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Danke, here is translation:
Why Inmet Mining needs to take a Petaquilla Minerals at any price!
Dear subscribers of millions Invests!
On Wednesday our highest weighted value in the Portfolio Invest million, Petaquilla Minerals of Inmet Mining has received a takeover offer to 0.48 CAD per share. Even today I would shine through with you, why Inmet Mining has to take at any price Petaquilla Minerals and we are here to get my mind in the near future have a much better deal.
For this I need to go back in time a bit. It was in March 2012 during my visit to the project in Panama. After I visited the whole project, I was also in the Petaquilla offices, where I led, among other things a meeting with Rodrigo Esquivel, President of Petaquilla Gold. Of course, I addressed him on the back then ongoing takeover rumors of Inmet Mining. He told me that you sit together regularly and he has the CEO of Inmet also even been asked about the rumors, but this has been shrouded in silence. The opinion of Rodrigo Esquivel was then that it has probably ultimately been only a rumor.
But he also told me about an interesting background information. For this we need to take as the first time a look at the chart in the appendix.
This chart shows the entire land of Petaquilla Minerals. What I have here is shown in red, the project, which is part of Inmet Mining. The rest is completely Petaquilla Minerals (including delineation of the green, which I will discuss later in detail).
Now'm already on the first problem: A project of this magnitude (6.2 billion of initial investment costs!) With over $ 100 billion in commodity equivalent needs a large processing plant. Now, although just barely enough space to put down the system, but the major Tailingponds Inmet Mining has been placed outside the property. But this is all part Petaquilla Minerals.
Moreover - as shown on the graph is - above the construction of a large port and power station planned (above sea white dashed line), to ship the whole commodities quickly and cost-effectively. But this property belongs Petaquilla Minerals.
Inmet Mining now has tried to talk with Petaquilla Minerals and wanted to buy two additional concessions. So it was told to me by Rodrigo Esquivel. Petaquilla Minerals was by no means ready for sale, as it has assumed even greater natural resources and yet very confident, is still there to encourage 20-30 year raw materials. Thereupon, the CEO of Inmet Mining has the President of Panama - articulate, because the CEO of Inmet would force an expropriation, so that Petaquilla Minerals concession withdrawn gets and Inmet these newly awarded receives in order to build as planned the harbor - Ricardo Martinelli and also to the production facility including Tailingsponds. Ricardo Martinelli, but immediately dismissed the claims of the CEOs of Inmet Mining and clarified that Petaquilla Minerals is the rightful owner of these licenses and Inmet Mining the whole self must negotiate with Petaquilla Minerals.
Now 6 months later - after now Inmet Mining has obtained all necessary permits - can be viewed rather for Inmet Mining become a serious problem represents It has a world-class copper project with commodity equivalent of well over $ 100 billion can not start, because you has no right to build on the land of Petaquilla Minerals. A fine mess for Inmet Mining. Inmet Mining has now virtually any price for Petaquilla Minerals apply to so that the country be right, because otherwise the whole project worthless. What raw materials benefit worth more than $ 100 billion in the ground, if you are not in a position to promote this.
Added to this is also a second "peculiarity" that will now lead to Inmet Mining at any price must incorporate to Petaquilla Minerals. This is perhaps even more important than the first fact as due to problems of the concession, it would suffice if you would pay a good price (ie $ 200 million) for two concessions, then surely there would be found an agreement. For this we must now go back to the year 2004. At that time, an agreement was made that all raw material finds on the Cobre Panama project, which have a higher value than gold copper value, automatically fall to 100% to Petaquilla Minerals.
This is also the case of the Molejon Gold Mine, which is actually located in a concession of Inmet Mining, but has fallen by the higher value of gold compared to copper to Petaquilla Minerals. This project I have shown in green in the chart. Here, it is clear that this mine is located in the project area by Inmet Mining, but all the gold That property includes Petaquilla Minerals. And now is happening slowly but surely another problem for Inmet Mining that we solely the art of negotiation Richards Fifers - has put the emphasis on this highly lucrative clause for Petaquilla Minerals - due to have.
The price of gold continues to rise and the price of copper has lately only on traps. If this for some time continues, then be here in the future a lot more real estate to Petaquilla Minerals - without alerting the - pass. Inmet Mining for this clause become a disaster, especially since even the risk of a global economic crisis at the moment is anything but straightforward (which lead to a further decline in prices for copper would).
Here we have two serious reasons to assume why Inmet Mining URGENT Petaquilla Minerals must be it to 0.48 CAD or even 2 CAD. It is also clear that Inmet Mining wants to incorporate Petaquilla Minerals as low as possible. But the one on the same day of the tender offer also against Richard Fifer details an environmental offense (that has long since atoned for) in the world is (http://www.panama-guide.com/gold/) indicates to me that there may very dirty and will spare no means Inmet Mining, Petaquilla Minerals to incorporate as low as possible.
On statements by Inmet Mining - in the conference call on Thursday - that Petaquilla Minerals is for Inmet Mining totally uninteresting and it is only concerned about the welfare of the people that you may have after 6-7 years have no more work, it can only weary smile. Inmet Mining that a second "Mother Theresa" and is a resource company any financial purpose, is just ridiculous.
