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Onward... goodbye Farallon.
Farallon Mining Announces Completion of Compulsory Acquisition
http://www.farallonmining.com/fan/NewsReleases.asp?ReportID=447639&_Type=&_Title=Farallon-Mining-Announces-Completion-of-Compulsory-Acquisition
15 March 2011 Farallon Mining Ltd. ("Farallon") (TSX:FAN) today announced that Nyrstar Canada (Holdings) Ltd. ("Nyrstar Canada"), an indirect wholly owned subsidiary of Nyrstar NV ("Nyrstar"), had completed its Compulsory Acquisition (the "Compulsory Acquisition") of 32,637,786 common shares of Farallon (the "Common Shares"), at a price of $0.80 in cash per Common Share pursuant to the Notice of Compulsory Acquisition made under Section 300 of the Business Corporations Act (British Columbia), and mailed to the holders of Common Shares who did not accept its offer dated 23 November 2010 to purchase all of the issued and outstanding Common Shares of the Company. On 5 January 2011, Nyrstar Canada acquired 462,400,996 Common Shares of the Company representing approximately 93.75% of the Common Shares of the Company. As of 15 March 2011, Nyrstar Canada owns 495,038,782 Common Shares of the Company representing 100% of the Common Shares of the Company.
In addition, the Company today announced that the Common Shares have ceased to be listed for trading on the Toronto Stock Exchange as of the close of markets on 9 March 2011. The Company also announced that the Company intends to file with the applicable securities regulatory authorities in Canada the necessary documentation in order to cease to be a reporting issuer in all such jurisdictions as soon as reasonable practical.
Should Farallon shareholders have any questions please contact the Depository and Information Agent Kingsdale Shareholder Services Inc., at 1-866-581-0507 toll free in North America, or at 1-416-867-2272 outside of North America, or by e-mail at contactus@kingsdaleshareholder.com.
- end -
About Nyrstar
The partner of choice in essential resources for the development of a changing world. Nyrstar is a leading global multi metals business, producing significant quantities of zinc and lead as well as other products (including silver, gold and copper). Nyrstar is listed on NYSE Euronext Brussels under the symbol NYR. For further information visit the Nyrstar website, www.nyrstar.com.
You can view the Previous News Releases item: Fri Jan 14, 2011, Farallon Announce Compulsory Acquisition Commences Expected To Close March 14, 2011
My friends, for the week: +0%!!!
And nothing has changed during the last couple months...
Trading/consolidating in a narrow range.
Yep and yesterday's 14% gain shattered the MA200!!!
I think we have found a new higher base after this weeks action.
That's what I'm sayin'!!!
That's the way I'm seeing it too FuturesJackel.
Sounds like the higher gold prices are motivating them towards expanding their emphasis on gold and silver too.
"Dick Whittington said "The completion of a PFS on the historical deposits at Campo Morado is the first step in unlocking shareholder value from the nearly 1 million ounce of contained gold and 60 million ounce of contained silver in these resources2 with the objective of having a second mine in operation at Campo Morado by July 1, 2013."
more opportunity right now as I see things
I'm picking up all I can at these levels. My ex got all my shares I had based at .23 so it kinda stings buying in now but I don't expect we'll ever see those prices again. No use crying over the proverbial "spilled milk" LoL!
GLTA
After the Jan/May double top on the weekly, the correction is still in progress...
Yes, it's a good strong rebound. I picked up some cheepies yesterday!
If it drops down there again, I get more. Money in the bank, the way I see it. GL FJ
GLTA !!
A HUGE outside day reversal... wow!!!
No kidding FuturesJackal. These guys are one of the best kept secrets in mining LoL!
We need more news...
Excellent results!
Copper Reverses Rally to 14-Month High as Dollar Stems Decline
By Glenys Sim
Dec. 2 (Bloomberg) -- Copper dropped for the first time in four days in Asia, reversing a rally to the highest level in more than 14 months, as some investors sold the metal to lock in gains and as the dollar’s decline paused.
The metal used in construction and automobiles rose to $7,101 a metric ton, the highest price since Sept. 23, 2008, as the dollar traded near a 16-month low against the euro.
“With the strong rally we’ve been seeing, there’s bound to be some profit taking,” Li Jingyuan, an analyst at Haifu Futures Co., said today from Shanghai.
Copper for delivery in three months on the London Metal Exchange traded little changed at $7,070 at 3:03 p.m. in Singapore, after falling by as much as 0.7 percent earlier.
The March-delivery contract on the Comex division of the New York Mercantile Exchange slid 0.2 percent to $3.2245 a pound. Earlier the contract climbed as much as 0.4 percent to $3.2450 a pound the highest price for a most-active contract since Sept. 23, 2008.
March-delivery copper on the Shanghai Futures Exchange gained as much as 1.6 percent to 55,850 yuan ($8,181) a ton, the highest level since Sept. 8 2008, before ending the day up 1.2 percent at 55,630 yuan.
“The general trend is still for higher prices, and this will continue to be supported by a weaker dollar,” said Li.
Copper has more than doubled this year while the Dollar Index, which tracks the greenback’s performance against six major currencies, has declined 8.4 percent as investors bought raw materials as an alternative to a declining U.S. currency. Commodity funds pulled in more than $1 billion in investments for a second straight week, pushing inflows for the year to $14.6 billion, according to EPFR Global.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ad_5YsxrcxYA
Correcting here during the last month... weekly is still strong.
Yes, this company has very quietly been kicking you know what! GL FJ.
GLTA !!
Folks have made 5X their investment since Dec/Jan...
They have a real nice array of metals.
Seems like all 5 metals are going nuts simultaneously but for different reasons.
Nice exposure to Gold, Silver, Copper, Zinc and Lead with one stock. GL FJ.
GLTA !!
