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Frankfurt trading - so far ..............................................
High of 1.05 euros -- volume is 66,660
http://deutsche-boerse.com/dbag/dispatch/en/isg/gdb_navigation/home?module=InOverview_Equi&wp=US...
C L
I met him in the mid 90's, when a bunch of us posted on the old Compuserve S-10 natural resource board. He was involved in mining since the early 90's. Always struggling with lack of capital, trying to get something going. He put together the AMRS oil deals and while they were producing, they were low-volume wells. He sold them off and got involved in the Mexican P M properties. He's honest, straight forward and never gives up. Management is always the most important factor in a business venture and he's the man, in my book.
If the base metals properties start producing, we should see the stock really start to fly. Nothing like real cash flow to bring in the buyers.
C L
WOW - great start to the day. Would really be sweet to finish the year at that old $1.21 area (or above).
C L
Some good points there. Of course the miners are looking to make $, so it would depend on the deposit sizes, mining costs etc. That's something we don't know anything about, at this point. '07 should be an interesting time for the metals.
C L
Interesting piece on buying reserves. This is a good reason to be careful about shorting mining stocks. Wouldn't that be interesting if they started coming after Ag properties??
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Gold Takeovers Reach Record on Lack of New Supplies (Update2)
By Choy Leng Yeong
Dec. 27 (Bloomberg) -- Gold-company acquisitions this year surged to the highest level in at least a decade, and the industry may continue its buying spree in 2007 as producers struggle to find new deposits.
Goldcorp Inc.'s $8.5 billion acquisition of Glamis Gold Ltd. was the biggest of 357 deals valued at a total of $24.3 billion this year, data compiled by Bloomberg shows. That eclipsed the $16.2 billion spent last year on 341 transactions, including Barrick Gold Corp.'s $10 billion purchase of Placer Dome Inc.
Producers are rushing to boost supply because mines are being depleted faster than new reserves are being found, and a six-year rally in gold prices is providing cash to buy assets. The number of discoveries of at least 2.5 million ounces has declined for eight straight years, according to Metals Economics Group in Halifax, Nova Scotia.
``The driving force behind the M&A is that you have difficulty finding new gold mines,'' said Graham Birch, who helps manage $27 billion at BlackRock Investment Management in London. ``It's all about trying to get access to reserves.''
From 1992 to 2005, the world produced 1.1 billion ounces of gold, or 1.8 times more than the new resources discovered among deposits of at least 2.5 million ounces, Metals Economics Group said.
The drop in new reserves followed years of reduced spending on exploration as gold fell to a 20-year low of $253.20 an ounce in 1999. Worldwide exploration budgets fell to a 12-year low of about $780 million in 2002, said Jason Goulden, director of corporate exploration strategy at Metals Economics.
`Scramble for Land'
``There is a scramble for land,'' said Ian Cockerill, chief executive officer of Johannesburg-based Gold Fields Ltd. ``From about 1996 until about a couple of years ago, there was a marked decline in the amount of exploration dollars. The industry is staring down the barrel of the gun that says, `Where are the replacement ounces coming from?'''
Gold Fields, the fourth-largest producer, earlier this month completed a $1.53 billion purchase from Barrick of half of the world's biggest deposit, the South Deep mine in South Africa. Gold Fields is buying shares in Western Areas Ltd., which owns the rest of South Deep. The deal will increase the company's reserves by about half.
The price of gold has more than doubled to $630.30 an ounce today from a 20-year low in 1999. The precious metal reached a 26- year high of $732 on May 12. The rally, fueled by investors seeking a hedge against inflation or an alternative to the dollar as it fell against the euro, has spurred demand for new reserves.
Cost of Reserves
The cost of reserves rose to a record $120 an ounce in 2005, compared with a low of $33 in 2000, said James Lowrey, a senior analyst at Metals Economics, which tracks more than 1,450 companies and deals of at least $50 million since 1995.
Gold Fields CEO Cockerill admits he paid top dollar for the South Deep mine at $104 an ounce. ``It is certainly one of the more expensive acquisitions that we have made'' compared with the company's historical average of $60, he said. ``But then again, it's a very special ore body.''
The mine, west of Johannesburg, contains as much as 29.3 million ounces, equal to about a third of the world's annual gold production. Gold Fields plans to study the viability of expanding annual production to 1 million ounces, from the 800,000 ounces expected yearly by 2011.
Vancouver-based Goldcorp spent about $175 for each ounce of reserves it acquired in the Glamis deal last month, and Toronto- based Iamgold Corp.'s $1.1 billion stock acquisition of Cambior Inc. valued each ounce at about $117, Lowrey of Metals Economics estimated.