Particularly PDI should be here for Inmet Mining also of great importance. For this I would like to again remind that Petaquilla Minerals is the only supplier aggregates within 50km and Inmet Mining buy here in the next 3-4 years must units with a value of over $ 300 million of Petaquilla Minerals. As I have reported here before, the profit margin of around 75% is huge. If one were to assume Petaquilla including PDI and they open the units at cost related, then you would save about $ 225 million.
That is nothing other than that you could easily provide 1 CAD per Petaquilla Minerals share and you would save that money alone is in project development (by its own production of the aggregates) of the Cobre Panama project again. Of the abwerfenden profits of Petaquilla Minerals in the production of gold too, of course.
At Petaquilla Minerals sees the whole, however contrary quite calmly. On Thursday, the company has announced that Inmet has not only given the intention of a takeover offer of 0.48 CAD, which is perfectly legal even without meaning. Once in 14 days on the public, binding offer, you will enter into negotiations with Inmet Mining, what is a fair price for Petaquilla Minerals (Panama) operation. In a telephone conversation, the company has clearly known to be 0.48 CAD does not even begin to think about a sale. Inmet either pay a fair price or Petaquilla Minerals will continue to remain independent. You can listen to beautiful fully relax the offer of Inmet Mining. I was able to smooth the impression that one is in Petaquilla Minerals very happy about this offer, especially now in the commodity sector to topic number 1, and so comes into focus many new investors.
Conclusion: As one Inmet Mining Petaquilla Minerals needs at any price, we will see here in the coming weeks / months, much higher prices. You will still need some repair times. It would be really interesting if now also have another company would make a better counter offer and so Inmet Mining would put in a tight spot. A sale of the Panama real estate will go in my opinion under no circumstances under 1 CAD to the table. The tendency is more towards 1.50 to 2 CAD.
Even at 2 CAD Inmet Mining would be a takeover of Petaquilla Minerals cost only 442 million CAD, which in relation to any case required investment costs of U.S. $ 6.2 billion for the Cobre Panama project would still be a very acceptable price, especially since you transfer without a Petaquilla Minerals could not go and sit on a "worthless" project would.
Keep to your shares and not sell you, because you play only unnecessary in the Inmet MiningUndo edits
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Let’s be fair here. Were they doing good job when stock price was over $1 some month ago?
As I remember correctly everyone was so happy that some were planning a party on the Panama beach. The whole junior mining sector is extremely devalued now and it is easy for big corporation like Inmet to go shopping.
A lot of good things were supposed to happen in the few month , PDI spin-off , production increase , 210 PP.
Let’s face it , Inmet is steeling Petaquilla for this prices, even today the true evaluation by Zack is $1.40
I can understand mjk frustration. He was invested with the company since day one. Petaquilla became a Story for Panama investor.
First mine build in Panama jungle from scratch. . PDI and L/P- Spain guaranteed the future.
Things were improving and progress was made regardless how fast or slow, and aim becoming the mid-tier producer was with the reach by 2014.
And now- someone wants to end this Story.
If you from Panama – there is more than 50 or 100% profit.
There is thing call Pride.
yes, just as most of us.
Casimir usually conducts transaction for a “friendly hands”, so I hope large shareholders were the buyers.
Casimir is the only one who during the Inmet CC press them to admit they did not price future growth into the offering.
I am with you saying “NO”. If everyone stick together we could have make difference in the selling price or go forward.
I bet between IH and SH stock holders we can account for 5 or 10 mil. shares. it can be the force to be recon with.
Think! Inmet has no interest in gold – it is just a by-product to them.
They are major copper producer
They don’t need our plant to process their gold and silver.
It will be process as a by-product on Inmet’s facility.
Inmet needs our land big time and PDI as a bonus.
There is copper also on Petaquilla concession.
But Land is the name of the game, thre rest is BS.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 6, 2012) - Petaquilla Minerals Ltd ("Petaquilla" or the "Company") (TSX:PTQ)(OTCBB:PTQMF)(FRANKFURT:P7Z) notes the announcement by Inmet Mining Corporation ("Inmet") of Inmet's intention to make an offer to acquire all of the outstanding common shares of the Company (the "Offer").
Petaquilla cautions its shareholders that Inmet has not made a formal offer and no action is required by Petaquilla shareholders at this time. Petaquilla is in the process of considering and evaluating the announcement and shareholders are urged to take no action until Petaquilla has issued further communication with respect to the announcement and the Offer, if and when formally made.
About Petaquilla Minerals Ltd. Petaquilla is a growing, diversified gold producer committed to maximizing shareholder value through a strategy of efficient production, targeted exploration and select acquisitions. The Company operates a surface gold processing plant at its Molejon Gold Project, located in the south central area of its 100% owned 842 square kilometer concession lands in Panama - a region known historically for gold content. In addition, the Company has exploration operations at its wholly-owned Lomero-Poyatos project located in the northeast part of the Spanish/Portuguese (Iberian) Pyrite Belt and several other exploration licenses in Iberia.
On behalf of the Board of Directors of PETAQUILLA MINERALS LTD.
3 million shares already!!!
Jal, if you have any pride left you would impose one week silence on yourself for all your previous bashing .
Thanks pilk.
My notes:
They are concerned neighbors, they are worried about our tailing system?!
We running negative work capital, we not up to Inmet’s standard ( I thought we the only 17-th company in a world when it comes to safety).
Our mine has a limited life time and they concern about our workers.
HL is not sound practice in our climate ( just watch us).
PDI has no relevance ( is that true?)
Casmir rep asked for upside value, according to Inmet – they did not think there is one ?!!!
