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This appears to be a good buy. Do you think they have enough cash to continue operations? What is your take on management?
Thanks,
RBB
Is there a US symbol for the July 2014 warrants?
I tried CYLPF on ETrade but it didn't work.
Thanks,
RBB
I was begining to think that you got snowed in "NY Bob".
Do you see any movement coming in APE?
Thoughts on safety of mining in Bolivia?
Thanks,
RBB
Why the race to 5000 TPD
What we did
TPD Grade Recov. gm/oz Daily Days Qtrly Prod. Prod.
2200 2.2510 0.952 31.2 151 91 13,750
What we need to do
5000 1.801 0.952 31.2 275 91 25,000
Based on the information recieved, we have a grade problem
an F, in my estimation)and that we are betting on increased grades from Oro Del Norte.
RBB
I concur.
The EPS for the quarter just ended could vary considerably from the excellent work done by Det. Mackey. If production doesn't hit the 19,000-21000 ozs., the cash costs could be closer to the prior quarter costs of $800 per oz.
The driver will be the gold in the ground.
Mjkii:
12,000 oz./mo............. Twenty years of mine life. This implies we have 2,880,000 ounces of recoverable gold in the ground. Is this realistic at this point in time?
BTW, how are the golf courses in Panama? I'm coming down to visit when PTQ hits $10.00.
RBB
Once again, you miss the point of the article.
They state, "...if you believe like we do that gold is coming out of retirement, then mining shares is where you want to be..."
Nowhere in the article do they mention a stock, currency or trend to invest in.
BTW, if you can't afford to lose your entire investment, what are you doing on this board?
This should make your heart sing......
http://futuremoneytrends.com/Gold_1980_vs_today.html
OT. Question regarding using stops/stop limits.
Do any of you use hard and fast rules regarding stops, IE., 2%, 5%, 10%, 20%.
Two examples:
I purchased EWPMF.PK on 11/9 at $1.18. Using a 10% stop I should have sold at $1.06. I held and it dropped to $.99 (-16%) I held and it is currently at $1.50 (+26%)
I purchased SHSH.OP on 11/9 at $.2568. Using a 10% stop I should have sold at $.2311. I held and it is currently at $.17 (-34%)
Thanks for your advice.
PS. Koz, I need my scalp back. I have two remaining brain cells; I think!
For those of you who are still in doubt:
http://www.stockta.com/cgi-bin/analysis.pl?symb=PTQMF&num1=13&cobrand=&mode=stock
Overall Bullish (0.44)
Short Bullish (0.31)
Intermediate Bullish (0.36)
Long Very Bullish (0.65)
Merry Christmas to all!
Predicts rally after Thanksgiving. High copper prices, beware Brazil.
Nov 11 2010 3:20PM
Part One Of Trader Tracks 2011 Predictions
Between November 1 and December 15 we like to post our next years’ predictions for those markets and social situations affecting our trading and investing ideas.
We previously forecast that both the stock and bond markets would sell-off for numerous fundamental reasons. Of course the timing and the amount of selling is front and center on everyone’s mind.
Before we continue with our predictions it is important to review this email from our top advisor. He has been consistently correct in his forecasts and has brought me a great deal of insight regarding things I would have never considered. Consider this a fundamental back-drop covering the next several years. After this note, I will elaborate further on my forecasts and suggest some prospective dates for our trading and investing.
Our Best Advisor Says It’s All Over.
I’m not a pessimist but our top and best advisor who seems to be always correct offers the following. If he is correct, and I suspect he is, we have a long slow Japan-style slog in the economic mud with a major system breakdown, like Russia’s bust-up some years ago. I suspect somewhere along the trail in this movie, the USA Sheeple go to pitchforks and torches. I sure hope not but it almost seems inevitable. What a shame that a few Marxists can do so much permanent damage to my beloved America. All political parties are guilty.
“The midterm elections are anticlimactic and change nothing. In the short term, it makes no difference how many Congressional seats the GOP captures. The Dumb-O-Crats have already won. Since taking control of Congress in 2006, Hussein and his wrecking crew have jammed through more socialist legislation than all the past liberal agendas combined (had) ever hoped to accomplish. It's a done deed.”
