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To 'Goldbugs' on 'CENTURY MINING CORP. ' -
well, agree very oversold / undervalued -
http://www.investorshub.com/boards/read_msg.asp?message_id=10227283
once, the worlds largest Gold Mines -
should still be more than 10 times higher -
the Gold is still down there -
the oldtimers only got a sniff at it -
found it and saved it for the kids? -
the SP is a strategic bargain on firesale -
btw. the miners knows how to mine -
still they know zero about PR image etc. -
tunnelvision hurt the SP -
its to have the richest mine in the world -
but if no one knows -
its still a hidden treasure chest -
http://www.investorshub.com/boards/read_msg.asp?message_id=10227362
Imo. Tia.
http://www.investorshub.com/boards/board.asp?board_id=5391
God Bless
To 'Flaco' on 'CENTURY MINING CORP. ' -
well, agree very oversold / undervalued -
http://www.investorshub.com/boards/read_msg.asp?message_id=10227283
once, the worlds largest Gold Mines -
should still be more than 10 times higher -
the Gold is still down there -
the oldtimers only got a sniff at it -
found it and saved it for the kids? -
the SP is a strategic bargain on firesale -
btw. the miners knows how to mine -
still they know zero about PR image etc. -
tunnelvision hurt the SP -
its to have the richest mine in the world -
but if no one knows -
its still a hidden treasure chest -
http://www.investorshub.com/boards/read_msg.asp?message_id=10227362
Imo. Tia.
http://www.investorshub.com/boards/board.asp?board_id=5391
God Bless
EMGOLD MINING CORP - Idaho-Maryland Mining Corp. ("Idaho-Maryland")
Welcome to -
Idaho-Maryland Mining Corp. ("Idaho-Maryland") -
Sponge Gold -
There's Gold in Them Thar Hills! -
Have you ever thought that the
Gold Rush 49er's of Californ-i-a
had Cornish accents?
Cornwall England,Cornish Cousin Jacks emigration,
Idaho-Maryland Gold Mining Mines,
Grass Valley, California, America,
Cornish tourist and heritage information,
cornwallgb
Downtown Grass Valley -
The Holbrooke hotel established 1850's
Idaho-Maryland Mine c. 1860's
http://www.idaho-maryland.com/s/Gold.asp?ReportID=114949
http://www.idaho-maryland.com/s/Home.asp
http://www.investorshub.com/boards/board.asp?board_id=5395
Jim Prentice, Minister of Indian Affairs and Northern
Development, said the file is being handled by "excellent"
people who will continue its momentum -
Election should not delay pipeline -
Claudia Cattaneo Calgary Bureau Chief,
Financial Post
March 03, 2007 - CALGARY -
A federal election should not delay the proposed -
Mackenzie natural gas pipeline, the minister
responsible indicated yesterday.
Jim Prentice, Minister of Indian Affairs and Northern
Development, said the file is being handled by
"excellent" people who will continue its momentum.
"When I became the minister, I ensured that there was
no loss of continuity.
We have really good people that will be able to sustain
this on a go-forward basis," he told reporters after
addressing a symposium on Arctic Gas.
There is speculation the government of Stephen Harper
could call an lection as soon as this spring to take
advantage of the Conservatives' surge in the polls.
The massive pipeline project, which has been delayed
so many times it's now about five years behind the
original schedule, will require key federal government
decisions after Imperial Oil Ltd., the lead partner,
finalizes a review of cost estimates by -
the end of the month.
The oil company is expected to look for substantial
fiscal enhancements to improve the project's economics.
The pipeline would transport gas from the Mackenzie Delta
to Alberta.
Under a regulatory filing in 2004, the pipeline
was expected to cost $7-billion.
However, analysts believe costs have likely increased
above $10-billion.
Mr. Prentice said some discussions have been held
with Imperial on the broad terms of the project's
fiscal framework, but more in-depth negotiations will
not get under way until new cost estimates have
been announced.
Talks with Ottawa were delayed a year ago because of
the federal election that resulted in the defeat of
the Liberal government.
Mr. Prentice said he is observing developments in
Alaska, where governor Sarah Palin has offered
as much as US$500-million in incentives to help
defray permitting costs and encourage construction
of the proposed Alaska Highway gas pipeline.
He would not say whether Ottawa would be willing to
step up with similar incentives.
"We will wait and see in the days after Imperial
and other proponents put forward the costs of
the project," he said.
He noted Ottawa has already helped the project in other
ways, such as by pledging $500-million in socio-economic
funds for the advancement of aboriginal people and
by incurring large costs related to
the regulatory review.
http://www.investorshub.com/boards/board.asp?board_id=5526
Jim Prentice, Minister of Indian Affairs and Northern
Development, said the file is being handled by "excellent"
people who will continue its momentum -
Election should not delay pipeline -
Claudia Cattaneo Calgary Bureau Chief,
Financial Post
March 03, 2007 - CALGARY -
A federal election should not delay the proposed -
Mackenzie natural gas pipeline, the minister
responsible indicated yesterday.
Jim Prentice, Minister of Indian Affairs and Northern
Development, said the file is being handled by
"excellent" people who will continue its momentum.
"When I became the minister, I ensured that there was
no loss of continuity.
We have really good people that will be able to sustain
this on a go-forward basis," he told reporters after
addressing a symposium on Arctic Gas.
There is speculation the government of Stephen Harper
could call an lection as soon as this spring to take
advantage of the Conservatives' surge in the polls.
The massive pipeline project, which has been delayed
so many times it's now about five years behind the
original schedule, will require key federal government
decisions after Imperial Oil Ltd., the lead partner,
finalizes a review of cost estimates by -
the end of the month.
The oil company is expected to look for substantial
fiscal enhancements to improve the project's economics.
The pipeline would transport gas from the Mackenzie Delta
to Alberta.
Under a regulatory filing in 2004, the pipeline
was expected to cost $7-billion.
However, analysts believe costs have likely increased
above $10-billion.
Mr. Prentice said some discussions have been held
with Imperial on the broad terms of the project's
fiscal framework, but more in-depth negotiations will
not get under way until new cost estimates have
been announced.
Talks with Ottawa were delayed a year ago because of
the federal election that resulted in the defeat of
the Liberal government.
Mr. Prentice said he is observing developments in
Alaska, where governor Sarah Palin has offered
as much as US$500-million in incentives to help
defray permitting costs and encourage construction
of the proposed Alaska Highway gas pipeline.
He would not say whether Ottawa would be willing to
step up with similar incentives.
"We will wait and see in the days after Imperial
and other proponents put forward the costs of
the project," he said.
He noted Ottawa has already helped the project in other
ways, such as by pledging $500-million in socio-economic
funds for the advancement of aboriginal people and
by incurring large costs related to
the regulatory review.
http://www.investorshub.com/boards/board.asp?board_id=5526
Goldcorp Announces 2006 Reserves, Production and Cash Costs
(All figures are in US dollars unless stated otherwise)
Goldcorp Inc.
(TSX: G)(NYSE: GG) today reported reserves, resources, production
and cash costs as of and for the year ended December 31, 2006.
- Proven and Probable gold reserves increased by 170 percent
to 39.8 million ounces.
- Measured and Indicated gold resources increased more than
fivefold to 16.4 million ounces.
- Inferred gold resources quadrupled to 30.8 million ounces.
- Proven and Probable silver reserves increase to 781 million
ounces.
"The acquisition of assets during the year from Placer Dome
and Glamis Gold drove the dramatic increases in reserves
and resources in 2006," said Kevin McArthur, President
and Chief Executive Officer.
"Our priority going forward will be on organic growth
initiatives designed to unlock further value from our
very large mineral concession holdings.
We will be investing over $120 million in exploration
during 2007, with most of that directed toward drilling
in the shadows of our headframes."
Complete reserves and resources calculations are as follows:
http://app.quotemedia.com/quotetools/popups/story.jsp
Goldcorp Is very good LT Gold stock to own -
Follow Goldcorp's presentations -
Worlds lowest cost Gold producer of the majors -
http://www.goldcorp.com/inSitePresent/
Rubicon compared to Goldcorp and Franklin -
For your 4penny casino play money -
Rubicon compared to Goldcorp and Franklin over 1 year -
Goldcorp Is a very good LT Gold stock to own -
Goldcorp has given me 1000% on the money -
in share value increase -
for the last 10 years -
plus dividends and GOLD Safety -
[chart]ichart.finance.yahoo.com/z?s=GG&t=my&q=l&l=off&z=m&c=KGC,ABX,NEM&a=v&p=s>
[chart]kitconet.com/images/sp_en_8.gif>
Welcome to Golcorp's Investors forum -
http://www.investorshub.com/boards/board.asp?board_id=5456
Wish, more Gold stock Executives will prepare a plan -
for the buy-back of their own shares -
Ex. FMNJ great ex. of fightback for 888 Liberty -
and Pennystock can be real exciting and fun?! -
Ex. 4penny casino fun play money -
Franklin Mining, Inc. Executives Considering Stock Buy-Back Plan -
FMNJ with Cerro Rico, Potosi, the worlds largest and richest Silver Mine -
FYI. FMNJ recently got Cerro Rico Silver Mines and its important - to be at the right place at the right time -
let's compare Goldcorp - Franklin -
4penny casino fun play money -
Ex. FMNJ great ex.
Franklin Mining, Inc. -
(FMNJ) Executives and Board Members are conferring with corporate -
legal counsel to prepare a plan for the buy-back of shares.
The timing of the buy-back and the exact number of shares
will depend on market conditions.
Hold on to your hats -
don't sell anything -
history often repeat itself -
FYS. FMNJ with Cerro Rico largest richest Silver Mine in the world info -
http://www.investorshub.com/boards/board.asp?board_id=5406
Wealth based on debt -
were have 88 been for 100 years? -
the fedzclownz have destroyed the $ -
its sad, but the fiatz are counterfeit papers -
which going down, down, down like all fiatz -
and will be worthless -
the 666 debt makes it worthless day by day -
Gold & Silver is King & Queen -
its been the way for 1000s of years -
debt? -
we may can pay 1 new $ for 1000 old $$ ? when
a new $ is printed by the old $Standard system -
Imo Tia.
Iraq War costing fiatz$-toilet-paper -
http://nationalpriorities.org/index.php?option=com_wrapper&Itemid=182
Ex. Rubicon compared to Goldcorp and Franklin over 2 year -
http://www.investorshub.com/boards/board.asp?board_id=5456
Northgate posts fourth quarter net income of $20 million;
Corporate cash reserves increase to $262 million -
http://app.quotemedia.com/quotetools/popups/story.jsp
Gold is going to $761 ,$887.50 and $1650 -
Get a grip!
Got NXG Gold, Silver, Copper Mines -
Where I am concerned all I can say is:
“What, Me Worry?”
http://www.jsmineset.com/
http://www.investorshub.com/boards/board.asp?board_id=5487
Northgate posts fourth quarter net income of $20 million;
Corporate cash reserves increase to $262 million -
http://app.quotemedia.com/quotetools/popups/story.jsp
Gold is going to $761 ,$887.50 and $1650 -
Get a grip!
Got NXG Gold, Silver, Copper Mines -
Where I am concerned all I can say is:
“What, Me Worry?”
http://www.jsmineset.com/
http://www.investorshub.com/boards/board.asp?board_id=5487
Great information on stock bashers -
http://www.novakcapital.com/bashers.htm
imo. tia.
The shortage of Diesel is a long term problem for Bolivia
due to lack of Crude and refining capacity -
Objective: Is to build a GTL facility to address
the diesel shortages of Bolivia -
GTL is a good substitute for Crude Refined Diesel due to
the reserves that Bolivia has in Natural Gas -
The 10,000 barrel facility is mainly for the local market.
The additional capacity would sold to neighbors.
The profit picture increases 2 fold with an increase
of investment of about 20%.
This additional 20% investment would be the construction
of a gas processing plant in front of the GTL plant
in order to sell the liquids in the international markets.
http://www.franklinmining.com/Portals/40/Presentation_10000_BPD_GTL_Plant_in_Bolivia2.pdf
http://app.quotemedia.com/quotetools/popups/story.jsp
About Franklin Mining, Inc.:
Franklin Mining, Inc. has mining and exploration interests
in the United States, Argentina and Bolivia;
Franklin Mining, Bolivia S.A. is a wholly owned subsidiary.
Franklin Mining, Inc. holds 51% ownership in both
Franklin Oil & Gas, Bolivia S.A. and
Franklin Oil & Gas, Argentina S.A.
DISCLOSURES: "Safe Harbor" statement under the Private
Securities Litigation Reform Act of 1995: ---- could cause
Franklin Mining, Inc.'s actual results to differ materially
from those expressed in any forward-looking statements
made by, or on behalf of, Franklin Mining, Inc.
For further information, please visit our website
(www.franklinmining.com) or contact our
Investor Relations firm,
A. Austin & Company,
1-702-386-5379.
A. Austin & Company
Investor Relations
1-702-386-5379
www.franklinmining.com
----
The national territory of the Argentine -
part of Tierra del Fuego -
the Argentine-claimed sector of Antarctica -
and several South Atlantic islands -
the national territory of
Tierra del Fuego a province -
Belief in and respect for multilateralism -
led to Trinidad and Tobago's respect for all -
major global and regional fora -
Are active participants in the creation of
the Free Trade Area of the Americas -
which, when maybe realized? -
will stretch from Alaska in the North -
to Tierra del Fuego in the South;
creating a market of over 800 million consumers -
and generating tremendous opportunity for economic
and social development -
The region's commitment to this hemispheric integration
process has led Trinidad and Tobago and its
CARICOM partners to offer our -
Capital City, Port-of-Spain, as the ideal location -
for the seat of the proposed permanent -
secretariat of the Free Trade Area of -
the Americas -
The length of Argentina from north to south -
is about 3,330 km (about 2,070 mi);
its greatest width is about 1,384 km (about 860 mi) -
The country includes the province of Tierra del Fuego -
which comprises the eastern half of
the Isla Grande de Tierra del Fuego -
and a number of adjacent islands to the east -
including Isla de los Estados.
The Argentine coastline measures
about 4,989 km (about 3,100 mi) long.
Argentina also claims a total of 2,808,602 sq km
(1,084,407 sq mi) of disputed territory.
Since the 1950s, Argentina has claimed a pie-shaped section
of Antarctica between longitude 25° west and
longitude 74° west -
Argentina also claims several sparsely settled southern Atlantic
islands, including the Falkland Islands -
or Islas Malvinas, currently controlled by Britain -
The two nations fought a brief war in 1982 -
over control of the islands, and sporadic discussions -
about the political fate of the islands continue -
Several major oil fields also are in Patagonia -
at the southern tip of Patagonia is Tierra del Fuego,
a large mountainous island shared by
Argentina and Chile -
In terms of value, the chief mineral product is petroleum.
In 2004 production of crude petroleum -
was 271 million barrels, furnishing the country’s -
needs and allowing Argentina to become a -
net energy exporter.
Major petroleum reserves are located in Patagonia
and offshore near the Falkland Islands (Islas Malvinas) -
Natural gas production has doubled since the 1980s
to about 41 billion cubic meters in 2003 -
with reserves located mainly in Patagonia
and Tierra del Fuego -
Hydrocarbon resources play an important role in
the economies of both the Argentine and Chilean
sides of the island -
Numerous oil and gas fields are exploited on land
and offshore, particularly in the northeastern sector
of the island -
Nearly all of the Argentine oil and gas is sold to Chile.
The vegetation in the foreground is typical of
the steppeland throughout Patagonia -
This photo was taken at Punta Catalina,
the northeasternmost point of Tierra del Fuego.
The Straits of Magellan stretch to the west -
Few people realize that Chile has an Atlantic coast -
The northeasternmost part of Tierra del Fuego -
where the Straits of Magellan enter
the South Atlantic Ocean, and the coastline
for about 15 km to the southeast are in Chilean territory.
In addition, several Chilean islands on the south side
of Tierra del Fuego, including Cape Horn,
face the Atlantic -
Franklin Mining, Inc. Is Forming Franklin Oil & Gas, Argentina -
http://www.marketwire.com/mw/release_html_b1?release_id=194250
http://www.investorshub.com/boards/read_msg.asp?message_id=15535376
In Argentina -
has been N/R reported -
SHELL CONSIDERS GTL PLANTS IN ARGENTINA AND AUSTRALIA -
The Shell Gas and Power division of Royal Dutch/Shell
has reported that it is studying additional applications
of its Shell Middle Distillate Synthesis Gas-To-Liquids (GTL)
technology in Argentina and Australia.
The Arrow - on the LT Bull move -
NASAII rocketry - sounds good -
well, GO target moon -
nice move -
http://www.investorshub.com/boards/board.asp?board_id=7957
God Bless
Amen
The Long Wave Analyst -
Report on Business Interview content for your corporate website -
4:45 PM ET
After Hours with Jim O'Connell and Kim Parlee
Bullish On Bullion
Ian Gordon, editor,
The Long Wave Analyst
Duration: 5 m 14 s Play
http://www.robtv.com/shows/past_archive.tv?day=mon
http://www.investorshub.com/boards/board.asp?board_id=5406
The Long Wave Analyst -
Report on Business Interview content for your corporate website -
4:45 PM ET
After Hours with Jim O'Connell and Kim Parlee
Bullish On Bullion
Ian Gordon, editor,
The Long Wave Analyst
Duration: 5 m 14 s Play
http://www.robtv.com/shows/past_archive.tv?day=mon
http://www.investorshub.com/boards/board.asp?board_id=5406
"We continue to be extremely encouraged by the continuity
of the oil sands resource and the thicknesses
we are encountering," said Christopher H. Hopkins,
President & Chief Executive Officer of Oilsands Quest,
who three years ago put together the team that is focused
on proving the extension of commercially viable oil sands
deposits from Alberta across the border -
and into Saskatchewan.
"It is truly exciting to watch our drilling program prove
our original geological concept," he said.
"Everyone involved in our program has a sense that we're
making history for the province of Saskatchewan and
for Western Canada's oil sands industry."
DD....
http://www.oilsandsquest.com/investor_information/index.html
http://www.investorshub.com/boards/quotes.asp?ticker=BQI
http://www.investorshub.com/boards/board.asp?board_id=6668
http://www.siliconinvestor.com/subject.aspx?subjectid=56941
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_O/threadview?m=mm&bn=51283&tid=....
by: RRothschild at another forum.
The Largest Known Oil Reserves In The World -
RE: 52 week low, good time to buy -
http://www.investorshub.com/boards/board.asp?board_id=6668
http://www.siliconinvestor.com/subject.aspx?subjectid=56941
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_O/threadview?m=mm&bn=51283&tid=....
by: RRothschild at another forum.
The Largest Known Oil Reserves In The World -
RE: 52 week low, good time to buy -
http://www.investorshub.com/boards/board.asp?board_id=6668
http://www.siliconinvestor.com/subject.aspx?subjectid=56941
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_O/threadview?m=mm&bn=51283&tid=....
by: RRothschild at another forum.
Experts See More Competition for -
Liquefied natural gas (LNG) -
imports are forecast to be about one-fifth of the U.S. gas
supply by 2025, but North American markets will face several
domestic and global challenges going forward, industry
experts said.
Among other things, U.S. buyers will have to compete a lot
more for nearby Atlantic Basin supplies, and will find
access issues a continuing challenge.
Speaking at Strategic Research Institute's Sixth Annual
LNG Economics & Technology conference in Houston,
American Petroleum Institute (API) senior economist
Sara J. Banaszak said even with the recent pullback in
gas prices, most forecasts indicate a sharp rise in
higher-priced LNG imports over the next 20 years.
---
Bush Seeks Ethanol Alliance With Brazil -
Sunday March 4, 9:24 pm ET
By Alan Clendenning, AP Business Writer
Bush Seeks Ethanol Alliance With Brazil, Which Has Turned
Itself Into Renewable Energy Leader
SAO PAULO, Brazil (AP) -- Just an hour's drive outside this
traffic-choked metropolis where President Bush kicks off a
Latin American tour Thursday, sugar cane fields stretch for
hundreds of miles, providing the ethanol that fuels eight out
of every 10 new Brazilian cars.
In only a few years, Brazil has turned itself into
the planet's undisputed renewable energy leader,
and the highlight of Bush's visit is expected to be
a new ethanol "alliance" he will forge with
Brazilian President Luiz Inacio Lula da Silva.
The deal is still being negotiated, but the two leaders
are expected to sign an accord Friday to develop standards
to help turn ethanol into an internationally traded
commodity, and to promote sugar cane-based ethanol
production in Central America and the Caribbean to meet
rising international demand.
Across Latin America's largest nation, Brazilian media
are billing the Bush-Silva meeting as a bid to create a
new two-nation "OPEC of Ethanol," despite efforts by
Brazilian and American officials to downplay the label
amid concerns that whatever emerges would be viewed as
a price-fixing cartel.
Meanwhile, political and energy analysts warn that
any agreements reached between Brazil and
the United States are unlikely to have short-term effects.
And the deal itself could end up largely symbolic because
of reluctance by Washington to address a key point of friction:
A 54 cent-per-gallon U.S. tariff on Brazilian ethanol imports.
"For the Brazilians, the tariff has utmost priority,"
said Cristoph Berg, an ethanol analyst with
Germany's F.O. Licht, a commodities research firm.
"They will agree with developing biofuel economies around
the world, but the first thing they will say is 'We want
to do away with that tariff.'"
No one is expecting Bush to give ground on the tariff.
The politically sensitive issue essentially subsidizes
American corn growers who are rapidly ramping up
ethanol production amid Washington's encouragement
of renewable biofuels to ease U.S. dependence on
imported petroleum.
But the visit will help Bush and Silva join forces to
promote the politically popular issue of renewable
energy simply by gathering in a place where ethanol
is king.
At every gas station in this city of 18 million, drivers
can fill up with gasoline or ethanol. Ethanol came courtesy
of a 1970s decision by Brazil's former military dictators
to subsidize production and require distribution at the pumps.
A 1980s Brazilian fad with cars that ran only on ethanol
petered out when oil prices fell in the early 1990s.