I think Tom better open his valet.
"Danke" german_investor.
Let’s step back and take a break everyone. It is just a first offer. None of us would took first low ball offer on our house.
Negotiations will begin and as Peta mentions we will be all right. No one in right mind will vote yes on the first offer anyway.
I would be more concern if communique come out from our BOD telling that “Petaquilla is pleased to …” , but no!
Petaquilla is not pleased and so we.
The game just about to begin. But one thing for sure - never again Petaquilla will be small unknown company in a jungle.
The word is out and whole mining sector knows now who we are. No conference in a world could have done more advertising for us then Inmet!
Thank you very much.
A few days ago I finish my post with the words: “ Last call”. It turned out to be a last call for all unbelievers, for $.36 a share,
for all those mentally challenged who did not see the woods behind the few trees (as Mjk elegantly putted).
This is our time to celebrate.
Thanks Mjk for keeping my hope alive, thanks Mjk for “pumping this stock” year after year so I can invest every bonus and free cash into it.
Thanks Loj for running this board, thanks Peta, acanuck, JFF and everyone I did not mention who made it to be a fun.
Cheers and let’s make money!
The good thing:
I don’t see communiqué from PTQ Board saying “ We pleased to inform our shareholders…”
That gives me the Hope.
This is a total BS. I am not selling my shares for this kind of money. We are on a way to become mid-tier producer in a year or so and could‘ve got much more. Unless they are willing to up the offer significantly plus PDI. But on a second thought- they want PDI bad.
Then I am with redflame - $1. I can’t believe this shtiXXXX.
Wow! Maybe he does not know how to read zeros – it is 250 million of gross profit!
Last call!
So, is it fair to say that 210,200 oz. represents 75% of actual GoldEg which is over 280,000 oz.?
Thanks coleman, this is a good news. More to come. Peta bull was right on the money with this one, he must be knows someone ;o)
I don’t know how much clearly Mjk can explain it to some of you. It is right upfront of your nose and you still arguing.
That is an unwritten law of stock market: sectors go up and then they go down. And what is down - eventually will go up.
Nothing stays down forever, nether any stock stays on top. Investors move money from one sector to another.
At this point the whole junior mining is down. It does not matter what Petaquilla does. They can attend numerous conferences
Or scream out of top of their lungs - until and only until investors perceptions shifts into acceptance of mining as a positive investment –
The share price stagnation will be continue. It is good that Petaquilla is growing and increasing production , sometime in the future , I believe new infusion of fresh money will come and we not be talking about $ .70 or $1.20 – it will be $4 or $7 and gold will be around $3000 and we will be a bit older.
But if some of you want immediate satisfaction with your investment – this is not place to be. I personally did not put all my money into PTQ, there are other good investment with short term horizon. Petaquilla is my excellent long term play.
It is a mistake to think that one can make money in junior mining stock in near future.
There is a fear in general investment community when it comes to investing.
A lot of people sit on a pile of cash. Once that fear is gone and hyperinflation will push price of gold-
Money will start flowing into mining stocks again. It is not going to happen tomorrow, but it will…
I don’t sweat a small stuff. Here is my post from SH, I don’t pretend to know as much as some of you on this board, but since PMC kidnaped that site , I like occasionally to post there , just to keep it semi-even for those who do read SH, (about 60 of them):
“Hammer, I know that you know better than that. New equipment has been install as we speak.
Heap leach takes time to get going and once its properly tweak it will produce approximately 18000 oz. per year ( not 2200).
“Plant with a fourth ball mill, which has arrived to site and currently is being assembled. With
the addition of this fourth ball mill plus two additional leach tanks and two additional Carbonin-
Pulp tanks, throughput will increase beginning in the second quarter of fiscal 2013, during
which Petaquilla anticipates the additional 1,000 tpd processing capacity to result in
approximately 30% of increase in monthly gold equivalent production and bringing total
processing capacity to approximately 4,000 tpd.”
I believe that we will hit at least 80000 or maybe 90000oz next year and start approaching 100K oz. after that, but- nothing going to help our share price until new investors decide to come back to our sector.I don’t know when it will happen, analyst beginning to preach about advantages investing in PM equities.
But it will take a shift in the people's mind to decide that more money will be made in equities versa gold ETF.
Until that happens- no sarcastic remarks from you or PMC, or positive posts from people as myself will move share price.
Just like you, I am here waiting to make money, all fundamentals look great, people are working very hard on the mine site, in the rain and heat, while I am here in the air-conditioning office postulating about future of PTQ.
I believe in my investment , that why PDI dividend would be a nice gift to reward us while we wait
for that shift .”
V
During the fourth quarter of fiscal 2012 a net income of $4 million was recorded, representing a
decrease of 10% compared to the previous period of fiscal 2012. Actual net income for the year
ended May 31, 2012, at $22.4 million, increased by 683% compared to fiscal 2011. This
significant improvement was due mainly to higher gold prices combined with higher gold
equivalent sold (15%) and a reduction in the cost of sales per ounce (8%). During the same
period the operating margin of the Company, at $34.9 million, improved by 74% compared to
fiscal 2011.
