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Taken from Kitco
The spot price of gold has fallen more than 20% from its all-time high, reached in March of 2008. But if you think that means demand has declined, think again.
Gold demand has in fact exploded, and not just here and there. Everywhere. Around the world, customers have been queuing up to strip coin shops’ shelves bare. Mints have been running 24/7 and still have been forced to ration coin shipments to their dealers. ETF vaults are bulging.
Now, the World Gold Council has confirmed the trend with hard numbers for the third quarter of this year. In a page-and-a-half press release summarizing 3Q2008 activity, the WGC had to use the word “record” ten times. Some highlights:
Dollar demand for gold in Q3 was a record US$32 billion, 45% higher than the previous record, set in 2Q2008.
Identifiable investment demand, which incorporates demand for gold through exchange-traded funds (ETFs), bars and coins, rose to $10.7 billion (12.3 million ounces), double year-earlier levels.
Retail investment demand rose 121% to 7.5 million ounces, with strong bar and coin buying in the Swiss, German, and U.S. markets. Europe as a whole saw an all-time record 1.64 million ounces of bar and coin buying. France became a net investor in gold for the first time since the early 1980s.
Gold ETFs posted a record quarterly inflow of 4.8 million ounces in Q3. After the collapse of Lehman Brothers in late September, ETF inflows shot higher by an unprecedented 3.6 million ounces in only five days.
Demand for gold jewelry hit a record $18 billion. Leading the way was India, which witnessed a rise of 65% in dollar value (1.3 million ounces) compared with 3Q2007. The Middle East, Indonesia, and China all experienced increases of more than 40% in value or 10% in weight, year over year.
At the same time that demand is setting records, supply has been unable to keep pace, falling 9.7% from year-earlier levels, the WGC reported. The drop was largely due to inaction on the part of central banks, which have increasingly shut their vault doors.
Heavy demand, declining supply… small wonder that gold prices have remained near record highs in most of the world’s currencies; that dealers have been marking up coins by 10% or even 15% (when they can get them); and that one-ounce coins still fetch bids close to $1,000 on eBay.
Lojiko, What does that mean, the percentage of delivery contracts asking for physical gold, BD54?
Just means that there is more interest in taking delivery of Gold. Someone believes that the physical Gold price is going up. (We are now having to pay a premium buying).
Example – I am seeing 1/gram of Gold going for $36 - 40 but the spot price per gram is like $25. We are also having to wait way to long for back orders to be filled.
Interesting that 39% of the December Gold contracts are asking to take delivery of physical Gold. Hmmmmmmm!
December 8th the final total will be in.
Is someone really mad about the current price of oil?
Oh well, we will see what happens.
Like a stock the goes sub-penny and can bounce back up.
Still looking for that POST production PR.
Buyers - up your bids.
Nice start
I think the moral of the story is mine or get out.
Guinea cancels Aredor diamond mining licence
Sun 9 Nov 2008, 0:17 GMT
[-] Text [+] CONAKRY, Nov 8 (Reuters) - Guinea has cancelled a diamond mining licence held by Aredor, which is 85 percent owned by Toronto-listed Azure Resources Corp <AZU.V>, the government said on Saturday.
Aredor is the largest diamond mining operator in the West African country but the government accused it earlier this year of having stopped all activities for three years despite promising various ministers it would restart its operations.
"The cabinet unanimously approved the decision," said government spokesman Tibou Kamara.
Guinea's government is reviewing a number of minerals contracts in an effort to maximise state revenues. Guinea is the world's top exporter of the aluminium ore bauxite, making mining the impoverished country's main source of foreign exchange.
A senior official at the Minerals Ministry said the decision would have to be rubber-stamped by a vote in the National Assembly.
Azure, which changed its name this year from Trivalence Mining, owns 85 percent of Aredor, which has a concession in the centre of the country, some 400 km (250 miles) north of the capital, Conakry. The Guinean government owns the remaining 15 percent of the company.
Before it stopped operations, Aredor was producing between 12,000 and 38,000 carats a year, mines ministry officials said.
Guinea's official diamond reserves are estimated at more than 25 million carats, not including as yet unmapped kimberlite fields.
Diamond output in 2007 totalled 500,000 carats, according to Mines Ministry data.
Earlier this year Guinea hosted a meeting to discuss how to increase mining revenues for West and Central African nations, many of which are rich in raw materials but are among the world's least developed countries. (Reporting by Saliou Samb; writing by Katrina Manson, Editing by Alistair Thomson)
From today's presentation.
http://www.lgdi.net/images/docs/17110812140.pdf
Still trying to find some answers.