But the fuel came back into vogue in 2003 when automakers
started rolling out cars "flex-fuel" cars that run on
gasoline, ethanol or any combination of the two.
With international oil prices reaching record highs,
Brazilian drivers turned to the cars; most choose
ethanol, because it costs about half the price of gas.
The ethanol industry is now making profits like never
before amid heavy foreign investment. Just last week,
Brazil's state-run oil firm, Japan's Mitsui & Co. and
a Brazilian construction firm signed a memorandum of
interest to study the construction of a pipeline in
Brazil that would be used to help export ethanol to Japan.
Brazil is the world's top exporter, though U.S. ethanol
production still surpasses Brazil. But Brazil has an edge
over the United States for future production because
ethanol can be produced more cheaply with sugar cane than
the corn used by U.S. farmers to make ethanol.
And increased use of corn for ethanol is prompting
international corn price increases, prompting Silva to
tell reporters last week he would tell Bush, "Why make
ethanol out of corn? Why don't we feed the corn to
the chickens."
Bush has set a goal of 35 billion gallons a year of ethanol
and other alternative fuels, such as soybean-based biodiesel,
by 2017 -- a fivefold increase over current requirements.
But production of ethanol from U.S. corn is expected to
fall far short of meeting such an increase, and experts
doubt even land-rich Brazil would be able to fill the gap
along with help from Central America and the Caribbean.
So Bush envisions a major speedup of research into
production of "cellulosic" ethanol made from wood
chips, switchgrass and other feedstocks.
Ethanol proponents hope Bush and Silva will nonetheless
come up with a framework to sharply boost ethanol
production in the nations between Brazil and
the United States, encouraging more foreign investment.
And coming up with technical standards to define quality
levels for ethanol is key to turn it into a commodity
that could be traded like oil.
"I think its Brazilian know how and American know how,
there's a lot of cross fertilization that can take place,"
said Brian Dean, executive director of the Interamerican
Ethanol Commission.
The commission counts among its directors Florida
Gov. Jeb Bush, the president's brother, as well as
former Brazilian agriculture minister Roberto Rodrigues
and Luiz Moreno, president of
the Inter-American Development Bank.
Increasing ethanol production in the region is also expected
to be a major topic in Guatemala later this month when
the bank holds its annual meeting, Latin America's top
yearly economic gathering.
"We see a marketplace in ethanol that can create an enormous
amount of economic growth and prosperity in
the United States and the rest of the world," Dean said.
---
RE: Franklin Announces GTL Plant in Tierra del Fuego, Argentina -
Agreement Is for Development and Operation of First GTL -
Facility of This Size in South America -
RE: prev. GTL Plant news a few discussions........
US North American LNG Supplies -
Intelligence Press 1/30/2006
Experts See More Competition for -
Liquefied natural gas (LNG) -
imports are forecast to be about one-fifth of the U.S. gas
supply by 2025, but North American markets will face several
domestic and global challenges going forward, industry
experts said.
Among other things, U.S. buyers will have to compete a lot
more for nearby Atlantic Basin supplies, and will find
access issues a continuing challenge.
Speaking at Strategic Research Institute's Sixth Annual
LNG Economics & Technology conference in Houston,
American Petroleum Institute (API) senior economist
Sara J. Banaszak said even with the recent pullback in
gas prices, most forecasts indicate a sharp rise in
higher-priced LNG imports over the next 20 years.
Flattening or lower Canadian gas imports and declining
domestic production make LNG one of the only viable
solutions going forward, she said.
Even if the Alaskan and/or Mackenzie Delta gas pipelines
are completed within the next seven to 10 years, they
will only help overcome a very small "sliver" of needed
gas supply.
"What distinguishes the United States from the rest of
the world is the tremendous use of natural gas for
industrial production," said Banaszak.
"LNG is used for power generation in other parts of
the world."
Here, she said, it's more of an "industrial swap."
And because of high industrial use and expected gas-fired
power generation growth, North America will be competing
for LNG more in the years to come.
"We are assuming off limits stay off limits," she said,
referring to untapped recoverable domestic gas resources,
such as a ban on drilling in the eastern Gulf of Mexico.
Overall, API estimates that about 40% of U.S. gas resources
are restricted.
If consumers and the government decide to open more areas
for drilling, it could impact how fast LNG imports grow.
"The point is, addressing 'off limits' could impact
the market going forward."
Most U.S. LNG imports now come from Trinidad,
but unlike oil, LNG comes from a variety of sources worldwide,
ensuring its security and reliability, Banaszak said.
But the United States competes with the rest of the world
for LNG, even in nearby Trinidad.
Speaker Jake Dweck said understanding access development
issues across the globe will continue to challenge importers.
Dweck chairs the LNG Group for the law firm -
Sutherland Asbill & Brennan LLP.
"Each significant LNG player in this competitive environment
has to learn all of the regulations, access rules and
contract rules in the United States and Europe," he said.
"I can't overemphasize how critical it is for all of the
significant players to be aware of the rules everywhere."
Atlantic Basin markets are increasing about as rapidly
as those of the powerful Pacific Basin, which still
controls most of the global LNG.
"The Pacific Basin supplies dominated supply growth until
1996, accounting for 72% of supply at that time.
They have now fallen back to 51%," he noted.
"The Middle East and Atlantic Basins are now growing -
the most rapidly," with U.S. imports a major factor.
The LNG trade also is affecting short-term LNG sales, he said.
Short-term volumes are still small -- they accounted for
about 1.4% of the market in 1992, and in 2001 they'd
grown to about 7.5%.
However, Dweck pointed to a study by Jensen Associates
which indicates short-term volumes now account for
11.2% of LNG sales.
The growing role of short-term spot market imports and
a growing arbitrage between the United States and Europe
"are making the markets more codependent."
Eventually, he said, European markets could be using
Henry Hub gas prices to set the market.
"There's a tendency to price contracts to the U.S. market,
with contracts containing certain clauses to allow them
to divert to other markets.
It makes Henry Hub the price point, and leads to more
interdependence between the United States and Europe."
Long-term, or 20-year contracts, will "indeed be the
cornerstone" of the marketplace because they provide
the financing, said Dweck.
"However, I see a trend for uncommitted capacity retained
for the upstream side."
Once more open access regasification terminals are
completed, "we're going to see the U.S. regasification
capacity at 50-60%, with the rest available for short-term
trades, with market-competitive contracts."
Franklin Announces GTL Plant in Tierra del Fuego, Argentina -
Agreement Is for Development and Operation of First GTL -
Facility of This Size in South America -
LAS VEGAS, NV, Feb 28, 2007 (MARKET WIRE via COMTEX) --
Franklin Mining, Inc. -
(FMNJ) President Jaime Melgarejo, Jr. has returned from
Argentina where he and an engineer visited possible
construction sites for a gas-to-liquid (GTL) facility
to be constructed in the Province of Tierra del Fuego,
Argentina.
William Petty -
has traveled to Zurich, Switzerland to secure necessary -
financing.
Franklin Oil & Gas, Argentina, S.A.,
was formed in December 2006 as the first step toward
fulfillment of an agreement for the construction and
operation of a 10,000 barrel-per-day GTL processing
facility.
The agreement, signed by Hugo Cocarro, Governor
of Tierra del Fuego, is accompanied by a 25 year
guarantee of the required natural gas resource
issued to Franklin Oil & Gas, Argentina S.A.
on November 16, 2006 by Cristian A. Folgar,
Argentina's National Undersecretary of Fuels.
Announcement of Franklin Oil & Gas' contract comes
three weeks following Royal Dutch Shell Plc's cornerstone
ceremony at the site of their Pearl GTL facility in Qatar.
Franklin's development and production agreement with Argentina
-- similar to agreements reached by major oil companies
in other countries, including Shell in Qatar --
will result in the first such facility of this size
in South America.
When fully operational, Argentina's Tierra del Fuego Province
will begin using an existing abundant natural resource
(natural gas) to gradually achieve energy independence
while creating local economic growth through reduced
energy costs and increased export revenues.
Long term benefits include production and export of
additional energy resources including naphtha and electricity.
Benefit to local, Province and National governments include
taxes and royalties as well as participating in production
profits.
During the next thirty months (the planning and construction
phases), development and construction of the GTL plant
will have created 400 direct and 2300 indirect jobs.
Operating the plant will create 140 direct and 500 indirect
permanent jobs.
Additional information on Franklin Mining, Inc.'s GTL projects
in Bolivia and Argentina is available at
www.franklinmining.com
About Franklin Mining, Inc.:
Franklin Mining, Inc. has mining and exploration interests
in the United States, Argentina and Bolivia;
Franklin Mining, Bolivia S.A. is a wholly owned subsidiary.
Franklin Mining, Inc. holds 51% ownership in both
Franklin Oil & Gas, Bolivia S.A. and
Franklin Oil & Gas, Argentina S.A.
DISCLOSURES: "Safe Harbor" statement under the Private
Securities Litigation Reform Act of 1995: ---- could cause
Franklin Mining, Inc.'s actual results to differ materially
from those expressed in any forward-looking statements
made by, or on behalf of, Franklin Mining, Inc.
For further information, please visit our website
(www.franklinmining.com) or contact our
Investor Relations firm,
A. Austin & Company,
1-702-386-5379.
A. Austin & Company
Investor Relations
1-702-386-5379
www.franklinmining.com
----
The national territory of the Argentine -
part of Tierra del Fuego -
the Argentine-claimed sector of Antarctica -
and several South Atlantic islands -
the national territory of
Tierra del Fuego a province -
Belief in and respect for multilateralism -
led to Trinidad and Tobago's respect for all -
major global and regional fora -
Are active participants in the creation of
the Free Trade Area of the Americas -
which, when maybe realized? -
will stretch from Alaska in the North -
to Tierra del Fuego in the South;
creating a market of over 800 million consumers -
and generating tremendous opportunity for economic
and social development -
The region's commitment to this hemispheric integration
process has led Trinidad and Tobago and its
CARICOM partners to offer our -
Capital City, Port-of-Spain, as the ideal location -
for the seat of the proposed permanent -
secretariat of the Free Trade Area of -
the Americas -
The length of Argentina from north to south -
is about 3,330 km (about 2,070 mi);
its greatest width is about 1,384 km (about 860 mi) -
The country includes the province of Tierra del Fuego -
which comprises the eastern half of
the Isla Grande de Tierra del Fuego -
and a number of adjacent islands to the east -
including Isla de los Estados.
The Argentine coastline measures
about 4,989 km (about 3,100 mi) long.
Argentina also claims a total of 2,808,602 sq km
(1,084,407 sq mi) of disputed territory.
Since the 1950s, Argentina has claimed a pie-shaped section
of Antarctica between longitude 25° west and
longitude 74° west -
Argentina also claims several sparsely settled southern Atlantic
islands, including the Falkland Islands -
or Islas Malvinas, currently controlled by Britain -
The two nations fought a brief war in 1982 -
over control of the islands, and sporadic discussions -
about the political fate of the islands continue -
Several major oil fields also are in Patagonia -
at the southern tip of Patagonia is Tierra del Fuego,
a large mountainous island shared by
Argentina and Chile -
In terms of value, the chief mineral product is petroleum.
In 2004 production of crude petroleum -
was 271 million barrels, furnishing the country’s -
needs and allowing Argentina to become a -
net energy exporter.
Major petroleum reserves are located in Patagonia
and offshore near the Falkland Islands (Islas Malvinas) -
Natural gas production has doubled since the 1980s
to about 41 billion cubic meters in 2003 -
with reserves located mainly in Patagonia
and Tierra del Fuego -
Hydrocarbon resources play an important role in
the economies of both the Argentine and Chilean
sides of the island -
Numerous oil and gas fields are exploited on land
and offshore, particularly in the northeastern sector
of the island -
Nearly all of the Argentine oil and gas is sold to Chile.
The vegetation in the foreground is typical of
the steppeland throughout Patagonia -
This photo was taken at Punta Catalina,
the northeasternmost point of Tierra del Fuego.
The Straits of Magellan stretch to the west -
Few people realize that Chile has an Atlantic coast -
The northeasternmost part of Tierra del Fuego -
where the Straits of Magellan enter
the South Atlantic Ocean, and the coastline
for about 15 km to the southeast are in Chilean territory.
In addition, several Chilean islands on the south side
of Tierra del Fuego, including Cape Horn,
face the Atlantic -
Franklin Mining, Inc. Is Forming Franklin Oil & Gas, Argentina -
http://www.marketwire.com/mw/release_html_b1?release_id=194250
http://www.investorshub.com/boards/read_msg.asp?message_id=15535376
In Argentina -
has been N/R reported -
SHELL CONSIDERS GTL PLANTS IN ARGENTINA AND AUSTRALIA -
The Shell Gas and Power division of Royal Dutch/Shell
has reported that it is studying additional applications
of its Shell Middle Distillate Synthesis Gas-To-Liquids (GTL)
technology in Argentina and Australia.
Rare Mountain Gorilla Born in Congo -
March 2, 2007—The rare birth of a baby mountain gorilla is
giving African wildlife workers a reason to celebrate.
Named Ndeze, the infant was born on February 17 in Virunga
National Park in the eastern Democratic Republic of Congo (DRC),
where rebel forces have recently been accused of slaughtering
and eating the critically endangered great apes.
Ndeze brings his family group up to 12 members, said
WildlifeDirect, the African conservation nonprofit that
yesterday announced the new arrival.
Another female in the group is expected to give birth
in coming weeks.
Park rangers chose the name in honor of a local tribal chief
who died two days before the newborn was discovered,
even though the baby's sex isn't yet known.
The good news is tempered by memories of recent disaster,
however.
In January the dismembered remains of two adult male gorillas
were discovered in the same area of Virunga National Park
after armed rebels invaded.
Rangers fear that four additional missing gorillas were
also shot and eaten.
The rebels, led by renegade Congolese general Laurent Nkunda,
later agreed to end the slaughter during talks with park
rangers mediated by the United Nations and the DRC army.
Only around 700 mountain gorillas remain worldwide.
More than half live in the Virunga volcanic region shared
by the DRC, Rwanda, and Uganda (see a map of the area).
Yet despite the threat from armed militias and poachers,
conservation efforts in the region appear to be paying off,
with estimated gorilla numbers up to around 380 today from
240 in the 1970s.
"The mountain gorillas have been under enormous pressure for
many years, and a newborn is always a positive step toward
protecting these animals," WildlifeDirect chairman
Richard Leakey said in a statement.
"We should not forget," he added, "that this is the product
of enormous effort and sacrifice on the part of African
rangers, many of whom have paid the price of this success
with their lives."
—James Owen
http://news.nationalgeographic.com/news/2007/03/070302-mountain-gorillas.html
Mars Melt Hints at Solar, Not Human, Cause for Warming, Scientist Says
Kate Ravilious
for National Geographic News
February 28, 2007
Simultaneous warming on Earth and Mars suggests that our
planet's recent climate changes have a natural—and not a human-
induced—cause, according to one scientist's controversial
theory.
Earth is currently experiencing rapid warming, which the vast
majority of climate scientists says is due to humans pumping
huge amounts of greenhouse gases into the atmosphere. (Get an
overview: "Global Warming Fast Facts".)
Mars North Pole image
* Photo Gallery: Global Warming
* New Mars Pictures Show Signs of Watery "Aquifers" (February 16, 2007)
* Climate Change Predictions Not Exaggerated, Analysis Says (February 1, 2007)
Mars, too, appears to be enjoying more mild and balmy temperatures.
In 2005 data from NASA's Mars Global Surveyor and Odyssey
missions revealed that the carbon dioxide "ice caps" near
Mars's south pole had been diminishing for three summers
in a row.
Habibullo Abdussamatov, head of the St. Petersburg's Pulkovo
Astronomical Observatory in Russia, says the Mars data
is evidence that the current global warming on Earth
is being caused by changes in the sun.
"The long-term increase in solar irradiance is heating
both Earth and Mars," he said.
Solar Cycles
Abdussamatov believes that changes in the sun's heat output
can account for almost all the climate changes we see
on both planets.
Mars and Earth, for instance, have experienced periodic ice
ages throughout their histories.
"Man-made greenhouse warming has made a small contribution to
the warming seen on Earth in recent years, but it cannot
compete with the increase in solar irradiance,"
Abdussamatov said.
By studying fluctuations in the warmth of the sun,
Abdussamatov believes he can see a pattern that fits
with the ups and downs in climate we see on Earth and Mars.
Abdussamatov's work, however, has not been well received
by other climate scientists.
Scientists now fear that the massive amount of carbon dioxide
humans are pumping into the air will lead to a catastrophic
rise in Earth's temperatures, dramatically raising sea levels
as glaciers melt and leading to extreme weather worldwide.
Abdussamatov remains contrarian, however, suggesting that
the sun holds something quite different in store.
"The solar irradiance began to drop in the 1990s, and a
minimum will be reached by approximately 2040,"
Abdussamatov said. "It will cause a steep cooling of
the climate on Earth in 15 to 20 years."
http://news.nationalgeographic.com/news/2007/02/070228-mars-warming.html
The Arrow - on the LT Bull move -
well, GO target moon -
nice move -
http://www.investorshub.com/boards/board.asp?board_id=7957
God Bless
Amen
To 'december' on 'D Mecatronics Inc' -
thanks, let's compare FMNJ to DMTN -
Franklin Mining is a very good LT PM stock to own -
FMNJ has given shareholders 1000s% on the money -
in share value increase -
Let's compare -
FMNJ Franklin Mng Inc (OTC) -
with the largest Gold producers -
ABX Barrick Gold Corporation (NYSE) and
NEM Newmont Mining Corporation (NYSE) -
FMNJ has given shareholders 1000s% on the money -
in share value increase -
plus its LT GOLD & SILVER Safety -
WOW - what a nice strategic FMNJ buy opportunity today -
Franklin Mining, Inc. Executives Considering Stock Buy-Back Plan -
FMNJ with Cerro Rico, Potosi, the worlds largest and richest Silver Mine -
FYI. FMNJ recently got Cerro Rico Silver Mines and its -
important - to be at the right place at the right time -
Franklin Mining, Inc. -
(FMNJ) Executives and Board Members are conferring with corporate -
legal counsel to prepare a plan for the buy-back of shares -
The timing of the buy-back and the exact number of shares -
will depend on market conditions.
In releasing this information, Jaime Melgarejo, Jr.,
Franklin's CEO said,
"With the addition of our new Zinc contract in Japan
and a pilot plant being relocated to the Pulacayo Tailings
work site, we are confident we have sufficient resources
in place to consider a buy-back of shares plan along
with several other plans by which the corporation's
$30 million tax loss carry forward can best be
utilized for the benefit of shareholders."
According to the International Lead & Zinc Study Group
(www.ilzsg.org), Zinc's worldwide demand is expected to
continue outpacing supply for the next several years.
And with the London Metals Exchange's spot market quotation
recently hovering near $1.59 per pound (www.lme.co.uk),
Franklin is projecting gross revenues
of $1,646 (USD) per metric ton.
The tax loss carry forward was previously discussed
in the February 22, 2006 press release
"Franklin Mining Reports $30Mil Tax Loss Carry Forward"
available at our web site,
www.franklinmining.com.
Hold on to your hats -
don't sell anything -
history often repeat itself -
Fys. FMNJ info -
http://www.investorshub.com/boards/board.asp?board_id=5406
Imo. Tia.
God Bless
To 'december' on 'Market Stories' -
thanks, let's compare -
Franklin Mining is a very good LT PM stock to own -
FMNJ has given shareholders 1000s% on the money -
in share value increase -
Let's compare -
FMNJ Franklin Mng Inc (OTC) -
with the largest Gold producers -
ABX Barrick Gold Corporation (NYSE) and
NEM Newmont Mining Corporation (NYSE) -
FMNJ has given shareholders 1000s% on the money -
in share value increase -
plus its LT GOLD & SILVER Safety -
WOW - what a nice strategic FMNJ buy opportunity today -
Franklin Mining, Inc. Executives Considering Stock Buy-Back Plan -
FMNJ with Cerro Rico, Potosi, the worlds largest and richest Silver Mine -
FYI. FMNJ recently got Cerro Rico Silver Mines and its -
important - to be at the right place at the right time -
Franklin Mining, Inc. -
(FMNJ) Executives and Board Members are conferring with corporate -
legal counsel to prepare a plan for the buy-back of shares -
The timing of the buy-back and the exact number of shares -
will depend on market conditions.
In releasing this information, Jaime Melgarejo, Jr.,
Franklin's CEO said,
"With the addition of our new Zinc contract in Japan
and a pilot plant being relocated to the Pulacayo Tailings
work site, we are confident we have sufficient resources
in place to consider a buy-back of shares plan along
with several other plans by which the corporation's
$30 million tax loss carry forward can best be
utilized for the benefit of shareholders."
According to the International Lead & Zinc Study Group
(www.ilzsg.org), Zinc's worldwide demand is expected to
continue outpacing supply for the next several years.
And with the London Metals Exchange's spot market quotation
recently hovering near $1.59 per pound (www.lme.co.uk),
Franklin is projecting gross revenues
of $1,646 (USD) per metric ton.
The tax loss carry forward was previously discussed
in the February 22, 2006 press release
"Franklin Mining Reports $30Mil Tax Loss Carry Forward"
available at our web site,
www.franklinmining.com.
Hold on to your hats -
don't sell anything -
history often repeat itself -
Fys. FMNJ info -
http://www.investorshub.com/boards/board.asp?board_id=5406
Imo. Tia.
God Bless
RE: San Gold Corp. SGR - Cannacord rec. -
When Cannacord brokers recommend SGR as the stock pick -
of the month -
you canbet your bippy that the time has come for this stock -
Hold on for as FC calls it 4-8 bucks and I don't doubt -
before the big bull run, much, much more.
It has been but a blip in time since this company merged -
with Gold City to become a new mid tier gold producer
in Canada.
Deposits of 2M ozs(which we have minimum) are becoming
a premium worldwide.
Hold long and you will be rewarded.
Getting out now could be a serious mistake.