Revenue for fiscal 2012 at $94.3 million increased by 32% compared to fiscal 2011. This
increase is mainly due to an improvement of 15% in gold equivalent sold, obtaining an average
realized gold price of $1,640 against $1,348 during fiscal 2011. In addition, during fiscal 2012
PDI, our infrastructure company, entered into a joint venture agreement with Constructora
Meco S.A. for the construction of a by-pass road for Minera Panama S.A. PDI has 40% interest
in the Joint Venture. As of May 31, 2012 PDI has recognized revenue of $1.4 million in
connection with this agreement.
From a financial perspective, cash position as of the end of fiscal 2012 increased by $2.2
million to $12.0 million, compared to $9.8 million as of the end of previous quarter of fiscal
2012. During the year ended May 31, 2012, cash flow from operations was positive $21.9
million. Positive cash flows during fiscal 2012 have been applying mainly to funding
investments in mineral properties, plant and equipment with the objective to increase gold
production. During the year ended May 31, 2012, gold equivalent production increased by 23%
compared to fiscal 2011 and gold stockpiled for on/off leach operation increased by 282%
compared to fiscal 2011.
Total assets of the Company as of the end of fiscal 2012, at $186.3 million, increased by 45%
compared to those at the end of fiscal 2011. This increase is derived mainly from the
capitalization of costs related to the stockpile of gold that is going to be processed through the
on/off leach operation and the effect of the incorporation of the assets of Iberian Resources
As part of the planned expansion of the Company’s production system at its Molejon Gold
Mine facility, during third quarter of fiscal 2012, the Company’s infrastructure subsidiary,
Panama Desarrollo de Infraestructuras S.A. (“PDI Panama”), commissioned its new Metso
Crusher 125 mobile crushing system, which has increased PDI Panama’s aggregate production
and in-pit crushing operations by approximately 10,000 tonnes per day during the fourth quarter
of fiscal 2012. This additional crushing capacity supports the expansion of the Molejon Gold
Plant with a fourth ball mill, which has arrived to site and currently is being assembled. With
the addition of this fourth ball mill plus two additional leach tanks and two additional Carbonin-
Pulp tanks, throughput will increase beginning in the second quarter of fiscal 2013, during
which Petaquilla anticipates the additional 1,000 tpd processing capacity to result in
approximately 30% of increase in monthly gold equivalent production and bringing total
processing capacity to approximately 4,000 tpd.During the year ended May 31, 2012, PDI Panama has also received additional heavy
equipment through its facilities with Global Bank and Caterpillar and is currently providing the
Company’s Molejon gold mining operations with an increased daily mining rate of 40,000
tonnes.
During the year ended May 31, 2012, the Company put its plans in place to spin-out Panama
Development and Infrastructure Ltd. (“PDI”) from its operations and distribute to its
shareholders, one share of PDI for every four shares of Petaquilla held by the shareholders. The
completion of the transaction is subject to the regulatory and shareholder approval and is
expected to take place in the first half of fiscal 2013.
Interview with Eric:
"...ES: I totally agree, because all precious metal equities have been mauled. I can make a very strong case for companies that are trading at incredibly low cash flow multiples in what is almost a negative interest rate environment.
The fundamentals have improved dramatically for a lot of these companies because their stocks have gone down. That would argue that the upside is quite stunning, particularly if you factor in increases in the prices of precious metals along the way.
TGR: How can you tell which companies will be able to make it to the upside? It's been a tough market for raising capital and staying in business.
ES: Producers shouldn't have a problem because most of them are making money selling gold. They shouldn't have a problem surviving as long as they don't overexpand and stretch capital needs if the market won't supply. The very difficult time in capital markets isn't just in precious metals, but in all capital markets. The IPO market has been badly hurt, and the average investor is taking money out of the stock market, so it's not as though mutual funds have more money to throw into new equities.
In this environment, the well-funded company that has ongoing operations should do just perfectly. And, of course, some of these smaller to middle size companies are trading at probably lower multiples relative to the gold price than ever. I see company after company saying that they'll be trading at four times cash flow next year or two years from now. Where else will investors get that in a zero interest rate world? It's almost impossible'''
'''
ES: I think the best piece of advice I have received was always try to buy a company with a low price-to-earnings multiple or a low price-to-cash-flow multiple, particularly one that's a little out of favor because ultimately if it's sustainable, it will attain the valuation that's appropriate in the market. That's why we typically look at small to midsize companies that are under-followed where we can see opportunities that maybe others haven't. I think that's the place where people should focus....
...And any last bits of advice you would like to share with our readers?
ES: The biggest thing is they should fear the financial system. It's very, very volatile. We see what's happening on a day-to-day basis. It's staggering the things the central planners have to do to hold it together. I think people have to push further and further into the precious metals area. It's the one thing that will survive the financial fiasco that we're in. The safest thing is to own gold and silver, and don't buy some paper saying you own it unless you know the people behind it are trustworthy...
Read whole interview: And any last bits of advice you would like to share with our readers?
ES: The biggest thing is they should fear the financial system. It's very, very volatile. We see what's happening on a day-to-day basis. It's staggering the things the central planners have to do to hold it together. I think people have to push further and further into the precious metals area. It's the one thing that will survive the financial fiasco that we're in. The safest thing is to own gold and silver, and don't buy some paper saying you own it unless you know the people behind it are trustworthy...
Read whole interview: And any last bits of advice you would like to share with our readers?
ES: The biggest thing is they should fear the financial system. It's very, very volatile. We see what's happening on a day-to-day basis. It's staggering the things the central planners have to do to hold it together. I think people have to push further and further into the precious metals area. It's the one thing that will survive the financial fiasco that we're in. The safest thing is to own gold and silver, and don't buy some paper saying you own it unless you know the people behind it are trustworthy...