“If anyone thinks that changing the mix of Congress with more elected conservatives will fix things; (they are) dreaming. The new Congress will be just as clueless, incompetent, corrupt, and swayed by the lobbyists. The only priority will be to get re-elected, as usual. Any hopes and promises will be dashed by reality. The reality is any legislation that the new Congress passes to try to undo Hussein's Marxist programs will be simply vetoed. The GOP will not have the votes to over-ride a Presidential veto. This is a Dead-End.”
“The Constitution gives the responsibility of appropriating funds to the House. They may be able to shut-off any additional funds for existing programs, such as Obamacare, etc., but the basic funding of those programs is already the law of land. Control of the Federal purse strings is of no help to undo the damage already done.”
“So, there will be two years of legislative gridlock. In the mean time, Hussein will expand (entrench) his new socialist programs with a blizzard of Presidential executive orders and appointees by-passing Congress. These Dumb-O-Crat political appointees in charge of hundreds of Federal agencies, set policy that interprets, and bends the intent of new and existing programs to the socialist ideology...encasing them in concrete. It will require literally decades of political dedication and action to undo the damage…and that is not likely to happen.”
“On top of all the political shenanigans, is the meddling of the FED with the money supply. The greatest theft of public money, ever, will continue on an even grander scale to transfer even more to the bankers, the Wall Street Boyz, and the politically connected. That is the one, and only, sure outcome of these elections. The citizens (Sheeple) aren't even a consideration, other than to ratify the rip-off with their votes.” -Northern Advisor
As we write this forecast on Election Day, we feel certain Bernanke will smooth talk the public after the FOMC meeting tomorrow. These efforts are designed to ease the minds of Wall Street, central bankers, and foreign nations while preparing to jam another $500B in QE2 printing of new bonds, bills and currency. The outcome is a dollar dilution-devaluation with a large move toward inflationary destruction of international credit. They hope for and talk of the opposite. Expect $500B more in each quarter in the first three quarters of 2011; $2 Trillion total.
We think something breaks in the credit markets in 2011. It can come early in the year based upon bond failures outside of the USA or, be potentially created by some Black Swan effort we cannot yet see. One of the very large near term bubbles is in Hong Kong Real Estate. Many say Hong Kong is isolated within China, We say that when this one cracks, it rolls over all of China, takes down their stock market and spreads over the world. This could be in Q1 of 2011 or as late as the fall of 2011.
Europe is in big trouble, just like America. That situation is different in that the European Central Bank does not have all the powers of the Federal Reserve and U.S. Treasury. By charter, the ECB is not permitted to make loans to member countries. However, in light of all their failing nations and emergencies, the ECB is buying those nations’ crummy bonds to help them. This is an accident waiting to happen. Irish bonds are going scary and those of Greece are basically, in my view, worthless. Even Portugal, which is tiny and holding about $6B in gold has serious problems. In 2011, either Spain or Italy takes a bad economic hit and they all go down like dominoes.
Germany is the single European powerhouse. They have been trying to grudgingly help their broken neighbors but cannot save the world. No one has that kind of credit or cash. As pressures mount in Germany for the PIIGS to borrow more from them and German export sales taper-off on weakening overseas customer’s, new changes arrive. Mrs. Merkle is a tough cookie and is trying to protect German credit and their economy. Germany’s Mr. Alex Weber who holds the financial reins is on her side. Germany is going to and must cut the strings attaching them to the ECU, the Euro and avoid being trapped by being too generous with broken neighbors. Germany will start trading the old German Marks currency along with the Euro and soon after cut all ties and gradually go it alone. Adios for the Grand Euroland Experiment. Hello Deutchland!
China has been the growth powerhouse of the world. This was enabled for several reasons. Among those are millions of people working hard as cheap labor; grateful to have a job. Next, the USA companies moved factories and millions of dollars to China to take advantage of a much lower cost of goods. Further, the money Boyz in NYC saw an opportunity to raise billions to invest in China for the fees, commissions and the vigorish. Now China, which has been paid in US Dollars and bonds is seeing the end of American Credit. We estimate they hold nearly $1 Trillion in toxic U.S. paper and another $1 Trillion in other financial markets; all at risk of cratering.
