Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Yes , he is. Also he better tell his boss to cover all short positions before warrants expire.
I like my glasses- gold is breaking $ 1400 pulling Petaquilla with it.
Watch South African miners threatening to go on strike, that might effect gold supply.
Thanks acanuck. Here is a nice little article, Andalusia is doing good and very business friendly:
"The net turnover of the industry in Andalusia, defined as the sum of net product sales, net sales of goods and services, amounted to 65.965 million euros in 2011, representing an increase of 13 , 4 per cent over the previous year, above the average of the regions (+10.4%).
According to the Annual Survey of Mining Companies of the National Institute of Statistics (INE), collected by the Ministry of Economy, Innovation, Science and Job, and referring to 2011, the net amount of the turnover of the industry in Andalusia , defined as the sum of net product sales, net sales of goods and services, amounted to 65.965 million euros. Thus, Andalusia is the second region with higher level, after Catalonia.
For branches, nearly half of the turnover corresponds to the 'Mining, energy, water and waste' (43.4% of total), followed by 'Food, beverages and snuff "(20%).
Compared with 2010, the turnover in Andalusia grew 13.4%, above the average of the regions (10.4%), corresponding to the largest increases relating to Mining, energy, water and waste (34.8%), and chemical and pharmaceutical industry (17.3%).
With this increase in 2011, despite the economic crisis, accumulate two consecutive years of increases in the turnover of the industry in Andalusia, with the cumulative increase of 25.4%, nearly ten points higher than observed in Spain (15.9%).The above survey also provides information on the number of hours worked in the industrial branches, still possible to calculate the productivity of the sector, as the ratio between the turnover and the number of hours worked.
In 2011, Andalusia remains, for the second consecutive year as the region with the greatest level of productivity ratio (186.1 euros per hour worked), higher than the national average (163.8 euros per hour worked), highlighting the ' Mining, energy, water and waste ', and' Chemical and Pharmaceutical Industry 'with higher productivity levels, more than double the industry average Andalusian, and are higher than the national average for these branches.
Increased productivity
In terms of evolution, are also recorded two years of rising industrial productivity in Andalusia, the increase in 2011 of 17.7% (15.1% in Spain) and accumulating since 2009 increased by 36, 2%, well above the national average (24.6%).
This increase in productivity of the industrial sector in Andalusia is the largest of all regions, which is also attached to the one with higher levels of productivity, Andalusian industrial sector situated in a favorable competitive conditions.
You don’t have to be privileged share-holder .
I have no problem to get answer when I need one.
First – you have to be polite .
Second – you have to understand what person is trying to say.
Third- do not agitate IR person by constantly asking same question over and over again.
Fourth- limit your call/questions to one per month , or even two, there are other important issues people are working on .
Petaquilla is a great little company which one day will bloom in to mid-tier producer, just in-time for new rotation to begin, - that how I feel about my investment.
Nice, very nicely done. I see Doctor’s approval on every official number.
Also, twin drilling holes in Spain are done so results are coming, I can’t wait.
So much better looking presentation just in time for Denver!
If I can add anything - Portugal mention very little and does not exist on the map. Otherwise - great job.
Welcome back to the loop, Loj. We were worried about you.
Those poor Indians gold bugs:
"The seizure of smuggled gold has surged 365% in the April to June quarter of this financial year, thanks to the incessant restrictions on the precious metal. Margins for smuggled gold have also jumped, beating other smuggled items like sandal wood and ketamine drugs.
Revenue authorities have seized gold worth $9 million in one quarter, as compared to $2 million in the corresponding period of last year (between April to June)."
Also, I never like Dennis Gartman, now he admits his mistakes on a gold and equities calls- could not happened to the better guy.
Digi,
Great pictures and updates, thank you.
I am pleasantly surprise with Portugal Gold, - so much of it!
Relatively inexpensive process, but going underground is always requires additional capital.
Still- maybe it is our Christmas surprise- updated Portugal reserves.