Posted By: hotmuck at another SGR forum
http://www.investorshub.com/boards/board.asp?board_id=5396
http://www.investorshub.com/boards/board.asp?board_id=5404
RE: San Gold Corp. SGR - Cannacord rec. -
When Cannacord brokers recommend SGR as the stock pick -
of the month -
you canbet your bippy that the time has come for this stock -
Hold on for as FC calls it 4-8 bucks and I don't doubt -
before the big bull run, much, much more.
It has been but a blip in time since this company merged -
with Gold City to become a new mid tier gold producer
in Canada.
Deposits of 2M ozs(which we have minimum) are becoming
a premium worldwide.
Hold long and you will be rewarded.
Getting out now could be a serious mistake.
Posted By: hotmuck at another SGR forum
http://www.investorshub.com/boards/board.asp?board_id=5396
http://www.investorshub.com/boards/board.asp?board_id=5404
Old Franklin -
From the power line right-of-way on River Ridge Farm
we see PA 8/US 62 heading into Franklin town -
above the out of view Allegheny.
The hill in the middle right -
of the photo is Point Hill.
Behind Point Hill is French Creek and
a section of south-central Franklin.
Downtown is just out of view behind Point Hill -
Galena Silver Hill and Rosemont Farm -
are seen in the upper right -
Location: Franklin, Venango County -
we Love -
4700 shareholders in FMNJ -
and it's not to much barking -
we must be a sweet gang sitting pretty -
and using and luv FMNJ posts -
most waiting on -
GO Petty more FMNJ goddies -
http://tinyurl.com/y54k7r
http://tinyurl.com/zdggd
golden08 don't forget that we are over 4700 shareholders
in FMNJ -
and it's not to much barking -
we must be a sweet gang sitting pretty -
and using and luv FMNJ posts -
most waiting on more FMNJ Petty goddies -
http://tinyurl.com/y54k7r
http://tinyurl.com/zdggd
The Operation Of A Generational Gold Bull Market -
Posted On: Friday, March 02, 2007, 4:00:00 PM EST
Author: Jim Sinclair
Spin:
The Carry Trade is huge in gold, except no one can know.
The standard argument is that a slowing economy is bad for gold
because inflation will decline.
It will not! The Formula speaks for itself.
I have already suggested to you the carry trade and bullion
buyers are a contradiction of terms.
It is like saying the meeting of NASCAR fans will be held
at the Westchester Country Club.
They simply are not the same people.
The carry trade is in equities and thereupon derivatives
first and further, currencies, but primarily government paper.
The scam commercials pull under cover is completed by
hammering the silver price to tip off the Black Boxes both
in silver and gold.
The Black Boxes then do the work for the commercials
All of this turns the non-professional gold bullion -
and shareholders green with fear.
The Green Doctrine is then trampled into the ground in
the rush to click the sell icon on laptops.
Their internet brokers of course having more clients
than their floor traders and clerks can handle normally
pass the order along to other floor traders.
The order is executed, as in murdered.
If the order is executed on their Island the hope of
getting any price near the real price is problematical.
While the gold gang is giving up publicly the dollar is
going no where, the euro is taking on a nice look and
energy, although off a hair, is still firm.
In gold simple logic is lost and panic is the embarrassment
of the day.
This is how pros structure and the public executes breaks
always to the best interest of the pro.
It has always been this way. I am sorry because it always
will be.
Weakness will always be sold and strength will always
be bought.
I trade by fading the gold market.
On a day like this when gold was $665 over night and
the US operators drop it $25 in the US day, I am compelled
to buy.
I will continue, not because I think I know, but because
I know I know!
I pleaded with you over the past two weeks to eliminate
all margin, but I wager more readers took on additional
margin rather than reducing or eliminating what
they currently had.
The share guys are worse than the futures traders.
The gold share gang turns from frantically enthusiastic
to manic depressive, from friend to sworn enemy in a day.
Gold is going to $761 ,$887.50 and $1650.
Get a grip!
Where I am concerned all I can say is:
“What, Me Worry?”
http://www.jsmineset.com/
http://www.investorshub.com/boards/board.asp?board_id=5487
The Operation Of A Generational Gold Bull Market -
Posted On: Friday, March 02, 2007, 4:00:00 PM EST
Author: Jim Sinclair
Spin:
The Carry Trade is huge in gold, except no one can know.
The standard argument is that a slowing economy is bad for gold
because inflation will decline.
It will not! The Formula speaks for itself.
I have already suggested to you the carry trade and bullion
buyers are a contradiction of terms.
It is like saying the meeting of NASCAR fans will be held
at the Westchester Country Club.
They simply are not the same people.
The carry trade is in equities and thereupon derivatives
first and further, currencies, but primarily government paper.
The scam commercials pull under cover is completed by
hammering the silver price to tip off the Black Boxes both
in silver and gold.
The Black Boxes then do the work for the commercials
All of this turns the non-professional gold bullion -
and shareholders green with fear.
The Green Doctrine is then trampled into the ground in
the rush to click the sell icon on laptops.
Their internet brokers of course having more clients
than their floor traders and clerks can handle normally
pass the order along to other floor traders.
The order is executed, as in murdered.
If the order is executed on their Island the hope of
getting any price near the real price is problematical.
While the gold gang is giving up publicly the dollar is
going no where, the euro is taking on a nice look and
energy, although off a hair, is still firm.
In gold simple logic is lost and panic is the embarrassment
of the day.
This is how pros structure and the public executes breaks
always to the best interest of the pro.
It has always been this way. I am sorry because it always
will be.
Weakness will always be sold and strength will always
be bought.
I trade by fading the gold market.
On a day like this when gold was $665 over night and
the US operators drop it $25 in the US day, I am compelled
to buy.
I will continue, not because I think I know, but because
I know I know!
I pleaded with you over the past two weeks to eliminate
all margin, but I wager more readers took on additional
margin rather than reducing or eliminating what
they currently had.
The share guys are worse than the futures traders.
The gold share gang turns from frantically enthusiastic
to manic depressive, from friend to sworn enemy in a day.
Gold is going to $761 ,$887.50 and $1650.
Get a grip!
Where I am concerned all I can say is:
“What, Me Worry?”
http://www.jsmineset.com/
http://www.investorshub.com/boards/board.asp?board_id=5487
Glencairn Gold Corporation is a gold producer with three mines
in Central America.
Our Bellavista Mine in Costa Rica entered full production
in Q1/06, almost doubling the Company's gold output
to slightly more than 90,000 ounces.
Our Limon Mine in Nicaragua has been in continuous
production since 1941.
In addition, we recently announced the acquisition of
the La Libertad gold mine in Nicaragua,
which produced 34,000 ounces of gold in 2005,
and a 60% interest in Cerro Quema,
an advanced gold exploration project in Panama.
Tue Feb 27, 2007: News Releases: Glencairn Intercepts High-Grade Gold Values at Lib... (more...)
http://www.glencairngold.com/s/Home.asp
http://www.investorshub.com/boards/board.asp?board_id=5399
http://www.investorshub.com/boards/board.asp?board_id=6155
Glencairn Gold Corporation is a gold producer with three mines
in Central America.
Our Bellavista Mine in Costa Rica entered full production
in Q1/06, almost doubling the Company's gold output
to slightly more than 90,000 ounces.
Our Limon Mine in Nicaragua has been in continuous
production since 1941.
In addition, we recently announced the acquisition of
the La Libertad gold mine in Nicaragua,
which produced 34,000 ounces of gold in 2005,
and a 60% interest in Cerro Quema,
an advanced gold exploration project in Panama.
Tue Feb 27, 2007: News Releases: Glencairn Intercepts High-Grade Gold Values at Lib... (more...)
http://www.glencairngold.com/s/Home.asp
http://www.investorshub.com/boards/board.asp?board_id=5399
http://www.investorshub.com/boards/board.asp?board_id=6155
Northgate posts fourth quarter net income of $20 million;
Corporate cash reserves increase to $262 million -
<image src=http://media.marketwire.com/attachments/200701/208822_ngx.jpg>
Northgate posts fourth quarter net income of $20 million;
Corporate cash reserves increase to $262 million -
21:08 EST Thursday, March 01, 2007
Stock Symbols: TSX: NGX, AMEX: NXG
Website: www.northgateminerals.com
For the three months and twelve months ended December 31, 2006
(unaudited)
VANCOUVER, March 1 /CNW/ - (All figures in US dollars except where noted) -
Northgate Minerals Corporation
(TSX: NGX; AMEX: NXG) today reported cash flow from operations
of $43,884,000 or $0.20 per diluted common share and net
earnings of $19,790,000 or $0.09 per diluted common share
for the fourth quarter of 2006.
Cash flow from operations for all of 2006 was $146,612,000
or $0.66 per diluted common share and net earnings were
$106,742,000 or $0.48 per diluted common share.
<<
-------------------------------------------------------------------------
Fourth Quarter Highlights
- Production of 81,747 ounces of gold and 21.3 million pounds of copper
from the Kemess South mine.
- Quarterly gold net cash cost of negative $89 per ounce and a record
low net cash cost of negative $56 per ounce of gold for all of 2006.
- Increased NI-43-101 compliant gold resources at Young-Davidson to a
total of 2.1 million ounces of gold.
- Hedged 15,000 metric tonnes of the Kemess mine's expected 2007 copper
production at an average price of $3.15 per pound which is
significantly higher than the present spot price.
- Holders of Northgate's common share purchase warrants exercised a
total of 37,895,253 warrants in the fourth quarter, injecting
$99,785,000 into the Northgate's treasury.
>>
-------------------------------------------------------------------------
Ken Stowe, President and CEO, stated, "In 2006,
tremendous metal prices and record gold and copper production
from the Kemess South mine combined to generate financial
results that were well beyond our most optimistic expectations
set at the beginning of the year.
Net earnings of $107 million and cash flow from operations
of $147 million during 2006 have transformed our balance
sheet, giving us the financial capacity to move forward
with our internal development projects and the ability to
take advantage of other growth opportunities that we could
not have considered even one year ago.
And the ride is far from over. In 2007, our
Kemess South mine -
is poised to deliver another strong year of cash flow
and earnings.
We also look forward to adding to the existing mine-life
within the Kemess camp and moving the Young-Davidson project
closer to production by further expanding the
existing 2.1 million ounce gold resource base, pursuing
our underground development program and completing
the necessary engineering and environmental studies.
By executing these plans and delivering another
accretive corporate transaction like
the Young-Davidson acquisition, I fully expect that 2007
will be another excellent year for our shareholders."
RESULTS OF OPERATIONS
Northgate recorded net earnings of $19,790,000 or $0.09 per
diluted share in the fourth quarter of 2006 compared with
net earnings of $44,527,000 or $0.21 per diluted share
during the corresponding quarter of 2005.
For the full year 2006, net earnings were $106,742,000
or $0.48 per diluted share compared with $39,557,000
or $0.20 in 2005.
Earnings for the fourth quarter and the full year of
2006 included a non-cash future income tax expense of
$18,443,000 and $11,447,000, respectively.
Cash flow from operations, after changes in working
capital and other items, was $43,884,000 or $0.20 per
diluted share in the fourth quarter of 2006 compared
with cash flow of $35,843,000 or $0.17 per diluted share
during the same quarter last year.
For the full year 2006, cash flow from operations
after changes in working capital and other items
was $146,612,000 or $0.66 per diluted share compared
with $49,039,000 or $0.24 in 2005.
Per share data is based on the weighted average diluted
number of shares outstanding of 224,674,332 and 222,892,929
in the fourth quarter and full year of 2006.
The weighted average diluted number of shares outstanding
in the corresponding periods of 2005 was 209,533,541 and
202,858,866.
Kemess South Mine Performance
The Kemess South mine produced 81,747 ounces of gold and 21.3 million pounds of copper during the fourth quarter of 2006. Mill throughput during the quarter averaged 49,645 metric tonnes (mt) per day and consisted exclusively of hypogene ore with an average grade of 0.772 gr/mt gold and 0.243% copper. Over the course of 2006, quarterly metal production was relatively steady as mining was concentrated in the heart of the Kemess South ore body in the western end of the open pit. For the full year, Kemess posted record gold and copper production of 310,296 ounces and 81.2 million pounds, respectively.
During the fourth quarter of 2006, approximately 11.0 million tonnes of ore and waste were removed from the open pit compared to 12.9 million tonnes during the corresponding quarter of 2005. Unit mining costs during the current quarter were Cdn$1.64 per tonne compared with Cdn$1.19 per tonne in the same period of 2005. The higher unit mining cost in the most recent quarter resulted from expenses related to the pushback of the north wall and the escalation in unit costs that occurs naturally as the pit deepens and fewer tonnes are moved using the same complement of mobile equipment. For the total 2006 year, mining costs averaged Cdn$1.49 per tonne compared with Cdn$1.20 per tonne in 2005.
Mill availability during the fourth quarter of 2006 averaged 91% and throughput averaged 49,645 tonnes per day (tpd), compared with 90% availability and throughput of 50,738 tpd in the fourth quarter of 2005. For the full year 2006, mill availability and throughput averaged 91% and 49,956 tpd, respectively, compared with 90% and 49,302 tpd in 2005.
Gold and copper recoveries averaged 72% and 87%, respectively, in the fourth quarter of 2006 compared with 72% and 85% in the fourth quarter of 2005. The 2% increase in copper recovery actually understates the significant improvement of metallurgical performance in the Kemess mill. In the most recent quarter, the ore milled was 15% lower-grade than it was one year ago, which in the absence of process improvements made in the flotation circuit, would have yielded lower recoveries than those reported one year ago. For the full year, gold and copper recoveries were 69% and 83%, respectively, compared with 67% and 81% in 2005.
Metal concentrate inventory increased by 2,000 wet metric tonnes (wmt) to approximately 10,000 wmt during the fourth quarter of 2006 as a result of high copper concentrate production during the quarter. Concentrate inventory is expected to remain high during the first half of 2007 and decline to a more normal level of 5,000 wmt by the middle of 2007.
The total unit cost of production during the fourth quarter of 2006 was Cdn$9.10 per tonne milled, which was higher than the Cdn$8.18 per tonne milled recorded in the corresponding period of 2005. The increase in unit cost in the most recent quarter was due primarily to the higher unit mining costs. Total site operating costs in the fourth quarter of 2006 were Cdn$41.6 million compared with Cdn$38.1 million in the fourth quarter of 2005. The site operating costs in the fourth quarter of 2006 were higher than the period one year ago as a result of the extra drilling and blasting costs associated with the north wall pushback. The net cash cost of production at Kemess in the fourth quarter was negative $89 per ounce bringing the average 2006 cash cost to negative $56 per ounce. The net cash cost of gold production in both periods is negative due to the large by-product credit derived from copper production, which is credited against site operating costs for purposes of calculating cash costs.
The following table provides a summary of operations for the fourth quarter and full year of 2006 and the comparable periods of 2005.
<<
2006 Kemess Mine Production
4Q 06 4Q 05 2006 2005
-------------------------------------------------------------------------
Ore plus waste mined
(tonnes) 11,018,461 12,907,609 43,045,348 51,233,842
Ore mined (tonnes) 4,746,251 6,663,925 17,219,143 19,523,319
Stripping ratio
(waste/ore) 1.32 0.94 1.50 1.62
Tonnes milled (ore) 4,567,332 4,667,874 18,233,978 17,995,159
Average mill operating
rate (tpd) 49,645 50,738 49,956 49,302
Gold grade (gr/mt) 0.772 0.875 0.763 0.723
Copper grade (%) 0.243 0.283 0.244 0.229
Gold recovery (%) 72 72 69 67
Copper recovery (%) 87 85 83 81
Gold production (ounces) 81,747 94,405 310,296 279,962
Copper production
(000's pounds) 21,255 24,700 81,209 73,722
Productivity measures:
Tonnes mined per
shift worked 645 788 693 785
Tonnes milled per
shift worked 267 285 277 276
Cash cost of production
($/ounce) (89) 59 (56) 205
-------------------------------------------------------------------------
>>
Safety performance at Kemess in the fourth quarter continued to be good although one lost time incident was recorded. On an annual basis, 2006 showed significant improvements across six of the ten safety performance parameters measured at the mine, with continued reductions in first aid, incidents and reportable injury frequency.
Financial Performance
Northgate changed its accounting policy with respect to stockpiled ore and concentrate inventories during the quarter to incorporate a full costing method and also to value additional components of inventory created during the mining process. This change in accounting policy has been applied retroactively and is reflected in prior year comparative figures.
Northgate's revenue in the fourth quarter of 2006 was $118,239,000 compared with $95,651,000 in the corresponding period of 2005. For the full year, revenues in 2006 were $411,313,000 compared with $257,302,000 in the previous year. Metal sales in the fourth quarter of 2006 consisted of 77,443 ounces of gold and 20.4 million pounds of copper, compared with 91,033 ounces of gold and 23.7 million pounds of copper in the fourth quarter of 2005. The net realized metal prices received on sales in the fourth quarter of 2006 were approximately $533 per ounce of gold and $3.00 per pound of copper compared with $453 per ounce and $1.98 per pound, respectively, in the fourth quarter of 2005. In the fourth quarter of 2006, Northgate reduced its gold forward sales position by 6,000 ounces by settling forward contracts for cash consideration of $1,572,000 compared with nil ounces during the same period of 2005. A total of $6,348,000 in deferred gold hedging losses were amortized in the fourth quarter of 2006 and at December 31, 2006, an unamortized deferred hedging loss of $8,583,000 remained recorded on the balance sheet for certain gold forward sales contracts that were closed out prior to their original settlement dates. This deferred hedging loss will be amortized over the period in which the related forward sales contracts were originally scheduled for settlement. Northgate's gold hedging activities reduced the realized price of gold sold during the most recent quarter by $82 per ounce compared to a reduction of $32 per ounce in the corresponding period one year ago. In the fourth quarter of 2006, Northgate entered into forward sales and purchase contracts with a major financial institution to fix the price of copper delivered prior to December 31, 2006 for which final settlement has not occurred. Also during the quarter, Northgate entered into forward sales and purchase contracts with the same financial institution to fix the price of 15,000 metric tonnes of its 2007 copper production. The total quantity of 18,750 metric tones of copper was sold forward during the quarter using London Metal Exchange (LME) contracts maturing from March 2007 through April 2008 at an average forward price of $3.15 per pound.
The cost of sales in the fourth quarter of 2006 was $60,461,000 compared with the corresponding period of 2005 when the cost of sales was $47,682,000. For the full year, the cost of sales was $224,584,000 compared with $178,411,000 in 2005. Cost of sales were substantially higher in the current quarter and year-to-date ended 2006 than they were in the corresponding periods of 2005 due to higher treatment, refining and price participation charges for processing concentrate, higher concentrate production, the strengthening Canadian dollar and increased Canadian dollar denominated production costs.
Administrative and general expenses of $1,543,000 in the fourth quarter of 2006 were higher than the $1,518,000 figure recorded in the comparable period of 2005. The higher expense in the current quarter was the result of additional corporate office salaries in support of the exploration activities at Young-Davidson, increased spending on regulatory and legislative compliance costs related to Northgate's Sarbanes-Oxley 404 compliance project and higher stock based compensation expense. For the full year, administrative and general costs were $8,209,000 compared with $6,128,000 in 2005.
Depreciation and depletion expenses in the fourth quarter were $10,122,000 compared to $13,810,000 during the corresponding period of 2005. The depreciation and depletion expense for the most recent quarter was substantially lower than the same quarter one year ago, primarily due to a 29% decrease in the amount of ore mined from the open pit. Total depreciation and depletion expenses during 2006 were $35,591,000 compared with $38,009,000 in 2005. This expense was unusually high in 2005 due to the large quantity of ore that was mined from the open pit and stockpiled for processing in the 2006 supergene campaign. Amortization of Northgate's mineral property, plant and equipment is based on the unit-of-production method as ore is mined, even though the economic benefit of this stockpiled ore will not be realized until future quarters.
Northgate recorded net interest income of $2,156,000 for the three months ended December 31, 2006 compared to a net interest expense of $700,000 in the corresponding quarter of 2005. Since Northgate repaid its credit facility on February 15, 2006, its cash balances have grown substantially and interest income has begun to exceed the small interest expense arising from capital leases for mobile equipment at Kemess. For the full year, net interest income was $4,013,000 compared to an expense of $2,391,000 in 2005. Net interest income is expected to increase to over $3 million per quarter during 2007 as a result of Northgate's higher cash balances.
Exploration expenses in the fourth quarter of 2006 were $4,953,000 compared with $686,000 in the comparable period of 2005. The higher exploration expense in the most recent quarter was the result of the continuation of the surface based diamond drilling program at the Young-Davidson property and the commencement of the underground exploration program at the same property. Exploration expenses for the full year totalled $11,449,000 compared to $3,915,000 in 2005.
Capital expenditures during the fourth quarter of 2006 totalled $6,115,000 compared to $2,126,000 in the corresponding period of 2005. Capital expenditures in the most recent quarter included $1,751,000 for ongoing construction of the Kemess tailings dam, $1,695,000 for the purchase of three small drills for the north wall push back in the Kemess South pit and $2,495,000 related to permitting activities for the Kemess North project. In the fourth quarter of 2005, capital expenditures were primarily related to the ongoing tailings dam construction. Total capital expenditures during 2006 amounted to $15,199,000 compared with $14,044,000 in 2005.
Non-GAAP Measure
Northgate has included net cash costs of production per ounce of gold in the discussion of its results from operations, because it believes that these figures are a useful indicator to investors and management of a mine's performance as they provide: (i) a measure of the mine's cash margin per ounce, by comparison of the cash operating costs per ounce to the price of gold; (ii) the trend in costs as the mine matures; and, (iii) an internal benchmark of performance to allow for comparison against other mines. However, cash costs of production should not be considered as an alternative to operating profit or net profit attributable to shareholders, or as an alternative to other Canadian GAAP measures and they may not be comparable to other similarly titled measures of other companies.
A reconciliation of net cash costs per ounce of production to amounts reported in the statement of operations is shown below.