Soros or IFFCO could block LGDI from going private if they wanted too.
Littlefish - do have a question. Is there a time limit imposed on publice company's that decide to go private then decides to make a new public offering? The regulations are not clear.
I looking at the SEC regs but the link below sums up things pretty well.
http://www.rutan.com/siteFiles/publications/GoingPrivate.pdf
Could be! would make sense since the markets are so bad.
Mining sector down -66% Exploration stocks down even more.
When is this going back to 50 cents because I want more to I paid 86 cents and love to average down. I'm up 5 grand in two days but I guees i better sell into the open today and look for that 50 cents you're talking about.
NOW..............LOL
Bad time to be trying to sell.
Oh My could this be for real!!!
I could hold for a long time at these prices.
Gee, that open short position CLOSED 11/12
Looks like I am wrong again.
Correction, I meant HMIT not NBRI, I own HMIT.
Details, may explain some things.
I have been wrong before. But I am still glad to see the PPS did not drop...to .003
Whom ever sold did indeed find some buyers.
Yesterday, was supported by buyers in the .01 -.0115 range.
Raising cash is always required. But dilution scares investors.
It may be hard to think that someone would buy million share blocks...I do not. It easy to buy and easy to sell.
The MM's do not hold millions of shares, they do not want excess inventory. They just need enough to fill orders.
Actually we are on our own here to find buyers.
If this is dilution, this will tank.
We will see.
I do not believe it is.
IMO
Most often the Compamy takes the blame for days/weeks like this.
The last time I checked there was a approx 158,000,000 in float.
I do not need to call HMIT to confirm the float, but maybe someone else will.
Someome played today and made some $$$
Not an IMO statement...stock that trade in the range of HMIT
Look very good to investors that buy in million share blocks.
Some have the monies to purchase a number of blocks.
It is easy math.
Sorry for the English in my last post but I was distracted.
First I would like to state we all know how hard it is to save or make up to $30,000.00
What happened in January. The average daily share jumped volume 1.2 Million in a few days.
There was a short position and not that large.
Then 2/7/08 the price was all over the place.
We just had a huge volume increase, there is a 566K short position.
Along with some promotions.
Sorry this is all I want to say.
All is IMO
OK, this looks like what happened last January.
This looks like what happened at the end of January.
Sandy...just bashes he would not know how to short a stock if he tried.
ALL is IMO
This stock has been shorted before, just waited until the bids started stacking up at .009 - .011. IMO
Can not stop it so play through it if you have a little cash.
I am a holder of HMIT, this works out.
Any news about the financing?
And here we go, what is so hard about this!
Low hanging fruit, IMO
Your comments are understood, but I would like to add that
there are 100,000 to 300,000 thousand locals involved in Artisanal mining activities - Guinea, West Africa . The locals are selling gold to local buyers.
My point is it will not take up to 3 months to process and sell “Alluvial placers” from gold recovery operations.
“Additionally, HMM identified additional highly probable areas for quick gold recovery that CMM will have extracted”, source HMIT website.
Over the past couple of months, there has been information posted about working conditions and financing. These posts had a ring of truth to them. Is this bad?
I for one do not believe the equipment will just sit there on site. Production is closer now than ever.
Good Luck!
Source is from CMM website, when Gold was selling in the 550 -600 range.
Following is a table showing revenue projections for the first five years of production at a gold price of $550 per ounce.
$550/oz is the thresold for profits.
* Fifa Land Prospecting Permit - Projected Production.
Year 1
Year 2
Year 3
Year 4
Year 5
Total Ore Mined (t)
195,000
200,000
225,000
225,000
200,000
Processing Rate (t/day)
650
640
721
721
641
Gold Recovered (g)
146,250
117,000
315,000
315,000
117,000
Ounces of Gold
4,702
3,762
10,128
10,128
3,762
Revenue (US$)
2,586,100
2,069,100
5,570,400
5,570,400
2,069,100
TINKISSO RIVER DREDGING PROJECT
The Tinkisso River dredging acquisition delineates a 20 kilometer ribbon along the Tinkisso River and covers potentially some of the most gold rich sediments on both sides of the main river channel.
