it really get the Greeks off the hook? They would stiff their creditors by repaying them in currency of diminished value. But the same result could be achieved through an honest debt restructuring, which would involve "haircuts" for all creditors. In a restructuring, the pain falls most squarely on those who foolishly lent money to a "subprime" borrower.

But with inflation it's not just foreign creditors who would suffer. Every Greek citizen who has savings in drachma would suffer. Every Greek citizen who works for wages would suffer. Sure nominal benefits are preserved and taxes are not raised, but real purchasing power is destroyed. If the cost of living goes up, the reduction in the value of government benefits is just as real.

Of course, the negative effects on the economy of run-a-way inflation and skyrocketing interest rates are worse than what otherwise might result from an honest restructuring or even out right default. It is just amazing how few economists understand this simple fact.

Just because we can inflate does not mean we can escape the consequences of our actions. One way or another the piper must be paid. Either benefits will be cut or the real value of those benefits will be reduced. In fact, it is precisely because we can inflate our problems away that they now loom so large. With no one forcing us to make the hard choices, we constantly take the easy way out.

When creditors ultimately decide to curtail loans to America, U.S. interest rates will finally spike, and we will be confronted with even more difficult choices than those now facing Greece. Given the short maturity of our national debt, a jump in short-term rates would either result in default or massive austerity. If we choose neither, and opt to print money instead, the run-a-way inflation that will ensue will produce an even greater austerity than the one our leaders lacked the courage to impose. Those who believe rates will never rise as long as the Fed remains accommodative, or that inflation will not flare up as long as unemployment remains high, are just as foolish as those who assured us that the mortgage market was sound because national real estate prices could never fall.

Copyright © 2010 Peter Schiff
Editorial Archive

Gold - The Real Shape of Chinese gold demand

Excerpts from GLOBAL WATCH

The Gold Forecaster by Julian D.W. Phillips | April 1, 2010

http://www.financialsense.com/editorials/phillips/2010/0401.html

This is a snippet from the Gold Forecaster. The newsletter that covers all pertinent factors affecting the gold price [with a 95% accuracy rate].

The respected World Gold Council has issued a report on the Chinese gold market. In it, WGC points out that, local Chinese consumers are well aware of gold's benefit as a store of value and that jewelry has always been regarded by Chinese buyers as an investment. Like Eastern demand in general, the Chinese want gold, not diluted gold, so at least 80% of total gold jewelry demand in China is accounted for by 24-carat gold.

Chinese jewelry demand has averaged 250 tonnes of gold per annum over the past ten years. Total jewelry + bar hoarding demand has averaged 3,355 tonnes over the same period, giving China an average market share of just over 7% of total. Last year, jewelry demand grew, in contrast to the rest of the world, by 6% year-on-year to reach 347 tonnes, which was equivalent to 21% of world jewelry demand.

This works out at 0.26 grams per capita, substantially lower than other areas with a similar affinity to the metal, such as the U.A.E., Saudi, India, and other parts of the East Asian continent. This is accounted for not only by the still very low level of income earned by the average Chinese citizen, but by the immature nature of the Chinese gold market.

Urban development and the rise in disposable income

The gold market has to follow wealth development, which starts in the towns and cities. While the economy is growing rapidly it is only at a ‘young’ stage, with vast increases still to come. Within 10 years we believe 2/3rd of the Chinese population will live in towns and cities leaving 1/3rd still in the countryside feeding the urban population. But of greater importance will be the speed with which disposable income will rise. China's appetite for gold will rise alongside the rise in disposable income, as will the level of gold off-take. This is augmented by the high savings ratio of the Chinese, together with a lack of alternative investment vehicles. This is an explosive formula for gold demand.

Just think of it, when a company is just below break-even point a rise in profitability through that level, to moderate profits is the most dramatic event a company can experience. Thereafter, similar rises in profitability mean a steadily lowering of percentage increases in profitability. So it is with an individual.

The first thousand dollars above one’s needs is a heady amount, the second not so dramatic. Now apply that principle to China and its 1.4 billion people. The pace of growth in the gold market is set to explode in the years to come and, with all due respect to the W.G.C., should explode far more than a doubling in 10 years. Just look at the growth of its car market. We expect the same in its gold market.

Net retail investment in gold in China in 2009 was 81 tonnes, up 22% year-on-year. China thus accounted for 43% of the world total in that category last year. Coins and bar hoarding have been growing strongly in recent years and we believe will jump almost on an exponential rate in the years to come..

Like Indian gold owners, gold represents financial security, so we agree with the WGC when they say that Chinese investors are much less likely to sell into strength than some of their counterparts elsewhere in the world.

On an institutional level gold is finding favor as well. The China Investment Corporation is moving into commodities and real estate and recent filings with the SEC show that the CIC took a 1.45 million share stake in the SPDR® Gold Shares Fund in New York (equivalent to 4.5 tonnes) in the fourth quarter of last year.

On the immediate front, a trend over the last few weeks has been that the gold price rises in Asia time and is pulled down in London and early New York time.

We expect remarkable growth in demand from China in the years to come, which by itself, will support present prices and take them far higher in times to come.

METALS UPDATE

02 21 10

http://www.preciousmetalstockreview.com/downloads/February%2020,%202010%200df.pdf

The I.M.F. sold 200 tonnes to India, a new announcement due!