Trees do not grow to the sky. As Hong Kong saw a +90% increase in real estate prices just this year as their US exports were going down the drain; reality comes to the fore. For those who say this goes on forever we say bunk. This economy is command and control more than most as the government can move faster not asking permission of any legislature or the public. They decide and they just move quickly.
Chinese are excellent traders and very smart. Those controlling the USA economy as in our congress, Federal Reserve and Treasury can howl and complain all day. China will do what is best for China. The irony is Geithner and Bernanke do the same but are forcing the wrong decisions on a path to destruction. The collective scream does nothing. All will lose.
Navigation through volatility for most kinds of investing and trading is going faster with wider trading ranges. This is going to scare many Sheeple into making wrong decisions. The more volatility we see the deeper the fear as good trading ideas go against the investors; TEMPORARILY. One of the top trading exchanges will fail. We do not know which one but have some ideas. This happens over 1-3 years.
Any exit strategy from the Middle Eastern wars will be sloppy and uncomfortable. In 2011 it shall become obvious most of our troops will have to pack-up and leave. This guerilla war should be left to highly paid mercenaries who manage methinks better under the cover of darkness with no identities. The USA simply cannot afford to spend so much money on the Defense Department and will discover better ways to manage the problems.
The troops begin to come home gradually over several months. This was the Nixon VietNam strategy-declare victory and leave.
As Americans on food stamps approach 50,000,000 next year, the American government and most particularly the bankrupt states cannot afford to keep paying unemployment checks and related benefits. We noticed last week that one state is posting armed guards at unemployment offices as those folks prepare to cut-off the checks. They are expecting violence and I think they are correct. U.S. jobless is 24% going to 35%.
Immigration problems are spreading and violence is increasing. Watch Arizona and southern California for stand-offs between USA citizens and both legal and illegal immigrants. The American southwest has millions of guns and the Sheeple are getting super angry faster. We think the federal government should immediately order two full divisions of troops to guard the border and cool the hot tempers. They won’t do it as it would admit policy defeat and interfere with new immigrants’ votes for the administration. This dust-up is now in the 9th Circuit Court in San Francisco. The outcome will be against the State of Arizona. Arizona State and local police are unfairly caught in the middle. This turns ugly as citizens take charge and do what they think they must.
Mexico is going dangerous at a furious pace. When a nation calls out the troops in large numbers to do daily battle, it can only end badly. Marxism is spreading quickly throughout South America. Brazil has just elected a former Marxist and guerilla fighter. Hugo Chavez continues to nationalize and steal from his people. Iran is helping Chavez and between them both they are providing arms and criminal support to Mexico bad boyz and perhaps Nicaragua.
I can foresee, that if this is permitted to continue and spread while the current US administration does nothing, the entire USA Southwest goes under siege. It could turn very violent.
One of the larger wet blankets on America and other economies will be massive, hard-core inflation. Most still think we are in a deflation with no inflation. Food and energy are always the first to inflate and they are running at +9% and moving-up faster. Soon many other parts of the U.S. economy inflate on a sinking U.S. Dollar. We already have a tightening noose on capital controls. Expect this to get worse. Next we’ll see price controls, which are most familiar in war time.
Since we are fighting two undeclared wars in Iraq and Afghanistan, those are merely designated “police actions” like the 1950’s skirmish in Korea. The declared war is the “War on Terror.” This one is easy to designate and discuss as the enemies are largely unidentified-fighting shadows. We have rogue nations, and enemy nations but this war is illusory at best. This keeps the defense industry busy and rich.
In light of the November QE2 announcement by the FOMC, we now forecast a new technical US Dollar intermediate low to be 64.00 on the index. The normal number is 80.00, which has been the standard for years. The dollar formerly and briefly blipped under 70.00 but recovered quickly. Not now.
We will first see growing inflation that turns in a vicious hyperinflation within 24 months or less. We think the first real scare of this arrives in the fall of 2011. In 2012, it shall hit the world with a vengeance as the U.S. Dollar is both the standard of the world and represents 85% of the world’s currency reserves. This is a game changer. Eventually, the dollar sinks to 46.00-40.00 on the index; effectively cutting its value in half from earlier in 2010. (Read “When Money Dies” by Adam Fergusson) This book is the best we’ve seen on Hyperinflation in Germany, Austria, and Hungary after WW I.