Farallon's weekly chart is terrific!!!
Zinc falls, Copper Rises to 10-Month High as Economic Growth May Spur Use
By Anna Stablum and Millie Munshi
Aug. 10 (Bloomberg) -- Copper prices rose to a 10-month high as signs of an improving economy buoyed speculation that metals demand will gain.
Japanese machinery orders in June advanced for the first time in four months, while French industrial production rose more than expected in the same month. Goldman Sachs Group Inc. raised its forecast for China’s economic growth this year. Copper prices have almost doubled this year on speculation that the worst of the global recession has passed.
“You’ve got a lot of people thinking that demand will continue to climb, especially from China, as the global economy starts growing,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “Copper looks like it is going to keep going higher.”
Copper for September delivery gained 1.8 cents, or 0.6 percent, to $2.8035 a pound at 11:36 a.m. on the Comex unit of the New York Mercantile Exchange. The metal earlier reached $2.8465, the highest price for a most-active contract since Oct. 1.
“All the economic data has been in line with the improving-global-outlook thesis,” said Max Layton, an analyst at Macquarie Bank Ltd. in London. “Markets are continuing to factor in a pickup in demand.”
The metal has soared this year as buying increased in China, which imported more than twice as much copper in the first half as a year earlier. The Asian nation is the world’s biggest user of the commodity.
Short Positions
Hedge-fund managers and other large speculators decreased their net-short position, or bets prices will fall, in New York copper futures in the week ended Aug. 4, according to U.S. Commodity Futures Trading Commission data. Net-short positions fell 27 percent from a week earlier and are the smallest since September.
Metals prices are looking “frothy” after surging this year, and investors should reduce their holdings, according to Goldman Sachs JBWere Pty. Declines in global demand outside of China threaten the rally, according to the brokerage, an affiliate of Goldman Sachs Group.
“Base-metals prices have run further and faster than we believe to be justifiable either on current fundamentals or on the short-term outlook,” Goldman Sachs JBWere said.
On the London Metal Exchange, copper for delivery in three months rose $15, or 0.2 percent, to $6,165 a metric ton ($2.80 a pound).
Among other LME metals, nickel prices rose. Prices of lead, tin, zinc and aluminum fell.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ayZKXEgEgQ5M
.
Zinc and Copper fall as Dollar Rallies
Copper Falls as Dollar Rallies, U.S. Service Industry Declines
By Millie Munshi and Anna Stablum
Aug. 6 (Bloomberg) -- Copper fell the most in a month as a rally in the dollar, following an unexpected contraction in U.S. service industries, fueled concern that a near-doubling of prices this year may have been exaggerated.
The dollar rose as much as 0.8 percent against a basket of six major currencies, trimming demand from traders who buy commodities as a hedge against inflation. An index of U.S. non- manufacturing businesses slid to 46.4 in July, an industry report showed yesterday. Copper has risen 95 percent this year on signs that the global recession may be easing.
“Copper is due for a correction,” said Gijsbert Groenewegen, a partner Gold Arrow Capital Management in New York. “Economic productivity has not picked up enough to produce higher demand. Industrial metals will suffer.”
Copper futures for September delivery fell 6 cents, or 2.1 percent, to $2.752 a pound on the New York Mercantile Exchange’s Comex unit. That marks the steepest drop for a most-active contract since July 8 and caps the longest rally since Jan. 2.
The metal had surged 14 percent in the past five sessions, even as some reports signaled the U.S. economy remains weak.
Signs of Weakness
U.S. employers cut 371,000 jobs in July, Automatic Data Processing Inc.’s ADP Employer Services unit reported yesterday. Economists forecast cuts of 350,000 positions, the median of 30 estimates in a Bloomberg News survey. The U.S. has lost 6.5 million jobs since the recession started in December 2007. The Labor Department is set to report July unemployment tomorrow.
The Institute for Supply Management’s index of non- manufacturing businesses, which make up almost 90 percent of the economy, fell last month from 47 in June, according to the Tempe, Arizona-based group. A reading of less than 50 indicates a contraction. Economists projected a July reading of 48, the median of 77 estimates in a Bloomberg News survey.
Weaker economic reports “may finally be catching up with metals,” analyst Edward Meir at MF Global Ltd. in Darien, Connecticut, said in a report today. “The depth of the current correction in metals suggests that we could see more selling over the next day or two.”
Copper for delivery in three months fell $175, or 2.8 percent, to $6,025 a metric ton ($2.73 a pound) on the London Metal Exchange.
Among other metals traded on the LME, aluminum, nickel, tin, lead and zinc fell.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aO7qFzQW33QU
GLTA !!
Copper Jumps to 10-Month High on Brighter U.S. Economic Outlook
By Millie Munshi
Aug. 5 (Bloomberg) -- Copper rose for a fifth day, touching a 10-month high, as reports signaling a global economic rebound boosted the demand outlook for industrial commodities.
U.S. employers cut fewer jobs last month than in June as the deepest recession since World War II eased, payroll-servicer Automatic Data Processing Inc. reported today. Orders for U.S. manufactured goods rose for a third straight month in June, climbing 0.4 percent from May, the Commerce Department said. Copper has almost doubled in 2009 on signs of reviving demand.
“Copper is rising on the continuation of the optimism for the economy,” said Donald Selkin, National Securities Corp.’s chief market strategist in New York. “There’s anticipation that demand will be higher.”
Copper futures for September delivery climbed 1.65 cents, or 0.6 percent, to $2.812 a pound on the New York Mercantile Exchange’s Comex division and extending its rally to the longest since Jan. 2. Earlier, the metal touched $2.8385, the highest for a most-active contract since Oct. 1.
U.S. companies trimmed 371,000 jobs in July, ADP reported, following revised cuts of 463,000 positions in June. Economists forecast a July reduction of 350,000 positions, the median of 30 estimates in a Bloomberg News survey.