I already promised Mjk – when PTQ goes to $2- I am going to Panama to buy him a dinner, you are invited also.
Resurrection of the Dead Money. West funds already sold half of the gold, ability to influence gold price is severely diminished.
Bloomberg) -
First Quantum Minerals Ltd., the copper producer seeking to refinance $2.5 billion of borrowings, expects a “substantial portion” to come from bank debt.
“We are still seeing reasonable appetite in the bank market to take up this debt and it appears that the bond market is still strong,” Chief Financial Officer Hannes Meyer said in an e-mail. The Vancouver-based company plans to have the bank financing in place by the end of the year, he said.
First Quantum, Canada’s largest copper producer, needs to refinance short-term debt that it took on to fund about half its C$5 billion ($4.9 billion) acquisition of Inmet Mining Corp. in April. Copper prices have dropped 6.3 percent since the end of November, when the company first announced its hostile offer.
“We are currently in discussions to replace the $2.5 billion short-term facilities,” Meyer said Aug. 8. “A substantial portion of that is likely to be in the form of bank debt with some term and revolving features.”
The April acquisition gave First Quantum access to the Cobre Panama project, which Inmet said would cost $6.2 billion to build. First Quantum will this year announce a revised plan for the venture, having determined it can build the copper mine faster and at a lower cost than Inmet, Operations Director Matt Pascall said in June.
Acquisition Financing
First Quantum raised debt for the Inmet deal in March, with an interest rate of the London interbank offered rate plus 2.75 percent.
“They are likely to be well-bid on debt given the strength and financing track record of the business,” Cailey Barker, metals and mining equity research director at London-based Numis Securities Ltd., said Aug. 9.
First Quantum plans to be the world’s fourth-biggest copper miner by 2018, behind Freeport-McMoRan Copper & Gold Inc., Glencore Xstrata Plc and Codelco. While developing Cobre Panama, it’s also building a mine and smelter in Zambia, where it already operates the Kansanshi pit.
The company will pursue its growth projects even if copper prices fall a further 25 percent, according to Meyer, who said he doesn’t expect the metal to drop to such an extent.
--Editors: Amanda Jordan, Tony Barrett
To contact the reporter on this story: Matthew Hill in Johannesburg at mhill58@bloomberg.net
To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net
Where is your help Loj? Loj, are you here, come in … Houston
You replied to my post, so I will reply to you directly, last time.
Digi maybe not familiar with your postings , but most of us who have been here for a few years got used to your luck of facts , just paste and copy of same old material five or ten times a day on a Stock House board.
You don’t bring anything new to the board but constant criticism even when true facts laid out for you to see.
Why would anyone wanted to fight windmills?
But you also asking same question over and over again about financing.
Never mind that we already discussed it- we do not need financing now!
We are fine with DB hedge at $1200!
We do not want PDI to go yet! - It provides a steady cash-flow. How many times do we have to repeat this?!
OK, I will be nice:
Management is doing excellent job during the current hard times.
The company does not have to tell you anything except required quarterly and annual report.
Unlike other juniors who are going out of business or barely staying afloat- we are pouring gold, increasing our production, generating formidable cash-flow with PDI and building ramp in Lomero-Poyatos as we speak.
We have great relationship with FQ and excellent support from local government unlike some places in Africa or South America. Regardless what Rubini or Gatman want to say- gold is hanging tough.
Things can not look any better from now on.
It's coming:
"LONDON (Mineweb) -
Australia’s ANZ bank is the latest to open a gold vault in the Singapore Freeport area next to the city state’s Changi airport. Other recent vault builders there include Deutsche Bank and JP Morgan, while Switzerland’s Metalor has one under construction and due to open in a couple of month’s time. Together with new gold vault openings in Hong Kong this is yet another outward sign of the continued flight of gold from West to East, although the vaults are also servicing western precious metals investors seeking safe, and relatively low cost vaulting facilities outside of the traditional depositories in the U.S. and Europe.