Doing Deals
Doubling resources is a ``big rationale for doing this deal,'' said Goldcorp Chairman Ian Telfer, who has made more than eight acquisitions in the past four years. The purchase of Glamis helped Goldcorp overtake Johannesburg-based AngloGold Ashanti Ltd. as the world's third-largest gold producer by market value.
Citigroup Inc. was the top investment bank with five deals worth $11.6 billion, accounting for 48 percent of the market share. It advised Glamis on its takeover by Goldcorp. JP Morgan ranked second with $11.4 billion and seven deals, including Glamis.
Global gold production in the nine months ended September fell 2.2 percent to 1,804 metric tons from a year earlier, London- based researcher GFMS Ltd. estimated. The lack of new supply will help boost gold prices by $200 over the next two years, topping $800 an ounce, Telfer said.
``There is definitely a sense that the industry -- which is really good for gold -- is kind of flat to shrinking,'' said Barrick Chief Executive Officer Gregory Wilkins. ``Placer was important for positioning the company for dealing with the industry challenges.''
Gold-Company Shares
Shares of Toronto-based Barrick, which completed its acquisition of Placer Dome in March, rose 6 percent this year. Denver-based Newmont Mining Corp., whose bullion sales may plunge 14 percent this year, has fallen 15 percent, the biggest drop among the 16 companies in the Philadelphia Stock Exchange Gold and Silver Index.
Newmont, which spent $225 million to boost its stake in a mining project in western Australia this year, cut its 2006 sales forecast three times, most recently in September, because of lower output in Ghana and Uzbekistan. The company said Sept. 27 that its gold sales may fall 14 percent this year to 5.6 million ounces from 6.5 million in 2005.
Freeport-McMoRan Copper & Gold Inc., owner of the world's biggest gold mine, last month agreed to buy copper producer Phelps Dodge Corp. for $25.4 billion. Kinross Gold Corp., Canada's third- biggest gold producer, agreed to purchase rival Bema Gold Corp. for $2.84 billion in stock to expand in Russia.
Barrick's Wilkins said his acquisition strategy won't be affected by short-term changes in prices, which have fallen 14 percent from the 26-year high reached in May.
More Bids
Barrick may make a bid for New Orleans-based Freeport to boost reserves and lower operating costs, CIBC World Markets Inc. said in a research note on Dec. 15. Both companies have declined to comment. Barrick on Dec. 7 failed in its $1.71 billion hostile bid for Vancouver-based NovaGold Resources Inc.
Kinross Chief Executive Officer Tye Burt said takeovers may get a boost from the recent slump in prices.
The decline may bring ``more targets into a price zone'' to encourage acquirers, Burt said. ``In a strong commodity price environment, it's always tough to reach price agreements. Everyone's trying to protect their production profiles.''
To contact the reporter on this story: Choy Leng Yeong in Seattle at clyeong@bloomberg.net
Last Updated: December 27, 2006 17:32 EST
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C L
You don't need to worry about Rich - he's a class act. Have known him since the mid-90's.. He's done wonders with very little capital.
C L
Hey, all TARA.. S H ...................................................................................
Hope you have a great Xmas and an even better '07 than our '06.
C L
Looks like the PM's are going to pull back further. I wouldn't be surprised to see the low $600's on Au, before the next rally starts. There were too many U S $ bears, it got down to only 3% bulls and the crowd is always wrong.
C L
Our JV partner hiring a hotshot mining pro:
Press Release Source: Paramount Gold Mining Corp.
Paramount Gold Strengthens Management Team with Appointment of Senior Mining Executive
Wednesday December 20, 3:00 am ET
OTTAWA, Canada--(BUSINESS WIRE)--Paramount Gold Mining Corp. (OTC: PGDP - News; Frankfurt: P6G, WKN: A0HGKQ) is pleased to announce that Jean Depatie has joined the company's management team as a Senior Advisor. Mr. Depatie is a well respected senior executive with over 30 years of experience in the mining industry. He sits on the board of a number of public resource companies and was the longest serving director of Glamis Gold at the time of their recent acquisition by GoldCorp (NYSE: GG, TSX: G) in an $8 billion transaction.
Commenting on the appointment, Chris Crupi, President and CFO, stated, "Paramount is fortunate to have such an experienced, well-respected mining executive like Jean join our team. As the longest serving director of Glamis Gold, his knowledge of both Mexico and South America will prove invaluable as we position Paramount for its next phase of growth."
Mr. Depatie has over 30 years of national and international experience in economic geology. He has worked in over 30 countries and acted as a consultant for organizations such as: The United Nations, The World Bank, The Commonwealth Secretariat, The Asian Development Bank, Banco Intermericano de Desarollo, The Canadian International Development Agency and Quebec's Ministry of Natural Resources. In addition to being a past Director of Glamis Gold, Mr. Depatie is a Director of Richmont Mines Inc. (TSX & AMEX), and has been a Director of a number of other mining companies listed on both the U.S. and Canadian exchanges.