“All the euphoric buying has been a little premature,” said Matthew Zeman, a trader at LaSalle Futures Group in Chicago. “Today’s data shows that we’re still going to see a lagging job market for some time.”
On the London Metal Exchange, copper for delivery in three months rose $150, or 2.5 percent, to $6,200 a metric ton ($2.81 a pound). Among other LME-traded metals, aluminum, zinc, nickel, lead and tin all rose.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSHV4xq1i8DA
GLTA !!
Copper Advances to 10-Month High on Hopes of Economic Recovery
By Glenys Sim
Aug. 3 (Bloomberg) -- Copper in London, Shanghai and New York jumped to the highest in 10 months, leading an advance in industrial metals, as the U.S. economy shrank less than expected and a Chinese manufacturing index climbed to a one-year high.
Copper for three-month delivery surged as much as 4 percent, bringing the gain this year to more than 90 percent, on optimism that stimulus efforts by governments will revive demand for raw materials. Economists are expecting reports this week to show employers in the U.S. cut jobs at a slower pace in July and that the manufacturing slump is easing, according to surveys.
“Risk appetite is returning to the market in a big way, spurred by very encouraging economic data out of the U.S.,” said Zeng Chao, analyst at Everbright Futures Co.
Copper for three-month delivery on the London Metal Exchange surged to $5,946.75 a metric ton, the highest price since Oct. 6, before trading at $5,884.50 at 3:35 p.m. in Singapore. The metal gained for a seventh month in July, advancing 15 percent to cap the longest winning streak since the eight-month rally ended January 2006.
Copper for September delivery on the Comex division of the New York Mercantile Exchange rose as much as 3.4 percent to $2.7130 a pound, the highest price for a most-active contract since Oct. 3. November-delivery copper on the Shanghai Futures Exchange gained as much as 6 percent to 47,880 yuan ($7,009) a ton, the highest price since Oct. 7, and closed at 47,200 yuan.
Improving Data
The CLSA China Purchasing Managers’ Index rose to a seasonally adjusted 52.8 from 51.8 in June, CLSA Asia-Pacific Markets said today in an e-mailed statement. That was the fourth monthly expansion. A government-backed manufacturing index released Aug. 1 also showed manufacturing expanded.
U.S. gross domestic product shrank at a better-than- forecast 1 percent annual pace after a 6.4 percent drop the prior three months, adding to recent signals indicating an improvement in the global economy. China and the U.S. are the world’s two largest consumers of industrial metals.
The most severe recession in at least five decades may be ending and growth in the U.S. may resume at a rate faster than most economists foresee, former Federal Reserve Chairman Alan Greenspan said yesterday.
Chinese metals demand growth continued to accelerate in June, with apparent demand for most commodities, which doesn’t take into account non-reported stockpile changes, hitting a record high, according to Macquarie Bank Group Ltd.
“While non-reported stockpile building is a cause for concern, it is not impacting sentiment at the moment as it is being offset by the growing belief in an economic recovery, and resulting metals demand recovery, in the rest of the world through the second half of the year,” the bank’s analysts led by Max Layton said in a report today.
“We estimate that there has been a refined copper stock build of around 300,000-400,000 tons so far this year, including 50,000 tons at State Reserve Bureau warehouses, 60,000 tons at bonded warehouses, 60,000 tons on the Shanghai Futures Exchange and the rest sitting at the fabricators,” said Layton.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aI1BENv7kw.M
GLTA !!
Doe Run Peru’s Zinc Smelter May File for Bankruptcy (Update1)
[insert my comment] - Reduction in supply of zinc from Peru (or any source) should have a positive impact for us!
By Alex Emery
Aug. 3 (Bloomberg) -- Doe Run Peru may file for bankruptcy to restructure debt at its shuttered zinc and lead smelter, Energy & Mines Minister Pedro Sanchez Gamarra said.
Peru’s antitrust office Indecopi will study the situation at the company, a unit of Renco Group Inc., Sanchez told reporters in Lima today. The unit owes suppliers $156 million and has been closed since June.
“Once it becomes a reality, we’ll see what’s to be done,” Sanchez said. “We need a global solution as we’ve been going over and over the same issue.”
Banks halted lending to Doe Run in February after metal prices collapsed. On June 2, the smelter shut all operations after suppliers refused to sell it raw materials. Copper, zinc and lead prices declined at least 49 percent in London last year, leading to $124 million in company losses.
Doe Run Vice President Jose Mogrovejo declined to confirm if the company will file for bankruptcy. Company and government officials will meet for talks on Aug. 5, he said in an interview.
“A bankruptcy process would protect the company’s assets and workers’ jobs,” Mogrovejo said. “But it’s a technical process we can’t comment on beforehand.”
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ah.moBIo4Afw
GLTA QQ
Copper Leads Advance in Industrial Metals on Recovery Optimism
By Glenys Sim
July 31 (Bloomberg) -- Copper jumped to the highest in almost 10 months and aluminum headed for its best month in more than 21 years on optimism a global economic recovery will revive demand for industrial metals.
Copper has surged 84 percent this year as record Chinese imports and stimulus spending by governments including the U.S. and China spurred raw-material purchases. China’s central bank yesterday reiterated it will maintain a “moderately loose monetary policy,” easing concern that surging loans and asset prices may trigger fiscal tightening.
“Investors are feeling very positive about China’s commitment to maintaining economic growth,” Zhu Bin, president of futures research at Nanhua Futures Co., said from Hangzhou.
Copper for three-month delivery on the London Metal Exchange climbed 2.1 percent to $5,719 a metric ton, the highest since Oct. 7, at 12:56 p.m. in Singapore. The metal is up 15 percent this month.