Excerpts from GLOBAL WATCH:

THE GOLD FORECASTER

by Julian D.W. Phillips

November 13, 2009

http://www.financialsense.com/editorials/phillips/2009/1113.html

Gold to Make New Highs Above $2000, Says Commodity Maven Frank Holmes

Posted Oct 30, 2009 12:00pm EDT by Peter Gorenstein

http://tiny.cc/f2LvF

Gold is likely to make a new inflation-adjusted high before its current bull move ends. That's the word from Frank Holmes the man behind the Morningstar 5-star rated U.S. Global Investors Gold and Precious Metals Fund, which is up 33% in the past year.

The journey to new highs will comes with bumps along the road. Holmes predicts several 10% price swings in the near future. But, he firmly believes negative interest rates combined with massive deficits is a recipe for gold to shine.

What's his price target?

Holmes predicts gold can easily reach $2300 - the inflation-adjusted high it reached in the early 1980s.

Even-though he is a gold bull, Holmes says investors should only put 10% of their assets in gold; half in bullion and the other half in stocks.

And, he preaches caution when selecting gold stocks, recommending only buying those companies that "respect value per share." Meaning, avoid the names that may need to raise capital through new stock offerings. Stocks that make his grade include RandGold, and two royalty companies, Royal Gold and Franco Nevada.

>Eventually juniors will have their day. This is the most opportune time to own precious metals, especially with this administration which spends profligately.

sumi

Barrick shuts hedge book as world gold supply runs out

Global gold production is in terminal decline despite record prices and Herculean efforts by mining companies to discover fresh sources of ore in remote spots, according to the world's top producer Barrick Gold.

By Ambrose Evans-Pritchard, International Business Editor
Published: 7:20PM GMT 11 Nov 2009

http://www.telegraph.co.uk/finance/newsbysector/industry/mining/6546579/Barrick-shuts-hedge-book-as-world-gold-supply-runs-out.html


Liquid gold: Gold is poured from the induction kiln Photo: JULIAN SIMMONDS

Aaron Regent, president of the Canadian gold giant, said that global output has been falling by roughly 1m ounces a year since the start of the decade. Total mine supply has dropped by 10pc as ore quality erodes, implying that the roaring bull market of the last eight years may have further to run.

"There is a strong case to be made that we are already at 'peak gold'," he told The Daily Telegraph at the RBC's annual gold conference in London.

Gold: how high can the price go? "Production peaked around 2000 and it has been in decline ever since, and we forecast that decline to continue. It is increasingly difficult to find ore," he said.

Ore grades have fallen from around 12 grams per tonne in 1950 to nearer 3 grams in the US, Canada, and Australia. South Africa's output has halved since peaking in 1970.

The supply crunch has helped push gold to an all-time high, reaching $1,118 an ounce at one stage yesterday. The key driver over recent days has been the move by India's central bank to soak up half of the gold being sold by the International Monetary Fund. It is the latest sign that the rising powers of Asia and the commodity bloc are growing wary of Western paper money and debt.

China has quietly doubled holdings to 1,054 tonnes and is thought to be adding gradually on price dips, creating a market floor. Gold remains a tiny fraction of its $2.3 trillion in foreign reserves.

Gold exchange-traded funds (ETFs) – dubbed the "People's Central Bank" – have accumulated 1,778 tonnes, making them the fifth biggest holder after the US, Germany, France, and Italy.

Ross Norman, director of theBullionDesk.com, said exploration budgets had tripled since the start of the decade with stubbornly disappointing results so far.

Output fell a further 14pc in South Africa last year as companies were forced to dig ever deeper - at greater cost - to replace depleted reserves, not helped by "social uplift" rules and power cuts. Harmony Gold said yesterday that it may close two more mines over coming months due to poor ore grades.

Mr Norman said the "false mine of central banks" had been the only new source of gold supply this decade as they auction off reserves, but they are switching sides to become net buyers.

Barrick is moving fast to wind down the remaining 3m ounces of its infamous hedge book over the next twelve months, an implicit bet on rising gold prices over time.

Mr Regent said the company had waited too long to ditch the policy, which has made the company enemy number one among 'gold bug' enthusiasts. The hedges oblige Barrick to deliver part of its gold into futures contracts set long ago at levels far below today's spot prices.

The strategy worked well in the falling market of the 1990s, but has cost the company dear in lost profits this decade. "Hindsight is always 20/20," said Mr Regent, who was appointed from the outside earlier this year.

Barrick bit the bullet in the third quarter, taking a $5.7bn charge against earnings on hedge contracts. Liberation is at last in sight. In 2001 the hedge book topped 20m ounces.

Mr Regent said the hedge policy has weighed badly on the share price and irked investors, becoming a bone of contention at every meeting. The financial crisis brought matters to a head as markets fretted about counterparty risk. "It was clear to me that there were a significant number of institutions who wouldn't invest in Barrick because of the hedge book," he said.

Barrick produced 1.9m ounces of gold last quarter, down from 1.95m a year earlier. Costs have been "trending down" to $456 an ounce, though rising energy prices pose a fresh threat. Total reserves are 139m ounces, far ahead of rival Newmont Mining at 86m.

The hedge book venture has not been a happy one, but those who predicted that Barrick would eventually "blow up" on its contracts may owe the company an apology.