Since 1981, Mr. Depatie has been president and vice-president of several companies. He was the recipient of an award of excellence by the Quebec Department of Energy and Resources in 1990. Further, he is the former President of the Quebec Professional Association of Geologists and Geophysicists.
Mr. Depatie comments, "I have been watching the progress of Paramount for sometime, in particular their exploration program at San Miguel, a gold belt in Mexico where Glamis and others have seen considerable success. I also have a lot of experience in Peru and look forward to helping Paramount in their Andean Gold Alliance, which is a strategic alliance with Teck Cominco."
Thanks for the update, Bobwins.. Great news indeed. I'm hoping he can take it straight to the AMEX.
C L
They have been really beating up on silver lately. It's down about $1.50 from the highs. There were too many U S $ bears for it to work out.
C L
Good job, spreading the word to new investors is a great idea.
C L
The RSI is back under 70 at 65. About time it did some consolidation. Considering the spike move from 26 cents up, it's acting very well. As we get closer to production, and the numbers keep rolling in, I expect a lot higher share price to follow along.
C L
Those are Bonanza Grade #'s - This stock will be in the $10 range when it's fully valued. Unreal what we have here.
C L
Considering the turmoil in the metals today, we did pretty well. Maybe another week of consolidation and we should get moving again.
C L
My guru thinks Au is rolling over, short term. He thinks it could go down to the $600 area. May/may not affect TARA at all, if he's right.
C L
If the arbs are on their toes, the price should be nearly the same. If it's not, they can make money between the 2 exchanges - in complete safety..
C L
Frankfurt trading .92 euro = 1.21756 in US$.. That would be a new high.
C L
A bummer for the shorts, they were very active on Thursday and it hasn't worked out well for them. Some more drill results and they're going to be buried.
C L
Alhaja, With most of my stocks, I hold a core position and then trade another batch. It works out pretty well with fast moving stocks. When it makes a big upmove, you sell the traders and then hope to buy them back cheaper. If you're wrong and it keeps going up, you just wait to re-buy, the next time it corrects.
That's worked out very well with OMNI, which makes violent moves in both directions.
C L
Actually he would like to it directly to the AMEX. I didn't ask him how things are going on the paper work to do the filings. It's never bothered me that it was on the pinks.. He had very limited funds to do anything with and I thought he made the right choice to tie up the properties first. If the paper work was all done and we didn't have any goods in the ground, it would still be a worthless stock. Management is always the most important factor in any business and I thought he was making the right decisions. I'd say he did the right thing.
Good luck with your decisions.
C L
Hey JB, He didn't say anything of an inside nature, of course. I've known him since the mid-90's, it's more his tone than anything else. He's pretty excited about how well things are going. There's a group that has bought a lot of stock and he thinks he knows who it is. If he's right, they are some big players that are long term oriented.
All the projects are moving along and I think that's what's being reflected in the stock price. He said that the lab that's doing Paramont's analysis work is backed up and the results are coming out slowly. They should be released in a steady fashion though, and he thinks the #'s will be at least as good as the previous ones. I'm sure you know that PGDP is starting a "National Instrument 43-101 technical report on the San Miguel Project". That will take some time, but should be instrumental in helping prove what our JV there really contains.
On the TARA minerals situation, he wouldn't give any tine forecasts, but says thst's moving along steadily also. When sales start coming from those properties, it should give TRGD a good shove. I got the feeling that he wants to retain those 2 properties for TARA and not JV them. He's still working on getting more properties for that entity, also.
Over the last 6 months, he's given me his own opinion on where the stock was headed and he's been pretty accurate. I've always found him to be honest, above board, and a hard worker. I took a pretty hefty position almost 3 years ago and even when it looked bleak, I never lost confidence in him and his ideas. Since he's a very large stock holder, it's his own best interst to make it go and he's doing a commendable job, IMO.
The stock has made a very large % move in the last 2 months and it should rest here awhile. If they succeed in pushing it much lower, they'll force me to add some more.
Hope that helps
C L
RSI over 70 does indicate overbought - the shorts and short term profit takers use it to make selling decisions. If it stays above 70 for more than a couple of days, it's a red flag for selling. On that chart on S I, the RSI is clear up at the top.
I had a long talk with Rich this morning, never seen him so bullish. Everything falling into place. If I told you where I thought the stock was headed, you'd send the guys in white coats to lock me up. I'm not a bit worried about the short term weakness.
C L
Often times, when a stock makes a fast and large % move up, it will correct the same way, fast and sharp. If it's the real deal and has had a lot of looky loos, it will quickly resume the move higher. It's healthier if it bases for a period of days (or weeks). You never know when it will resume moving, it's one of life's mysteries. We are quite aways from the major moving averages, except for the 10 day ema. If that holds and the up-move resumes, it's a really powerful signal that it's going a lot higher. The RSI has finally gotten below 70.