Expect the despot rulers of Nigeria to be taken down in a citizen’s revolt in 2011. The citizens are tired of theft and corruption. Look for the new lady leader of Brazil to go far left following in the footsteps of Hugo Chavez and Fidel Castro. She is a former communist guerilla fighter. The largest new oil field in the world is at stake in the ocean near that nation. Iran will be making a move with other communists to seize it. Stock and bond markets are terribly over-valued. The shares will fall under their own non-supportive weight. Insiders have been selling out for months as fast as they can and see the forthcoming crash. With new QE2 announcements we see the FOMC on the path to certain systemic destruction.
We have been saying for years… this is all they have left-printing bonds, bills, notes and dollars with no asset backing whatsoever. Foreign holders of this paper are exiting these trades as fast as humanly possibly. China has a five year plan to be out but will not make it in time. They are converting this US originated paper to hard assets world-wide.
Copper has been pushing the limits of the recent $4.00 futures high. With China pressuring to buy more and needing so much more for development projects, electronics, power equipment and others, watch for the March, 2011, copper futures high to be broken moving the price to above $6.00 next year. Copper is inflation sensitive.
Pensioners and those older Americans on fixed incomes will be largely, economically destroyed in the forthcoming inflation. New GOP House members will be in open warfare with Obama and his democratically controlled senate. Obama is a one term president going out in disgrace as one of the worst ever to hold the job. His is an event worse than Jimmy Carter and Woodrow Wilson. May we live in interesting times so be prepared.
The next fall rally in gold and silver should commence after Thanksgiving. From the signals we see, this rally could be absolutely outstanding. Try your best to own physical gold and silver and trade the shares of the related companies. The next larger-faster phase of commodities trading can continue for another 7 years based upon previous historical cycles. Now, more than ever, it is important to take the immediate necessary precautions to protect yourself and your families and friends. Traders and investors should be buying precious metals and select shares right now. In our Trader Tracks Newsletter we have a great list of trading and investing ideas for you. Meanwhile, you can never go wrong buying physical precious metals and holding them for security. We’ve had a constant run of nearly ten years with gold rising 15% per year so this remains a good trade. In the last twelve months, gold has rallied over 34% and is going ever faster.
It’s not going to stop any time soon. In fact, we predict those annual percentages will rise even more and this offers a chance, arriving only once in 25 years on the historical cycles.
Roger Wiegand
Editor Trader Tracks Newsletter
The Jay & Rog Blog at webeatthestreet.com
That would be Scout, Kemo Sabe.
RBB
From Seeking Alpha................
The 10 Worst Mining Jurisdictions in the World
2 comments | by: Doug Hadfield November 04, 2009
Investors spend a good deal of time determining the best places to invest, but do you ever wonder which countries are the worst places in the world to invest? If you invest in mining companies, you should. After all, when you invest in a mining company, you’re not just investing in a company but also the government and communities in which the company is exploring for and developing deposits.
So much about the success of a project depends upon the jurisdiction in which it exists that most institutional investors simply won’t put money into a company operating in certain countries. Sure you can find a deposit in Venezuela, for example, but leaders like Hugo Chavez, who are in the habit of decreeing bizarre legislation such as a recent ban on singing in the shower in Venezuela also have a penchant for stealing mineral deposits from whomever they please.
The Fraser Institute’s Survey of Mining Companies 2008/2009 is one measure of how mineral endowments and public policy factors such as taxation and regulation affect exploration investment in countries around the world. This year the survey considered 71 countries based on factors such as these and gave each a score out of 100. The findings were fascinating, to say the least. In this pictorial essay, we’ve compiled the Worst 10 performers from the Fraser Institute’s Policy Potential Index.
Keep in mind, however, that just because a country is listed at the bottom of the list doesn’t mean that some companies won’t find staggering success operating there. In September this year, for example, Dynasty Metals poured its first gold at its Zaruma mine in Ecuador. That country is the second worst performer on this list, but that hasn’t stopped Dynasty from bringing the benefit of revenues to its shareholders.