Thanks Sumisu.I honestly feelthat jr.miners are the way to go given the current situation.Perhaps you would like to check out orca and my precious metals investors board.Any input is always welcome.I will be watching here also for important news.MT

>Great article; it covers all factors in contributing to an inflationary environment.

sumi

Inter-Citic's Dachang Gold Project

http://www.inter-citic.com/welcome.htm

I just happen to find this one the other day. Have not analyzed it yet.

sumi

Yet another reason for gold , and jr.miners.

http://www.kitco.com/ind/willie/nov062009.html

You wouldn't hapen to have any microcap chinese jr.miners in your pocket would you friend? I amloking fosome good ones to get into.Has anyone here seen this?The dollar is gonna tank , jr miners are gonna surge.MT


http://infowars.net/articles/november2009/041109Estulin.htm

Gold taps record as U.S. joblessness hits 10%

Bullion tops $1,100 mark for first time as easy money seems assured

Nov. 6, 2009, 2:52 p.m. EST

http://www.marketwatch.com/story//gold-reaches-new-record-above-1100-2009-11-06

Why America wants IMF gold sale proceeds

2009-09-23 21:45:00

By Jon Nadler

http://www.commodityonline.com/news/Why-America-wants-IMF-gold-sale-proceeds-21380-3-1.html

Narrow ranges defined the overnight trading hours for gold, as the metal gyrated between $1010 and $1020 per ounce, closely tracking the dollar's own close orbit around the 76.10 mark on the trade-weighted index. Nevertheless, the greenback is still at, or near a one-year low point against the euro and sentiment shows little in the way of improving as yet. Today's FOMC meeting could make a difference, but not necessarily mark a turning point. The Fed is expected to underscore the idea that the US economic recovery has indeed begun, but it is also expected to leave rates alone for the time being.

Gold started the midweek session off on a steady note very near the $1015 level, showing a $0.90 loss at the opening bell. The dollar was equally flat, showing no movement on the index and a quote of 1.479 against the euro. Oil prices moved very little as well, stalled at $71.50 per barrel. Evidently, the larger bets are waiting the Fed out for now. Silver opened with a two-penny loss at $17.10 per ounce, while platinum fell $7 to $1326 and palladium slipped by $5 to $296 per troy ounce.

Sell-off fears continue to swirl in the various gold dealing rooms we contacted during the overnight hours - they are based on the gargantuan long positions in NY, and on the uninterrupted (by any significant corrective action) manner in which prices have gotten where they now are. This, despite poor fundamentals. For example, confirmation of just how lousy the 2009 Indian gold offtake is becoming, came from Reuters late yesterday. Reporter Frank Tang interviewed local trade-watchers/dealers and summed up the developing scenario in a manner that surprised even us:

" India's gold imports in 2009 may fall to their lowest level since trade was liberalised 12 years ago as high prices have put off buyers in the world's biggest market for the metal, a top importer said on Tuesday. Total imports may fall to 500 to 550 tonnes, Shilpa Kumar, senior general manager of the global markets group at ICICI Bank, one of India's top three gold importers, told Reuters in an interview.

" We expect the year will be lower than last year as there was such a big fall in the first quarter, it can't be completely compensated in the calendar year," Kumar told Reuters. In 2008, India's imports were at 712.6 tonnes, according to World Gold Council (WGC). In the first half of the year, Indian demand was 55 percent lower than a year ago, but the gap will be narrowed to 23-30 percent for the full year as higher wages for government employees and an official scheme for rural employment has cushioned the impact of failed monsoons, she said."

The convergence of key levels (support as well as resistance) in various markets leading up to the FOMC and the G20 meetings could be interpreted as coincidence albeit many do not believe that to be the case. What will come to be regarded as a dovish or hawkish stance by the Fed, remains to be seen. As for the dollar, well, it's still an open case. We do know that the proceeds of the 403 tonne IMF gold sale will go into the US currency. But, is $13 billion enough to 'rehabilitate' the US currency at this juncture? The one certain thing is, that when US interest rates do begin their eventual upward adjustment process, even the first quarter-point tweak will move mountains in certain markets. The interest rate ice age has lasted long enough for that type of occurrence to be baked into the cake.

That same interest rate environment has given rise to the idea that perhaps the dollar is the next carry trade-funding currency, replacing the yen - a currency by which the term has largely been hitherto defined. The Japanese currency was a safe bet for speculators searching for a cheap source of funding for their ventures into various other markets. After all, given near-zero interest rates and a fast-deflating economy in Japan, how could they miss? Yet, miss they did- as in October of 1998 when a sharp downturn in the bond market made all of them run in sync. The yen rose by 18% in...four days, and by 25% in two months. Wipeout. These are the risks of the carry trade, these are the risks of one-way bets.

Despite all of this, and a record that shows speculative talk to not only be cheap, but often wrong, the talk continues. Talk of the imminent collapse of the dollar. Talk of the imminent collapse of America. Talk of a lunar launch for gold. Talk of a new world order. Talk that the world is recovering. Talk that the storm is over. Talk that inflation is coming. Talk that deflation is here. We would rather have talk without talking too much. Clear meanings in but a few simple words. Alas, it is not to be. We lack elephant talkers, these days. Marketwatch's Rex Nutting dissects the rivers of talking flooding our lives and finds that -as we have always said- at the end of the day, it is all noise in the void, devoid of action:

"The world has its share of problems right now -- global financial meltdown, global warming, global unrest -- but mostly we're talking about them more than we're actually doing things to fix them. America, the most prosperous nation and the one with the largest military, can't escape problems of its own: Unaffordable health care, economic malaise, and troublesome international allies and foes. What are we doing about them? Mostly talking.