Read whole interview: http://www.theaureport.com/
The more exciting topic is Republican Party setting up a commission to study gold standard. I think it would stabilize the dollar and keep Fed from de-value our money.
Why not have 20% money supply redeemable for gold?
“…The U.S. monetary base, which includes paper bills, coins and some deposits at the Fed, is currently around $2.6 trillion. Meanwhile, the U.S. Treasury and Federal Reserve hold about 260 million ounces in gold.
That means, if the government wanted every single dollar to be swapped with gold, the price of gold would have to be $10,000 per ounce.
Of course, that's an "extreme assumption," Jessop notes. He points out that under another scenario, the government could simply opt to have just 15% of the money supply redeemable for gold at any given time. If that was the case, the price could be set at around $1,500 an ounce -- not far from its current market value of around $1,670.”
"Panama, August 22, 2012) An important project, "Conservation and Management of Marine Turtles", under the auspices of the company Minera Panama will be developed in the district of Donoso thanks to the efforts of Generoso Muñoz Dofis, a resident of the community of San Roque in Coclé del Norte, who voluntarily dedicates his time in the study and monitoring of these species.
The little information available on the presence and reproductive activity of marine turtles in the area and the growing predation through consumption and poaching by locals motivated Generoso to develop his project, who now counts on a strategic alliance with Minera Panama to support the conservation, study and monitoring of these species.
Since 1999, Muñoz Dofis has undertaken voluntary activities for the survival of marine life despite having limited resources, an issue that motivated the company to support these activities ...according to explanations from Carlos Sánchez, Environmental Director for Minera Panama.
"This project is of great importance for Minera Panama since it works with the four species that have been registered for the region: the hawksbill turtle (Eretmochelys imbricata), the leatherback turtle (Dermochelys coriacea), the white river turtle (Chelonia mydas) and the loggerhead sea turtle (Caretta caretta), which are all considered endangered species (ES) or critically endangered species (CES) according to Resolution AG-0051-2008 of the National Environmental Authority (Autoridad Nacional del Ambiente, ANAM), which regulates threatened fauna and flora species", noted Sánchez.
In 2008, through the Panama Maritime Authority [Autoridad Marítima de Panamá (AMP)] and with oversight and approval of the National Environmental Authority (ANAM), the "Conservation and Repopulation of Turtle eggs" project directed by Generoso received permit No. CHT-323-DGRMC-2006 allowing him to rescue nests. In the year 2010, Generoso obtained a scientific permit to conserve, protect and manage marine turtles in the District of Donoso.
The "Conservation and Management of Marine Turtles" project takes place in the area known as San Roque, township of Coclé del Norte. The project consists of 1,440m² (0.144 hectares) in surface area where, with the support of Minera Panama, a nursery and complementary facilities will be constructed for the rescue of at-risk turtle nests and carry out environmental educational activities directed at the population.
"...The existing road access is from the south, at a turnoff from the Pan-American Highway
at Penonomé. This road runs northerly in the direction of the mine/plant site, bypassing
the small community of Coclecito and continuing through the Molejón Concession.
MPSA will realign the road through the Molejón property around the mine workings during
2010 and early 2011 for use during the initial construction phase until the permanent
Eastern Access Road is ready for use.
The Eastern Access Road will be roughly 12.6 km long, starting approximately 5.2 km
west of the town of Coclecito. A bridge will be installed across Río Botija to allow the road
to continue north to the southeast corner of the TMF, where it joins the Coast Road.
The Coast Road, including the reclaim pipeline corridor, will be approximately 30 km long
and will be a private road to connect the project port site with the mine/plant site. The
road will be suitable for the transport of regular and oversized freight and equipment
needed for construction and operation of the mine/plant facilities. The three pipelines
(concentrate, diesel fuel, filtrate return) will be buried in the shoulder of the road. Bridges
will be required for crossings over Río Uvero and Río del Medio.
Power Supply
Power supply for the project will be provided from a new, independently owned and
operated 300 MW power plant at the port site (Plant design and start-up are addressed
separately in Section 2.7, Power Generating Plant, of this Executive Summary
document.) Power will be supplied “over the fence” at 230 kV for transmission to the
mine site and on to the Panamanian National Grid through the utility-owned substation atLlano Sánchez.
Backup diesel generators that start automatically on power failure will be installed at
critical facilities. These generators will provide emergency power to the permanent camp
complex and for essential lighting and plant process loads such as rake drives, agitators,
and selected pumps.
Start-up of the power plant is scheduled to occur prior to the commencement of
commissioning of the process plant with the introduction of ore. It is possible that the
power plant EPC schedule may be accelerated compared with the mine execution plan,
providing the transmission line between the plant and grid has been completed and coalunloading
facilities have been completed at the port. In such event, the plant could sell
electricity to the Panamanian grid. If the power plant EPC schedule is delayed, then
electricity for the entire peak demand of the project could be purchased from the grid in
accordance with the PPA between MPSA and Suez, providing the line between the mine
site and the grid has been completed.
" ...
Yes, PDI is building road as we speak, a lot of nice pictures on Minera site.