<<
(Expressed in thousands
of US$, except per
ounce amounts) 4Q 2006 4Q 2005 YE 2006 YE 2005
-------------------------------------------------------------------------
Gold production
(ounces) 81,747 94,405 310,296 279,962
-------------------------------------------------------------------------
Cost of sales $ 60,461 $ 47,682 $ 224,584 $ 178,411
Change in inventories
& other 1,944 557 7,836 6,769
Gross copper & silver
revenue (69,735) (49,366) (249,699) (127,787)
-------------------------------------------------------------------------
Total cash cost (7,330) 5,539 (17,279) 57,393
-------------------------------------------------------------------------
Cash cost per ounce $ (89) $ 59 $ (56) $ 205
-------------------------------------------------------------------------
-------------------------------------------------------------------------
>>
YOUNG-DAVIDSON EXPLORATION UPDATE
During the fourth quarter of 2006, Northgate completed a NI 43-101 compliant technical report outlining an increased resource at the Young-Davidson project near Matachewan, Ontario. The report which was filed on SEDAR on January, 29, 2007, showed an overall increase in contained gold ounces of just over 600,000 ounces of gold. All of these additional ounces are underground. Overall resources on the property now stand at 1,063,060 ounces in the measured and indicated category, with an additional inferred resource of 1,071,270 ounces (please refer to Northgate's press release dated December 18, 2006 for more information).
The surface drilling program recommenced in early January with four drills and the contractor has committed to providing two additional drills as they become available in March and April. All permits for the underground work have now been obtained and work on the underground development has been ongoing since mid-December. The ramp portal has now been collared and almost all surface infrastructure is now in place.
KEMESS NORTH UPDATE
The public hearing phase of the joint Federal-Provincial Environmental Review process concluded on December 15, 2006. On December 4, 2006, the federal and provincial governments announced that the review process would be extended for 90 days to give the two levels of government additional time to negotiate funding agreements that would enhance the involvement of several First Nations groups in the panel review process. In February 2007, the governments reached agreement with two First Nations groups to provide additional funding and a revised timetable for the completion of the panel review process is expected to be announced later in the first quarter of 2007.
<<
-------------------------------------------------------------------------
Selected Quarterly Financial Data
(expressed in thousands of US dollars, except per share data)
-------------------------------------------------------------------------
2006 Quarter Ended
-------------------------------------------------------------------------
Dec 31 Sep 30 Jun 30 Mar 31
Revenue(1) $ 118,239 $ 102,667 $ 105,348 $ 85,059
Earnings (loss) $ 19,790 $ 14,902 $ 50,315 $ 21,735
Earnings (loss)
per share
Basic $ 0.09 $ 0.07 $ 0.23 $ 0.10
Diluted $ 0.09 $ 0.07 $ 0.22 $ 0.10
-------------------------------------------------------------------------
-------------------------------------------------------------------------
2005 Quarter Ended
-------------------------------------------------------------------------
Dec 31 Sep 30 Jun 30 Mar 31
Revenue(1) $ 95,651 $ 64,631 $ 54,461 $ 42,559
Earnings (loss) $ 44,527 $ 8,765 $ (3,342) $ (10,393)
Earnings (loss)
per share
Basic $ 0.21 $ 0.04 $ (0.02) $ (0.05)
Diluted $ 0.21 $ 0.04 $ (0.02) $ (0.05)
-------------------------------------------------------------------------
(1) Consistent with the presentation adopted in the fourth quarter of
2005, revenue figures for 2005 have been adjusted to reflect the
reclassification into cost of sales of a variety of costs that were
previously netted against revenues.
(2) The figures in the table reflect the Corporation's change in
accounting policy for metal inventories.
>>
Conference Call and Webcast of Year End Financial Results
You are invited to participate in the Northgate Minerals Corporation (TSX:NGX) (AMEX:NXG) live conference call and webcast discussing our 2006 year end financial results. The call and webcast will take place on Friday, March 2, 2007, at 10:00 a.m. ET.
You may participate in the Northgate Conference Call by calling 416-644-3415 or toll free in North America at 1-800-732-9307. To ensure your participation, please call five minutes prior to the scheduled start of the call. For those unable to participate in the conference call at the scheduled time, a replay of the conference call will be available beginning on March 2 at 12:00 P.M. ET until March 16 at 11:59 PM ET.
<<
Replay Access No. 416-640-1917 Passcode: 21219271 followed by the
number sign.
Replay Access No. 877-289-8525 Passcode: 21219271 followed by the
number sign.
>>
A live and archive Webcast of this call, which includes our presentation package, will also be made available on our website at www.northgateminerals.com.
Northgate Minerals Corporation is a gold and copper mining company focused on operations and opportunities in the Americas. The Corporation's principal assets are the Kemess South mine in north-central British Columbia, the adjacent Kemess North deposit, which contains a proven and probable reserve of 4.1 million ounces of gold and the Young-Davidson property in northern Ontario with a total resource base of 2.1 million ounces of gold. Northgate is listed on the Toronto Stock Exchange under the symbol NGX and on the American Stock Exchange under the symbol NXG.
Forward-Looking Statements
This news release includes certain "forward-looking statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. These forward-looking statements include estimates, forecasts, and statements as to management's expectations with respect to, among other things, future metal production and production costs, potential mineralization and reserves, exploration results, progress in the development of mineral properties, demand and market outlook for commodities and future plans and objectives of Northgate Minerals Corporation (Northgate). Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," or "continue" or the negative thereof or variations thereon or similar terminology. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management are inherently subject to significant business, economic and competitive uncertainties and contingencies. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Northgate's expectations are disclosed under the heading "Risk and Uncertainties" in Northgate's 2005 Annual Report and under the heading "Risk Factors" in Northgate's 2005 Annual Information Form (AIF) both of which are filed with Canadian regulators on SEDAR (www.sedar.com) and with the United States Securities and Exchange Commission (www.sec.gov). Northgate expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
<<
NORTHGATE MINERALS CORPORATION
INTERIM CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States dollars)
December 31 December 31
2006 2005(1)
-------------------------------------------------------------------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 262,199 $ 50,639
Concentrate settlements and other
receivables 17,960 18,885
Inventory 24,999 28,901
Future income tax asset 7,469 -
Deferred hedging loss 8,583 4,561
-------------------------------------------------------------------------
321,210 102,986
Other assets 28,831 14,117
Future income tax asset 6,291 13,937
Mineral property, plant and equipment 159,299 177,966
-------------------------------------------------------------------------
$ 515,631 $ 309,006
-------------------------------------------------------------------------
-------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 22,023 $ 19,556
Current portion of capital lease obligations 2,439 4,215
Current portion of long-term debt - 13,700
-------------------------------------------------------------------------
24,462 37,471
Capital lease obligations 2,586 7,680
Provision for site closure and reclamation
obligations 28,197 26,193
Future income tax liability 12,638 1,229
-------------------------------------------------------------------------
67,883 72,573
-------------------------------------------------------------------------
SHAREHOLDERS' EQUITY (Note 3)
Common shares 307,914 195,565
Warrants - 8,715
Contributed surplus 2,596 1,657
Retained earnings 137,238 30,496
-------------------------------------------------------------------------
447,748 236,433
-------------------------------------------------------------------------
$ 515,631 $ 309,006
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Adjusted (note 2)
The accompanying notes form an integral part of these financial
statements.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of United States dollars,
except per share amounts)
Three months ended Twelve months ended
December 31 December 31
(Unaudited) 2006 2005(1) 2006 2005(1)
-------------------------------------------------------------------------
Revenue $ 118,239 $ 95,651 $ 411,313 $ 257,302
-------------------------------------------------------------------------
Cost of sales 60,461 47,682 224,584 178,411
Administrative and
general 1,543 1,518 8,209 6,128
Depreciation and
depletion 10,122 13,810 35,591 38,009
Interest expense
(income) (2,156) 700 (4,013) 2,391
Exploration 4,953 686 11,449 3,915
Currency translation
losses (gains) 3,726 (573) 1,922 (962)
Accretion of site
closure and reclamation
costs 406 306 1,553 1,183
Other expense (income) - (50) 8,423 496
-------------------------------------------------------------------------
79,055 64,079 287,718 229,571
-------------------------------------------------------------------------
Earnings before
income taxes 39,184 31,572 123,595 27,731
Income tax recovery
(expense)
Current (951) (982) (5,406) (2,111)
Future (note 5) (18,443) 13,937 (11,447) 13,937
-------------------------------------------------------------------------
(19,394) 12,955 (16,853) 11,826
-------------------------------------------------------------------------
Net earnings for
the period $ 19,790 $ 44,527 $ 106,742 $ 39,557
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings per
share
Basic $ 0.09 $ 0.21 $ 0.50 $ 0.20
Diluted $ 0.09 $ 0.21 $ 0.48 $ 0.20
Weighted average
shares outstanding
Basic 217,165,384 209,195,152 215,609,932 202,789,310
Diluted 224,674,332 209,533,541 222,892,929 202,858,866
-------------------------------------------------------------------------
-------------------------------------------------------------------------
INTERIM CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (DEFICIT)
(Expressed in thousands of United States dollars)
Three months ended Twelve months ended
December 31 December 31
(Unaudited) 2006 2005 2006 2005
-------------------------------------------------------------------------
Retained earnings
(deficit) at beginning
of period
As previously
reported $ 117,448 $ (20,180) $ 30,496 $ (15,210)
Adjustment for
retroactive change
in accounting for
inventory (note 2) - 6,149 - 6,149
-------------------------------------------------------------------------
As adjusted (note 2) 117,448 (14,031) 30,496 (9,061)
Net earnings for
the period 19,790 44,527 106,742 39,557
-------------------------------------------------------------------------
Retained earnings at
end of period $ 137,238 $ 30,496 $ 137,238 $ 30,496
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Adjusted (note 2)
The accompanying notes form an integral part of these financial
statements.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of United States dollars)
Three months ended Twelve months ended
December 31 December 31
(Unaudited) 2006 2005(1) 2006 2005(1)
-------------------------------------------------------------------------
CASH PROVIDED BY
(USED IN)
Operations
Earnings for the
period $ 19,790 $ 44,527 $ 106,742 $ 39,557
Non-cash items
Depreciation and
depletion 10,122 13,810 35,591 38,009
Unrealized currency
translation losses 1,335 1,006 1,047 1,251
Accretion of site
closure and
reclamation costs 406 306 1,553 1,183
Amortization of
deferred hedging loss 6,348 5,585 21,375 5,585
Amortization of
deferred charges 73 (2,208) 562 1,305
Stock-based
compensation 290 38 2,014 845
Future income tax
expense (recovery) 18,443 (13,937) 11,447 (13,937)
Change in fair value
of forward contracts (17,975) 755 (16,619) 755
Other expenses (income) - (277) - (299)
-------------------------------------------------------------------------
Changes in non-cash
operating working
capital and other
Concentrate
settlements and
other receivables 11,949 (6,391) 13,909 (7,558)
Inventory (1,526) (7,734) (5,730) (9,846)
Accounts payable and
accrued liabilities (3,685) 751 2,467 2,723
Settlement of
forward contracts (1,572) - (25,397) (10,146)
Reclamation costs paid (114) (388) (2,349) (388)
-------------------------------------------------------------------------
43,884 35,843 146,612 49,039
-------------------------------------------------------------------------
Investments
Purchase of other assets (1,714) (852) (1,845) (852)
Purchase of mineral
property, plant and
equipment (6,115) (2,126) (15,199) (12,697)
Proceeds on sale of
property - - - 171
Net cash acquired on
acquisition of
Young-Davidson Mines,
Limited - 123 - 123
-------------------------------------------------------------------------
(7,829) (2,855) (17,044) (13,255)
-------------------------------------------------------------------------
Financing
Repayment of capital
lease obligation (708) (1,316) (6,870) (4,959)
Repayment of long-term
debt - (14,050) (13,700) (29,800)
Issuance of common
shares 99,998 177 102,562 357
-------------------------------------------------------------------------
99,290 (15,189) 81,992 (34,402)
-------------------------------------------------------------------------
Increase in cash and
cash equivalents 135,345 17,799 211,560 1,382
Cash and cash
equivalents at
beginning of period 126,854 32,840 50,639 49,257
-------------------------------------------------------------------------
Cash and cash
equivalents at end
of period $ 262,199 $ 50,639 $ 262,199 $ 50,639
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Supplementary Information
Cash paid during the
period for
Interest 111 1,363 1,006 4,204
Income taxes 484 - 484 -
Non-cash financing
activities
Issuance of common
shares and other
securities on Young-
Davidson Mines,
Limited purchase - 17,990 - 17,990
Purchase of mineral
property, plant
and equipment by
assumption of capital
lease obligations - - - 1,347
-------------------------------------------------------------------------
(1) Adjusted (note 2)
The accompanying notes form an integral part of these financial
statements.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Three and Twelve months ended December 31, 2006 and 2005
(Dollar amounts in tables are expressed in thousands of United States
dollars unless indicated) (Unaudited)
1. Basis of Presentation
The accompanying unaudited interim consolidated financial statements
have been prepared in accordance with generally accepted accounting
principles in Canada ("Canadian GAAP"). They do not include all the
disclosures required by generally accepted accounting principles for
annual financial statements and should be read in conjunction with
the Corporation's consolidated financial statements and the notes
thereto included in the Corporation's Annual Report for the year
ended December 31, 2005. In the opinion of management, all
adjustments considered necessary for fair presentation have been
included in these financial statements.
These financial statements are prepared using the same accounting
policies and methods of application as those disclosed in Note 2 to
the Corporation's consolidated financial statements for the year
ended December 31, 2005.
2. Accounting Changes
During the quarter ended December 31, 2006, the Corporation changed
its accounting policy with respect to metal inventories to
incorporate a full costing method and also to value additional
components of inventory created during the mining process. This
change in accounting policy has been applied retroactively for all
years presented. Net earnings for the year ended December 31, 2005
increased by $6,670,000 (2004 - $1,541,000) or $0.04 per share
(2004 - nil). Additionally, as at December 31, 2005, inventory
increased by $13,882,000 and the future income tax asset decreased by
$1,063,000.
3. Shareholders' Equity
(a) Common shares
---------------------------------------------------------------------
Number of shares Amount
---------------------------------------------------------------------
Balance, December 31, 2005 214,011,246 $ 195,565
Issued in Q1 2006:
Pursuant to Employee Share Purchase Plan 45,027 102
On exercise of warrants 314,523 480
On exercise of options 386,800 490
Issued in Q2 2006:
Pursuant to Employee Share Purchase Plan 30,269 113
On exercise of warrants 10,202 27
On exercise of options 810,880 2,247
Issued in Q3 2006:
Pursuant to Employee Share Purchase Plan 30,955 109
On exercise of warrants 2,778 8
On exercise of options 22,800 84
Issued in Q4 2006:
Pursuant to Employee Share Purchase Plan 39,300 130
On exercise of warrants 37,895,253 108,383
On exercise of options 100,000 176
---------------------------------------------------------------------
Balance, December 31, 2006 (unaudited) 253,700,033 $ 307,914
---------------------------------------------------------------------
---------------------------------------------------------------------
On or before December 28, 2006 holders of Northgate publicly traded
common share purchase warrants (CUSIP numbers 666416169 and
666416177) exercised a total of 37,895,253 warrants. 274,105 warrants
expired unexercised. As a consequence of the warrants exercise, the
Corporation received a total of $99,785,000. As of March 1, 2007, the
Corporation had 254,115,058 issued and outstanding common shares.
(b) Stock-based compensation
During the three months ended December 31, 2006, the Corporation
granted a total of 75,000 options (2005 - 20,000) to employees with a
term of seven years, exercisable at Cdn$3.85. Twenty percent (15,000)
of these options vested immediately and the balance will vest in
equal amounts on the anniversary of the grant over the next four
years. During the three months ended December 31, 2006, $246,000
(2005 - $2,000) was recognized for options that vested during the
quarter. The fair value of the options granted for the quarter ended
December 31, 2006 was $145,000 (2005 - $10,000).
During the three months ended December 31, 2006, 100,000 options were
exercised and 11,000 options were either cancelled or expired.
At December 31, 2006, there were 4,655,340 options outstanding of
which 2,097,340 were exercisable.
There were no options granted during the three months ended
September 30, 2006 (2005 - nil). During the three months ended
September 30, 2006, $244,001 (2005 - $16,133) of stock-based
compensation was recognized for options that vested during the
quarter.
During the three months ended September 30, 2006, 22,800 options were
exercised and 18,200 options were either cancelled or expired.
There were no options granted during the three months ended June 30,
2006 (2005 - 50,000). During the three months ended June 30, 2006,
$240,000 (2005 - $85,000) of stock-based compensation was recognized
for options that vested during the quarter.
During the three months ended June 30, 2006, 810,880 options were
exercised and 56,500 options were either cancelled or expired.
During the three months ended March 31, 2006, the Corporation granted
a total of 1,352,000 (2005 - 1,205,000) options to employees, with a
term of seven years. 1,217,000 of these options are exercisable at
Cdn$2.60, 100,000 are exercisable at Cdn$2.52 and 35,000 are
exercisable at Cdn$2.65. Twenty percent (242,000) of these options
vested immediately and the balance will vest in equal amounts on the
anniversary date of the grant over the next four years. The fair
value of the options granted for the quarter ended March 31, 2006 was
$1,480,000 (2005 - $604,000). During the three months ended March 31,
2006, $1,131,000 (2005 - $578,000) of stock-based compensation was
recognized for options that vested during the quarter.
During the three months ended March 31, 2006, a total of 86,800
options were cancelled and 386,800 options were exercised.
The fair value of the share options granted during 2006 was estimated
using the Black-Scholes pricing model with the following assumptions
(there were no options granted in Q3 2006 or Q3 2005):
---------------------------------------------------------------------
For Options Granted in
---------------------------------------------------------------------
2006 2005
---------------------------------------------------------------------
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------
Risk-free
interest
rate 4.53% - - 4.1% 2.5% - 2.5% 2.5%
---------------------------------------------------------------------
Annual
dividends - - - - - - - -
---------------------------------------------------------------------
Expected
stock price
volatility 50% - - 60% 51% - 55% 56%
---------------------------------------------------------------------
Expected
option 5.0 5.0 3.5 3.5 3.5
life years - - years years - years years
---------------------------------------------------------------------
Per share
fair value
of options
granted
(Cdn$) $2.20 - - $0.62 $0.59 - $0.62 $0.76
---------------------------------------------------------------------
4. Financial Instruments
During the three months ended December 31, 2006, the Corporation
reduced its gold forward sales position by 6,000 (2005 - nil) ounces
at a cost of $1,572,000 (2005 - $nil). For the full year ended
December 31, 2006, 79,000 ounces were settled at a cost of
$25,397,000. In accordance with Accounting Guideline 13, "Hedging
Relationships", the losses associated with the early settlement of
these contracts were deferred and are being amortized over the same
period as the forward sales contracts were originally scheduled to be
closed out. As at December 31, 2006, $8,583,000 of the deferred
hedging loss from early settlement of contracts remained deferred and
will be amortized over the period that the forward sales contracts
were originally scheduled to settle (January 2007 - December 2007).
At December 31, 2006, Northgate had remaining gold forward sales
commitments with a major financial institution to deliver 60,000
ounces of gold at an average accumulated price of $307 per ounce.
These commitments are in the form of forward sales contracts maturing
at various dates between March 30, 2007 and December 31, 2007. The
unrealized loss on these forward contracts at December 31, 2006 was
approximately $20,265,000, and has not been recognized in these
financial statements.
At December 31, 2006, the Corporation had forward sales contracts
with a major financial institution to fix the price of delivered
copper for which final settlement has not occurred. A total of
21,650 metric tonnes of copper were sold forward using LME contracts
maturing from January 2007 through May 2008 at an average forward
price of $3.19 per pound. The Corporation also entered into separate
forward purchase contracts with the same institution to repurchase
its forward sales position at monthly average cash LME prices over
the same period. The volume of forward sales and purchases in each
future contract month match the expected future pricing periods for
copper in concentrate delivered to Xstrata (formerly Falconbridge)
under a multi-year concentrate sales agreement. The copper forward
sales and purchase contracts are being recognized on a mark-to-market
basis. The fair value of these contracts at December 31, 2006 was a
net gain of $15,488,000.
5. Future Income Taxes
During the fourth quarter, the Company recognized future income tax
expense of $18,443,000 to reflect the utilization of tax losses and
other tax deductions to offset taxable income.
6. Commitments and Contingencies
In the second quarter of 2006, the Corporation entered into a
Cooperation Agreement with the Tse Keh Nay (3 Nations) related to the
operation of Northgate's existing Kemess South mine. The Corporation
paid Cdn$500,000 on signing of the agreement and the Corporation will
provide funding to benefit the Tse Keh Nay member communities in the
amount of Cdn$1,000,000 per year over the remaining Kemess South mine
life.
Also in the second quarter, Northgate launched an unsolicited offer
to purchase all the outstanding common shares of Aurizon Mines Ltd
("Aurizon"). On July 7, 2006, the Corporation withdrew its offer
after the British Columbia Court of Appeal upheld a previous lower
court injunction against Northgate's offer. As a result of this
ruling, Aurizon was awarded its costs and damages that are yet to be
determined. The Corporation accrued an estimate of these costs and
damages as a charge against earnings in the second quarter of 2006.
In the third quarter of 2006, the Corporation entered into a fixed-
price agreement to purchase a total of 12,000,000 litres of low-
sulphur diesel fuel (approximately 50% of expected 2007 consumption)
from a supplier for delivery during 2007.
7. Subsequent Events
In January of 2007 the Corporation repurchased 30,000 ounces of its
gold forward sales position at a cost of $9,325,800. As of March 1,
2007 the remaining gold forward sales position is 30,000 ounces at an
average accumulated price of $307 per ounce.
>>
%CIK: 0000072931
For further information: Ms. Keren R. Yun, Manager, Investor Relations, (416) 216-2781, kyun@northgateminerals.com
http://www.investorshub.com/boards/board.asp?board_id=5487
ot. Argentina Antrim 4th Tierra del Fuego Well -
Antrim Energy 1/31/2006
Antrim Energy has drilled and cased Los Patos 1003,
the fourth well in Antrim's multi-well drilling program
in Tierra del Fuego, Argentina.