The Tinkisso Mining permit was granted to Hamilton Mining and Marketing SARL ("HMM") on the 8th day of January 2004. The permit is renewable in incremental five-year periods. It awarded HMM the exclusive right to mine for gold and related minerals in the bottom sediments of the Tinkisso River.
Located in the heart of gold rich Siguiri Basin, the Tinkisso River is a major tributary of the Niger River, the largest river in West Africa, which flows to the east. With several feeder streams known to carry gold mineralization, the Company believes that the Tinkisso River permit has the potential to become a short term gold producer from the dredging of loose sediments at the bottom of the river bed.
Over time, draining streams have fed gold rich sediments eroded from the country rocks into the Tinkisso River. The Tinkisso River is less than 500 metres in width; the Tinkisso River valley is host to at least four levels of sedimentary terraces. The surrounding plain is highly dissected by numerous tributaries draining to the river and forming flat bottom valleys.
Historic Exploration
Between 1909 and 1949, French colonials prospected and dredged a stretch of the Tinkisso River approximately 25 kilometres downstream from the Tinkisso River dredging permit area. During that period approximately 9,646 ounces of gold were extracted from the loose sediments of the Tinkisso River. A review of past records revealed that up to 60% of the recoverable gold was lost due to a poor recovery circuit. Furthermore, when mining was suspended in 1947, the operator left behind approximately 4,310 ounces of un-dredged gold resource a few kilometres from the Tinkisso River dredging permit area.
Exploration Conducted by Hamilton Mining SARL
In August 2002, Hamilton Mining SARL completed a dredging test on the Tinkisso River dredging permit area. Following several operational problems and rising water caused by heavy rain, the test was suspended following only one day of operation. Nevertheless, 26.0 grams of gold were recovered from the dredging test.
During June and July 2003, Hamilton Mining SARL conducted a reconnaissance sampling program on the Bandou Siitou gravel bar located on the north bank of the Tinkisso River approximately three kilometers south of the town of Fifa, one of nine gravel bars banking the Tinkisso permit area that measures 680 meters long by 100 meters wide. A total of 11 pits on six lines were excavated across the width of the gravel bar and over its entire length.
The clastic sedimentary sequence excavated included fine to coarse sand lenses within medium to coarse gravel horizons. More than 90% of the sand and pebbles were found to be composed of sub-rounded to well rounded quartz fragments. The recovered grades ranged between 0.34 milligrams of gold per cubic meter to 29.76 milligrams of gold per cubic meter with an average of 56.6 milligrams of gold per cubic meter.
From 2004 to 2006, Hamilton Mining SARL tested recovered fine gold from sand bars in the permit area. As well, 4,100 grams of gold was recovered from intermittent random sampling of gravel dredged from the bottom of the river near the boundary of the permit area.
Based on HMM's data, the Company has estimated the gold dredging potential of the Tinkisso River dredging permit area to be as follows:
* Tinkisso River Dredging Permit Estimate.
Estimate
River Length (m)
28,000
River Width (m)
100
Gravel Thickness (m)
1.0
Gravel Volume (gr/m3)
2,800,000
Recoverable Au (@1.28 gr/m3)
3,584,000 (115,241 oz)
Projected Production
The Company is prepared to start full dredging production on the Tinkisso River dredging permit area in the 2008 field season. The dredging program would last approximately eight months. Based on sampling carried out by HMM, the Company has estimated the following revenue projections for the first five years of production at a gold price of $700 per ounce.
* Tinkisso River Dredging Permit - Projected Operations.
Year 1
Year 2
Year 3
Year 4
Year 5
Yards per hour
280
380
480
580
680
Expected Yield per Yard (g)
0.75
0.75
0.75
0.75
0.75
Yards per month
44,800
60,800
76,800
92,800
108,800
Grams per month
33,600
45,600
57,600
69,600
81,600
Grams per season (8 Months)
268,800
364,800
460,800
556,800
652,800
Total output (oz)
9,481.64
12,867.94
16,254.24
19,640.54
23,026.84
Projected Revenue (US$)
$6,637,148
$9,007,558
$11,377,968
$13,748,378
$16,118,788
right, good move, adding again myself.
http://www.qwikcast.com/cgi-bin/forecast.cgi?zip=Siguiri,GN&pid=weatherbase
Weather is also really starting to look good.
Shaker - the profile you have posted on your web site for HMIT is not accurate, you might want to post this link http://www.hidalgominingint.com
IMO, I would accept HMIT going back to .03, MrBigz chart is looking good.
OK, lets play ball!