Also Loj, who wants to sell miners?! Everyone is talking about buying… here is article from “Seeking Alfa”
:
After struggling for nearly a year straight, the gold mining stocks are starting to shine brightly. On average, they sold off more sharply than the price of gold in the past year. Gold prices dipped nearly 30% from their highs in 2011 to their lows in May. The gold miners, in contrast, as measured by the gold miner ETF (GDX), junior miners index (GDXJ) and Direxion Daily Gold Miner Bull 3X ETF (NUGT) were off a staggering 41%, 56% and 82%, respectively. They clearly had felt the brunt of that sell-off. Gold has traded in the $1,550 to $1,640 range since about late May, and is up 4% on the year so far.
Gold was off to the races Tuesday as it was up nearly 17 dollars an ounce, breaking the $1640 mark. The ETF (GLD) was up over 1%, yet the gold miners were up significantly higher. At the time of this writing, the NUGT was up 6%, while the GDX and GDXJ were up 1.7% and 3.5%, respectively. I have previously recommended picking up the gold miners at the start of this upswing that began in August and I am reiterating my buy recommendation on the gold miners once again. Since trading began in August, the GLD is up 2% while GDX, GDXJ and NUGT are up roughly 10% ,13% and 25%, respectively. This is primarily because I see gold prices continuing to rise due to inflationary pressures stemming from government stimulus activities and I believe the miners are finally having their time in the spotlight.
Yesterday news:
"In what may be the richest deal in the history of mining royalty and streaming companies, Franco Nevada and Inmet Mining announced they have agreed a $1 billion precious metals stream financing for Inmet's Cobre Panama project.
The precious metals stream is linked to copper production with 80% gold and 20% silver with a total of 2.2 million gold equivalent ounces to be delivered under the stream. Commercial production is intended to begin at the mine in 2016.
Franco-Nevada has agreed to commit $1 billion to Inmet's $4.8 billion share of the $6.2 billion Cobre Panama capex. The Canadian copper miner now has funding in place of $4.2 billion with the balance expected from other debt sources or future operating cash flow.
Inmet owns 80% and Korea Panama Mining (KPMC), a Korean consortium, owns 20% of Minera Panama, S.A. (MPSA), owner and developer of Cobre Panama.
David Harquail, Franco-Nevada CEO, said, "We expect the Cobre Panama precious metals stream will be a long-term cornerstone asset for Franco-Nevada that fits well within our overall portfolio. Franco-Nevada's funding commitment to the Cobre Panama project can largely be financed from its ongoing cash flow."
Inmet closed a $1.5 billion debt offer in May with the proceeds to be used for funding the construction of Cobre Panama.
After the Inmet deal, Franco-Nevada says it still will have the capacity to do another $1 billion of new investments.
Inmet CEO Jochen Tilk said, "Securing this financing early reduces the financing risk to our shareholders, without sacrificing our copper production growth profile." The precious metals stream will be secured by a pledge of Inmet's interest in MPSA.
The transaction links Franco's precious metals stream to Inmet's copper production, giving both parties the same goal of increasing copper output. The mine will produce 266,000 tonnes of copper annually. It will also yield 87,000 ounces of gold, 1.5 million ounces of silver, and 2,900 tonnes of molybdenum annually during an estimated 31-year mine life.
The Franco deal is expected to raise Inmet's cash costs by 2-cents per pound with cash costs after the stream expected to remain below $1 per pound of copper over the life of the mine. Inmet will still receive 14% of Cobre Panama's precious metals production.
Inmet estimates Cobre Panama hosts contained gold-equivalent reserves of 6.8 million ounces and measured and indicated resources of 11.7 million ounces. The deposits are also estimated to contain more than 32 billion pounds of copper in the measured and indicated resource category."
Screw camargo indians:
"New graduate bricklayers in Villa Del Carmen (Panama, August 9, 2012) With the opening of new school infrastructure and the training of 30 community residents Cascajal, San Juan de Turbe Molejón, Corozal, Coclesito, Nazareth, The Embarcadero , Cano del Rey and Villa del Carmen, communities Districts and Donoso The Painted culminated construction courses taught by the National Institute of Vocational Training for Human Development (INADEH) and Minera Panama.
The three modules given in Villa del Carmen had a total duration of 900 hours and allowed to train youth and adults in basic activities such as masonry, block and plaster, and installation of tiles and mosaics.
Waldo Moran, Manager of Training and Development of Minera Panama, explained that participants benefited from scholarships and cover their expenses for food, lodging and transportation, especially those who came from very remote communities.
"Minera Panama INADEH closing next to the course to the satisfaction of having trained several residents of the communities surrounding the project Copper Panama and community projects important as the new kindergarten classroom for Villa del Carmen, which will include a kitchen, bathrooms health care facilities and teaching materials that children need for learning area. also contribute to boosting local microeconomics, as people from the community itself was responsible for giving lunch, dinner and lodging for participants, "added Moran.
This project is part of an agreement that keeps the company from 2011 Minera Panama, INADEH and the Ministry of Education (MEDUCA), which are responsible for providing instructors and supervisors, accredited certificates, architectural plans and works 10% of the construction materials used."
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"...Last year, central banks purchased more than 400 tons of gold, the most in nearly five decades, according to the World Gold Council. IMF data shows that central banks were again net buyers in April with Turkey and Philippines being the largest buyers of gold.
The Philippines increased their gold holdings significantly by 32.13 tons to 194.241 tons in March - a 17% increase in their gold reserves in the month.