Based on logging results, the well encountered at least
a 6.6 meter thick net pay interval in the target zone,
the Cretaceous Springhill Formation.
Production testing will be performed in February 2006
using the large capacity test equipment mobilized for
earlier discoveries in the program.
The drilling rig used to drill Los Patos 1003 is moving
to the fifth location in the program at Los Violetas 107.
Drilling operations at LV-107 are expected to commence
within the next week.
Antrim has a 25.78% working interest in three producing
exploitation concessions in Tierra del Fuego, located
on the southern tip of Argentina.
http://www.franklinmining.com/Projects/OilGasProjects/TierraDelFuegoGasIndustrializationProject/tabi...
http://tinyurl.com/yl33ko
http://www.franklinmining.com/Home/tabid/1215/Default.aspx
RE: #3 Franklin Announces GTL Plant in Tierra del Fuego, Argentina -
Agreement Is for Development and Operation of First GTL -
Facility of This Size in South America -
RE: prev. GTL Plant news a few discussions........
US North American LNG Supplies -
Intelligence Press 1/30/2006
Experts See More Competition for -
Liquefied natural gas (LNG) -
imports are forecast to be about one-fifth of the U.S. gas
supply by 2025, but North American markets will face several
domestic and global challenges going forward, industry
experts said.
Among other things, U.S. buyers will have to compete a lot
more for nearby Atlantic Basin supplies, and will find
access issues a continuing challenge.
Speaking at Strategic Research Institute's Sixth Annual
LNG Economics & Technology conference in Houston,
American Petroleum Institute (API) senior economist
Sara J. Banaszak said even with the recent pullback in
gas prices, most forecasts indicate a sharp rise in
higher-priced LNG imports over the next 20 years.
Flattening or lower Canadian gas imports and declining
domestic production make LNG one of the only viable
solutions going forward, she said.
Even if the Alaskan and/or Mackenzie Delta gas pipelines
are completed within the next seven to 10 years, they
will only help overcome a very small "sliver" of needed
gas supply.
"What distinguishes the United States from the rest of
the world is the tremendous use of natural gas for
industrial production," said Banaszak.
"LNG is used for power generation in other parts of
the world."
Here, she said, it's more of an "industrial swap."
And because of high industrial use and expected gas-fired
power generation growth, North America will be competing
for LNG more in the years to come.
"We are assuming off limits stay off limits," she said,
referring to untapped recoverable domestic gas resources,
such as a ban on drilling in the eastern Gulf of Mexico.
Overall, API estimates that about 40% of U.S. gas resources
are restricted.
If consumers and the government decide to open more areas
for drilling, it could impact how fast LNG imports grow.
"The point is, addressing 'off limits' could impact
the market going forward."
Most U.S. LNG imports now come from Trinidad,
but unlike oil, LNG comes from a variety of sources worldwide,
ensuring its security and reliability, Banaszak said.
But the United States competes with the rest of the world
for LNG, even in nearby Trinidad.
Speaker Jake Dweck said understanding access development
issues across the globe will continue to challenge importers.
Dweck chairs the LNG Group for the law firm -
Sutherland Asbill & Brennan LLP.
"Each significant LNG player in this competitive environment
has to learn all of the regulations, access rules and
contract rules in the United States and Europe," he said.
"I can't overemphasize how critical it is for all of the
significant players to be aware of the rules everywhere."
Atlantic Basin markets are increasing about as rapidly
as those of the powerful Pacific Basin, which still
controls most of the global LNG.
"The Pacific Basin supplies dominated supply growth until
1996, accounting for 72% of supply at that time.
They have now fallen back to 51%," he noted.
"The Middle East and Atlantic Basins are now growing -
the most rapidly," with U.S. imports a major factor.
The LNG trade also is affecting short-term LNG sales, he said.
Short-term volumes are still small -- they accounted for
about 1.4% of the market in 1992, and in 2001 they'd
grown to about 7.5%.
However, Dweck pointed to a study by Jensen Associates
which indicates short-term volumes now account for
11.2% of LNG sales.
The growing role of short-term spot market imports and
a growing arbitrage between the United States and Europe
"are making the markets more codependent."
Eventually, he said, European markets could be using
Henry Hub gas prices to set the market.
"There's a tendency to price contracts to the U.S. market,
with contracts containing certain clauses to allow them
to divert to other markets.
It makes Henry Hub the price point, and leads to more
interdependence between the United States and Europe."
Long-term, or 20-year contracts, will "indeed be the
cornerstone" of the marketplace because they provide
the financing, said Dweck.
"However, I see a trend for uncommitted capacity retained
for the upstream side."
Once more open access regasification terminals are
completed, "we're going to see the U.S. regasification
capacity at 50-60%, with the rest available for short-term
trades, with market-competitive contracts."
Franklin Announces GTL Plant in Tierra del Fuego, Argentina -
Agreement Is for Development and Operation of First GTL -
Facility of This Size in South America -
LAS VEGAS, NV, Feb 28, 2007 (MARKET WIRE via COMTEX) --
Franklin Mining, Inc. -
(FMNJ) President Jaime Melgarejo, Jr. has returned from
Argentina where he and an engineer visited possible
construction sites for a gas-to-liquid (GTL) facility
to be constructed in the Province of Tierra del Fuego,
Argentina.
William Petty -
has traveled to Zurich, Switzerland to secure necessary -
financing.
Franklin Oil & Gas, Argentina, S.A.,
was formed in December 2006 as the first step toward
fulfillment of an agreement for the construction and
operation of a 10,000 barrel-per-day GTL processing
facility.
The agreement, signed by Hugo Cocarro, Governor
of Tierra del Fuego, is accompanied by a 25 year
guarantee of the required natural gas resource
issued to Franklin Oil & Gas, Argentina S.A.
on November 16, 2006 by Cristian A. Folgar,
Argentina's National Undersecretary of Fuels.
Announcement of Franklin Oil & Gas' contract comes
three weeks following Royal Dutch Shell Plc's cornerstone
ceremony at the site of their Pearl GTL facility in Qatar.
Franklin's development and production agreement with Argentina
-- similar to agreements reached by major oil companies
in other countries, including Shell in Qatar --
will result in the first such facility of this size
in South America.
When fully operational, Argentina's Tierra del Fuego Province
will begin using an existing abundant natural resource
(natural gas) to gradually achieve energy independence
while creating local economic growth through reduced
energy costs and increased export revenues.
Long term benefits include production and export of
additional energy resources including naphtha and electricity.
Benefit to local, Province and National governments include
taxes and royalties as well as participating in production
profits.
During the next thirty months (the planning and construction
phases), development and construction of the GTL plant
will have created 400 direct and 2300 indirect jobs.
Operating the plant will create 140 direct and 500 indirect
permanent jobs.
Additional information on Franklin Mining, Inc.'s GTL projects
in Bolivia and Argentina is available at
www.franklinmining.com
About Franklin Mining, Inc.:
Franklin Mining, Inc. has mining and exploration interests
in the United States, Argentina and Bolivia;
Franklin Mining, Bolivia S.A. is a wholly owned subsidiary.
Franklin Mining, Inc. holds 51% ownership in both
Franklin Oil & Gas, Bolivia S.A. and
Franklin Oil & Gas, Argentina S.A.
DISCLOSURES: "Safe Harbor" statement under the Private
Securities Litigation Reform Act of 1995: ---- could cause
Franklin Mining, Inc.'s actual results to differ materially
from those expressed in any forward-looking statements
made by, or on behalf of, Franklin Mining, Inc.
For further information, please visit our website
(www.franklinmining.com) or contact our
Investor Relations firm,
A. Austin & Company,
1-702-386-5379.
A. Austin & Company
Investor Relations
1-702-386-5379
www.franklinmining.com
----
The national territory of the Argentine -
part of Tierra del Fuego -
the Argentine-claimed sector of Antarctica -
and several South Atlantic islands -
the national territory of
Tierra del Fuego a province -
Belief in and respect for multilateralism -
led to Trinidad and Tobago's respect for all -
major global and regional fora -
Are active participants in the creation of
the Free Trade Area of the Americas -
which, when maybe realized? -
will stretch from Alaska in the North -
to Tierra del Fuego in the South;
creating a market of over 800 million consumers -
and generating tremendous opportunity for economic
and social development -
The region's commitment to this hemispheric integration
process has led Trinidad and Tobago and its
CARICOM partners to offer our -
Capital City, Port-of-Spain, as the ideal location -
for the seat of the proposed permanent -
secretariat of the Free Trade Area of -
the Americas -
The length of Argentina from north to south -
is about 3,330 km (about 2,070 mi);
its greatest width is about 1,384 km (about 860 mi) -
The country includes the province of Tierra del Fuego -
which comprises the eastern half of
the Isla Grande de Tierra del Fuego -
and a number of adjacent islands to the east -
including Isla de los Estados.
The Argentine coastline measures
about 4,989 km (about 3,100 mi) long.
Argentina also claims a total of 2,808,602 sq km
(1,084,407 sq mi) of disputed territory.
Since the 1950s, Argentina has claimed a pie-shaped section
of Antarctica between longitude 25° west and
longitude 74° west -
Argentina also claims several sparsely settled southern Atlantic
islands, including the Falkland Islands -
or Islas Malvinas, currently controlled by Britain -
The two nations fought a brief war in 1982 -
over control of the islands, and sporadic discussions -
about the political fate of the islands continue -
Several major oil fields also are in Patagonia -
at the southern tip of Patagonia is Tierra del Fuego,
a large mountainous island shared by
Argentina and Chile -
In terms of value, the chief mineral product is petroleum.
In 2004 production of crude petroleum -
was 271 million barrels, furnishing the country’s -
needs and allowing Argentina to become a -
net energy exporter.
Major petroleum reserves are located in Patagonia
and offshore near the Falkland Islands (Islas Malvinas) -
Natural gas production has doubled since the 1980s
to about 41 billion cubic meters in 2003 -
with reserves located mainly in Patagonia
and Tierra del Fuego -
Hydrocarbon resources play an important role in
the economies of both the Argentine and Chilean
sides of the island -
Numerous oil and gas fields are exploited on land
and offshore, particularly in the northeastern sector
of the island -
Nearly all of the Argentine oil and gas is sold to Chile.
The vegetation in the foreground is typical of
the steppeland throughout Patagonia -
This photo was taken at Punta Catalina,
the northeasternmost point of Tierra del Fuego.
The Straits of Magellan stretch to the west -
Few people realize that Chile has an Atlantic coast -
The northeasternmost part of Tierra del Fuego -
where the Straits of Magellan enter
the South Atlantic Ocean, and the coastline
for about 15 km to the southeast are in Chilean territory.
In addition, several Chilean islands on the south side
of Tierra del Fuego, including Cape Horn,
face the Atlantic -
Franklin Mining, Inc. Is Forming Franklin Oil & Gas, Argentina -
http://www.marketwire.com/mw/release_html_b1?release_id=194250
http://www.investorshub.com/boards/read_msg.asp?message_id=15535376
In Argentina -
has been N/R reported -
SHELL CONSIDERS GTL PLANTS IN ARGENTINA AND AUSTRALIA -
The Shell Gas and Power division of Royal Dutch/Shell
has reported that it is studying additional applications
of its Shell Middle Distillate Synthesis Gas-To-Liquids (GTL)
technology in Argentina and Australia.
RE: #3 Franklin Announces GTL Plant in Tierra del Fuego, Argentina -
Agreement Is for Development and Operation of First GTL -
Facility of This Size in South America -
RE: prev. GTL Plant news a few discussions........
US North American LNG Supplies -
Intelligence Press 1/30/2006
Experts See More Competition for -
Liquefied natural gas (LNG) -
imports are forecast to be about one-fifth of the U.S. gas
supply by 2025, but North American markets will face several
domestic and global challenges going forward, industry
experts said.
Among other things, U.S. buyers will have to compete a lot
more for nearby Atlantic Basin supplies, and will find
access issues a continuing challenge.
Speaking at Strategic Research Institute's Sixth Annual
LNG Economics & Technology conference in Houston,
American Petroleum Institute (API) senior economist
Sara J. Banaszak said even with the recent pullback in
gas prices, most forecasts indicate a sharp rise in
higher-priced LNG imports over the next 20 years.
Flattening or lower Canadian gas imports and declining
domestic production make LNG one of the only viable
solutions going forward, she said.
Even if the Alaskan and/or Mackenzie Delta gas pipelines
are completed within the next seven to 10 years, they
will only help overcome a very small "sliver" of needed
gas supply.
"What distinguishes the United States from the rest of
the world is the tremendous use of natural gas for
industrial production," said Banaszak.
"LNG is used for power generation in other parts of
the world."
Here, she said, it's more of an "industrial swap."
And because of high industrial use and expected gas-fired
power generation growth, North America will be competing
for LNG more in the years to come.
"We are assuming off limits stay off limits," she said,
referring to untapped recoverable domestic gas resources,
such as a ban on drilling in the eastern Gulf of Mexico.
Overall, API estimates that about 40% of U.S. gas resources
are restricted.
If consumers and the government decide to open more areas
for drilling, it could impact how fast LNG imports grow.
"The point is, addressing 'off limits' could impact
the market going forward."
Most U.S. LNG imports now come from Trinidad,
but unlike oil, LNG comes from a variety of sources worldwide,
ensuring its security and reliability, Banaszak said.
But the United States competes with the rest of the world
for LNG, even in nearby Trinidad.
Speaker Jake Dweck said understanding access development
issues across the globe will continue to challenge importers.
Dweck chairs the LNG Group for the law firm -
Sutherland Asbill & Brennan LLP.
"Each significant LNG player in this competitive environment
has to learn all of the regulations, access rules and
contract rules in the United States and Europe," he said.
"I can't overemphasize how critical it is for all of the
significant players to be aware of the rules everywhere."
Atlantic Basin markets are increasing about as rapidly
as those of the powerful Pacific Basin, which still
controls most of the global LNG.
"The Pacific Basin supplies dominated supply growth until
1996, accounting for 72% of supply at that time.
They have now fallen back to 51%," he noted.
"The Middle East and Atlantic Basins are now growing -
the most rapidly," with U.S. imports a major factor.
The LNG trade also is affecting short-term LNG sales, he said.
Short-term volumes are still small -- they accounted for
about 1.4% of the market in 1992, and in 2001 they'd
grown to about 7.5%.
However, Dweck pointed to a study by Jensen Associates
which indicates short-term volumes now account for
11.2% of LNG sales.
The growing role of short-term spot market imports and
a growing arbitrage between the United States and Europe
"are making the markets more codependent."
Eventually, he said, European markets could be using
Henry Hub gas prices to set the market.
"There's a tendency to price contracts to the U.S. market,
with contracts containing certain clauses to allow them
to divert to other markets.
It makes Henry Hub the price point, and leads to more
interdependence between the United States and Europe."
Long-term, or 20-year contracts, will "indeed be the
cornerstone" of the marketplace because they provide
the financing, said Dweck.
"However, I see a trend for uncommitted capacity retained
for the upstream side."
Once more open access regasification terminals are
completed, "we're going to see the U.S. regasification
capacity at 50-60%, with the rest available for short-term
trades, with market-competitive contracts."
Franklin Announces GTL Plant in Tierra del Fuego, Argentina -
Agreement Is for Development and Operation of First GTL -
Facility of This Size in South America -
LAS VEGAS, NV, Feb 28, 2007 (MARKET WIRE via COMTEX) --
Franklin Mining, Inc. -
(FMNJ) President Jaime Melgarejo, Jr. has returned from
Argentina where he and an engineer visited possible
construction sites for a gas-to-liquid (GTL) facility
to be constructed in the Province of Tierra del Fuego,
Argentina.
William Petty -
has traveled to Zurich, Switzerland to secure necessary -
financing.
Franklin Oil & Gas, Argentina, S.A.,
was formed in December 2006 as the first step toward
fulfillment of an agreement for the construction and
operation of a 10,000 barrel-per-day GTL processing
facility.
The agreement, signed by Hugo Cocarro, Governor
of Tierra del Fuego, is accompanied by a 25 year
guarantee of the required natural gas resource
issued to Franklin Oil & Gas, Argentina S.A.
on November 16, 2006 by Cristian A. Folgar,
Argentina's National Undersecretary of Fuels.
Announcement of Franklin Oil & Gas' contract comes
three weeks following Royal Dutch Shell Plc's cornerstone
ceremony at the site of their Pearl GTL facility in Qatar.
Franklin's development and production agreement with Argentina
-- similar to agreements reached by major oil companies
in other countries, including Shell in Qatar --
will result in the first such facility of this size
in South America.
When fully operational, Argentina's Tierra del Fuego Province
will begin using an existing abundant natural resource
(natural gas) to gradually achieve energy independence
while creating local economic growth through reduced
energy costs and increased export revenues.
Long term benefits include production and export of
additional energy resources including naphtha and electricity.
Benefit to local, Province and National governments include
taxes and royalties as well as participating in production
profits.
During the next thirty months (the planning and construction
phases), development and construction of the GTL plant
will have created 400 direct and 2300 indirect jobs.
Operating the plant will create 140 direct and 500 indirect
permanent jobs.
Additional information on Franklin Mining, Inc.'s GTL projects
in Bolivia and Argentina is available at
www.franklinmining.com
About Franklin Mining, Inc.:
Franklin Mining, Inc. has mining and exploration interests
in the United States, Argentina and Bolivia;
Franklin Mining, Bolivia S.A. is a wholly owned subsidiary.
Franklin Mining, Inc. holds 51% ownership in both
Franklin Oil & Gas, Bolivia S.A. and
Franklin Oil & Gas, Argentina S.A.
DISCLOSURES: "Safe Harbor" statement under the Private
Securities Litigation Reform Act of 1995: ---- could cause
Franklin Mining, Inc.'s actual results to differ materially
from those expressed in any forward-looking statements
made by, or on behalf of, Franklin Mining, Inc.
For further information, please visit our website
(www.franklinmining.com) or contact our
Investor Relations firm,
A. Austin & Company,
1-702-386-5379.
A. Austin & Company
Investor Relations
1-702-386-5379
www.franklinmining.com
----
The national territory of the Argentine -
part of Tierra del Fuego -
the Argentine-claimed sector of Antarctica -
and several South Atlantic islands -
the national territory of
Tierra del Fuego a province -
Belief in and respect for multilateralism -
led to Trinidad and Tobago's respect for all -
major global and regional fora -
Are active participants in the creation of
the Free Trade Area of the Americas -
which, when maybe realized? -
will stretch from Alaska in the North -
to Tierra del Fuego in the South;
creating a market of over 800 million consumers -
and generating tremendous opportunity for economic
and social development -
The region's commitment to this hemispheric integration
process has led Trinidad and Tobago and its
CARICOM partners to offer our -
Capital City, Port-of-Spain, as the ideal location -
for the seat of the proposed permanent -
secretariat of the Free Trade Area of -
the Americas -
The length of Argentina from north to south -
is about 3,330 km (about 2,070 mi);
its greatest width is about 1,384 km (about 860 mi) -
The country includes the province of Tierra del Fuego -
which comprises the eastern half of
the Isla Grande de Tierra del Fuego -
and a number of adjacent islands to the east -
including Isla de los Estados.
The Argentine coastline measures
about 4,989 km (about 3,100 mi) long.
Argentina also claims a total of 2,808,602 sq km
(1,084,407 sq mi) of disputed territory.
Since the 1950s, Argentina has claimed a pie-shaped section
of Antarctica between longitude 25° west and
longitude 74° west -
Argentina also claims several sparsely settled southern Atlantic
islands, including the Falkland Islands -
or Islas Malvinas, currently controlled by Britain -
The two nations fought a brief war in 1982 -
over control of the islands, and sporadic discussions -
about the political fate of the islands continue -
Several major oil fields also are in Patagonia -
at the southern tip of Patagonia is Tierra del Fuego,
a large mountainous island shared by
Argentina and Chile -
In terms of value, the chief mineral product is petroleum.
In 2004 production of crude petroleum -
was 271 million barrels, furnishing the country’s -
needs and allowing Argentina to become a -
net energy exporter.
Major petroleum reserves are located in Patagonia
and offshore near the Falkland Islands (Islas Malvinas) -
Natural gas production has doubled since the 1980s
to about 41 billion cubic meters in 2003 -
with reserves located mainly in Patagonia
and Tierra del Fuego -
Hydrocarbon resources play an important role in
the economies of both the Argentine and Chilean
sides of the island -
Numerous oil and gas fields are exploited on land
and offshore, particularly in the northeastern sector
of the island -
Nearly all of the Argentine oil and gas is sold to Chile.
The vegetation in the foreground is typical of
the steppeland throughout Patagonia -
This photo was taken at Punta Catalina,
the northeasternmost point of Tierra del Fuego.
The Straits of Magellan stretch to the west -
Few people realize that Chile has an Atlantic coast -
The northeasternmost part of Tierra del Fuego -
where the Straits of Magellan enter
the South Atlantic Ocean, and the coastline
for about 15 km to the southeast are in Chilean territory.
In addition, several Chilean islands on the south side
of Tierra del Fuego, including Cape Horn,
face the Atlantic -
Franklin Mining, Inc. Is Forming Franklin Oil & Gas, Argentina -
http://www.marketwire.com/mw/release_html_b1?release_id=194250
http://www.investorshub.com/boards/read_msg.asp?message_id=15535376
In Argentina -
has been N/R reported -
SHELL CONSIDERS GTL PLANTS IN ARGENTINA AND AUSTRALIA -
The Shell Gas and Power division of Royal Dutch/Shell
has reported that it is studying additional applications
of its Shell Middle Distillate Synthesis Gas-To-Liquids (GTL)
technology in Argentina and Australia.
RE: Franklin Announces GTL Plant in Tierra del Fuego, Argentina -
Agreement Is for Development and Operation of First GTL -
Facility of This Size in South America -
RE: prev. GTL Plant news a few discussions........
A major reversal last year by the U.S. Environmental Protection
Administration found a way for Billiton to get tentative
EPA permission to emit the smog-causing chemicals, which
would not be allowed if the LNG boilers were on land.