November-delivery copper in Shanghai jumped as much as 4.6 percent to 45,120 yuan ($6,604) a metric ton, just 190 yuan short of the day’s trading limit set by the exchange.
Three-month delivery aluminum gained 0.5 percent to $1,889 a ton, the highest since Nov. 19. The metal used in automobiles and airplanes has advanced 16 percent this month.
Positive recent global economic data stoked optimism that demand for metals, driven in the first half by China’s stimulus spending, will be sustained as the deepest recession in more than six decades bottoms out.
Stimulus Effect
In the U.S., the world’s second-biggest metals consumer, housing starts rose in June to the highest level since November, while July’s jobless claims held below June levels. In Europe, confidence in the economic outlook increased more than economists forecast in July, while Japanese factory output capped the fastest quarterly output expansion in more than half a century.
In China, record bank lending boosted demand for properties, sending home prices in 70 cities higher for the first time in seven months in June, and passenger vehicle sales rose 48 percent in the same month, the most since February 2006.
“The Chinese government’s 4 trillion yuan stimulus has supported sentiment in the first half of the year, and the effects of this stimulus will support the market in the second half of the year,” Ma Xiaoxin, deputy general manager of Beijing-based China Minmetals Nonferrous Metals Co.’s copper department, said in a July 28 interview.
China’s copper imports expanded for a fifth month in June, driven by purchases from the country’s State Reserve Bureau and other consumers.
Mining Stocks
“Stockpiling by the State Reserve Bureau led to record levels of refined copper imports in the first half of the year, and economic recovery will keep imports of refined copper at similarly high levels for the rest of the year,” said Ma.
“An expected fall in copper concentrate imports will be offset by an increase in scrap imports, so overall copper imports into China will be steady,” Ma added.
The surge in metals prices has triggered gains in related equities. The MSCI World/Materials Index, a measure of mining and chemical companies, is up 33 percent this year as the LME Index of 6 nonferrous metals climbed 56 percent.
BHP Billiton Ltd., the world’s biggest mining company, gained as much as 2.4 percent on the Australian stock exchange today, its steepest intra-day rise in nine trading days. The stock was 1.6 percent higher at A$37.74 at 2:56 p.m. in Sydney.
Rio Tinto Group, the third-largest miner, surged as much as 3.5 percent to a six-week high and last traded 3.1 percent higher at A$59.87.
http://www.bloomberg.com/apps/news?pid=newsarchive&
GLTA !!sid=as_Fw08ObDp0
Copper Surges to 10-Month High on Optimism Demand to Recover
By Glenys Sim
July 31 (Bloomberg) -- Copper jumped to the highest in almost 10 months and aluminum headed for its best month since May 1988 as industrial metals advanced on optimism a global economy will revive demand for industrial metals.
Copper has surged 85 percent this year as record Chinese buying and stimulus spending by governments including the U.S. and China spurred raw material purchases. China’s central bank yesterday said it will maintain a “moderately loose monetary policy,” easing concern that surging loans and assets prices may trigger fiscal tightening.
“Investors are feeling very positive about China’s commitment to maintaining economic growth,” Zhu Bin, president of futures research at Nanhua Futures Co., said from Hangzhou. “Equities and commodities markets are feeding off each other.”
Copper for three-month delivery on the London Metal Exchange climbed 1.6 percent to $5,690 a metric ton, the highest since Oct. 7, at 11:27 a.m. in Singapore. The metal has gained 15 percent this month.
November-delivery copper in Shanghai, the most-active contract, jumped as much as 4.6 percent from the previous settlement price to 45,120 yuan ($6,604) a metric ton, just 190 yuan short of the day’s limit set by the exchange.
Among other LME-traded metals, zinc advanced 0.8 percent to $1,724.50 a ton, tin was little changed at $14,520 a ton and nickel gained 0.9 percent to $17,348 a ton as of 11:21 a.m. in Singapore. Lead climbed 1.7 percent to $1,850 a ton, the highest level since Oct. 1.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQmTlTTzKFZw
GLTA !!
Copper Peaking as Inventories Signal Slowing Demand. By Millie Munshi
July 29 (Bloomberg) -- Copper’s 76 percent rally this year may soon end on signs that China has stockpiled more than it can use in new homes, cars and appliances.
Inventories monitored by the London Metal Exchange posted their first back-to-back weekly gains since February, increasing 8.3 percent from an eight-month low. Sumitomo Metal Mining Co., Japan’s second-largest smelter, said Chinese imports are slowing after record purchases boosted domestic supplies, and U.S. copper-scrap exporters report shipments to Asia are dropping.
Prices will also decline because the 4 trillion yuan ($585 billion) of economic stimulus spending by China, the world’s biggest metals user, won’t make up for weak demand elsewhere, said Michael Pento, the chief economist at Huntington Beach, California-based Delta Global Advisors, which manages $1.5 billion. The global economy will contract 1.4 percent this year, deeper than forecast in April, and a sustained recovery from the worst recession since World War II may be a year away, the International Monetary Fund said July 8.
“I’m looking for a pullback right now in copper,” said Pento, who correctly forecast in January the price would rise at least 77 percent this year. “Base metals have just gotten overextended as people bet on the China story. Investors should exit this market now as the price comes down to match reality.”
The metal for delivery in three months jumped to $5,646 a metric ton ($2.563 a pound) on July 27 on the LME, the highest price since Oct. 8, and closed at $5,415 a ton today. Copper has rallied more in 2009 than it has in any year since 1987.
On the New York Mercantile Exchange’s Comex division, copper futures climbed to a nine-month high of $2.579 a pound on July 27, topping Pento’s January forecast of $2.50 by year-end.
‘Likely to Fall’
Refined copper imports by the Chinese more than doubled to 1.78 million metric tons in the first half and reached a monthly record of 378,943 tons in June, customs data show.