It was the single largest addition Philippines has made since September 2008. They have been pretty consistent buyers of gold over the last few years, but the 17% increase in April was another big rise.
Turkey expanded its gold reserves by 29.7 metric tons in April, putting their bullion reserves at 239.3 tons meaning that Turkey increased their gold reserves by 14% in April. The central bank also doubled the share of lira reserves banks can hold in gold to 20%.
Mexico increased gold holdings by 2.92 tons to 125.5 tons in April.
Kazakhstan raised gold holdings by 2.02 tons to 98.19 tons in April.
Ukraine upped gold reserves by 1.4 tons to 30.607 tons in April.
Sri Lanka raised gold reserves by 2.177 tons to 7.807 tons in January.
In July, South Korea, the world's seventh largest forex reserves holder, reportedly bought 16 tons of gold. And, Russia has consistently added god to their holdings almost every month.
While the gold tonnage demand from central banks in recent months has been significant, gold remains a tiny fraction of their foreign exchange reserves and therefore the trend is sustainable and indeed may accelerate.
Central banks are buying gold because they see it as sound money. Price is not a determining factor in central bank buying. They are more likely being guided to allocate a percentage of their overall foreign exchange reserves into gold bullion.
In the meantime, as central banks continue to increase their holdings of gold, China remains very secretive, so we don't know really if they're buying or not. However, I am positive the Chinese government is accumulating as much gold as they can. And, we are also seeing more Chinese invest in gold bullion bars and coins."
I am sure they know what is coming.
The boom in construction industry in recent years has greatly boosted economic growth in Panama, as demonstrated through a study of the construction sector by the Superintendency of Banks of Panama.
According to the study the construction sector accounted for in the first quarter of 2012 7.6% of gross domestic product (GDP) and 10.1% of employment.
It should be noted the contribution of banks in financing the construction.
The total of this portfolio at March 31 this year is about 2000 $ 895 million.
The study indicates that to date the portfolio remains healthy with an average of 98.6% in effect, a delinquent 0.54% and 0.81 up.
One of the conclusions of the study is that the apartment units, both completed and under construction unplaced had declined.
Obviously everyone is back from Olympics and few are coming back from vacation. We can safely assume that additional paperwork was required (5years audited books, etc) so one more month will be needed.
Thanks Loj.
Yes, we are in a good shape when it comes to labor cost and soon the power station will be build.
"The fund provider Earth Investment Group (ERIG) mentions a further argument, which should support gold prices: It will become more expensive to bring an ounce of gold from the earth. Total production costs - including production costs, capital costs and exploration costs - have risen rapidly over the past ten years. In 2002, the mining companies had an average of about $ 250 in your hand to promote an ounce of gold. Today it is $ 1,383, representing an increase of more than 500 percent. "We can not predict exactly how high the price of gold will be 2015th We are sure that he will not be less than the total cost, "says Joachim Berlenbach, geologist and ERIG fund managers. One reason for the increase in costs is also to be found in the mines less and less gold per ton in the rock. It is now about 1.1 grams per ton of rock in 1980 it was 2.32 grams or more than twice as much."
"Feel good" old news. I am always ready to help fellow man to earn a living, I mean shovel ready jobs:
•Unemployment in Portugal remained at the 15.2% level, still an historic high but stabilizing after the recent rise. In Europe, meanwhile, average unemployment rose from 11% to 11.1%, according to statistics bureau Eurostat.
Almada/EDM Nabs Gold Tender;
There were seven international companies interested in investing potential gold mines in Portugal, according to the state’s Energy and Geology Directorate. The government had announced a tender for the rights to explore and mine the Jales/Gralheira site in the central Alentejo region, and the results were announced last week. Canada’s Almada Mining, (read PTQ) in partnership with Portugal’s EDM, won the tender, forecasting investment of €66m and the creation of 100 new jobs. The Jales mines, which shut in 1992, were the last place gold was mined in Portugal. But they have a storied history dating back to Roman times, when the Tresminas mines in the same area were said to be the most important gold sites of the Roman empire, with the height of extraction in the first and second centuries AD. In addition to the Jales concession, the DGE also assigned four other mining concessions: Almada received two others for silver and other metals in Banjas, EDM another for prospecting in Aljustrel, and MAEPA for tungsten prospecting in Chaves.
Rosetta stone works great, just got one two month ago . Two month with Roseta Spanish equals two years in public school.
I can check my grandkids now on their homework.
Actually it is not a laughing matter, every e-mail you ever sent , every text message - is never deleted.
It is always somewhere in a data base of a Big Brother.
Don’t ever assume that you can successfully wipe a memory bank from your computer, even if you purchased a special software to do so.
Good ole George Orwell was right on.
Gabbs , you making big mistake not selling your losers and investing into hot stocks. If I had bunch of hot stocks running "like crazy" – I would made money as a bandit.
Quiet before the storm. Peta , do you hear anything?
Different angle.
While rest of the financial community pre-occupy with European crisis and everyone else is watching Olympics- I predict we are approximately 6 weeks away from major War in the Middle-East. What that going to do to the price of gold? Junior miners?
The Gold Report: Some investors think that we won't see gold stocks come back in a big way. What do you say to them?
Adrian Day: With regard to the seniors, we are not going to return to the valuations that gold stocks have traditionally enjoyed, gold stocks selling for 40, 50, 60 times earnings. With regard to the juniors, we've had this sentiment before. The juniors are incredibly volatile, and we go through these periods of excessive optimism and excessive pessimism. At the end of 2008, clients called me, wanting to go 100% to cash because they thought these juniors were finished. The key is to buy quality companies with quality management and strong balance sheets and then, even if it takes another year or two, you know they're going to survive.