Other federal and state regulators, however, have listed
120 gaps in Billiton's application and preliminary
environmental assessments being done for the project.
The company hopes to provide answers to those questions in
March, a Billiton official told The Malibu Times last week.
White House officials last week again pledged to speed
environmental review for LNG imports into California,
and Gov. Arnold Schwarzenegger has already said he favors
the Malibu LNG terminal over other alternatives.
Once Woodside files an application, state and federal
agencies will start environmental hearings.
Assuming approval, the LNG depot would not be operating
until 2010, officials said.
New Zealand LNG 'best alternative' to fill shortfall
01.02.06
By Richard Inder
Importing liquefied natural gas offers the best alternative
to cover the potential shortfall created by the depletion
of the Maui field, says two large gas users Genesis
and Contact.
They were responding to a Business Herald report that
Todd Energy and others were exploring the potential
of compressed natural gas imports because the technology
overcame objections to LNG.
Genesis said: "The transport of CNG between countries has
not been done and, even if you could do it, it would not
provide the sort of volumes of gas that we need.
We are pretty much convinced that, at some point, we are
going to take a hard decision to build a LNG terminal."
Contact said CNG did not provide the volume or flexibility
offered by LNG technology.
"Shipping CNG is an unproven technology, and there is not
an established international market in its trade.
LNG, on the other hand, has been safely traded for 40 years
in a mature international market."
The electricity generators are jointly investigating
a proposal to each year import about 60 PJ of LNG,
equal to half New Zealand's annual gas demand.
Todd Energy managing director Richard Tweedie believes a
hasty decision to import LNG may squander the chances of
New Zealand using indigenous energy sources to make up
the shortfall left by Maui, which will be largely
depleted next year.
An LNG import terminal to transform the liquid to gas
and store it could cost as much as $1 billion.
It would need to be underwritten by contracts for as long
as 15 years from major gas users such as Contact
and Genesis.
These contracts would cut demand for gas and reduce
the incentives for local oil and gas exploration.
Tweedie also warns of the potential dangers of becoming
overly reliant on offshore energy sources.
CNG may overcome these objections as it could be
piped directly into the gas grid, avoiding the need
for a terminal and give energy users the flexibility
to switch to indigenous gas if more is found.
Tweedie said: "It does not have any of the problems
of regasification of LNG.
It can be brought straight into New Zealand and be
put straight into the pipeline system.
The CNG alternative is a lot more benign, and there
is a lot of it in Papua New Guinea."
He concedes CNG has problems such as the potential costs,
the unproven technology and the fact CNG ships are
unlikely to be able to import as much energy as can be
brought in an LNG ship.
Still, his views have won support from industry analysts,
who warn the adoption of LNG would lock in high energy
prices for the long term.
McDouall Stuart analyst Chris Stone said CNG suppliers
might only need three-year contracts to underwrite the
necessary infrastructure.
If gas was found locally, users could quickly swap
to a new supplier.
"I think CNG makes a lot of sense.
It may be more expensive, but there is less capital
expenditure required up front."
Another analyst agreed but doubts the CNG option would fly
as it would need the support of Contact and Genesis.
Even if the generators agreed to the plan they would
probably finance it themselves, cutting companies such
as Todd Energy out of the loop.
The analysts said that although CNG could not be imported
in such large volumes, this could be overcome with a
dedicated service between New Zealand and
the offshore gas fields.
TIERRA DEL FUEGO - The Vertex of the Cube -
that appears at - Tierra del Fuego -
emerges in the most dramatic of the eight Places -
included in this proposal -
Its very name is rich in meaning..
By a - "fortunate coincidence" -
it includes those two basic elements --
-- Earth and Fire --
- that govern the project and -
http://www.souloftheworld.com/tierradelfuego.html
Franklin Mining, Inc.
Is Forming Franklin Oil & Gas, Argentina.
FMNJ Repeat past Argentina - N/R -
LAS VEGAS, NV -- (MARKET WIRE) -- December 12, 2006 --
Franklin Mining, Inc. -
(FMNJ.PK) announced today that Franklin Oil & Gas,
Argentina is being formed -
Franklin Oil & Gas, Argentina -
a division of Franklin Mining, Inc. -
has recently signed agreements with
Governor Hugo Cocarro
(Governor of Tierra Del Fuego)
for a GTL project in Southern Argentina -
Mr. William Petty and Mr. Jaime Melgarejo left today
for Buenos Aires, Argentina to begin the process
of setting up offices.
"We are very excited about this opportunity;
we have been in negotiations for the past few months
in Argentina.
Several weeks ago, we made our preliminary presentation
and it was received favorably.
We have been very pleased with the cooperation
of the local government as well as
the national government of Argentina,"
stated Jaime Melgarejo,
President of Franklin Mining, Inc.
Highlighted Links
MacReport.Net
Franklin Mining, Inc.
Franklin Mining, Inc.
will own 51% of -
Franklin Oil & Gas, Argentina.
About Franklin Mining, Inc.:
Franklin Mining -
currently has interests -
in Bolivia and the United States.
For information about;
Franklin Mining, Inc.
visit our website:
http://www.franklinmining.com.
DISCLOSURES:
"Safe Harbor" statement under the Private Securities Litigation
Reform Act of 1995: This press release contains
forward-looking statements ---- risks could cause
Franklin Mining Inc.'s actual results to differ
materially from those expressed in any forward-looking
statements made by, or on behalf of,
Franklin Mining Inc.
For Further Information check out our website www.franklinmining.com or
contact:
Investor Relations
Mr. Andrew Austin
1-702-386-5379
SOURCE: Franklin Mining, Inc.
Tierra del Fuego (Spanish for "Land of Fire")
Spanish is an archipelago -
28,476 sq mi (73,753 km²) -
separated from the southernmost tip -
of the South American mainland -
by the Strait of Magellan -
The southern point of the archipelago -
forms Cape Horn.
Rhodium $5030.- per ounce - Silver to follow -
http://www.kitco.com/LFgif/rh0030lnb.gif
Its a start - Silver above $800.- per ounce in 1477 -
http://www.gold-eagle.com/editorials_03/images/waltzek091003a.jpg
fig. the inflasion since - the Silver would be much more
than $8000.- per ounce today -
(if it was a fair market playingfield -
without ratchillz banksterz manipulated the market -
since the past 500 years) -
Are the lemmings following LT Bucky? -
U.S $ INDEX (NYBOT:DX) -
FMNJ - dd --
http://www.franklinmining.com/Home/tabid/1215/Default.aspx
FMNJ - Cerro Rico - Inca - Potosi or “Rich Mountain” -
great bonanza periods have been reported for the quality
of the mineral, with ore contents between 1,500 and
9,000 Silver ounces per ton -
and est. reserves are about 938,130 kgs of Silver -
by very shallow drilling -
250,004 tons of zinc - by very shallow drilling -
dd --
The Worlds Richest Silver Mines -
has been mined for more than -
- 500 years -
Est. 1864 -
http://www.franklinmining.com/Projects/HardRockProjects/CerroRicoPalivariIIAlternativeIIIBolivia/tab....
http://www.investorshub.com/boards/board.asp?board_id=5406
RE: Franklin Announces GTL Plant in Tierra del Fuego, Argentina -
Agreement Is for Development and Operation of First GTL -
Facility of This Size in South America -
RE: prev. GTL Plant news a few discussions........
A major reversal last year by the U.S. Environmental Protection
Administration found a way for Billiton to get tentative
EPA permission to emit the smog-causing chemicals, which
would not be allowed if the LNG boilers were on land.
Other federal and state regulators, however, have listed
120 gaps in Billiton's application and preliminary
environmental assessments being done for the project.
The company hopes to provide answers to those questions in
March, a Billiton official told The Malibu Times last week.
White House officials last week again pledged to speed
environmental review for LNG imports into California,
and Gov. Arnold Schwarzenegger has already said he favors
the Malibu LNG terminal over other alternatives.
Once Woodside files an application, state and federal
agencies will start environmental hearings.
Assuming approval, the LNG depot would not be operating
until 2010, officials said.
New Zealand LNG 'best alternative' to fill shortfall
01.02.06
By Richard Inder
Importing liquefied natural gas offers the best alternative
to cover the potential shortfall created by the depletion
of the Maui field, says two large gas users Genesis
and Contact.
They were responding to a Business Herald report that
Todd Energy and others were exploring the potential
of compressed natural gas imports because the technology
overcame objections to LNG.
Genesis said: "The transport of CNG between countries has
not been done and, even if you could do it, it would not
provide the sort of volumes of gas that we need.
We are pretty much convinced that, at some point, we are
going to take a hard decision to build a LNG terminal."
Contact said CNG did not provide the volume or flexibility
offered by LNG technology.
"Shipping CNG is an unproven technology, and there is not
an established international market in its trade.
LNG, on the other hand, has been safely traded for 40 years
in a mature international market."
The electricity generators are jointly investigating
a proposal to each year import about 60 PJ of LNG,
equal to half New Zealand's annual gas demand.
Todd Energy managing director Richard Tweedie believes a
hasty decision to import LNG may squander the chances of
New Zealand using indigenous energy sources to make up
the shortfall left by Maui, which will be largely
depleted next year.
An LNG import terminal to transform the liquid to gas
and store it could cost as much as $1 billion.
It would need to be underwritten by contracts for as long
as 15 years from major gas users such as Contact
and Genesis.
These contracts would cut demand for gas and reduce
the incentives for local oil and gas exploration.
Tweedie also warns of the potential dangers of becoming
overly reliant on offshore energy sources.
CNG may overcome these objections as it could be
piped directly into the gas grid, avoiding the need
for a terminal and give energy users the flexibility
to switch to indigenous gas if more is found.
Tweedie said: "It does not have any of the problems
of regasification of LNG.
It can be brought straight into New Zealand and be
put straight into the pipeline system.
The CNG alternative is a lot more benign, and there
is a lot of it in Papua New Guinea."
He concedes CNG has problems such as the potential costs,
the unproven technology and the fact CNG ships are
unlikely to be able to import as much energy as can be
brought in an LNG ship.
Still, his views have won support from industry analysts,
who warn the adoption of LNG would lock in high energy
prices for the long term.
McDouall Stuart analyst Chris Stone said CNG suppliers
might only need three-year contracts to underwrite the
necessary infrastructure.
If gas was found locally, users could quickly swap
to a new supplier.
"I think CNG makes a lot of sense.
It may be more expensive, but there is less capital
expenditure required up front."
Another analyst agreed but doubts the CNG option would fly
as it would need the support of Contact and Genesis.
Even if the generators agreed to the plan they would
probably finance it themselves, cutting companies such
as Todd Energy out of the loop.
The analysts said that although CNG could not be imported
in such large volumes, this could be overcome with a
dedicated service between New Zealand and
the offshore gas fields.
TIERRA DEL FUEGO - The Vertex of the Cube -
that appears at - Tierra del Fuego -
emerges in the most dramatic of the eight Places -
included in this proposal -
Its very name is rich in meaning..
By a - "fortunate coincidence" -
it includes those two basic elements --
-- Earth and Fire --
- that govern the project and -
http://www.souloftheworld.com/tierradelfuego.html
Franklin Mining, Inc.
Is Forming Franklin Oil & Gas, Argentina.
FMNJ Repeat past Argentina - N/R -
LAS VEGAS, NV -- (MARKET WIRE) -- December 12, 2006 --
Franklin Mining, Inc. -
(FMNJ.PK) announced today that Franklin Oil & Gas,
Argentina is being formed -
Franklin Oil & Gas, Argentina -
a division of Franklin Mining, Inc. -
has recently signed agreements with
Governor Hugo Cocarro
(Governor of Tierra Del Fuego)
for a GTL project in Southern Argentina -
Mr. William Petty and Mr. Jaime Melgarejo left today
for Buenos Aires, Argentina to begin the process
of setting up offices.
"We are very excited about this opportunity;
we have been in negotiations for the past few months
in Argentina.
Several weeks ago, we made our preliminary presentation
and it was received favorably.
We have been very pleased with the cooperation
of the local government as well as
the national government of Argentina,"
stated Jaime Melgarejo,
President of Franklin Mining, Inc.
Highlighted Links
MacReport.Net
Franklin Mining, Inc.
Franklin Mining, Inc.
will own 51% of -
Franklin Oil & Gas, Argentina.
About Franklin Mining, Inc.:
Franklin Mining -
currently has interests -
in Bolivia and the United States.
For information about;
Franklin Mining, Inc.
visit our website:
http://www.franklinmining.com.
DISCLOSURES:
"Safe Harbor" statement under the Private Securities Litigation
Reform Act of 1995: This press release contains
forward-looking statements ---- risks could cause
Franklin Mining Inc.'s actual results to differ
materially from those expressed in any forward-looking
statements made by, or on behalf of,
Franklin Mining Inc.
For Further Information check out our website www.franklinmining.com or
contact:
Investor Relations
Mr. Andrew Austin
1-702-386-5379
SOURCE: Franklin Mining, Inc.
Tierra del Fuego (Spanish for "Land of Fire")
Spanish is an archipelago -
28,476 sq mi (73,753 km²) -
separated from the southernmost tip -
of the South American mainland -
by the Strait of Magellan -
The southern point of the archipelago -
forms Cape Horn.
Rhodium $5030.- per ounce - Silver to follow -
http://www.kitco.com/LFgif/rh0030lnb.gif
Its a start - Silver above $800.- per ounce in 1477 -
http://www.gold-eagle.com/editorials_03/images/waltzek091003a.jpg
fig. the inflasion since - the Silver would be much more
than $8000.- per ounce today -
(if it was a fair market playingfield -
without ratchillz banksterz manipulated the market -
since the past 500 years) -
Are the lemmings following LT Bucky? -
U.S $ INDEX (NYBOT:DX) -
FMNJ - dd --
http://www.franklinmining.com/Home/tabid/1215/Default.aspx
FMNJ - Cerro Rico - Inca - Potosi or “Rich Mountain” -
great bonanza periods have been reported for the quality
of the mineral, with ore contents between 1,500 and
9,000 Silver ounces per ton -
and est. reserves are about 938,130 kgs of Silver -
by very shallow drilling -
250,004 tons of zinc - by very shallow drilling -
dd --
The Worlds Richest Silver Mines -
has been mined for more than -
- 500 years -
Est. 1864 -
http://www.franklinmining.com/Projects/HardRockProjects/CerroRicoPalivariIIAlternativeIIIBolivia/tab....
http://www.investorshub.com/boards/board.asp?board_id=5406
Franklin Announces GTL Plant in Tierra del Fuego, Argentina -
Agreement Is for Development and Operation of First GTL -
Facility of This Size in South America -
LAS VEGAS, NV, Feb 28, 2007 (MARKET WIRE via COMTEX) --
Franklin Mining, Inc. -
(FMNJ) President Jaime Melgarejo, Jr. has returned from
Argentina where he and an engineer visited possible
construction sites for a gas-to-liquid (GTL) facility
to be constructed in the Province of Tierra del Fuego,
Argentina.
William Petty -
has traveled to Zurich, Switzerland to secure necessary -
financing.
Franklin Oil & Gas, Argentina, S.A.,
was formed in December 2006 as the first step toward
fulfillment of an agreement for the construction and
operation of a 10,000 barrel-per-day GTL processing
facility.
The agreement, signed by Hugo Cocarro, Governor
of Tierra del Fuego, is accompanied by a 25 year
guarantee of the required natural gas resource
issued to Franklin Oil & Gas, Argentina S.A.
on November 16, 2006 by Cristian A. Folgar,
Argentina's National Undersecretary of Fuels.
Announcement of Franklin Oil & Gas' contract comes
three weeks following Royal Dutch Shell Plc's cornerstone
ceremony at the site of their Pearl GTL facility in Qatar.
Franklin's development and production agreement with Argentina
-- similar to agreements reached by major oil companies
in other countries, including Shell in Qatar --
will result in the first such facility of this size
in South America.
When fully operational, Argentina's Tierra del Fuego Province
will begin using an existing abundant natural resource
(natural gas) to gradually achieve energy independence
while creating local economic growth through reduced
energy costs and increased export revenues.
Long term benefits include production and export of
additional energy resources including naphtha and electricity.
Benefit to local, Province and National governments include
taxes and royalties as well as participating in production
profits.
During the next thirty months (the planning and construction
phases), development and construction of the GTL plant
will have created 400 direct and 2300 indirect jobs.
Operating the plant will create 140 direct and 500 indirect
permanent jobs.
Additional information on Franklin Mining, Inc.'s GTL projects
in Bolivia and Argentina is available at
www.franklinmining.com
About Franklin Mining, Inc.:
Franklin Mining, Inc. has mining and exploration interests
in the United States, Argentina and Bolivia;
Franklin Mining, Bolivia S.A. is a wholly owned subsidiary.
Franklin Mining, Inc. holds 51% ownership in both
Franklin Oil & Gas, Bolivia S.A. and
Franklin Oil & Gas, Argentina S.A.
DISCLOSURES: "Safe Harbor" statement under the Private
Securities Litigation Reform Act of 1995: ---- could cause
Franklin Mining, Inc.'s actual results to differ materially
from those expressed in any forward-looking statements
made by, or on behalf of, Franklin Mining, Inc.
For further information, please visit our website
(www.franklinmining.com) or contact our
Investor Relations firm,
A. Austin & Company,
1-702-386-5379.
A. Austin & Company
Investor Relations
1-702-386-5379
www.franklinmining.com
----
The national territory of the Argentine -
part of Tierra del Fuego -
the Argentine-claimed sector of Antarctica -
and several South Atlantic islands -
the national territory of
Tierra del Fuego a province -
Belief in and respect for multilateralism -
led to Trinidad and Tobago's respect for all -
major global and regional fora -
Are active participants in the creation of
the Free Trade Area of the Americas -
which, when maybe realized? -
will stretch from Alaska in the North -
to Tierra del Fuego in the South;
creating a market of over 800 million consumers -
and generating tremendous opportunity for economic
and social development -
The region's commitment to this hemispheric integration
process has led Trinidad and Tobago and its
CARICOM partners to offer our -
Capital City, Port-of-Spain, as the ideal location -
for the seat of the proposed permanent -
secretariat of the Free Trade Area of -
the Americas -
The length of Argentina from north to south -
is about 3,330 km (about 2,070 mi);
its greatest width is about 1,384 km (about 860 mi) -
The country includes the province of Tierra del Fuego -
which comprises the eastern half of
the Isla Grande de Tierra del Fuego -
and a number of adjacent islands to the east -
including Isla de los Estados.
The Argentine coastline measures
about 4,989 km (about 3,100 mi) long.
Argentina also claims a total of 2,808,602 sq km
(1,084,407 sq mi) of disputed territory.
Since the 1950s, Argentina has claimed a pie-shaped section
of Antarctica between longitude 25° west and
longitude 74° west -
Argentina also claims several sparsely settled southern Atlantic
islands, including the Falkland Islands -
or Islas Malvinas, currently controlled by Britain -
The two nations fought a brief war in 1982 -
over control of the islands, and sporadic discussions -
about the political fate of the islands continue -
Several major oil fields also are in Patagonia -
at the southern tip of Patagonia is Tierra del Fuego,
a large mountainous island shared by
Argentina and Chile -
In terms of value, the chief mineral product is petroleum.
In 2004 production of crude petroleum -
was 271 million barrels, furnishing the country’s -
needs and allowing Argentina to become a -
net energy exporter.
Major petroleum reserves are located in Patagonia
and offshore near the Falkland Islands (Islas Malvinas) -
Natural gas production has doubled since the 1980s
to about 41 billion cubic meters in 2003 -
with reserves located mainly in Patagonia
and Tierra del Fuego -
Hydrocarbon resources play an important role in
the economies of both the Argentine and Chilean
sides of the island -
Numerous oil and gas fields are exploited on land
and offshore, particularly in the northeastern sector
of the island -
Nearly all of the Argentine oil and gas is sold to Chile.
The vegetation in the foreground is typical of
the steppeland throughout Patagonia -
This photo was taken at Punta Catalina,
the northeasternmost point of Tierra del Fuego.
The Straits of Magellan stretch to the west -
Few people realize that Chile has an Atlantic coast -
The northeasternmost part of Tierra del Fuego -
where the Straits of Magellan enter
the South Atlantic Ocean, and the coastline
for about 15 km to the southeast are in Chilean territory.
In addition, several Chilean islands on the south side
of Tierra del Fuego, including Cape Horn,
face the Atlantic -
Franklin Mining, Inc. Is Forming Franklin Oil & Gas, Argentina -
http://www.marketwire.com/mw/release_html_b1?release_id=194250
http://www.investorshub.com/boards/read_msg.asp?message_id=15535376
In Argentina -
has been N/R reported -
SHELL CONSIDERS GTL PLANTS IN ARGENTINA AND AUSTRALIA -
The Shell Gas and Power division of Royal Dutch/Shell
has reported that it is studying additional applications
of its Shell Middle Distillate Synthesis Gas-To-Liquids (GTL)
technology in Argentina and Australia.
These would be 75,000-barrel per day facilities similar
to that previously announced for
the Mediterranean Coast of Egypt.
In Argentina, Shell is scouting locations for a plant
in Tierra del Fuego,
where it is in discussion with a local consortium
regarding the possible supply of offshore natural gas
to the facility.
In Australia, the company is exploring sites in both
Western Australia and Northern Territory for the GTL plant.
In Australia, Shell is exploring GTL opportunities
that would complement the substantial liquefied natural gas
industry as well as provide strategic diversification.
Synthetic Fuels
Rep. Consultants
RE: Franklin Announces GTL Plant in Tierra del Fuego, Argentina -
Agreement Is for Development and Operation of First GTL -
Facility of This Size in South America -
LAS VEGAS, NV, Feb 28, 2007 (MARKET WIRE via COMTEX) --
Franklin Mining, Inc. -
(FMNJ) President Jaime Melgarejo, Jr. has returned from
Argentina where he and an engineer visited possible
construction sites for a gas-to-liquid (GTL) facility
to be constructed in the Province of Tierra del Fuego,
Argentina.
William Petty -
has traveled to Zurich, Switzerland to secure necessary -
financing.