“China’s copper imports are likely to fall in the second half of this year because it bought so much in the first half, the government has stopped buying and demand from end-users may not be as big as people anticipated,” said Zhao Mingwang, manager of futures trading at Zhuji, China-based Zhejiang Honglei Copper Co., which produces about 100,000 tons of wire and rods a year. “The imports were so large it’s hard to fathom where it all went.”
Most of the gains in LME-monitored inventories during the past month reflect the eightfold jump in the volume of material in warehouses in Singapore and South Korea, the closest to China.
Scrap Imports
As those LME stockpiles increased, China’s scrap-copper imports tumbled 18 percent in May and 15 percent in June after rising for three months, government data show.
Inventories monitored by the Shanghai Futures Exchange more than doubled this year, sparking concern the pace of consumption in China hasn’t kept up with imports. Some of those purchases were by the State Reserve Bureau, which contracted to buy between 300,000 tons and 400,000 tons of the refined metal this year, according to Sydney-based Macquarie Group Ltd. The amount is equivalent to as much as 22 percent of first-half imports.
China may not continue buying industrial metals for strategic reserves after prices rebounded, the Beijing-based Caijing business magazine reported June 29, citing Yu Dongming, an official at the National Development and Reform Commission, the top economic planner.
Copper Surplus
“Excessive imports mean much of the purchased metal was just stored, raising the risk that they may sell it back to the market and depress prices,” said Koichi Kaku, the general manager of the copper and precious metals sales department at Tokyo-based Sumitomo Metal Mining.
Imports may have exceeded manufacturing demand by as much as 1.3 million tons in the first half, Kaku said on July 24. “I don’t think copper prices climbed because of a dramatic improvement in supply-demand conditions,” he said. “I’m skeptical about a strong recovery in the market.”
Purchases may falter this quarter as government stockpiling slows and after record volumes boosted inventories before the seasonally slow summer, UBS AG said. Imports may drop to 100,000 tons a month in July through December, from an average of 280,000 tons in the first five months, analysts for the Zurich- based bank said in a July 6 report.
“The rally in prices is not entirely fundamentally driven,” said Wang Xiang, import and export manager at Daye Nonferrous Metals Co. in Huangshi, China. “If I imported copper before May, my inventories now have a profit on paper and I’d be in no hurry to sell. There is a lot of speculation going on.”
China-Driven
The price “is really driven by China, and there is obviously risk in the Chinese situation depending on their buying patterns,” Richard Adkerson, the chief executive officer of Phoenix-based Freeport-McMoRan Copper & Gold Inc., said July 21 on a conference call with investors.
Freeport, the world’s largest publicly traded producer of the metal, reported that second-quarter earnings tumbled 38 percent from a year earlier to $588 million as the global recession slashed demand for metals.
Every 10-cent change in the price of a pound of copper in New York alters the company’s cash flow by $260 million, Adkerson said. The commodity rally has helped send Freeport shares up 140 percent this year on the New York Stock Exchange.
China’s economy grew 6.1 percent in the first quarter, the least since 1999, Statistics Bureau data show. Growth accelerated to 7.9 percent in the second quarter, still the third-slowest rate since 2003. The recovery is “not yet firm,” Li Xiaochao, a bureau spokesman, said July 16.
‘Building Up Inventories’
Copper soared 28 percent in the first half of last year to reach a record July 2 as the U.S. was in the midst of the worst recession in at least five decades and demand dropped. The metal fell more than 60 percent in the second half as usage tumbled.
This month, the commodity gained even as inventories rose, a sign that prices are inflated, Delta Global’s Pento said.
“People have been optimistic, but it is not in line with actual demand,” said Gijsbert Groenewegen, a partner at Gold Arrow Capital Management in New York. “It seems like the Chinese buying has been about building up inventories and not actually consuming the metal.”
The rally is “mainly driven by ample liquidity,” said Honglei’s Zhao. “The arbitrage window has closed because the domestic price is no longer higher than the overseas price. That too will lead to lower imports.”
‘Very Spotty’ Imports
Some analysts and producers remain bullish. Goldman Sachs Group Inc., based in New York, advised buying metals in a note distributed on July 16, saying copper will benefit from demand from emerging markets.
Investor optimism may continue to support prices, said Warren Gelman, president of Kataman Metals in St. Louis, a brokerage which sells 24 million pounds of scrap and primary nonferrous metals a month.
“The demand has been very spotty, and from a business point of view, the copper price shouldn’t be this high,” Gelman said. “But investors have a lot of interest in buying copper, and that’s what’s been keeping the price high.”
Chinese lenders responded to the economic slowdown by tripling loans in the first half of 2009 from a year earlier to 7.37 trillion yuan, according to the nation’s central bank.
The increased lending spurred demand for properties, helping home prices in 70 major Chinese cities rise for the first time in seven months in June. Passenger-vehicle sales climbed 26 percent to 4.53 million in the first half, while commercial-vehicle sales fell 0.5 percent to 1.57 million, the China Association of Automobile manufacturers said July 9.
Dollar Slide
Investment in fixed assets, including water and road projects, jumped 34 percent to 9.13 trillion yuan, the National Bureau of Statistics said. Spending on capital projects accounted for 87 percent of China’s economic growth in the period, according to Morgan Stanley Asia Ltd. Chairman Stephen Roach, who is based in Hong Kong.
Lower interest rates coupled with U.S. stimulus programs will spur a drop in the dollar and also buoy commodities, Pento of Delta Global said. The greenback has fallen 3 percent this year against a basket of six major currencies.
“I see copper dropping for a few months, before picking back up again,” Pento said by telephone from Holmdel, New Jersey. Prices may fall about 9 percent to below $2.30 a pound by September before rebounding, he said.