TGR: In your book Investing in Resources: How to Profit from the Outsized Potential and Avoid the Risks (Wiley, 2010), you said that majors often focus on a single property when they're looking at takeovers, and you even suggested some takeover targets. Do you believe that they still remain targets?
AD: Many of them. But with the prices that we've seen recently, several juniors with attractive properties have essentially taken themselves off the market for now.
TGR: You suggest in your book that anytime the ratio of the Philadelphia Gold and Silver Index (XAU), which is the gold and silver index traded on the Philadelphia Exchange, to the gold price is five times or higher, it's a good time to buy gold companies. As of July 23 the ratio was almost 11:1. Does that mean that rule of thumb needs an adjustment, or does it mean that it's an exceptional time to buy gold companies?
AD: A little bit of both. The S&P/TSX Global Gold Index is now at its cheapest level relative to bullion since 1986, the beginning of the bear market. The XAU Index of senior North American gold and silver stocks is now cheaper than the S&P. I can't remember a time when the gold stocks were cheaper than the broad market.
We have to recognize that, for the most part, gold companies have not been well-managed companies over a long period of time. They've generated horrible returns, overpaid for acquisitions and management has issued too much dilutive equity. Ten years ago, if you were a generalist interested in gold, you looked at the big mining companies and you hoped that the gold price would bail you out and take care of all the problems. Now there's competition from the exchange-traded funds (ETFs). An investor can buy an ETF and get direct exposure to gold without worrying about cost overruns, overpaying, dilution and everything else. The more the big companies fail the more big investors simply turn to gold itself.
We shouldn't forget that mining is a difficult business. But mining companies have not been their own best friends, and investors are becoming more and more unforgiving of corporate errors simply because there is an alternative now. Over the last 12 months, the big companies seem to be getting the message. The move toward mining companies paying dividends, for example, is part of their response to the accusations of fiscal irresponsibility. We're not going back to the days of the XAU selling at 60-70 times earnings multiples, because now there's competition, ETFs, which there wasn't in the past.
TGR: How does a 30% rise in the gold price mean a 140% increase in the margin of a major producer?
AD: If the price at which you sell your product goes up at a faster rate than your costs, that's when you get the leverage. For example, when gold is selling at $800/ounce (oz) and your costs are $600/oz, you've got a 20% margin. If gold goes to $1,200/oz and your costs go up to $800/oz, you've now got a 50% margin. In the last five years, we've seen costs go up dramatically: for energy, which is the major component for mining; labor; mercury; truck tires; currencies. For instance, if a Canadian company has mines in Brazil and Australia, until recently, those currencies were both going up a lot more than the Canadian dollar. The margins were pretty static from 2001 all the way through to the end of 2008-we didn't get any leverage expansion at all.
TGR: What about dividend yields? Are your clients seeking yield?
AD: My clients are certainly seeking yield, but I don't buy gold stocks for dividends.
TGR: Let's focus this on another segment of the business that you like: the prospect-generator model. In your book, you illustrate your point by noting that some prospect generators actually end the exploration season with more money than when they started due to the various JV agreements that they have in place. What is this model, and how do the good prospect-generator companies make it work?
AD: As the name implies, these are exploration companies that generate prospects. They then tend to JV those projects with companies with money to spend. The generation of prospects, while not easy, is not high cost. When the prospect generators get to the high-cost point of exploration and development, they look for a partner to spend the money. I like the model because it enables the exploration company to maintain its balance sheet. It doesn't have to keep going back to issue new dilutive equity, and it's able to build portfolios of exploration projects. Consider companies that have been around a little while and have interest in not just three or four properties but 10 and 20 properties. It's a little bit like owning shares in lots of lottery tickets instead of just one whole lottery ticket. It increases your odds of discovery in what is a very long-odds enterprise, looking for a gold discovery. It's said that only 1 in 5,000 anomalies ever becomes a mine. The prospect-generator model doesn't guarantee success, but it means that the company can stay alive to fight another day.
How do the good prospect generators make it work? They maintain discipline to the model so that they maintain their balance sheets, and they strike good JV agreements, meaning they maintain the greatest share of their property while incentivizing the other company to spend money.
TGR: We're seeing a big selloff in Western markets as Spanish bond yields are at record euro-era levels, and there are whispers that Germany could force Greece out of the Eurozone. Is now the time to head to the royalty model, which is likely the lowest risk play in the gold space?
AD: I've always liked the royalty companies because they are a low-risk model. In this business, you have enough risk to begin with, whether it's misappropriation or the geology not turning out the way you thought it was going to turn out. And I've always felt, if you buy really good quality companies, not just in resources, but in everything, where you are focused on the downside, the upside takes care of itself. When gold goes to $2,500/oz, the quality companies will move. You don't have to worry about it.
TGR: Do you have any other advice for investors?
AD: Number one, understand what you know and what you don't know. If you're not a geologist, don't try to be one. Focus on the things you can understand, like a business model, management, balance sheets. Number two, stick with quality. I would rather pay up to quality then underpay for junk. Number three, buy when nobody else is buying. If you buy quality junior gold stocks right now, you may have to wait a painful six months, but you'll end up being very happy you bought.