For instance, the Federal Open Market Committee is meeting Tuesday and Wednesday to talk about fixing the financial system and the economy. The meeting will be just talk, because the Fed has already done what it's going to do. Now they are waiting, and filling in the awkward silences with reassuring talk.

Sen. Max Baucus, D-Mont., the chairman of the Senate Finance Committee, announced Tuesday that his committee will wrap up the biggest-ever makeover in health-care in just a couple of days. Forget the fact that he's been talking to the members of his committee for months in a fruitless attempt to find common ground to act. Baucus is powerless to get his way, so all he can do is talk.

President Barack Obama is the biggest talker of all. He talked to the TV pundits all day Sunday, talked to David Letterman on Monday, and talked to the U.N. and the Chinese on Tuesday. On Wednesday, he'll talk to the Israelis and the Palestinians and the Japanese and the Russians. Then on Thursday and Friday, the president will travel to Pittsburgh for more talk with the Group of 20 leaders. At the end, the G20 leaders are expected to issue a statement full of lofty promises, and almost no action.

Is this the best we can do? Maybe. These issues are problems because they are beyond the ability of any one person, or committee, or nation to fix. They require coordinated action. Global climate change cannot be fixed without full cooperation of everyone. If one country goes it alone, the agreements to reduce greenhouse-gas emissions will fall apart in a race to the bottom. The global financial system cannot be restructured without the full cooperation of everyone. If one country imposes stronger requirements than the others, the bankers and shadow bankers will go elsewhere, and the whole world will be vulnerable to the next credit bubble and bust. Sometimes the talk seems cheap, because it is simply empty words. But agreement on these thorny issues can only be achieved by trusting each other to do what's best for all, even if it means each of us must sacrifice something.

Winning trust begins with talk, but can't be cemented without real action."

The FOMC attendees will be talking. Mr. Obama will be talking (some say, sternly) at the UN. The G20 will be talking this weekend. Mr. Ahmadinejad is talking friendship and peace. In the interim, the markets will also be talking, based on all that outside talk. But, for every talker, there ought to be a listener as well. In theory.

Jon Nadler is Senior Analyst, Kitco Metals Inc.

down .84 (chart) bet we close up today imo...

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=gld&sid=0&o_symb=gld&x=0&y=0

nice article...eom

The Real Price of Gold

Sep 22nd, 2009 | By Adrian Ash

http://whiskeyandgunpowder.com/the-real-price-of-gold/

GOLD’S CURRENT price-tag of $1,000 an ounce suggests big doubts over the US Dollar, its domestic economy, and its status as the world’s No.1 reserve currency.

Or so we guess after 10 years of watching it quadruple from two-decade lows. But gold investors (old, new and everywhere) should note that this decade’s bull market in bullion is about much more than the greenback.

Here are three ways of judging what you might call the “real price of gold” instead.

#1. The Global Gold Index

Gold has risen against all world currencies since the start of 2001, very nearly tripling on average and hitting record highs against everything bar the Japanese Yen. (Tokyo gold buyers are still waiting for a near-double to the peak of Jan. 1980…)



Introduced in July 2008, Bullion Vault’s Global Gold Index is a stab at mapping this trend. It monitors “real gold” by plotting the daily price in terms of the world’s ten most important currencies, averaging their moves by size of the issuing economy.

Thus the Global Gold Index currently starts with the US Dollar gold price, and then takes in the gold price for Eurozone buyers, Japan, China, the UK, Russia, Brazil, Canada, Mexico and Australia – as per the latest World Bank and IMF data. (It’s rebased each year to accommodate changes in that league table of gross domestic product; India, the world’s hungriest physical gold market until the start of this year, flips in and out.)

Not quite the price of gold for everyone worldwide, this “real” value does at least cover 2.5 billion people who account for over two-thirds of world economic activity. It starts at 100 on New Year’s Day 2000, hitting a record peak for this decade in May 2006, and then all-time record peaks in March 2008 and then Feb. 2009.

Currently, the Global Gold Index is trading some 5% off that top, rising strongly into Sept. ‘09 so far.

#2. Gold vs. the Cost of Living

What about inflation; has the ultimate “inflation hedge” (as most commentators and analysts still mistake it) out-done the cost of living?

Given how suspect inflation data can be (wherever you live), let’s roll our third “real” gold price into this picture too, comparing gold against the cost of raw, productive materials as bought and paid for in the market-place…



This chart shows the Dollar gold-price adjusted for official inflation in US consumer prices (the gold line). Jan. 2000 marks the start of our indexation. You’re looking at gold priced in Y2K dollars, left-hand scale.

The chart also maps the “real” price of gold in terms of raw materials prices (dark red, right scale), indexing it against the CRB’s Continuous Commodity Index of the most-heavily traded 19 natural resources – crude oil, corn, soy beans and the rest. (Again, Jan. 2000 is our starting point for the maths, indexing the real price of gold in commodities at 100.)

But is gold cheap or dear right now? Three observations:

Gold built a strong base against commodities during the 1980s and ’90s, holding onto far more of its 1970s’ gains than did natural resources;

Gold has never been more expensive in terms of the raw materials it could buy than in Feb. ‘09, almost doubling in purchasing power from crude oil’s record peak of summer last year;

Real gold prices stand at only 50% of their 1980 inflation-adjusted peak, but they’ve trebled so far this decade;

Consumer-price inflation has thus been stronger since Y2K than you might guess…adding 27% to the cost of living and lopping a whole multiple off gold’s nominal gains since the start of this decade.