Additionally, countries can move through the rankings quite quickly between years. The average score of the Canadian provinces and territories improved by 3.8 points from last year. On the other hand, Latin American scores continue to decline. In the 2005/06 survey, the average score was 51.2 compared to 37.3 in this year.
10. Indonesia, Grade 25.1/100
Assuming industry “best practices”, the first country on our list would actually be the 10th best country on the Policy Potential Index, according to the 658 survey responses the Fraser Institute received. That’s probably because Indonesia is one of the world’s largest producers of tin (ranked 2nd after China), coal (ranked the 3rd largest thermal coal exporter after Australia and South Africa) and copper (ranked 3rd largest, after the USA and Chile). It also produces significant quantities of gold, nickel and sulfur (above).
Whereas Latin American countries so often struggle with indigenous opposition to mining companies holding lands, Indonesia has deep issues simply creating and managing a regulatory system. One CEO said, “In Indonesia, disputes between local and federal government have in several cases given two different companies access to the same ground.”
Major issues among respondents were security, political stability and infrastructure, which paints a familiar picture of the Indonesia we so often see in the headlines: Religious tension has increasingly brought violence; Indonesia has the largest population of Muslims in the world, and is increasingly a center for extremism.
9. DRC Congo, Grade 24.1/100
DRC Congo is another one of those countries that has vast potential. Assuming industry best practices, the Fraser Institute survey respondents ranked it 19 out of 71 countries. Diamonds, gold and rare minerals are plentiful. However, one of the most important minerals in the DRC is coltan, from which niobium and tantalum are extracted. The latter two minerals are important in the manufacture of cell phones, DVD players and computers.
The trouble in the DRC is a war that has raged on off since 1996 that has claimed from 5 to 6 million lives, depending on the report you read. The conflict is complex, involves several neighboring countries and is partly rooted in disputes over land ownership, but mostly it is a battle for the vast natural resources the region possesses.
8. Kyrgyzstan, Grade 22.5/100
Kyrgyzstan was a new addition to the survey this year (as were Guatemala and Norway). Although this country is not particularly rich in resources, it still places 4th overall in the category of Room to Improve. One junior mining executive wrote, “Kyrgyzstan! The government is totally corrupt and ignorant of modern economics.”
While Kyrgyzstan enjoys fewer problems when it comes to relations with indigenous peoples and policy regarding protected wilderness areas, it’s in the realms of policy, taxation, political stability and infrastructure (for which Kyrgyzstan found itself in last place) that this nation shows its true colours.
After protesters and opposition party members deposed the last government in the 2005 Tulip Revolution, the country has struggled to stabilize – and modernize. Nevertheless, little historic exploration and substantial gold reserves make this an attractive target for some exploration companies.
7. Zimbabwe, Grade 19.1/100
Zimbabwe is one of the most tragic stories in most every regard. The country’s dictator is a complete nut-job who has abused his power more openly than just about any world leader outside of Saddam Hussein. Moreover, Zimbabwe once enjoyed a prosperity like few other countries in Africa. Today the country has little economy to speak of, almost no infrastructure and what political structures remain are of little actual benefit to anyone but a small group of Robert Mugabe supporters.
As the President of one company with over $50 million in annual revenues stated, “Zimbabwe—would anyone go there?”
6. Bolivia, Grade 16.5/100
In the 470 years since the Spanish Conquest, Evo Moralez is the first indigenous leader of Bolivia. For resource investors, that’s the end of the good news. Moralez, a leftist of the same stripes as Hugo Chavez, in his first term in office nationalized natural gas, mining and telecommunications companies. And he’s just getting going. With another election due to take place this December, most analysts expect more nationalization in a post Moralez victory. Although 79% of respondents realize that Bolivia has mineral potential — given no land use restrictions — this is simply not a safe place to put investment dollars.
5. India, Grade 16.2/100
Liquid metal ( iron ) being poured in a ladel in pig iron plant in India
India is a curious case when it comes to foreign investment in mining. While the pool of labour in the country is generally excellent, India’s infrastructure, existing geological database and regulatory duplication and inconsistencies make the place often a quagmire of red tape and chaos.
Nevertheless, mining in India is a huge industry. An estimated one million people, including contract workers, are engaged in mining in India, the world’s second largest mining workforce after China’s.