Now either the Western bullion banks have misjudged the power that gold still retains in the global psyche and as a key financial instrument, or the Asian investors and governments, which are continuing to accumulate gold at a high rate, have got it wrong. Much is made of the rundown in COMEX gold bullion stocks and the drain of physical gold out of the big ETFs which are fully gold backed and certainly all the figures are telling us that the gold is indeed moving East – it is not only Asian governments which are buying gold, but also countries like Russia, Kazakhstan and Turkey (which falls between the European and Asian blocs) have been accumulating the precious metal and raising their overall gold reserves. They obviously all see gold holdings as a vital factor in any changing world financial order.
The big question in this respect is, of course China. Logic – and the statistics – suggests that China is at the very least buying in its own gold production, which by law has to be sold to the state. As the world’s largest gold producer with output of around 400 tonnes annually, even if this is all it is taking into reserves, this is a very significant amount being around 15% of the world’s newly mined gold. This amount of gold alone would mean that China will have taken around 1,500 tonnes into its reserves since it last reported an upgrade in its holdings to the current official figure of 1,054 tonnes in April 2009. This suggests China’s gold reserves may well have at least more than doubled over the period since then and would put it in fourth place amongst the global gold holders with ca 2,500 tonnes, after the U.S. with official gold holdings of 8,133.5 tonnes, Germany with 3,390.6 tonnes and the IMF with 2,814 tonnes.
Tyler Durden, writing in Zero Hedge picked up on a recent statement by Yao Yudong of the People’s Bank of China monetary Policy Committee calling for a new Bretton Woods type system to strengthen the management of global liquidity – click here to read Durden’s article. In it he suggested that Yao’s statement could be the first salvo in a Chinese push for a new gold standard – or something approaching this – or at least yet another indication that China is moving towards trying to overturn dollar hegemony and make a place for the renminbi in the new global reserve currency – a point we have made on Mineweb in the past. The suggestion is that China may look towards some kind of hard asset backed ‘optionality’ as a future negotiating point in rejigging the world financial order at some point in the future.
Coming back to China’s likely gold holdings, many observers feel that, in addition to taking its own gold output into some kind of separate government account which, in its view it is not obliged to disclose as part of its official reserves until it feels it is politically opportune to do so, it is also buying gold on the open market given the huge volumes of gold pouring into the nation. Even so it would still have a way to go to match the U.S. gold reserves – unless of course the government does a ‘Roosevelt’ and confiscates its citizens’ gold, at which point, in a fell swoop it could perhaps get close to matching the U.S. in total gold holdings. This is something that, in theory, it would be easier to do in a totalitarian state than in a democracy like the U.S. One can be sure that Chinese economists have studied what Roosevelt did and have built it into one of their possible scenarios.
One recalls that China positively encouraged its citizens to buy gold - a cynic might suggest that this was just a route to bringing more and more gold into the country which could then subsequently be used as a de facto reserve.
China might then feel, if it can match, or perhaps exceed, the U.S. in its gold holdings it would be in a position to demand a place in a global reserve currency – or indeed replace the dollar as such with the renminbi and revalue gold to whatever level it sees fit. Pure speculation on our part, of course, but the Chinese have learnt from the capitalist system turning it to their own advantage. As Durden points out in his article, global reserve currencies don’t last forever and the U.S. dollar could be nearing the end of its reign as such.
Financing does not make sense anymore. It was good idea when gold was around $ 1800 in order to get out from under DB hedge at $1200.
But with gold fighting its way between $1200 and 1300 DB hedge continue to be good deal.
So who needs financing now, I am sure company well aware of this and put financing on a back burner.
PDI spin off – it is not a good time to do that.
With so many juniors struggling to pay their bills and going out of business, PDI gives us a cash so much necessary
for L/P development .
It will be time in a future when gold price is much more favorable to spin PDI.
It is a survival mode for the most producers, large and small.