Still, the Noughties come fifth out of the last eleven decades both for “price stability” and “low inflation”. And gold’s performance in the face of rising consumer prices is varied to say the least…



Most significant perhaps for the fate of Dollars, gold and inflation, is the fact that real commodity prices have in fact halved over the last fifty years. Adjusted for US inflation, they were never cheaper than at the start of this decade.

The decline in real commodity prices between June 2008 and Feb. ‘09 was comparable only with their doubling in 1972-73. Dropping 40% inside eight months, real commodities fell faster than any time on the CRB’s five-decade record.

If this decade’s bull market in gold were only about inflation and commodity-price fears –whether priced in US Dollars or anything else – gold would not be trading four times higher above $1,000 today.

Regards,
Adrian Ash
BullionVault

September 22, 2009

Such a timeless peice lol...eom

Precious Metals Expert Says Gold Will Continue to Shine

On Monday June 29, 2009, 11:01 am EDT

http://finance.yahoo.com/news/Precious-Metals-Expert-Says-twst-149856482.html?x=0&.v=1

67 WALL STREET, New York - June 29, 2009 - The Wall Street Transcript has just published its Gold and Precious Metals Report report offering a timely review of the sector to serious investors and industry executives. This 99 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Supply and demand - Skilled labor shortages - Equipment delays - The movement of inventories - Jewlery inventories - Operating margin - Valuation - Consolidation - Silver - Gold - Investment demand

Companies include: Kinross Gold (KGC); IAMGOLD (IAG); Red Back (RBI:TSX); Centamin (CEE:TSX); Osisko Mining (OSK:TSX); Yamana Gold (AUY); Eastern Platinum (ELR:TSX); Goldcorp (GG); Silver Wheaton (SLW); NovaGold (NG); Goldcorp (GG); Royal Gold (RGLD); Franco-Nevada (FNV:TSX); Allied Nevada (ANV); Midland (MD:TSX); Virginia Mines (VGQ:TSX).

In the following brief excerpt from the 99 page report, Ken Gerbino, head of Kenneth J. Gerbino & Company, discuss the outlook for the sector and for investors.

TWST: What is the status of the precious metals market right now?

Mr. Gerbino: The status is as follows; money managers, sovereign wealth funds, and investors globally have lost some or a majority of the faith and trust that they have had in major financial institutions, politicians and governments regarding economics and the future. Therefore, gold, which has never gone bankrupt and has never defaulted and has always had a reputation as a safe monetary substitute and an inflation hedge, has now become in the forefront of everyone's minds for a portion of their wealth or investment funds. Also, I might add, gold allows investors a piece of mind from an insurance standpoint in the event their monetary and economic events get out of hand. Even though that is a low probability, one also doesn't cancel one's insurance policy if you feel having an accident while driving would be low probability. Now, when one adds in the possibility of just 4% to 5% inflation rate taking place, and extends 4% or 5% increase in the price of gold - which at these price levels is somewhere between $50 and $60 an ounce - year-after-year, mining companies benefit from this dramatically because once the capital has been expended to put a gold mine in production, the next 20 years or so is strictly extraction costs. Therefore, this major capital expense is fixed and one can benefit from the higher price of gold going forward where the margins are increasing.

TWST: Do you think the precious metals market is going to continue doing well over the next year or so?

Mr. Gerbino: I think gold will be in a trading range of somewhere between $850 and $1,250, probably for the next year or two or three. The next big move up in gold will occur because of inflation coming back from all the money that's been created to bail out the banking institutions in most countries in the world. The bottom line is more money equals higher prices. That is a trend that history attests to over thousands of years.

TWST: Are the actions of the current Administration going to keep prices of precious metals high?

Mr. Gerbino: First of all, it didn't matter who got elected. It didn't matter if he was a conservative, a liberal, a Democrat or Republican. Whoever got in that office had no choice. They were going to have to borrow and print, etc. to bail out the system. But because of that, precious metals should be in everyone's portfolio.

TWST: Is that always true that when countries start printing money, gold and precious metals become more valuable?

Mr. Gerbino: They should, but there is a lot of lead and lag times involved in this. So, I think over a longer trend, you can bet that the prices of these monetary substitutes/investment/inflation hedges, which will be gold and silver, will go up. So, I think over the next five or 10 years, you will see much higher prices of both metals. In fact, you are going to see higher prices of just about everything because not only did a motorboat show up at the island, but a flotilla arrived and they have these high-speed printing presses on this flotilla. So the islanders are in for a big surprise.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 99 page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.

For Information on subscribing to The Wall Street Transcript, please call 800/246-7673

Great piece!CGLD Latin American video presentation
http://accordent.powerstream.net/008/00189/Capitol_Gold/f.htm

The definitive report on CGLD:


In a quest to uncover the best-of-the-best gold producing

stocks some simple analysis can help investors narrow

down the field. Knowing how a gold miner ranks in a handful

of high-level fundamental categories can reveal its position

when scrubbed up against its industry peers.

Does a miner produce its gold at a low cost from a longlife

project(s)? Does it have good management? Are its

financials under control? Does it have a growth strategy?

Provocatively these simple questions bring unfavorable answers

for a large number of gold miners. And like separating

the wheat from the chaff, this winnowing exercise is an

important step in separating the weak gold stocks from the

strong ones. The resulting pool is the best-of-the-best.