Chile’s View
In Chile, the world’s biggest producer of the commodity, officials expect sustained demand from China, which buys more than one-third of the metal produced in the South American country. Shipments to the Asian country in June jumped to 172,756 tons, up 25 percent from May and almost double the amount in February, government data show.
Cochilco, the government copper commission in Santiago, today raised its price estimate to $1.95 a pound from a May 18 forecast of $1.75.
The South American exporter is more optimistic because “big investment plans” by Asian countries depleted stockpiles in LME warehouses, Santiago Gonzalez, Chile’s mining minister, said July 13. Prices will average $2 a pound if Asian countries “maintain current levels of activity,” he said.
“Stockpiling by the State Reserve Bureau led to record levels of refined copper imports in the first half, and economic recovery will keep imports at similarly high levels for the rest of the year,” said Ma Xiaoxin, deputy general manager of Beijing-based China Minmetals Nonferrous Metals Co.’s copper department. Prices should mostly stay above $5,000 a ton ($2.27 a pound) until December, Ma said.
Housing Collapse
Any declines in Chinese buying will have a “significant” impact because U.S. demand has suffered from slowdowns in construction and manufacturing, said Gold Arrow’s Groenewegen.
Automakers slashed output by 50 percent in 2009’s first half, according to Ward’s Automotive Reports. U.S. sales of cars and light trucks failed to reach an annual rate of 10 million in any month this year, after averaging more than 16 million during this decade. At least 16 suppliers have filed for bankruptcy protection since the end of 2008.
Home construction has subtracted from U.S. gross domestic product every quarter since the start of 2006. Spending on U.S. construction projects dropped 0.9 percent in May, the Commerce Department said July 1. That was the fourth decline in five months, signaling a slow rebound from the housing recession.
U.S. metal recyclers also say they are exporting less scrap copper to China, which may signal the country is oversupplied.
Chinese imports slumped 40 percent in the first half from a year earlier to 1.74 million tons, customs data show. Guangdong province, which brings in 40 percent of the scrap, tightened cargo inspections to clamp down on underpayment of taxes, delaying shipments, Shanghai-based commodities researcher CBI China Co. said July 6.
‘Reluctant to Buy’
“There’s been a dramatic change as the Chinese have been reluctant to buy scrap copper,” said Bret Tauben, vice president for copper at St. Louis-based Metalsco, one of the largest U.S. recyclers. “The demand has been very soft.”
Scrap metal, used in about 25 percent of the world’s refined copper output, is selling at the widest discount to New York futures since July 2008. China’s buying may fall more as supplies are plentiful, said Mark Lewon, vice president of operations at recycler Utah Metal Works Inc. in Salt Lake City.
“The widening discount is somewhat predictive of what’s to come in the futures market,” Lewon said. “I keep expecting the prices to drop. When you look at the real demand that’s out there, you can see that the copper price has gotten overvalued.”
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=anEd3WTPQWLg
GLTA !!
Thanks for sharing this with us...
Copper Drops in N.Y. After U.S. Consumer Confidence Declines. By Millie Munshi
July 28 (Bloomberg) -- Copper fell the most in two weeks in New York after confidence among U.S. consumers declined more than forecast, renewing concern that the worst recession in five decades will reduce demand for metals.
The Conference Board’s index of consumer sentiment dropped to 46.6, a second consecutive decline, after a reading of 49.3 in June, a report from the group showed today. The median estimate of 67 projections in a Bloomberg News survey was for a decline to 49. Copper tumbled 54 percent last year as the global economic slump slashed demand.
“Copper prices are taking a dip on the consumer-confidence number,” said Matthew Zeman, a trader at LaSalle Futures Group in Chicago. “Metals are pretty vulnerable to a correction right now.”
Copper futures for September delivery fell 2.45 cents, or 1 percent, to $2.5205 a pound on the New York Mercantile Exchange’s Comex division. That marks the biggest drop for a most-active contract since July 10. The metal has surged 79 percent this year.
On the London Metal Exchange, copper for delivery in three months dropped 1.3 percent to $5,530 a metric ton ($2.51 a pound).
Also on the LME, aluminum prices dropped for the first time in 11 sessions, halting the longest advance since 2004.
Aluminum has jumped 17 percent since July 13 on speculation that automobile manufacturers will need more of the metal. Japan’s shipments of aluminum rolled products fell at the slowest pace in seven months in June as demand from can producers and automakers rose, the Japan Aluminium Association said today in a statement.
Among other metals, tin, lead, zinc and nickel fell.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=adw32jx3hMzQ
GLTA !!
Copper Advances to 10-Month High on Improving Economic Outlook
By Glenys Sim
July 27 (Bloomberg) -- Copper jumped to the highest price in almost 10 months in London, New York and Shanghai on optimism a global economic recovery will boost demand for the metal used in construction and automobiles.
Copper has led an advance in industrial metals this year, gaining 83 percent on the London Metal Exchange as stimulus plans by governments including the U.S. and China spurred raw- material purchases.
“There’s so much optimism floating around about economic recovery and investors have very little interest in stopping the current rally,” said Pan Jinghua, analyst at Shanghai Jinpeng International Futures Co.
Three-month delivery copper in London added as much as 2.2 percent to $5,641 a metric ton, the highest since Oct. 8, and traded at $5,610 at 3:55 p.m. in Singapore. Copper for September delivery in New York gained as much as 2.3 percent to $2.5790 a pound, the highest for a most-active contract since Oct. 7.
The U.S. economy probably shrank at a 1.5 percent pace in the second quarter, following a 5.5 percent drop in the first three months of 2009, according to the median forecast of 66 economists surveyed by Bloomberg, helping extend an advance in global equities. The regional benchmark MSCI Asia Pacific Index gained for a 10th day, heading for its longest winning streak since 2004.