MJK, maybe you can refresh my memory and rathebefishn that spin-off has to satisfy certain criteria we discussed them before:
To avoid taxable consequences, the transaction must be structured carefully to abide to the rules of Section 355, which are summarized as follows:
CONTROL
The parent company must have “control” of the subsidiary immediately prior to the spin-off and must disburse to the shareholders a controlling amount of subsidiary stock. Normally, the parent is required to distribute all of its stock in the subsidiary. Control is defined as stock possessing at least 80% of the voting power and at least 80% of each class of nonvoting stock.
ACTIVE BUSINESS
Section 355 also requires that both the parent and subsidiary be engaged immediately after the spin-off in an active trade or business in which each has actively operated for at least five years prior to the divestiture. ... ...
My highlights from FQM webcast:
Of cause hugely reduce OM due to metal prices.
60% questions about Cobre-Panama:
Partial slow down on site to control cash flow.
Personnel changes, vocational training, local community integration.
Re-designing Plant and re-locating power plant, possibly to feed Panama power grid- reducing cash flow.
Panama government is very supportive and it has been refreshing to have such a support.
I am sure Cobre and Petaquilla will be mentioned.
Event Details
Q2 2013 Conference Call & Webcast
August 1, 2013
Time: 08:00 AM
Speaker(s): Clive Newall, President
Time: 6:00 am (PDT); 9:00 am (EDT); 2:00 pm (BST)
Webcast: www.investorcalendar.com
Dial in: Canada and international: 416-340-8410
Toll free North America:866-225-2055
Toll free United Kingdom: 00-800-6578-9898
Replay: Canada and international: 905-694-9451
Toll free North America: 800-408-3053
Replay Passcode: 9921361
Thanks.
Why my post about Andalusia mining was deleted?
I don’t know when, but rotation will definitely happen.
Even broken clock reads correct time twice a day.
repeate after me: it was $ 1.30, 1.30 , 1.30 mooo...
Yes MJK, lets read it backwards , just for fun:
Petaquilla is number 1 mining company in Panama ( so far).
With production cost under $600 she is making money since Q3 2011.
She extended her mine-life with additional resources from Botija and Palmila.
I like the fact that Spain is not even mention in that paragraph.
He (FQM) is next door to her will spend 100 mil to buy what she does not need .
She is developing Spain and Portugal concessions which are not located in Africa.
He + She = PDI
One more time: company updated (if anyone pays any attention) “Investor page” is nicely done
With following highlights:
Why Invest
As of Jul 23, 2013
PTQ: A Mining Pioneer•Petaquilla pioneered the Panamanian mining industry
•842 square kilometers concession area in Panama 130 km. west of the Panama City
A Consistently Profitable, Low-Cost Producer•Profitable every quarter consecutively since Q3 FY2011, with compelling multiples
•Established low-cost gold producer with cash cost of US$550-US$600 per gold equivalent oz. sold
•Heap leach process in Panama will increase production
Strong Upside Potential•Currently annual production at 70,000 gold equivalent oz. at Molejon mine in Panama with plan to increase mine life with the Botija Abajo and Palmilla deposits
•Cooperative new relationship with First Quantum Minerals, owner of the $6.2 billion Capex, Cobre Panama copper project, next to Petaquilla’s Molejon mine
•Petaquilla’s wholly-owned subsidiary, Panama Development of Infrastructures (PDI), has US$75 million to US$100 million Aggregate and Screened Rock contract in place with Minera Panama S.A.
•Plan to spin out PDI to shareholders. Shareholders will receive 1 share of PDI for 4 shares of PTQ they own
•Geographically diverse with the Lomero-Poyatos development project in Spain and Banjas and Jales-Gralheira exploration projects in Portugal
Diverse and Friendly Mining Jurisdictions•Panama is an established and stable dh3ocracy with historic ties to the United States, has the fastest growing economy in Latin America, and uses the U.S. dollar as its currency
•Both Spain and Portugal are European Union countries that are supportive of mining
Yes, I posted before :
World Gold Council conducts probably the world’s most detailed and sophisticated analysis of ongoing gold supply and demand through Thomson Reuters GFMS – “There has been very good demand for physical gold this year.....China is going to come in between 900 and 1,000 tonnes this year for the full year. Last year was a record at 776 tonnes, so that gives you the best indicator,”
It is not just a Europe. Any Black Swan event or Middle East which is going to explode sooner or later.