In this pool there is a wide spectrum of stocks that range

from the world’s biggest senior gold producers to micro-cap

junior producers making their small but important impact on

the gold mining industry. The larger miners seem to capture

the majority of mainstream attention not only because

of safety in numbers but economies of scale. When all their

projects are merged for collective operational performance

and risk, there is wiggle room on the individual mine level.

But the smaller miners are much more scrutinized, with

their success often riding on a single operation. With only

one mine, risk cannot be spread and this mine must have

stellar fundamentals. One major flaw and a junior cannot

hold weight in this pool of elites. But if a junior does qualify

with excellent across-the-board fundamentals, its stock has

just as much if not more promise than the seniors.

One such junior that makes this pool of elites is Capital

Gold. And like Minefinders and Alamos, Capital Gold’s success

rides on a single operation. The El Chanate mine in

Sonora, Mexico is a low-cost and long-life operation, Capital

Gold has excellent management and financials, and it has

incredible growth potential. These high-level fundamentals

rank CGLD as one of the best-of-the-best gold stocks. Now

it’s just a matter of convincing the rest of the markets.

I say this because Capital Gold is what I consider to be a

micro-cap junior producer. Even though its market cap is

well less than $100m and it is not very liquid from a daily

capital-flow perspective, I believe this stock is one of the

most undervalued in the entire gold mining industry. There

is vast potential for investors to capitalize on Capital Gold.

CGLD has been around for over 25 years. Throughout

most of its history it was known as Leadville Mining and Milling

Corp, focusing on a prolific gold mining district in the

Rocky Mountains. But its pivotal move in 2001 to acquire

some Mexican mineral concessions is what put it on the

right path to becoming the profitable gold producer we see

today. When it realized its focus would shift from Colorado

to Mexico in 2003 it changed its name to Capital Gold.

The fashion in which Capital Gold was able to construct

its mine shows that it has a superior management team. El

Chanate was brought to life on time and within budget. And

CGLD has done a fine job staying aggressive with exploration

as seen by El Chanate’s growing reserves. Ultimately

even though this mine is smaller-scale, it is very profitable

and has immense growth potential. Once the word gets out

on CGLD its shares should soar from the current levels.

Mining Operations

El Chanate Location: Sonora, Mexico

2008 Production ~50k oz Average Gold Grade 0.7 g/t

Gold Reserves 832k oz Mine Life Remaining 11+ yrs



El Chanate resides within what is known as the Golden

Triangle of the Sierra Madre gold belt. Such operations as

Mulatos (Alamos Gold), Dolores (Minefinders), Ocampo

(Gammon), and La Herradura (Peñoles) show the strength

of the gold reserves in this region. Even the area specific to

El Chanate has seen small-scale gold mining since the early

1800s, shown by old mine workings scattered about.

El Chanate saw its first modern exploration, in search for

copper, in the late 1960s by a subsidiary of Phelps Dodge.

Over the next 30 or so years the ownership of the El Chanate

mineral concessions changed hands several times and

had undergone a number of exploration programs that returned

mixed results. But with a little due diligence conveying

a lot promise at the prospective El Chanate deposit,

Capital Gold had the confidence to make its 2001 move.

Capital Gold signed an agreement with then-owner AngloGold

Ashanti to acquire 100% of the concessions that

contained El Chanate in exchange for $50k in cash, a scaling

net smelter return (NSR) of 2% to 4%, and a net profits

interest (NPI) of 10%. AU was also granted a one-time option

to purchase 51% of El Chanate if the deposit ever exceeded

2m ozs of contained gold. If the option was exercised

it would have to pay CGLD 2x the total project costs.

Once the deal was finalized Capital Gold immediately

initiated an exploration campaign that led to a late 2002

scoping study. Positive results from this study then prompted

a 2003 feasibility study that was optimized in late 2005.

This study revealed spectacular economics and led to a

construction decision, of which activities commenced in Q2

2006. The original mining plan anticipated annual gold production

of about 48k to 50k ozs over a 5-year mining life.

This $18m project built an open-pit heap-leach operation

that was finished by mid-2007 and was ramped up to full

commercial production by the end of the year. Incredibly

this mine was completed on time and within budget, a rarity

in the mining industry. Even better was in concert with development,

ongoing exploration greatly added to El Chanate’s

luster. Gold reserves would more than double!

In order to capitalize on this increase in reserves, Capital

Gold knew it would need to radically alter El Chanate’s mining

plan. Now without any changes to the existing infrastructure

it was able to increase plant throughput to operate

at a rate of 60k ozs per annum. Then with a modest $4m

capex CGLD has been able to expand the leach pad and

make improvements at the processing plant. With this expansion

about complete El Chanate should be operating at

a production capacity of 70k ozs per annum in 2009.

But even with all this excitement the prospects are looking

even better for El Chanate. First was the July 2008 announcement

that AngloGold Ashanti elected to not exercise

its option to acquire a 51% interest in this mine. Since AU

would have to pay twice every single dollar that CGLD

spent on El Chanate, it was looking at a bill of around $90m.

Perhaps in times past AU would have pulled the trigger on

this option, but $90m was not in its budget this summer.

Also exciting at El Chanate is the potential to yet again

increase its gold reserves. The rich mineralization at this

deposit should be amenable to much more reserves than

the 800k+ ozs already defined. A recently initiated deep

drilling campaign and additional lab work is expected to upgrade

a big chunk of the 1m+ ozs that currently reside in the

resources categories. And with this deposit open to the

east and at depth, total resources should continue to grow.