Franklin Oil & Gas, Argentina, S.A.,
was formed in December 2006 as the first step toward
fulfillment of an agreement for the construction and
operation of a 10,000 barrel-per-day GTL processing
facility.
The agreement, signed by Hugo Cocarro, Governor
of Tierra del Fuego, is accompanied by a 25 year
guarantee of the required natural gas resource
issued to Franklin Oil & Gas, Argentina S.A.
on November 16, 2006 by Cristian A. Folgar,
Argentina's National Undersecretary of Fuels.
Announcement of Franklin Oil & Gas' contract comes
three weeks following Royal Dutch Shell Plc's cornerstone
ceremony at the site of their Pearl GTL facility in Qatar.
Franklin's development and production agreement with Argentina
-- similar to agreements reached by major oil companies
in other countries, including Shell in Qatar --
will result in the first such facility of this size
in South America.
When fully operational, Argentina's Tierra del Fuego Province
will begin using an existing abundant natural resource
(natural gas) to gradually achieve energy independence
while creating local economic growth through reduced
energy costs and increased export revenues.
Long term benefits include production and export of
additional energy resources including naphtha and electricity.
Benefit to local, Province and National governments include
taxes and royalties as well as participating in production
profits.
During the next thirty months (the planning and construction
phases), development and construction of the GTL plant
will have created 400 direct and 2300 indirect jobs.
Operating the plant will create 140 direct and 500 indirect
permanent jobs.
Additional information on Franklin Mining, Inc.'s GTL projects
in Bolivia and Argentina is available at
www.franklinmining.com
About Franklin Mining, Inc.:
Franklin Mining, Inc. has mining and exploration interests
in the United States, Argentina and Bolivia;
Franklin Mining, Bolivia S.A. is a wholly owned subsidiary.
Franklin Mining, Inc. holds 51% ownership in both
Franklin Oil & Gas, Bolivia S.A. and
Franklin Oil & Gas, Argentina S.A.
DISCLOSURES: "Safe Harbor" statement under the Private
Securities Litigation Reform Act of 1995: ---- could cause
Franklin Mining, Inc.'s actual results to differ materially
from those expressed in any forward-looking statements
made by, or on behalf of, Franklin Mining, Inc.
For further information, please visit our website
(www.franklinmining.com) or contact our
Investor Relations firm,
A. Austin & Company,
1-702-386-5379.
A. Austin & Company
Investor Relations
1-702-386-5379
www.franklinmining.com
----
The national territory of the Argentine -
part of Tierra del Fuego -
the Argentine-claimed sector of Antarctica -
and several South Atlantic islands -
the national territory of
Tierra del Fuego a province -
Belief in and respect for multilateralism -
led to Trinidad and Tobago's respect for all -
major global and regional fora -
Are active participants in the creation of
the Free Trade Area of the Americas -
which, when maybe realized? -
will stretch from Alaska in the North -
to Tierra del Fuego in the South;
creating a market of over 800 million consumers -
and generating tremendous opportunity for economic
and social development -
The region's commitment to this hemispheric integration
process has led Trinidad and Tobago and its
CARICOM partners to offer our -
Capital City, Port-of-Spain, as the ideal location -
for the seat of the proposed permanent -
secretariat of the Free Trade Area of -
the Americas -
The length of Argentina from north to south -
is about 3,330 km (about 2,070 mi);
its greatest width is about 1,384 km (about 860 mi) -
The country includes the province of Tierra del Fuego -
which comprises the eastern half of
the Isla Grande de Tierra del Fuego -
and a number of adjacent islands to the east -
including Isla de los Estados.
The Argentine coastline measures
about 4,989 km (about 3,100 mi) long.
Argentina also claims a total of 2,808,602 sq km
(1,084,407 sq mi) of disputed territory.
Since the 1950s, Argentina has claimed a pie-shaped section
of Antarctica between longitude 25° west and
longitude 74° west -
Argentina also claims several sparsely settled southern Atlantic
islands, including the Falkland Islands -
or Islas Malvinas, currently controlled by Britain -
The two nations fought a brief war in 1982 -
over control of the islands, and sporadic discussions -
about the political fate of the islands continue -
Several major oil fields also are in Patagonia -
at the southern tip of Patagonia is Tierra del Fuego,
a large mountainous island shared by
Argentina and Chile -
In terms of value, the chief mineral product is petroleum.
In 2004 production of crude petroleum -
was 271 million barrels, furnishing the country’s -
needs and allowing Argentina to become a -
net energy exporter.
Major petroleum reserves are located in Patagonia
and offshore near the Falkland Islands (Islas Malvinas) -
Natural gas production has doubled since the 1980s
to about 41 billion cubic meters in 2003 -
with reserves located mainly in Patagonia
and Tierra del Fuego -
Hydrocarbon resources play an important role in
the economies of both the Argentine and Chilean
sides of the island -
Numerous oil and gas fields are exploited on land
and offshore, particularly in the northeastern sector
of the island -
Nearly all of the Argentine oil and gas is sold to Chile.
The vegetation in the foreground is typical of
the steppeland throughout Patagonia -
This photo was taken at Punta Catalina,
the northeasternmost point of Tierra del Fuego.
The Straits of Magellan stretch to the west -
Few people realize that Chile has an Atlantic coast -
The northeasternmost part of Tierra del Fuego -
where the Straits of Magellan enter
the South Atlantic Ocean, and the coastline
for about 15 km to the southeast are in Chilean territory.
In addition, several Chilean islands on the south side
of Tierra del Fuego, including Cape Horn,
face the Atlantic -
RE: Franklin Mining, Inc. Is Forming Franklin Oil & Gas, Argentina -
http://www.marketwire.com/mw/release_html_b1?release_id=194250
http://www.investorshub.com/boards/read_msg.asp?message_id=15535376
In Argentina -
has been N/R reported -
SHELL CONSIDERS GTL PLANTS IN ARGENTINA AND AUSTRALIA -
The Shell Gas and Power division of Royal Dutch/Shell
has reported that it is studying additional applications
of its Shell Middle Distillate Synthesis Gas-To-Liquids (GTL)
technology in Argentina and Australia.
These would be 75,000-barrel per day facilities similar
to that previously announced for
the Mediterranean Coast of Egypt.
In Argentina, Shell is scouting locations for a plant
in Tierra del Fuego,
where it is in discussion with a local consortium
regarding the possible supply of offshore natural gas
to the facility.
In Australia, the company is exploring sites in both
Western Australia and Northern Territory for the GTL plant.
In Australia, Shell is exploring GTL opportunities
that would complement the substantial liquefied natural gas
industry as well as provide strategic diversification.
Synthetic Fuels
Rep. Consultants
To 'NEWMOUNT' on 'Franklin Mining, Inc.' -
it was so many years ago -
Norilsk Mine in Russia was trading
at $0.001 and they had big pollution
problems from their smelter smoke stacks etc.
it was about closed and only had about 100 man -
on care and maintenance -
Boliden from Sweden took on and cleared up the
pollution problems -
but all was thinking it was outmined and it
would be permanent shut down etc.
no one hardly wanted to buy Norilsk shares -
at that time -
I am not telling you to buy FMNJ Cerro Rico -
but I do see;
that the right management will be
able to clear up the Cerro Rico problems -
I hope to stay to the work is done -
Ex.
Norilsk was a shame for the intern. mining industry -
at that time, when the pollution around was to high -
I did tell my friends to buy it -
some did and it become okey -
but most took to the sell key to early -
NILSY -- JSC MMC Norilsk Nickel
http://www.pinksheets.com/quote/quote.jsp?symbol=NILSY
I was just looking in on them and they do very well
today -
http://www.nornik.ru/en/investor/info/performance/
had to buy them over at Russia at that time more
complicated -
today its more easy -
http://www.rts.ru/en/
I do not see any LT value in fed papers so I would
not sell anything as long as not the $ be back on
a normal LT Gold Standard -
Well, Cerro Rico has its own unic problems today -
but it should not be of a problem to an old mining
comp. FMNJ with todays hi-tech knowledge -
FMNJ - is utilizing very knowledgeable associates -
and the future will only get much brighter from here -
Tia. Imo
God Bless
FMNJ Mission -
http://www.investorshub.com/boards/board.asp?board_id=5406
Northgate posts fourth quarter net income of $20 million;
Corporate cash reserves increase to $262 million -
Northgate posts fourth quarter net income of $20 million;
Corporate cash reserves increase to $262 million -
21:08 EST Thursday, March 01, 2007
Stock Symbols: TSX: NGX, AMEX: NXG
Website: www.northgateminerals.com
For the three months and twelve months ended December 31, 2006
(unaudited)
VANCOUVER, March 1 /CNW/ - (All figures in US dollars except where noted) -
Northgate Minerals Corporation
(TSX: NGX; AMEX: NXG) today reported cash flow from operations
of $43,884,000 or $0.20 per diluted common share and net
earnings of $19,790,000 or $0.09 per diluted common share
for the fourth quarter of 2006.
Cash flow from operations for all of 2006 was $146,612,000
or $0.66 per diluted common share and net earnings were
$106,742,000 or $0.48 per diluted common share.
<<
-------------------------------------------------------------------------
Fourth Quarter Highlights
- Production of 81,747 ounces of gold and 21.3 million pounds of copper
from the Kemess South mine.
- Quarterly gold net cash cost of negative $89 per ounce and a record
low net cash cost of negative $56 per ounce of gold for all of 2006.
- Increased NI-43-101 compliant gold resources at Young-Davidson to a
total of 2.1 million ounces of gold.
- Hedged 15,000 metric tonnes of the Kemess mine's expected 2007 copper
production at an average price of $3.15 per pound which is
significantly higher than the present spot price.
- Holders of Northgate's common share purchase warrants exercised a
total of 37,895,253 warrants in the fourth quarter, injecting
$99,785,000 into the Northgate's treasury.
>>
-------------------------------------------------------------------------
Ken Stowe, President and CEO, stated, "In 2006,
tremendous metal prices and record gold and copper production
from the Kemess South mine combined to generate financial
results that were well beyond our most optimistic expectations
set at the beginning of the year.
Net earnings of $107 million and cash flow from operations
of $147 million during 2006 have transformed our balance
sheet, giving us the financial capacity to move forward
with our internal development projects and the ability to
take advantage of other growth opportunities that we could
not have considered even one year ago.
And the ride is far from over. In 2007, our
Kemess South mine -
is poised to deliver another strong year of cash flow
and earnings.
We also look forward to adding to the existing mine-life
within the Kemess camp and moving the Young-Davidson project
closer to production by further expanding the
existing 2.1 million ounce gold resource base, pursuing
our underground development program and completing
the necessary engineering and environmental studies.
By executing these plans and delivering another
accretive corporate transaction like
the Young-Davidson acquisition, I fully expect that 2007
will be another excellent year for our shareholders."
RESULTS OF OPERATIONS
Northgate recorded net earnings of $19,790,000 or $0.09 per
diluted share in the fourth quarter of 2006 compared with
net earnings of $44,527,000 or $0.21 per diluted share
during the corresponding quarter of 2005.
For the full year 2006, net earnings were $106,742,000
or $0.48 per diluted share compared with $39,557,000
or $0.20 in 2005.
Earnings for the fourth quarter and the full year of
2006 included a non-cash future income tax expense of
$18,443,000 and $11,447,000, respectively.
Cash flow from operations, after changes in working
capital and other items, was $43,884,000 or $0.20 per
diluted share in the fourth quarter of 2006 compared
with cash flow of $35,843,000 or $0.17 per diluted share
during the same quarter last year.
For the full year 2006, cash flow from operations
after changes in working capital and other items
was $146,612,000 or $0.66 per diluted share compared
with $49,039,000 or $0.24 in 2005.
Per share data is based on the weighted average diluted
number of shares outstanding of 224,674,332 and 222,892,929
in the fourth quarter and full year of 2006.
The weighted average diluted number of shares outstanding
in the corresponding periods of 2005 was 209,533,541 and
202,858,866.
Kemess South Mine Performance
The Kemess South mine produced 81,747 ounces of gold and 21.3 million pounds of copper during the fourth quarter of 2006. Mill throughput during the quarter averaged 49,645 metric tonnes (mt) per day and consisted exclusively of hypogene ore with an average grade of 0.772 gr/mt gold and 0.243% copper. Over the course of 2006, quarterly metal production was relatively steady as mining was concentrated in the heart of the Kemess South ore body in the western end of the open pit. For the full year, Kemess posted record gold and copper production of 310,296 ounces and 81.2 million pounds, respectively.
During the fourth quarter of 2006, approximately 11.0 million tonnes of ore and waste were removed from the open pit compared to 12.9 million tonnes during the corresponding quarter of 2005. Unit mining costs during the current quarter were Cdn$1.64 per tonne compared with Cdn$1.19 per tonne in the same period of 2005. The higher unit mining cost in the most recent quarter resulted from expenses related to the pushback of the north wall and the escalation in unit costs that occurs naturally as the pit deepens and fewer tonnes are moved using the same complement of mobile equipment. For the total 2006 year, mining costs averaged Cdn$1.49 per tonne compared with Cdn$1.20 per tonne in 2005.
Mill availability during the fourth quarter of 2006 averaged 91% and throughput averaged 49,645 tonnes per day (tpd), compared with 90% availability and throughput of 50,738 tpd in the fourth quarter of 2005. For the full year 2006, mill availability and throughput averaged 91% and 49,956 tpd, respectively, compared with 90% and 49,302 tpd in 2005.
Gold and copper recoveries averaged 72% and 87%, respectively, in the fourth quarter of 2006 compared with 72% and 85% in the fourth quarter of 2005. The 2% increase in copper recovery actually understates the significant improvement of metallurgical performance in the Kemess mill. In the most recent quarter, the ore milled was 15% lower-grade than it was one year ago, which in the absence of process improvements made in the flotation circuit, would have yielded lower recoveries than those reported one year ago. For the full year, gold and copper recoveries were 69% and 83%, respectively, compared with 67% and 81% in 2005.
Metal concentrate inventory increased by 2,000 wet metric tonnes (wmt) to approximately 10,000 wmt during the fourth quarter of 2006 as a result of high copper concentrate production during the quarter. Concentrate inventory is expected to remain high during the first half of 2007 and decline to a more normal level of 5,000 wmt by the middle of 2007.
The total unit cost of production during the fourth quarter of 2006 was Cdn$9.10 per tonne milled, which was higher than the Cdn$8.18 per tonne milled recorded in the corresponding period of 2005. The increase in unit cost in the most recent quarter was due primarily to the higher unit mining costs. Total site operating costs in the fourth quarter of 2006 were Cdn$41.6 million compared with Cdn$38.1 million in the fourth quarter of 2005. The site operating costs in the fourth quarter of 2006 were higher than the period one year ago as a result of the extra drilling and blasting costs associated with the north wall pushback. The net cash cost of production at Kemess in the fourth quarter was negative $89 per ounce bringing the average 2006 cash cost to negative $56 per ounce. The net cash cost of gold production in both periods is negative due to the large by-product credit derived from copper production, which is credited against site operating costs for purposes of calculating cash costs.
The following table provides a summary of operations for the fourth quarter and full year of 2006 and the comparable periods of 2005.
<<
2006 Kemess Mine Production
4Q 06 4Q 05 2006 2005
-------------------------------------------------------------------------
Ore plus waste mined
(tonnes) 11,018,461 12,907,609 43,045,348 51,233,842
Ore mined (tonnes) 4,746,251 6,663,925 17,219,143 19,523,319
Stripping ratio
(waste/ore) 1.32 0.94 1.50 1.62
Tonnes milled (ore) 4,567,332 4,667,874 18,233,978 17,995,159
Average mill operating
rate (tpd) 49,645 50,738 49,956 49,302
Gold grade (gr/mt) 0.772 0.875 0.763 0.723
Copper grade (%) 0.243 0.283 0.244 0.229
Gold recovery (%) 72 72 69 67
Copper recovery (%) 87 85 83 81
Gold production (ounces) 81,747 94,405 310,296 279,962
Copper production
(000's pounds) 21,255 24,700 81,209 73,722
Productivity measures:
Tonnes mined per
shift worked 645 788 693 785
Tonnes milled per
shift worked 267 285 277 276
Cash cost of production
($/ounce) (89) 59 (56) 205
-------------------------------------------------------------------------
>>
Safety performance at Kemess in the fourth quarter continued to be good although one lost time incident was recorded. On an annual basis, 2006 showed significant improvements across six of the ten safety performance parameters measured at the mine, with continued reductions in first aid, incidents and reportable injury frequency.
Financial Performance
Northgate changed its accounting policy with respect to stockpiled ore and concentrate inventories during the quarter to incorporate a full costing method and also to value additional components of inventory created during the mining process. This change in accounting policy has been applied retroactively and is reflected in prior year comparative figures.
Northgate's revenue in the fourth quarter of 2006 was $118,239,000 compared with $95,651,000 in the corresponding period of 2005. For the full year, revenues in 2006 were $411,313,000 compared with $257,302,000 in the previous year. Metal sales in the fourth quarter of 2006 consisted of 77,443 ounces of gold and 20.4 million pounds of copper, compared with 91,033 ounces of gold and 23.7 million pounds of copper in the fourth quarter of 2005. The net realized metal prices received on sales in the fourth quarter of 2006 were approximately $533 per ounce of gold and $3.00 per pound of copper compared with $453 per ounce and $1.98 per pound, respectively, in the fourth quarter of 2005. In the fourth quarter of 2006, Northgate reduced its gold forward sales position by 6,000 ounces by settling forward contracts for cash consideration of $1,572,000 compared with nil ounces during the same period of 2005. A total of $6,348,000 in deferred gold hedging losses were amortized in the fourth quarter of 2006 and at December 31, 2006, an unamortized deferred hedging loss of $8,583,000 remained recorded on the balance sheet for certain gold forward sales contracts that were closed out prior to their original settlement dates. This deferred hedging loss will be amortized over the period in which the related forward sales contracts were originally scheduled for settlement. Northgate's gold hedging activities reduced the realized price of gold sold during the most recent quarter by $82 per ounce compared to a reduction of $32 per ounce in the corresponding period one year ago. In the fourth quarter of 2006, Northgate entered into forward sales and purchase contracts with a major financial institution to fix the price of copper delivered prior to December 31, 2006 for which final settlement has not occurred. Also during the quarter, Northgate entered into forward sales and purchase contracts with the same financial institution to fix the price of 15,000 metric tonnes of its 2007 copper production. The total quantity of 18,750 metric tones of copper was sold forward during the quarter using London Metal Exchange (LME) contracts maturing from March 2007 through April 2008 at an average forward price of $3.15 per pound.
The cost of sales in the fourth quarter of 2006 was $60,461,000 compared with the corresponding period of 2005 when the cost of sales was $47,682,000. For the full year, the cost of sales was $224,584,000 compared with $178,411,000 in 2005. Cost of sales were substantially higher in the current quarter and year-to-date ended 2006 than they were in the corresponding periods of 2005 due to higher treatment, refining and price participation charges for processing concentrate, higher concentrate production, the strengthening Canadian dollar and increased Canadian dollar denominated production costs.
Administrative and general expenses of $1,543,000 in the fourth quarter of 2006 were higher than the $1,518,000 figure recorded in the comparable period of 2005. The higher expense in the current quarter was the result of additional corporate office salaries in support of the exploration activities at Young-Davidson, increased spending on regulatory and legislative compliance costs related to Northgate's Sarbanes-Oxley 404 compliance project and higher stock based compensation expense. For the full year, administrative and general costs were $8,209,000 compared with $6,128,000 in 2005.
Depreciation and depletion expenses in the fourth quarter were $10,122,000 compared to $13,810,000 during the corresponding period of 2005. The depreciation and depletion expense for the most recent quarter was substantially lower than the same quarter one year ago, primarily due to a 29% decrease in the amount of ore mined from the open pit. Total depreciation and depletion expenses during 2006 were $35,591,000 compared with $38,009,000 in 2005. This expense was unusually high in 2005 due to the large quantity of ore that was mined from the open pit and stockpiled for processing in the 2006 supergene campaign. Amortization of Northgate's mineral property, plant and equipment is based on the unit-of-production method as ore is mined, even though the economic benefit of this stockpiled ore will not be realized until future quarters.
Northgate recorded net interest income of $2,156,000 for the three months ended December 31, 2006 compared to a net interest expense of $700,000 in the corresponding quarter of 2005. Since Northgate repaid its credit facility on February 15, 2006, its cash balances have grown substantially and interest income has begun to exceed the small interest expense arising from capital leases for mobile equipment at Kemess. For the full year, net interest income was $4,013,000 compared to an expense of $2,391,000 in 2005. Net interest income is expected to increase to over $3 million per quarter during 2007 as a result of Northgate's higher cash balances.
Exploration expenses in the fourth quarter of 2006 were $4,953,000 compared with $686,000 in the comparable period of 2005. The higher exploration expense in the most recent quarter was the result of the continuation of the surface based diamond drilling program at the Young-Davidson property and the commencement of the underground exploration program at the same property. Exploration expenses for the full year totalled $11,449,000 compared to $3,915,000 in 2005.
Capital expenditures during the fourth quarter of 2006 totalled $6,115,000 compared to $2,126,000 in the corresponding period of 2005. Capital expenditures in the most recent quarter included $1,751,000 for ongoing construction of the Kemess tailings dam, $1,695,000 for the purchase of three small drills for the north wall push back in the Kemess South pit and $2,495,000 related to permitting activities for the Kemess North project. In the fourth quarter of 2005, capital expenditures were primarily related to the ongoing tailings dam construction. Total capital expenditures during 2006 amounted to $15,199,000 compared with $14,044,000 in 2005.
Non-GAAP Measure
Northgate has included net cash costs of production per ounce of gold in the discussion of its results from operations, because it believes that these figures are a useful indicator to investors and management of a mine's performance as they provide: (i) a measure of the mine's cash margin per ounce, by comparison of the cash operating costs per ounce to the price of gold; (ii) the trend in costs as the mine matures; and, (iii) an internal benchmark of performance to allow for comparison against other mines. However, cash costs of production should not be considered as an alternative to operating profit or net profit attributable to shareholders, or as an alternative to other Canadian GAAP measures and they may not be comparable to other similarly titled measures of other companies.