How is that going to effect price of gold.
Japan gold sales tripled during the last quarter plus short squeeze in Gold and here we have price over $ 1317 .
Nice post Bob, but don’t except constructive discussion with her, we tried it for four years – same regurgitated garbage.
By J.B.:
"...The mining industry is unlike most industries. It is a venture type industry where performance is skewed and not uniform across the sector. In secular bull markets you can make money buying the mining sector but it does underperform the metals.
This is true now and it was from 1960 to 1980. Yet, everyone acts as if today’s underperformance is some revelation. It’s not. It happened in the last secular bull market and will continue in the coming years. Therefore there is little reason to buy and hold the sector. Rick Rule has said if you buy the sector you’ll get killed.
The huge returns and strong outperformance are a result of picking the right companies and buying at the right time. This requires proper due diligence of the industry as well as due diligence on the companies. The mainstream doesn’t have the time for this. These guys are too busy staring at a computer screen, tweeting, hosting shows, and being interviewed to conduct proper due diligence and historical analysis.
The bottom line here is twofold. First, the growing mainstream negativity toward the gold stocks (after a 65% decline) is a textbook contrarian buy signal. It comes at a time when historical analysis suggests this is the best time to buy and when valuations are at multi-year lows.
Second, one should consider the gold stocks a venture capital type of investment. Don’t buy the entire sector but look to buy specific stocks.
That is how wealth is attained. While GDX and GDXJ are starting to rebound there are a fair number of stocks which have spent several months bottoming and look ready to lead the the sector in the coming months.
Coffee-read:
"BEN BERNANKE, today's most powerful banker, said this week that nobody really understands gold prices, including himself. Victorian Europe's richest man, and bullion broker to the Bank of England, N.M.Rothschild at least took the trouble to check.
"I know of only two men who really understand the value of gold,"Rothschild reputedly joked in the mid-19th century – "an obscure clerk in the basement vault of the Banque de France and one of the directors of the Bank of England.
"Unfortunately, they disagree."
The US Fed chairman in contrast shows only a cursory interest in gold. That's despite being an economic historian (and 3,000 years of history say people buy gold as a store of value) as well as sitting on top of the world's largest hoard (the New York Fed vaults some 6,700 tonnes for both the US and foreign governments. The United States' own gold reserves total 8,133 tonnes – some 5% of all the gold ever mined).
Asked in Congress on Thursday, however, why 2013 gold prices have fallen 25%, Bernanke was in fact close to an answer. "People are less concerned about extreme outcomes," he said, "and therefore they feel less need for whatever protection gold affords."
This drop suggests "people have somewhat more confidence. [So] the gold price going down is not necessarily a bad thing."
Rothschild's obscure clerk might well agree, at least with regards to Western investors. People buy gold, and drive the price higher, when they fear bad things ahead. War, financial crisis and stockmarket crashes...such horrors make rare, indestructible gold appealing like nothing else. (The US government's own hoard confirms that.) But five years after Lehmans collapsed, many investors are now bored with the crisis. That makes gold – proven crisis insurance – look boring as well.
Asian households, on the other hand, buy gold whenever they can. So their rising incomes mean India and China now account for one ounce of gold in every two sold worldwide. And not understanding gold prices today starts with ignoring Asia's rapid ascent.
Ben Bernanke was also half-wrong to say people buy gold as an "inflation hedge". Because he missed the equally big role played by interest rates – and that's a telling blind spot. After all, the Fed chairman slashed the returns to cash to zero. More than four years later, he promises to hold rates at zero "for an extended period" in future as well.