With resources growing so fast Capital Gold is obviously

looking at further expansions to increase El Chanate’s gold

production. And it has taken the next step with its recent

order of a secondary crusher that could increase production

volume by up to 30%. And the recent ordering of this

crusher will not likely be the last of CGLD’s innovative expansionary

plans in the coming years. Capital Gold is striving

to grow El Chanate into a mid-tier mining operation.

And it has every incentive to do so. In its first fiscal year

(YE July) of operations cash costs were under $250/oz (excluding

royalties). With these exceptionally low cash costs,

in the lower quartile of the entire industry, El Chanate is

long going to be a wildly profitable mining operation. So

with the depth and breadth of El Chanate continuing to impress,

the original mining plan has obviously been scrapped

for a much more robust operation. I expect this mine will be

producing gold for at least 10 years and possibly a lot more.



Financials

In order to fund the development of El Chanate, Capital

Gold performed equity and debt financings in 2006. The

equity financing came in the form of a private placement

that gave it gross proceeds of about $8.6m. This was then

followed by a debt financing of $12.5m. Unfortunately this

debt facility was laden with hedging requirements.

Often times hedging is a necessary evil that juniors must

accept in order to procure capital. And since Capital Gold is

in this report, I do not consider these hedges material nor

are they showstoppers. At first glance this hedge agreement

looks awful, with gold production sold forward at

$500/oz. But thankfully it is structured so the damage is

minimal. CGLD owns call options ($535/oz strike price) to

offset the forward sales, opting for a net cash settlement.

So basically every quarter until the hedgebook is closed

CGLD writes a check to the bank for the difference between

the calls and the forwards, $35/oz. With an 8k-oz-perquarter

commitment, this is the equivalent of $280k. Now if

this hedge was indefinite, this would be a major problem.

But as of its recent quarter end, there were only 67k ozs

remaining. And CGLD has indicated it will hedge no more.


By Q4 2010 this hedge book should be closed. So looking

at this hedge from a different angle, over the next 9

quarters Capital Gold has about half of its gold production

hedged at $35/oz under the spot price of gold. And measured

by the total reserves at El Chanate, only 8% are actually

hedged. This is not optimal, but it is not too bad either.

As a shareholder I can live with this small hedgebook.

Overall Capital Gold has a strong balance sheet. It does

still have about $7m remaining in long-term debt, but it also

has sufficient-enough cash to settle its debt and its hedgebook.

It obviously cannot do this as it must maintain liquidity

requirements, but Capital Gold’s healthy cash balance

from its growing cash flows puts it in a fantastic position.

This is evident with its ability to self-fund the capex requirements

of the El Chanate mine’s recent expansion project.

As for the royalty agreement Capital Gold is currently

writing those checks to Royal Gold. In February 2008 Royal

Gold purchased AngloGold’s El Chanate royalty. With the

gold price where it is today the NSR is 4%, capped at $17m,

and the NPI is 10% capped at $1m. Interestingly when

CGLD was looking for financing for El Chanate in 2006 it

was in advanced talks with RGLD for a royalty loan. Thankfully

it went with its current facility that will soon be paid off.

Two large royalties would not be good for the bottom line.

Looking at the revenue that Royal Gold reported from El

Chanate in Q3 2008, this royalty adds up to the equivalent

of about $62/oz. If this was added to the cash costs they

would still be around $300/oz. So far over $2m has been

paid under this royalty agreement and the NPI is just about

maxed. The life of El Chanate will well-outlive this royalty.

A couple of other notes on the financial front are Capital

Gold does have access to a $5m line of credit. I doubt it will

need this for anything other than an acquisition with its

strong cash flows, but just having the availability in this environment

is important. Also Capital Gold currently has

shareholder approval for a 1-for-4 to 1-for-6 reverse split.

The intent of this reverse split is to boost the share price in

excess of $2.00 in order to qualify for an AMEX listing.

An AMEX listing will give CGLD a lot more exposure in

the US markets, most importantly to institutional investors.

But considering the existing market environment CGLD has

decided to hold off on performing this reverse split until

there is a little more stability in the gold stock arena. When

this does happen it could be a nice boost for shareholders.



Summary

Market Cap $89m P/E Ratio 13.9

52-week Low $0.23 52-week High $0.95

US Exch-Symb OTC-CGLD CAN Exch-Symb TSX-CGC

Working Capital $13m Operating Mines 1

Devel. Projects 0 Explor. Projects NA

Gold Reserves 832k oz Gold Resources 1.1m oz

2008 Production ~50k oz 2009 Est. Prod. ~70k oz

Mkt. Cap./rez-oz $107 2008 Cash Costs ~$245/oz

The bottom line is even though measured by its market

cap Capital Gold ranks as one of the smallest junior gold

producers, it has some of the biggest potential of all the

gold stocks. CGLD’s impressive El Chanate mine has seen

incredible growth on the resource front with nearly 2m ozs

to date. With this massive cache CGLD has every incentive

to grow the mine from what was supposed to be a smallscale

short-life operation to a robust mid-tier gold mine.

Capital Gold has already altered El Chanate’s mining

plan to increase production by about 45% over the original

feasibility-study estimates. And I suspect it will continue to

reengineer and expand operations in the future to further

grow the production profile of this mine. Also a boon to

CGLD’s strength is its strong cash flows and very-low-cost

gold production. Because of this despite its remaining project-

loan debt and a small hedge, CGLD has solid financials.