Copper is often used as an indicator for the world economy and may set the pace for other base metals because more than 50 pounds (23 kilograms) of copper is used in an average car and an average of 439 pounds is used in a 2,100-square-foot (195 square meter) home, according to the New York-based Copper Development Association.
China Metals
Copper for November delivery on the Shanghai Futures Exchange gained as much as 2.9 percent to 44,980 yuan ($6,584) a ton, the highest since Oct. 8, and ended the day at 44,930 yuan.
November-delivery aluminum in Shanghai gained 4.4 percent to 14,865 yuan a ton, the highest since Oct. 6, while zinc for November delivery added as much as 3 percent to 14,585 yuan a ton, the highest since Aug. 22, and closed at 14,565 yuan.
“The funds just keep pouring money into the market as investors are encouraged by the steps the Chinese government is taking to revive the economy and the continued commitment to growth,” Zeng Chao, analyst at Everbright Futures Co., said from Shanghai today.
China’s central bank affirmed a “moderately loose” monetary policy Friday, easing concern surging loans and asset prices will lead to fiscal tightening.
Bank Loans
Chinese banks extended a record 7.37 trillion yuan of new loans in the first half, triple the amount offered in the same period a year ago, triggering a 7.9 percent expansion in GDP in the second quarter as the government encouraged banks to support the economy.
The increase in loans spurred demand for properties, helping home prices in 70 major Chinese cities rise for the first time in seven months in June. China’s passenger-vehicle sales rose 48 percent in June, the most since February 2006.
Among other LME-traded metals, aluminum rose as high as $1,844 a ton, the highest since Nov. 20, zinc gained to $1,727 a ton, the highest since Sept. 29, and nickel climbed to $17,000 a ton, the highest since Sept. 29.
Lead rose to $1,804.75 a ton, the highest since June 12, and tin advanced to $14,900 a ton, the highest since July 1.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=adkyKVjJpsX0
DIVORCE between Gold and Silver Pricing Looms Wordy at front end, but good read.
http://www.24hgold.com/english/news-gold-silver-d-i-v-o-r-c-e.aspx?article=2224464926G10020&redirect=false&contributor=Theodore+Butler
GLTA !!
Copper gains on existing home sales data
by Elaine Frei Thursday, July 23, 2009
Copper prices ranged from little changed to a bit higher Thursday after good news on housing.
Prices were down early in the session, but were up again on new data from the National Association of Realtors showing that existing home sales were up 3.6 percent in June, sending the unsold inventory of homes down to 3.8 million.
One of the biggest uses for copper is in home construction.
Prices for September copper were little changed at $2.53 per pound in New York trade, while three-month copper added $30 to $5,530 per tonne on the London Metal Exchange.
The gains came even though LME copper inventories added 3,225 tonnes to 271,725 tonnes on the session.
Worries about supply disruptions at mines in Indonesia and Chile also pushed prices higher.
Other base metals prices were also higher.
Gold, meanwhile, was higher on a weaker dollar, which made gold look like a more secure investment.
August gold was up $1.50 to $954.80 per troy ounce after going as high as $956.90 earlier in the New York session, while September silver added 7 cents to $13.77 per troy ounce and October platinum gained $12.30 to $1,188 per tonne.
http://www.metalmarkets.org.uk/2009/07/23/copper-gains-on-existing-home-sales-data/
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Right! This is thinly traded enough right now, we almost have a time delay for any news that hits the metals market.
Kind of like getting to bet game 7 of the world series the day after it's played LoL! GL FJ.
GLTA !!
Yet another solid move up...
ANALYST VIEW-Copper to lead metals up, aluminium outlook dims
Wed Jul 15, 2009 6:34pm IST
Positives will be Chinese apparent demand and (possibly very slow) recovery in Western demand. Speculation will also play a part, as it has done over the past few months.
Negatives will be a slower than anticipated recovery in global demand, while further shocks in the financial sector will also knock prices.
The huge Chinese restocking exercise may also dampen prices ahead, especially for aluminium and perhaps copper -- although copper's long-term structural supply issues will be supportive.
The dollar -- by end-2010 there will be pressures (political and economic) to begin tighten interest rates in order to avoid over-inflating the economy. This will lead to a stronger dollar and thus help keep commodity prices down.
Essentially the rally in base metals has been based on Chinese apparent demand, as Western demand is weak and is expected to remain weak going into Q4 2009, at least.
We remain cautious as to the extent of real Chinese demand, since a large proportion of metal has gone into restocking programmes.
GAYLE BERRY, ANALYST AT BARCLAYS CAPITAL
A potential slowdown in Chinese imports is the single biggest risk to metals prices over the second half of the year. Metals are also extremely sensitive to macro developments so economic sentiment and data will be a key influence on price movements.
With China now largely restocked, the next big leg up in prices will come from the restocking cycle in the OECD, in our view. We are looking for this to emerge in late 2009/early 2010.
Aggressive destocking exacerbated the apparent decline in demand so when this comes to an end, consumers will again return to the market. I believe that's what we are already beginning to see develop in the OECD.
We see the potential for a big increase in demand for all base metals in early 2010 which we believe will be the foundations for the next leg up in prices.
WANG ZzHOUYI, ANALYST AT SHANGHAI CIFCO FUTURES
The most important factor is the health of the macroeconomy. U.S. dollar will continue to play a role. China's consumption is another important factor, reflected in trade data and production of wires and cables.
The recovery may come at earliest in the fourth quarter of this year. The consumption now is stable. In the first half of the year, most of the growth in metals prices came from influences from the economic stimulus plan and growing confidence in the economy. I haven't seen much strong growth in end-user consumption.
In terms of copper, the most important region is still China. The most important products are wires and cables. Home appliances may also play a role, albeit not a major one. U.S. new home construction also deserves attention.