This might not matter if inflation stayed "low" as he keeps claiming. But when inflation overtakes interest rates? Gold tends to rise in value when cash savings fall in real terms. That's been as true under the free-floating prices of the last 42 years as it was under the 19th century's classical Gold Standard.
Put another way, if inflation is rising faster than your savings are growing, your cost of living would be falling if you held that money as gold instead.
Since Richard Nixon cut the Dollar's last formal ties to gold backing four decades ago, the official US cost of living index has outpaced US savings rates in 198 months. Gold prices have risen in 163 of them, gaining an average – in real terms and after accounting for today's US capital gains tax – of 14.2% per year. That made the Consumer Price Index fall for gold-owning savers.
The reverse is true too (and again, in the main. We're as tired of saying you can't time real rates and gold as everyone else is of hearing it). In those 305 months when cash savings grew in real terms, gold lost value almost two-thirds of the time, dropping an average 4.0% from a year earlier and so making life more expensive for gold-owning savers.
Yes, the plunge in gold prices this year far outweighs the steadying cost of living for bank savers. But no one said fighting the Fed would be easy, or cheap. And the lesson for central bankers meantime?
Back in the 19th century, if people began exchanging their paper money for gold, central banks would raise interest rates, defending the value of cash and encouraging savers to stay in paper instead. With that convertibility long gone, however, central banks now have what Bernanke calls "flexibility" – the ability to keep rates below inflation, and even create more money at will. This bid to boost the economy comes at the expense of cash savers. So when people choose to buy gold in the 21st century they are signaling in fact the "success" of US Fed and other central-bank policies.
No doubt Ben Bernanke understands that more than he lets on. Savers would do well to understand his repeated desire for higher inflation. Never mind understanding the aims of his likely successors.
Adrian Ash is head of research at BullionVault – the secure, low-cost gold and silver market for private investors online, where you can buy physical gold and silver ready-vaulted in Zurich or Singapore for just 0.5% dealing fees.
(c) BullionVault 2013
Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.
USA would run out of gold in no-time:
In Dubai, city of opulence and excess, the obese are worth their (over) weight in gold. In an effort to fight increasing obesity rates, the tiny Emirate has once again outdone the world in flashy extravagance by tantalizing dieters with a one-time offer: a gram of gold for every kilogram (2.2 pounds) lost over the course of a one-month challenge.
The novel weight loss initiative has struck a chord.
"It's a good idea. It will encourage the people. Gold is gold and money is money," laughed a young woman reached by phone at the tourism department. One gram of gold is worth about $41 at current market prices. "People are eating more and more," she added.
That is statistically true all over the Arab Gulf, home to some of the most obese populations in the world, according to a recent United Nations report.
Yes, paper gold crash as a paper tiger.
We can hear ” a sucking sound” of physical gold moving from West to East.
Latest numbers coming from China showing that Chinese most likely will buy record amount , approx.. 1000 ton by end of the year.
Last year record was at 776 ton. So even if future Bernanke speech will somehow effect price of gold plus ETF sales – it will be countered by increased demand of physical gold.
Never mind that we can not trust official numbers from India , as action of their government created huge black market for gold buyers/sellers. But that is another story.
RZBF, have you ever see cows regurgitating their food?
In meant time Gold report:
“MK: Putting this in perspective, when gold was setting new highs in 2011, we had a parabolic short-term price curve. People speculated the price would break through $2,000/oz. on the upside. We are now looking at a parabolic decline, which is just as unsustainable as a parabolic rise.
Both gold and silver exist in finite quantities. Speculators are panicking at these low prices, but shrewd accumulators who understand that gold and silver have always been money are buying all they can at these prices…
I saw it for myself in Hong Kong this April: people lined up three deep screaming, wanting to buy metal. That demand, along with supply curtailed by the lack of new development projects, will cause a shortage. That will trigger the next new high in gold as the market reacts…
After metals prices have recovered, people will realize that mining stocks have been driven down to generational lows and money will rapidly flow back into the juniors. The selling today comes from hedge funds, exchange-traded funds and mutual funds. The recovery will be the mirror image of that, when the same funds want to accumulate these stocks again…
Many good stories are priced at generational lows. Even in this weak market, it is a good time to accumulate companies positioned for the day sentiment swings back to more bullish. This is an opportunity to buy cheaply and establish positions at very low cost averages.