With very profitable operations feeding a healthy cash

balance, Capital Gold is in an excellent position to expand

its portfolio via acquisitions. In this rough environment

many of the juniors in northern Mexico will not survive. And

CGLD is taking a close look at advanced gold projects in

the surrounding region that it could possibly acquire for

pennies on the dollar. In contrast I suspect that CGLD

would be a tempting target for larger miners looking for

quality operations. I hope it doesn’t sell-out this cheap.

SUMISU
THNX

Yamana Gold (AUY) Provides FY09, FY10 Outlook; Cuts Dividend Payment from Monthly to Quarterly

http://www.streetinsider.com/Special+Reports/Yamana+Gold+(AUY)+Provides+FY09,+FY10+Outlook%3B+Cuts+Dividend+Payment+from+Monthly+to+Quarterly/4297013.html

January 13, 2009 7:53 AM EST

Yamana Gold Inc. (NYSE: AUY) today announced its operating outlook including production, cost and capital expenditure guidance for 2009 and 2010, as well as its Q4 operational highlights and update.

Gold production is expected to be in the range of 1.3-1.4 million gold equivalent ounces in 2009. Yamana had previously guided in October 2008 a specific production expectation with a +/-7% variance and this range is consistent with this past guidance. Production is projected to increase to approximately 1.4-1.5 million GEO in 2010 from mines currently in production.

Capital expenditures for 2009 and 2010 are expected to be approximately $350-$400 million, respectively, including sustaining capital of approximately $130 million each year. The majority of capital costs in 2009 is allocated for the expansion at Chapada, for development work at El Penon, for development of the satellite deposits Amelia Ines and Magdalena and initial work on QDD Lower West at Gualcamayo, for the purchase of certain additional mining concessions and for further development at Jacobina. The decision to develop each of C1 Santa Luz and Mercedes is expected to be made mid-year pending a cost review for improved economics at C1 Santa Luz and an initial feasibility study and further exploration at Mercedes. Capital expenditures shown above assume a modest amount for these projects and would increase mostly in 2010 once a construction decision is made. The decision to advance Ernesto/Pau-a-Pique and/or Pilar will depend on further evaluation of economics into 2009. Results at Pilar are very promising and indicate that the resource has grown substantially with more tonnes and comparatively high grade. Additional capital would be required to advance these development stage projects to production.

Exploration expenses in 2009 are expected to total a minimum $56 million ($37 million capitalized and the remainder expensed). Yamana's exploration program in 2009 will focus on mine and near-mine exploration primarily in Chile, Brazil, Mexico and Argentina as the Company concentrates in 2009 on expansions and advanced projects for near development.

Yamana remains well financed to fund its strategic growth plan where enhancements, expansions, improvements and development of existing assets are expected to drive production towards the Company's objective to produce 2.0 million GEO in 2012. The Company will continue to evaluate the further expansions at each of El Penon (for 600,000 GEO) and Minera Florida (for 150,000 GEO). With these expansions and the development of Mercedes, Pilar, C1 Santa Luz and Ernesto/Pau-a-Pique, the Company would achieve production levels in excess of this target. The Company has approximately $160 million in cash and cash equivalents as at December 31, 2008 and $500 million of available credit under revolving credit lines of which approximately $250 million remains undrawn. The Company has a modest net debt position of approximately $407 million.

For 2009, Yamana has approximately 50 million pounds of copper sold forward at an average of approximately $3.00/lb. Yamana expects to derive more than 80 percent of its revenue, cash flow and profit from precious metals production this year and estimates this number will increase into 2010 and beyond.

Yamana provided the following operational update for Q408. Total production during Q4 from all mines owned by Yamana was approximately 255,000 GEO at cash costs on a co-product basis is estimated to be approximately $385 per GEO which compares very favourably to costs in the third quarter of 2008. For the month of December 2008, production increased from November to approximately 89,000 GEO (including Alumbrera although not including any production from either Gualcamayo or Sao Vicente) and cash costs decreased to approximately $356 per GEO on a co-product basis, further confirming a downward trend in costs. Copper production at Chapada for Q408 was approximately 37 million pounds at a cash cost of approximately $0.90 per pound of copper.

For FY08, production totaled approximately 1,000,000 GEO (including Alumbrera) at cash costs of approximately $385 per GEO on a co-product basis plus approximately 140 million pounds of copper at Chapada at a cash cost estimated to be approximately $1.00 per pound on a co-product basis.

Yamana expects production to increase from Q109 with costs trending lower as production increases and input costs continue to decline. Aggregate production for Q1 is expected to be approximately 290,000 GEO. Cash costs per GEO on a co-product basis are expected to be approximately $345-$375 per GEO for 2009.

The Board of Directors has elected to reduce Yamana's dividend payments from the current $0.01 per share on a monthly basis to $0.01 per share on a quarterly basis. Yamana's divided yield has been comparatively high and the reduction will bring the dividend yield in line with its peer group. This reduction will save the Company approximately $58 million in 2009 which will be reallocated to development and exploration programs.

Yamana Gold, Inc. engages in the acquisition, exploration, development, and operation of gold properties.

sumisu
thnx.
If i may; AUY is not profitable when gold is below $800 per onz.
Do u know anything else that has lower production cost..?
tia
GL