C L
I'm glad the volume slowed way down today, hate to see anymore action like yesterday. Certainly the stock price should rest awhile and let profit takers out, especially after quadrupeling recently. Never like to see large volume down days, tho.
Considering the down move in the PM's today, I'd say TARA is doing just fine.
C L
Big players getting bullish on PM's ............................................................................
Merrill Raises Gold Forecasts on Jewelry and Investment Demand
By Danielle Rossingh
Dec. 8 (Bloomberg) -- Merrill Lynch & Co., the world's third-biggest securities company by market value, raised its gold forecasts for 2008 through 2010, citing higher jewelry and investment demand.
Merrill lifted its forecast for the average price of gold in 2008 to $650 an ounce from $600 previously. It also raised its 2009 prediction to $625 from $600 and its 2010 forecast to $600 from $550, Merrill analysts led by Michael Jalonen in Toronto said in an e-mailed note today. The bank left its forecast for next year unchanged at $675.
Gold prices may be driven higher by a ``rebound in fabrication demand for bullion, lower central bank sales and continued growth in investment demand,'' Merrill said.
The metal for immediate delivery in London gained $2.68, or 0.4 percent, to $636.46 an ounce as of 3.20 p.m. local time. Bullion has climbed 23 percent this year, partly as the dollar weakened 13 percent against the euro. The decline has boosted investor demand for gold as an alternative investment to dollar- denominated stocks and bonds. Gold and the dollar often trade in opposite directions.
The link between gold and the U.S. currency ``appears to have re-emerged,'' Merrill said. Gold may climb to $700 if the dollar trades at $1.34 versus the euro by the year-end, the bank said. The dollar fell to $1.3331 against the euro in London, from $1.3288 late yesterday. The U.S. currency reached a 20- month low of $1.3367 earlier this week.
To contact the reporter on this story: Danielle Rossingh in London drossingh@bloomberg.net .
Last Updated: December 8, 2006 10:25 EST
Well, they couldn't say those things and be on the BB, NAZ, or Amex because it would be illegal to use that verbage. I've been in the markets for over 40 years and their statements smell bad. That might be because English is a second language, but they should at least hire a geologist to use the right buzzwords, if not actually fulfill a geologist's real functions. In the markets, you never know how far a stock will go - even if it's a fraud. E.G. Bre-ex, back some years. Made many millionaires and the whole thing was a scam.
As Samuel Clemmens put it - "A gold mine is a hole in the ground with a liar at the top." Just be aware that it could collapse at any time and take your money with it. I don't go around trashing other people's stocks, but when I see something like that outfit, I make a comment. Plenty good stocks out there. Good luck with all your investments.
C L
Creede, I'd sell that stock immediately ........................................................ Accounts don't do resource calcs - geologists do. The management is either crooked or very stupid:
"accountants have completed their report on the market value of the tailings which will be immediately processed. The report outlines these assets as follows"
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C L
I came really close to putting a buy order in for 20K at 90 cents. I have a lot already, so fortunately it didn't go down there. I'll not be surprised if it bounces back as fast as it went down.
C L
Correction is just like the move up, spikey and fast. At this rate, it will be over pretty soon.
Gold and silver - same situation
C L
Looks like it's back and fill time. The RSI is still above 70.
C L
Bobwins - O T ............................................................................ The pullback in energy is just another correction in an on-going bull market. China and India are soaking it up at an increased pace. Energy prices will soon be driving the precious metals sector higher, as well.
Here's a service stock you might be interested in .. OMNI. Two of my buddies are on the Board and they are quickly growing it in size. The company is so busy, they are booking work into the second Q of '08
C L
This report will show "inferred resources" - a guide to what is there. You can't use them for a bankable feasibility study - but much better than nothing, a good first start.
The continued drilling by Paramount will fill in the unknowns. The stock price of both companies should continue to show improvement as these #'s continue to come out.
C L
RSI is at 88.37 .......................................................................... Can't say that I ever saw one over 88. It really should consolidate in this area before spiking further, it would be very healthy.
http://stockcharts.com/h-sc/ui?s=TRGD&p=D&yr=0&mn=6&dy=0&id=p50453863053
gold
Bobwins - OT You like the energy sector??
C L
We are getting spoiled, but that's all right, we are true professional traders.
C L
Pre-market trading again - somebody can't wait.
C L
100% - across the board ............................................................................ http://quote.barchart.com/texpert.asp?sym=TRGD
This is often very accurate.
C L
Seemd to me that most of the trades were above $1.. A few more days like that and we'll have support at $1 and resistance at $1.15 - not too shabby.
C L
Mellow out dude ........................................................................ This stock is WAY under valued. You're crazy if you sell it.
C L