But you must be selective. Warren Buffett once compared investing in stocks to playing a game of baseball where there are no called strikes. You have to wait and look for that really fat pitch to come across the middle of the plate before you swing the bat. The willingness to wait until you find that one company that is priced cheaply and has all the attributes to succeed will define the investors who make the most money after this downturn in market sentiment is resolved.
I look for companies with great cash positions, strong management, robust projects and low operating margins. Even really good stories are trading as if they were impaired…
Things are tough everywhere. Cash costs in every significant gold-producing region of the world have risen more than the metals prices. Now that the metals have corrected, operating and profit margins are under severe pressure.
Whenever there is a longer term correction in prices, production will revert to the lowest margin producers; the smaller companies and the higher cost producers will be taken offline. That is what we are seeing now.
The oldest cliché in the commodities sector is that the best cure for low prices is low prices. The longer gold remains in its current price range, the more mines will go offline, limiting the gold supply. Low supply will eventually contribute to a recovery and to higher prices….
…Unless merger becomes a necessity, I think most management teams will continue to resist mergers. The market conditions of today may create that necessity.
Yes. I am convinced we will see another, even more intense bull market. The ability to keep your options open and be positioned in the next round of winning companies will define the next round of successful speculation. My attention is focused on finding the companies that have the potential to lead the entire market higher.”
It’s been elevated because Digi’s excellent posts backed by facts and numbers and not of PMC’s paste/ copy same old garbage.
In mean time latest on Gold :
“…During May, gold imports into China jumped to the second-highest level ever. Demand for physical gold in Asia is the strongest it has been in 30 years, with bargain hunters using the lower prices to secure jewellery and gold bars.
The demand has left many of Hong Kong’s banks, jewellers and even its gold exchange without enough yellow metal to meet demand.
The president of the Hong Kong Gold & Silver Exchange Society, Haywood Cheung, said the exchange had effectively run out of most of its holdings as members looked to meet a shortfall in supply amid rampant retail demand for gold.
“In terms of volume, I haven’t seen this gold rush for over 20 years,” he said. “Older members who have been in the business for 50 years haven’t seen such a thing.”
Hong Kong-based Chow Tai Fook, the world’s biggest jeweller by market capitalisation, reported that some stores in areas popular with mainland Chinese tourists had sold out of gold bars. It also stated that demand had not been this strong for gold products since the late 1980s.
At the same time, lines of people wanting to buy gold bars at Beijing’s largest gold store, Caibai, stretched as long as 10 metres last Friday.
Meanwhile, a week after the Shanghai Futures Exchange (ShFE) introduced night trading, trading volumes for gold and silver have jumped to record highs driven by a surge in investment and hedging demand.
Daily transactions for gold rose by nearly a quarter to a record of 595,642 lots on Thursday, versus an average of 483,529 lots in June. Daily volume for the silver contract surged roughly six-fold from a week ago to 2.23 million lots on Thursday.
Before after-hours trading was launched, investors in China, the world's second-largest gold importer, were often exposed to global price fluctuations in the U.S. and European markets.
The ShFE's extended hours run from 9:00 p.m. to 2:30 a.m. local time. Each lot of gold is 1,000 grams and that of silver is 15 kilogrammes.
In the meantime, premiums on gold and silver bullion in China have remained sharply higher than in the United States. Prices for gold of 99.99% purity on the Shanghai Gold Exchange were nearly $30 per ounce higher than London spot prices. Normal premiums in Shanghai are about $5 to $7 an ounce.
Recently, Albert Cheng, managing director for the Far East region of the World Gold Council said. "The current gold supply is getting increasingly constrained while the demand remains strong."