Funds have always been an important player in the market. The trend in metals has been largely correlated to the movement of speculative money, part of it is operated by funds.
MITSUI BUSSAN COMMODITIES Expectations of a substantial recovery in demand for consumer goods in the western world economies will be dampened by continued high unemployment and a rising savings rate, while credit conditions are unlikely to improve quickly.
Investment fund activity, while diminished due to redemptions, will continue to be attracted to the commodity space as an ongoing hedge for the threat of dollar weakness and related inflationary expectations.
Aluminium supply has been severely curtailed with about 5 million tonnes per year production cutbacks. This has not prevented LME stocks rising above the 4 million tonne mark.
However, the recent price rally prompted smelters, especially in China, to resume production and this could temper the short term tightness caused by warehouse financing arrangements. The Chinese government's recent announcement that it will halt further stockpiling is likely to slow metal imports even in the face of domestic fiscal stimuli.
PS: Special Thanks to gofothebet!
The weekly chart looks sweet!!! Nice toehold!!!
Copper Rises to One-Week High on Speculation Demand May Improve
By Anna Stablum and Millie Munshi
July 14 (Bloomberg) -- Copper prices jumped to the highest in more than a week on speculation that an improving Chinese economy boosted prospects for metal demand.
Record lending and surging investment probably drove a 7.8 percent expansion in China’s economy in the second quarter, following the slowest growth in almost a decade, a survey of 20 economists by Bloomberg News showed. Copper gained 0.5 percent yesterday on improved investor sentiment.
“The optimism about an economic recovery has entered back into the market,” said Matthew Zeman, a trader at LaSalle Futures Group in Chicago. “Buyers are stepping back into the market, and that’s going to help copper prices improve.”
Copper futures for September delivery rose 7.6 cents, or 3.4 percent, to $2.299 a pound on the Comex division of the New York Mercantile Exchange. Earlier, the price reached $2.311, the highest for a most-active contract since July 2.
Copper has surged 63 percent this year as imports soared to a record in China, the world’s biggest metal user. The government will release statistics on gross domestic product on July 16.
“The markets are quietly optimistic,” said David Thurtell, an analyst at Citigroup Inc. in London. “China is the big daddy in the metal market.”
Inventories of copper in warehouses monitored by the London Metal Exchange fell for the sixth straight session to the lowest since Nov. 7.
Copper for delivery in three months climbed $150, or 3.1 percent, to $5,045 a metric ton on the LME. The price reached a record $8,940 on July 2, 2008.
Aluminum, tin, lead, zinc and nickel also gained on the LME.
To contact the reporter on this story: Anna Stablum in London at astablum@bloomberg.net; Millie Munshi in New York at mmunshi@bloomberg.net;
Last Updated: July 14, 2009 14:19 EDT
PS: Special thanks to goforthebet
GLTA !!
Hi FuturesJackal. Just got a toehold!
Been wanting this stock since last November, didn't really expect another chance.
The way I see it, we got capable management, a modern mill, it's JUST getting started, producing low cost Zinc/copper/gold/silver/lead, with additional assets close proximate to the mill.
Doesn't get much better than that, or am I missing something!
GLTA !!
The PPS went under the MA50... still consolidating gains...
Looking now to head higher still???
This stock has been on the move for 6 weeks or more...
Target: Commercial production in March 2009
January 2009 -- December 2009 Targeted Production *
1,500 tonnes per day
120 M lbs of Zinc
15 M lbs of Copper
1.5 M oz of Silver
14,500 oz of Gold
6 M lbs of Lead
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http://www.farallonmining.com/fan/NewsReleases.asp?ReportID=447639&_Type=&_Title=Farallon-Mining-Announces-Completion-of-Compulsory-Acquisition
15 March 2011 Farallon Mining Ltd. ("Farallon") (TSX:FAN) today announced that Nyrstar Canada (Holdings) Ltd. ("Nyrstar Canada"), an indirect wholly owned subsidiary of Nyrstar NV ("Nyrstar"), had completed its Compulsory Acquisition (the "Compulsory Acquisition") of 32,637,786 common shares of Farallon (the "Common Shares"), at a price of $0.80 in cash per Common Share pursuant to the Notice of Compulsory Acquisition made under Section 300 of the Business Corporations Act (British Columbia), and mailed to the holders of Common Shares who did not accept its offer dated 23 November 2010 to purchase all of the issued and outstanding Common Shares of the Company. On 5 January 2011, Nyrstar Canada acquired 462,400,996 Common Shares of the Company representing approximately 93.75% of the Common Shares of the Company. As of 15 March 2011, Nyrstar Canada owns 495,038,782 Common Shares of the Company representing 100% of the Common Shares of the Company.
In addition, the Company today announced that the Common Shares have ceased to be listed for trading on the Toronto Stock Exchange as of the close of markets on 9 March 2011. The Company also announced that the Company intends to file with the applicable securities regulatory authorities in Canada the necessary documentation in order to cease to be a reporting issuer in all such jurisdictions as soon as reasonable practical.
Should Farallon shareholders have any questions please contact the Depository and Information Agent Kingsdale Shareholder Services Inc., at 1-866-581-0507 toll free in North America, or at 1-416-867-2272 outside of North America, or by e-mail at contactus@kingsdaleshareholder.com.
- end -
About Nyrstar
The partner of choice in essential resources for the development of a changing world. Nyrstar is a leading global multi metals business, producing significant quantities of zinc and lead as well as other products (including silver, gold and copper). Nyrstar is listed on NYSE Euronext Brussels under the symbol NYR. For further information visit the Nyrstar website, www.nyrstar.com.
You can view the Previous News Releases item: Fri Jan 14, 2011, Farallon Announce Compulsory Acquisition Commences Expected To Close March 14, 2011
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