However, in mining, India has often presented unwieldy barriers to entry. Canadian mining companies have discovered it’s difficult to reach lease agreements on land. As a message on India’s Ministry of Finance website states, “Foreign investors should be prepared to take India as it is with all its difficulties, contradictions and challenges.” That’s as clear as mud!
4. Honduras, Grade 11.8/100
The National Palace of Guatemala City which is located at the northern end of Plaza Mayor serves both for official receptions and as an art gallery.
Here the score starts sinking rapidly. Honduras is one of the western world’s most underdeveloped countries. Hurricane Mitch destroyed much of the country’s infrastructure along with the banana crop, the country’s third most important source of agricultural export revenue — who hasn’t eaten Honduras bananas their whole life long?
Mining investment is seen as a potential boost to the economy; Honduras produces lead, zinc, silver as well as gold and copper. The Fraser Institute found that Honduras struggles in many respects including political stability, quality of infrastructure and concerns regarding aboriginal land claims.
3. Guatemala, Grade 5.1/100
There are just a handful of mining companies still operating in Guatemala, largely due to issues surrounding indigenous groups. While companies like Inco for years operated in Guatemala, which is rich in antimony, lead, tungsten, nickel and copper, the country’s weak governments are typically short on clear mining regulations. The result has too often led to disenfranchised and poor indigenous communities around mine sites. Today, new projects are often met with resistance.
To be sure, Guatemala has great promise: In the Fraser report, 74% of respondents stated that country has mineral potential — assuming no land restrictions were in place. However in every other respect, the CEOs questioned said the country did not encourage investment, particularly when it comes to agreements with the government and communities.
2. Ecuador, Grade 4.1/100
The second lowest scorer on the Policy Potential Index is Ecuador. Surrounded by Columbia to the north and Peru to the east and south, Ecuador is a mineral rich country, but with deep political fissures and indigenous struggles. Ecuador has one of the world’s worst policy environments, but would tie for top rank in investment attractiveness under a “best policy” regime.
Perhaps that’s why Ecuador has been a very successful choice for some resource companies. Dynasty Metals and Mining has the producing Zaruma Gold Project, the first large scale modern mine and processing facility in Ecuador. The project was constructed on budget in a country that lacks an infrastructure for large scale mining.
Its mineral resource potential notwithstanding, indigenous uprisings, uncertainty regarding existing regulations, taxation nightmares and bureaucratic red tape make Ecuador the country with the most room for improvement!
1. Venezuela, Grade 3.7/100
Gasoline smugglers (pimpineros) with their contraband fell into the water of the river Táchira. One load of gasoline barrels may reach over 200 kilograms. [Cúcuta, the Colombia-Venezuela frontier]
As one company Vice President in the report said, “In Venezuela, if you build it, Hugo Chavez will steal it.” It doesn’t matter much how you look at Venezuela, this is one tricky place to build a mine. While the country ranks poorly in infrastructure and existing geological data, it’s right at the bottom when looking at political stability, labour regulations and security.
Today, Hugo Chavez’s government continues to seize control of mines in the country. On October 27, U.S. mining company Gold Reserve Inc. said that the Chavez regime had seized control of its lucrative Brisas del Cuyuni project in southeastern Bolivar state.
The trouble is, Chavez appears incapable of running mines himself, except into the ground. The result is increasing poverty and corruption, crumbling infrastructure and a country that is sliding backward economically and socially. Even Cuba is heading in the opposite direction.
Disclosure: No positions
About the author: Doug Hadfield An avid resource investor, researcher and writer for years, Doug also hosts the resourceINTELLIGENCE TV segment "NEWSMAKERS".
Article from Controlled Greed about buying gold miners.
Higher end companies, but still positive for gold mining companies.
http://www.controlledgreed.com/2010/01/portfolio-adjustments-scaling-back-msft-buying-gold-miners.html
RBB
Nuts:
How are you able to see into the future?
http://www.mineweb.com/mineweb/view/mineweb/en/page36?oid=93366&sn=Detail
Have you considered BWR.To warrants. They expire in 2014 and are undervalued.
http://canadianwarrants.com/values/current.htm