Cheng said gold jewellery factories in China are working at high levels of capacity and 24-hour shifts to meet the demand.
Scrap supply is also expected to fall this quarter as lower prices prevent customers from selling their old jewellery.
Premiums in Hong Kong, the main supplier for China, have also moved higher due to supply issues.
Dealers are mostly quoting $4 to $5.50 per ounce for gold kilo bars. One dealer told Reuters he was quoting an $8 premium. In Singapore, premiums are about $3….
…Recently, Brinks reported a massive decline in its gold inventories. The huge decline in Brinks inventories is being seen soon after a similar decline in JPMorgan’s gold inventories.
Brinks inventories have fallen from 570,000 ounces on July 3 to 257,000 ounces today, which is a drop of 313,000 ounces or 55% in just one week.
While these dwindling stocks in Comex may cause a major concern for investors who want delivery of the physical metal, any run on Comex stocks could result in a default, which would send the price of physical gold substantially higher.
The easy money policies by the European Central Bank and the Bank of Japan also will help prop up gold prices and likely to prompt investors to seek a currency that is independent of the central banks, thus again luring in buyers of gold.
Digi, you are wasting your time talking to PMC, we tried for the last four years.
He is a broken record. Have a great time.
Cheers.
It is the underground mine so production cost will be a bit higher, still with such a rich ore… people do not realize when Spain and Portugal reserves will be published plus Panama – we will be in multi- millions oz. range!
PMC, actually PTQ in a period from 2009 to mid-2011 went up with the rest of junior miners from $.50 to $ 1.10 (almost $ 1.20) not in a straight line but still provided plenty of trading opportunities if one wanted so .
Now it is your chance to get in low and recoup your money within three or four years when new commodity rotation cycle begins ( or maybe sooner), in mean time please stay with your meds.
RZBF/ PMC – I wish you were not allowed even one post. Not because you criticize company, but as you know after reading your posts for the last four years on SH -I learn that there is nothing constructive you can offer.
Your ten or fifteen posts a day on SH were always the same (paste and copy) full of sarcasm and envy.
I am sorry you bought high and sold low, by now normal investors would learn how to move on, you on the other hand let that trade mentally effect you , it became your SH obsession to talk down the company and management. You need help, seriously.
Personally I would not accelerate production until gold price stabilize. I would mine/pour just enough gold to pay bills and support L/P exploration/construction program.
And if gold price goes higher by middle of next year then increase production to improve OM and mine-life.
Nothing wrong with constructive criticism, but …
Just so you know 98% of the junior miners never make to production stage.
50% of junior miners will disappear in the near future. So management is doing something right, I say.
In mean time we are having good day , gold is up and so are we.
They are coming:
CONVERTIBILITY
In a related development this month, the official China Daily reported that China had approved the establishment of a free trade zone in Shanghai that would experiment with convertibility of the yuan currency.
Beijing's new leaders, who took over in March, have signalled they want to quicken the process of making the yuan fully convertible over the next few years, as part of efforts to increase its use in trade and support wider financial reforms. The commodity warehouses, being in the free-trade zones, could be pioneers in this process.
Top metals producers in China are already building storage depots in Shanghai's free-trade zone.
One, Jiangxi Copper, China's biggest producer of the metal, was willing to get approval from the LME, a company source said. The firm already runs a logistics company there.
Jinchuan Group, China's third-largest copper producer and top nickel producer, and Maike Metals, China's top private metals trader, are jointly building a warehouse in the zone, trading sources said.
Other free trade zones, once established, could also host warehouses operated by foreign businesses.
The eastern port city of Tianjin and Zhoushan Islands near Ningbo, the third-largest port of China, have also submitted proposals to Beijing to establish free-trade zones, the first source with knowledge of the policy said.
Boosting logistics business in the free-trade zones is expected to bring in more international banks, one of the sources said.
"Trade is always linked to financing, which has to be done by big banks. That also relates to the yuan going into the international market," the source said, declining to be named because he was not authorised to talk about the topi