A reconciliation of net cash costs per ounce of production to amounts reported in the statement of operations is shown below.
<<
(Expressed in thousands
of US$, except per
ounce amounts) 4Q 2006 4Q 2005 YE 2006 YE 2005
-------------------------------------------------------------------------
Gold production
(ounces) 81,747 94,405 310,296 279,962
-------------------------------------------------------------------------
Cost of sales $ 60,461 $ 47,682 $ 224,584 $ 178,411
Change in inventories
& other 1,944 557 7,836 6,769
Gross copper & silver
revenue (69,735) (49,366) (249,699) (127,787)
-------------------------------------------------------------------------
Total cash cost (7,330) 5,539 (17,279) 57,393
-------------------------------------------------------------------------
Cash cost per ounce $ (89) $ 59 $ (56) $ 205
-------------------------------------------------------------------------
-------------------------------------------------------------------------
>>
YOUNG-DAVIDSON EXPLORATION UPDATE
During the fourth quarter of 2006, Northgate completed a NI 43-101 compliant technical report outlining an increased resource at the Young-Davidson project near Matachewan, Ontario. The report which was filed on SEDAR on January, 29, 2007, showed an overall increase in contained gold ounces of just over 600,000 ounces of gold. All of these additional ounces are underground. Overall resources on the property now stand at 1,063,060 ounces in the measured and indicated category, with an additional inferred resource of 1,071,270 ounces (please refer to Northgate's press release dated December 18, 2006 for more information).
The surface drilling program recommenced in early January with four drills and the contractor has committed to providing two additional drills as they become available in March and April. All permits for the underground work have now been obtained and work on the underground development has been ongoing since mid-December. The ramp portal has now been collared and almost all surface infrastructure is now in place.
KEMESS NORTH UPDATE
The public hearing phase of the joint Federal-Provincial Environmental Review process concluded on December 15, 2006. On December 4, 2006, the federal and provincial governments announced that the review process would be extended for 90 days to give the two levels of government additional time to negotiate funding agreements that would enhance the involvement of several First Nations groups in the panel review process. In February 2007, the governments reached agreement with two First Nations groups to provide additional funding and a revised timetable for the completion of the panel review process is expected to be announced later in the first quarter of 2007.
<<
-------------------------------------------------------------------------
Selected Quarterly Financial Data
(expressed in thousands of US dollars, except per share data)
-------------------------------------------------------------------------
2006 Quarter Ended
-------------------------------------------------------------------------
Dec 31 Sep 30 Jun 30 Mar 31
Revenue(1) $ 118,239 $ 102,667 $ 105,348 $ 85,059
Earnings (loss) $ 19,790 $ 14,902 $ 50,315 $ 21,735
Earnings (loss)
per share
Basic $ 0.09 $ 0.07 $ 0.23 $ 0.10
Diluted $ 0.09 $ 0.07 $ 0.22 $ 0.10
-------------------------------------------------------------------------
-------------------------------------------------------------------------
2005 Quarter Ended
-------------------------------------------------------------------------
Dec 31 Sep 30 Jun 30 Mar 31
Revenue(1) $ 95,651 $ 64,631 $ 54,461 $ 42,559
Earnings (loss) $ 44,527 $ 8,765 $ (3,342) $ (10,393)
Earnings (loss)
per share
Basic $ 0.21 $ 0.04 $ (0.02) $ (0.05)
Diluted $ 0.21 $ 0.04 $ (0.02) $ (0.05)
-------------------------------------------------------------------------
(1) Consistent with the presentation adopted in the fourth quarter of
2005, revenue figures for 2005 have been adjusted to reflect the
reclassification into cost of sales of a variety of costs that were
previously netted against revenues.
(2) The figures in the table reflect the Corporation's change in
accounting policy for metal inventories.
>>
Conference Call and Webcast of Year End Financial Results
You are invited to participate in the Northgate Minerals Corporation (TSX:NGX) (AMEX:NXG) live conference call and webcast discussing our 2006 year end financial results. The call and webcast will take place on Friday, March 2, 2007, at 10:00 a.m. ET.
You may participate in the Northgate Conference Call by calling 416-644-3415 or toll free in North America at 1-800-732-9307. To ensure your participation, please call five minutes prior to the scheduled start of the call. For those unable to participate in the conference call at the scheduled time, a replay of the conference call will be available beginning on March 2 at 12:00 P.M. ET until March 16 at 11:59 PM ET.
<<
Replay Access No. 416-640-1917 Passcode: 21219271 followed by the
number sign.
Replay Access No. 877-289-8525 Passcode: 21219271 followed by the
number sign.
>>
A live and archive Webcast of this call, which includes our presentation package, will also be made available on our website at www.northgateminerals.com.
Northgate Minerals Corporation is a gold and copper mining company focused on operations and opportunities in the Americas. The Corporation's principal assets are the Kemess South mine in north-central British Columbia, the adjacent Kemess North deposit, which contains a proven and probable reserve of 4.1 million ounces of gold and the Young-Davidson property in northern Ontario with a total resource base of 2.1 million ounces of gold. Northgate is listed on the Toronto Stock Exchange under the symbol NGX and on the American Stock Exchange under the symbol NXG.
Forward-Looking Statements
This news release includes certain "forward-looking statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. These forward-looking statements include estimates, forecasts, and statements as to management's expectations with respect to, among other things, future metal production and production costs, potential mineralization and reserves, exploration results, progress in the development of mineral properties, demand and market outlook for commodities and future plans and objectives of Northgate Minerals Corporation (Northgate). Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," or "continue" or the negative thereof or variations thereon or similar terminology. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management are inherently subject to significant business, economic and competitive uncertainties and contingencies. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Northgate's expectations are disclosed under the heading "Risk and Uncertainties" in Northgate's 2005 Annual Report and under the heading "Risk Factors" in Northgate's 2005 Annual Information Form (AIF) both of which are filed with Canadian regulators on SEDAR (www.sedar.com) and with the United States Securities and Exchange Commission (www.sec.gov). Northgate expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
<<
NORTHGATE MINERALS CORPORATION
INTERIM CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States dollars)
December 31 December 31
2006 2005(1)
-------------------------------------------------------------------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 262,199 $ 50,639
Concentrate settlements and other
receivables 17,960 18,885
Inventory 24,999 28,901
Future income tax asset 7,469 -
Deferred hedging loss 8,583 4,561
-------------------------------------------------------------------------
321,210 102,986
Other assets 28,831 14,117
Future income tax asset 6,291 13,937
Mineral property, plant and equipment 159,299 177,966
-------------------------------------------------------------------------
$ 515,631 $ 309,006
-------------------------------------------------------------------------
-------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 22,023 $ 19,556
Current portion of capital lease obligations 2,439 4,215
Current portion of long-term debt - 13,700
-------------------------------------------------------------------------
24,462 37,471
Capital lease obligations 2,586 7,680
Provision for site closure and reclamation
obligations 28,197 26,193
Future income tax liability 12,638 1,229
-------------------------------------------------------------------------
67,883 72,573
-------------------------------------------------------------------------
SHAREHOLDERS' EQUITY (Note 3)
Common shares 307,914 195,565
Warrants - 8,715
Contributed surplus 2,596 1,657
Retained earnings 137,238 30,496
-------------------------------------------------------------------------
447,748 236,433
-------------------------------------------------------------------------
$ 515,631 $ 309,006
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Adjusted (note 2)
The accompanying notes form an integral part of these financial
statements.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of United States dollars,
except per share amounts)
Three months ended Twelve months ended
December 31 December 31
(Unaudited) 2006 2005(1) 2006 2005(1)
-------------------------------------------------------------------------
Revenue $ 118,239 $ 95,651 $ 411,313 $ 257,302
-------------------------------------------------------------------------
Cost of sales 60,461 47,682 224,584 178,411
Administrative and
general 1,543 1,518 8,209 6,128
Depreciation and
depletion 10,122 13,810 35,591 38,009
Interest expense
(income) (2,156) 700 (4,013) 2,391
Exploration 4,953 686 11,449 3,915
Currency translation
losses (gains) 3,726 (573) 1,922 (962)
Accretion of site
closure and reclamation
costs 406 306 1,553 1,183
Other expense (income) - (50) 8,423 496
-------------------------------------------------------------------------
79,055 64,079 287,718 229,571
-------------------------------------------------------------------------
Earnings before
income taxes 39,184 31,572 123,595 27,731
Income tax recovery
(expense)
Current (951) (982) (5,406) (2,111)
Future (note 5) (18,443) 13,937 (11,447) 13,937
-------------------------------------------------------------------------
(19,394) 12,955 (16,853) 11,826
-------------------------------------------------------------------------
Net earnings for
the period $ 19,790 $ 44,527 $ 106,742 $ 39,557
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings per
share
Basic $ 0.09 $ 0.21 $ 0.50 $ 0.20
Diluted $ 0.09 $ 0.21 $ 0.48 $ 0.20
Weighted average
shares outstanding
Basic 217,165,384 209,195,152 215,609,932 202,789,310
Diluted 224,674,332 209,533,541 222,892,929 202,858,866
-------------------------------------------------------------------------
-------------------------------------------------------------------------
INTERIM CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (DEFICIT)
(Expressed in thousands of United States dollars)
Three months ended Twelve months ended
December 31 December 31
(Unaudited) 2006 2005 2006 2005
-------------------------------------------------------------------------
Retained earnings
(deficit) at beginning
of period
As previously
reported $ 117,448 $ (20,180) $ 30,496 $ (15,210)
Adjustment for
retroactive change
in accounting for
inventory (note 2) - 6,149 - 6,149
-------------------------------------------------------------------------
As adjusted (note 2) 117,448 (14,031) 30,496 (9,061)
Net earnings for
the period 19,790 44,527 106,742 39,557
-------------------------------------------------------------------------
Retained earnings at
end of period $ 137,238 $ 30,496 $ 137,238 $ 30,496
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Adjusted (note 2)
The accompanying notes form an integral part of these financial
statements.
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of United States dollars)
Three months ended Twelve months ended
December 31 December 31
(Unaudited) 2006 2005(1) 2006 2005(1)
-------------------------------------------------------------------------
CASH PROVIDED BY
(USED IN)
Operations
Earnings for the
period $ 19,790 $ 44,527 $ 106,742 $ 39,557
Non-cash items
Depreciation and
depletion 10,122 13,810 35,591 38,009
Unrealized currency
translation losses 1,335 1,006 1,047 1,251
Accretion of site
closure and
reclamation costs 406 306 1,553 1,183
Amortization of
deferred hedging loss 6,348 5,585 21,375 5,585
Amortization of
deferred charges 73 (2,208) 562 1,305
Stock-based
compensation 290 38 2,014 845
Future income tax
expense (recovery) 18,443 (13,937) 11,447 (13,937)
Change in fair value
of forward contracts (17,975) 755 (16,619) 755
Other expenses (income) - (277) - (299)
-------------------------------------------------------------------------
Changes in non-cash
operating working
capital and other
Concentrate
settlements and
other receivables 11,949 (6,391) 13,909 (7,558)
Inventory (1,526) (7,734) (5,730) (9,846)
Accounts payable and
accrued liabilities (3,685) 751 2,467 2,723
Settlement of
forward contracts (1,572) - (25,397) (10,146)
Reclamation costs paid (114) (388) (2,349) (388)
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43,884 35,843 146,612 49,039
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Investments
Purchase of other assets (1,714) (852) (1,845) (852)
Purchase of mineral
property, plant and
equipment (6,115) (2,126) (15,199) (12,697)
Proceeds on sale of
property - - - 171
Net cash acquired on
acquisition of
Young-Davidson Mines,
Limited - 123 - 123
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(7,829) (2,855) (17,044) (13,255)
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Financing
Repayment of capital
lease obligation (708) (1,316) (6,870) (4,959)
Repayment of long-term
debt - (14,050) (13,700) (29,800)
Issuance of common
shares 99,998 177 102,562 357
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99,290 (15,189) 81,992 (34,402)
-------------------------------------------------------------------------
Increase in cash and
cash equivalents 135,345 17,799 211,560 1,382
Cash and cash
equivalents at
beginning of period 126,854 32,840 50,639 49,257
-------------------------------------------------------------------------
Cash and cash
equivalents at end
of period $ 262,199 $ 50,639 $ 262,199 $ 50,639
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Supplementary Information
Cash paid during the
period for
Interest 111 1,363 1,006 4,204
Income taxes 484 - 484 -
Non-cash financing
activities
Issuance of common
shares and other
securities on Young-
Davidson Mines,
Limited purchase - 17,990 - 17,990
Purchase of mineral
property, plant
and equipment by
assumption of capital
lease obligations - - - 1,347
-------------------------------------------------------------------------
(1) Adjusted (note 2)
The accompanying notes form an integral part of these financial
statements.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Three and Twelve months ended December 31, 2006 and 2005
(Dollar amounts in tables are expressed in thousands of United States
dollars unless indicated) (Unaudited)
1. Basis of Presentation
The accompanying unaudited interim consolidated financial statements
have been prepared in accordance with generally accepted accounting
principles in Canada ("Canadian GAAP"). They do not include all the
disclosures required by generally accepted accounting principles for
annual financial statements and should be read in conjunction with
the Corporation's consolidated financial statements and the notes
thereto included in the Corporation's Annual Report for the year
ended December 31, 2005. In the opinion of management, all
adjustments considered necessary for fair presentation have been
included in these financial statements.
These financial statements are prepared using the same accounting
policies and methods of application as those disclosed in Note 2 to
the Corporation's consolidated financial statements for the year
ended December 31, 2005.
2. Accounting Changes
During the quarter ended December 31, 2006, the Corporation changed
its accounting policy with respect to metal inventories to
incorporate a full costing method and also to value additional
components of inventory created during the mining process. This
change in accounting policy has been applied retroactively for all
years presented. Net earnings for the year ended December 31, 2005
increased by $6,670,000 (2004 - $1,541,000) or $0.04 per share
(2004 - nil). Additionally, as at December 31, 2005, inventory
increased by $13,882,000 and the future income tax asset decreased by
$1,063,000.
3. Shareholders' Equity
(a) Common shares
---------------------------------------------------------------------
Number of shares Amount
---------------------------------------------------------------------
Balance, December 31, 2005 214,011,246 $ 195,565
Issued in Q1 2006:
Pursuant to Employee Share Purchase Plan 45,027 102
On exercise of warrants 314,523 480
On exercise of options 386,800 490
Issued in Q2 2006:
Pursuant to Employee Share Purchase Plan 30,269 113
On exercise of warrants 10,202 27
On exercise of options 810,880 2,247
Issued in Q3 2006:
Pursuant to Employee Share Purchase Plan 30,955 109
On exercise of warrants 2,778 8
On exercise of options 22,800 84
Issued in Q4 2006:
Pursuant to Employee Share Purchase Plan 39,300 130
On exercise of warrants 37,895,253 108,383
On exercise of options 100,000 176
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Balance, December 31, 2006 (unaudited) 253,700,033 $ 307,914
---------------------------------------------------------------------
---------------------------------------------------------------------
On or before December 28, 2006 holders of Northgate publicly traded
common share purchase warrants (CUSIP numbers 666416169 and
666416177) exercised a total of 37,895,253 warrants. 274,105 warrants
expired unexercised. As a consequence of the warrants exercise, the
Corporation received a total of $99,785,000. As of March 1, 2007, the
Corporation had 254,115,058 issued and outstanding common shares.
(b) Stock-based compensation
During the three months ended December 31, 2006, the Corporation
granted a total of 75,000 options (2005 - 20,000) to employees with a
term of seven years, exercisable at Cdn$3.85. Twenty percent (15,000)
of these options vested immediately and the balance will vest in
equal amounts on the anniversary of the grant over the next four
years. During the three months ended December 31, 2006, $246,000
(2005 - $2,000) was recognized for options that vested during the
quarter. The fair value of the options granted for the quarter ended
December 31, 2006 was $145,000 (2005 - $10,000).
During the three months ended December 31, 2006, 100,000 options were
exercised and 11,000 options were either cancelled or expired.
At December 31, 2006, there were 4,655,340 options outstanding of
which 2,097,340 were exercisable.
There were no options granted during the three months ended
September 30, 2006 (2005 - nil). During the three months ended
September 30, 2006, $244,001 (2005 - $16,133) of stock-based
compensation was recognized for options that vested during the
quarter.
During the three months ended September 30, 2006, 22,800 options were
exercised and 18,200 options were either cancelled or expired.
There were no options granted during the three months ended June 30,
2006 (2005 - 50,000). During the three months ended June 30, 2006,
$240,000 (2005 - $85,000) of stock-based compensation was recognized
for options that vested during the quarter.
During the three months ended June 30, 2006, 810,880 options were
exercised and 56,500 options were either cancelled or expired.
During the three months ended March 31, 2006, the Corporation granted
a total of 1,352,000 (2005 - 1,205,000) options to employees, with a
term of seven years. 1,217,000 of these options are exercisable at
Cdn$2.60, 100,000 are exercisable at Cdn$2.52 and 35,000 are
exercisable at Cdn$2.65. Twenty percent (242,000) of these options
vested immediately and the balance will vest in equal amounts on the
anniversary date of the grant over the next four years. The fair
value of the options granted for the quarter ended March 31, 2006 was
$1,480,000 (2005 - $604,000). During the three months ended March 31,
2006, $1,131,000 (2005 - $578,000) of stock-based compensation was
recognized for options that vested during the quarter.
During the three months ended March 31, 2006, a total of 86,800
options were cancelled and 386,800 options were exercised.
The fair value of the share options granted during 2006 was estimated
using the Black-Scholes pricing model with the following assumptions
(there were no options granted in Q3 2006 or Q3 2005):
---------------------------------------------------------------------
For Options Granted in
---------------------------------------------------------------------
2006 2005
---------------------------------------------------------------------
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
---------------------------------------------------------------------
Risk-free
interest
rate 4.53% - - 4.1% 2.5% - 2.5% 2.5%
---------------------------------------------------------------------
Annual
dividends - - - - - - - -
---------------------------------------------------------------------
Expected
stock price
volatility 50% - - 60% 51% - 55% 56%
---------------------------------------------------------------------
Expected
option 5.0 5.0 3.5 3.5 3.5
life years - - years years - years years
---------------------------------------------------------------------
Per share
fair value
of options
granted
(Cdn$) $2.20 - - $0.62 $0.59 - $0.62 $0.76
---------------------------------------------------------------------
4. Financial Instruments
During the three months ended December 31, 2006, the Corporation
reduced its gold forward sales position by 6,000 (2005 - nil) ounces
at a cost of $1,572,000 (2005 - $nil). For the full year ended
December 31, 2006, 79,000 ounces were settled at a cost of
$25,397,000. In accordance with Accounting Guideline 13, "Hedging
Relationships", the losses associated with the early settlement of
these contracts were deferred and are being amortized over the same
period as the forward sales contracts were originally scheduled to be
closed out. As at December 31, 2006, $8,583,000 of the deferred
hedging loss from early settlement of contracts remained deferred and
will be amortized over the period that the forward sales contracts
were originally scheduled to settle (January 2007 - December 2007).
At December 31, 2006, Northgate had remaining gold forward sales
commitments with a major financial institution to deliver 60,000
ounces of gold at an average accumulated price of $307 per ounce.
These commitments are in the form of forward sales contracts maturing
at various dates between March 30, 2007 and December 31, 2007. The
unrealized loss on these forward contracts at December 31, 2006 was
approximately $20,265,000, and has not been recognized in these
financial statements.
At December 31, 2006, the Corporation had forward sales contracts
with a major financial institution to fix the price of delivered
copper for which final settlement has not occurred. A total of
21,650 metric tonnes of copper were sold forward using LME contracts
maturing from January 2007 through May 2008 at an average forward
price of $3.19 per pound. The Corporation also entered into separate
forward purchase contracts with the same institution to repurchase
its forward sales position at monthly average cash LME prices over
the same period. The volume of forward sales and purchases in each
future contract month match the expected future pricing periods for
copper in concentrate delivered to Xstrata (formerly Falconbridge)
under a multi-year concentrate sales agreement. The copper forward
sales and purchase contracts are being recognized on a mark-to-market
basis. The fair value of these contracts at December 31, 2006 was a
net gain of $15,488,000.
5. Future Income Taxes
During the fourth quarter, the Company recognized future income tax
expense of $18,443,000 to reflect the utilization of tax losses and
other tax deductions to offset taxable income.
6. Commitments and Contingencies
In the second quarter of 2006, the Corporation entered into a
Cooperation Agreement with the Tse Keh Nay (3 Nations) related to the
operation of Northgate's existing Kemess South mine. The Corporation
paid Cdn$500,000 on signing of the agreement and the Corporation will
provide funding to benefit the Tse Keh Nay member communities in the
amount of Cdn$1,000,000 per year over the remaining Kemess South mine
life.
Also in the second quarter, Northgate launched an unsolicited offer
to purchase all the outstanding common shares of Aurizon Mines Ltd
("Aurizon"). On July 7, 2006, the Corporation withdrew its offer
after the British Columbia Court of Appeal upheld a previous lower
court injunction against Northgate's offer. As a result of this
ruling, Aurizon was awarded its costs and damages that are yet to be
determined. The Corporation accrued an estimate of these costs and
damages as a charge against earnings in the second quarter of 2006.
In the third quarter of 2006, the Corporation entered into a fixed-
price agreement to purchase a total of 12,000,000 litres of low-
sulphur diesel fuel (approximately 50% of expected 2007 consumption)
from a supplier for delivery during 2007.
7. Subsequent Events
In January of 2007 the Corporation repurchased 30,000 ounces of its
gold forward sales position at a cost of $9,325,800. As of March 1,
2007 the remaining gold forward sales position is 30,000 ounces at an
average accumulated price of $307 per ounce.
>>
%CIK: 0000072931
For further information: Ms. Keren R. Yun, Manager, Investor Relations, (416) 216-2781, kyun@northgateminerals.com
http://www.investorshub.com/boards/board.asp?board_id=5487