Sunoco wants to use older pipeline to pump NGLs over unfinished sections of ME2
Local officials say Sunoco has told them it has customers waiting

Jon Hurdle
Sunoco said Tuesday it plans to pump natural gas liquids through an existing 12-inch pipeline in some sections of Delaware and Chester counties where the new Mariner East pipelines are still under construction.
The company said it will use a portion of the older line from Wallace Township to Middletown Township so that it can supply NGLs to its customers while construction proceeds.
“We have identified an existing pipeline that will allow us to meet our customer obligations to get natural gas liquids to the Marcus Hook Industrial Complex while work on the Mariner East system continues,” said Vicki Granado, a spokeswoman for Sunoco’s parent, Energy Transfer Partners.
“A minimum amount of work will be required to change this line from a refined products line to a NGL pipeline – e.g., connection pipeline and five new mainline valves, which can be done quickly and safely,” she said.
She said that section of the pipeline underwent a $30 million upgrade in 2016.
Local officials and a legislative aide said the company has applied to the Pipeline and Hazardous Materials Safety Administration to repurpose a 12-inch pipeline that previously carried petroleum products and which would now temporarily transmit propane, ethane and butane.
The company recently informed townships including West Whiteland and East Goshen that it plans to reuse the old line because it’s under pressure from clients to deliver promised natural gas liquids, which are now at least 18 months behind the original schedule because of repeated regulatory and technical delays during construction.
“What Sunoco has told us that there is an existing 12-inch line that’s in service today, and that they have filed an application to PHMSA with the intention to utilize that line to transport NGLs,” said Rick Smith, manager of East Goshen Township in Chester County.
He said Sunoco is looking to use the existing pipeline because the multibillion-dollar Mariner East 2 and 2X lines are held up in some places, and the company is anxious to fulfill orders.
“They have people who are looking for these NGLs and they have this pipeline that’s in service, it’s tested and permitted, and apparently all they have to do is notify PHMSA,” Smith said.
In West Whiteland Township, also in Chester County, construction is on hold pending a safety inspection ordered by the Public Utility Commission on June 14.
West Whiteland Township manager Mimi Gleason said Sunoco told her that using the 12-inch line would “take a little bit of the timing pressure off for getting Mariner 2 and 2X online.”
Gleason said the 12-inch line runs parallel to the existing Mariner East 1, which is already pumping NGLs across the state, and to the ME2 route, which runs for about 3 1/2 miles through the township. She said the older line has been shut down for “quite a while” in West Whiteland.
She said she didn’t know the exact age of the older line but estimated that it was about the same age as Mariner East 1, which was built in the 1930s.
Gleason said township officials have not formed any opinion about whether use of the 12-inch line threatens public safety, and that they are seeking more information from PHMSA about the specifics of Sunoco’s plan, which it outlined in a phone conversation.
The officials in both townships said they have no control over the proposed change in the pipeline project.
The diversion of NGLs into an older pipeline, even for minor portions of the Mariner East route, prompted fresh warnings from pipeline opponents that pumping highly volatile NGLs through densely populated areas like Chester and Delaware represents a risk to public safety.
Eric Friedman, a member of Del-Chesco United for Public Safety, a campaign group in Delaware and Chester counties, said reuse of the old pipeline raises new questions about the project’s safety, and he accused Sunoco of cutting corners to appease its clients.
“I do believe that Sunoco is very much feeling the heat from its investors as a result of its inability to execute and continued accidents,” he said.
Sunoco insists that its pipelines meet or exceed state and federal safety regulations.
Don Vymazal, head of government relations for state Senator Andy Dinniman (D-Chester County), said his office heard from several townships that they had been approached by Sunoco about reuse of the old pipeline, after Dinniman’s outspoken opposition to the project.
Sunoco’s new plan raises questions about whether the 12-inch line is the same as the 12-inch line that Sunoco said leaked gasoline into Darby Creek near Philadelphia about two weeks ago.
“If it’s the same line, it’s concerning, to say the least, to put a product in there that’s very volatile,” Vymazal said.
On June 14, the PUC upheld part of a complaint by Dinniman, calling for a shutdown of Mariner East in West Whiteland on the grounds that the project was a threat to public safety.
The PUC said Sunoco had informed it of its plans for the 12-inch line but declined to provide further details. “PUC was already notified by Sunoco because it is a public utility,” said PUC spokesman David Hixson.

Breakout from the cup and handle is complete. The uptrend continues as we now enter a series of flag and pennant formations.

I did not get the feeling from the last conference call that management had any clear decisive direction on this issue...but I thought there was some sense of urgency.

I believe that the combined assetts and low valuation may make for an attractive takeover target...especially as these assetts begin to perform.

Then the question becomes whether that would be based on present or future value

Yes, growth is currently in the works here. I don’t rightly know what the time frame would be for any merger.

Last nights assessment is history, and has held true as ETP is continuing to break out of the handle...up 20 cents this morning. I have been following the fundamentals as well...or I would not have taken my position last year.

You seem to want to prognosticate about the next big deal. Tell me what the tea leaves are telling you about the future.

Short term cup and handle formation, within a longer term double bottom formation. Emerging from the handle on relatively low volume...not a bad setup.

Yes, that is my understanding as well.

NOTIFICATION OF THE REMOVAL FROM LISTING AND REGISTRATION OF THE STATED SECURITIES New York Stock Exchange LLC (the 'Exchange' or the 'NYSE') hereby notifies the Securities and Exchange Commission ('SEC') of its intention to remove the entire class of the 10.75% Class E Cumulative Redeemable Perpetual Preferred Units (the 'Preferred Stock') of Atlas Resource Partners, L.P. (the 'Company') from listing and registration on the Exchange on August 15, 2016 pursuant to the provisions of Rule 12d2-2(b), because, in the opinion of the Exchange, the Preferred Stock are no longer suitable for continued listing and trading on the Exchange. NYSE Regulation, Inc. reached its decision to delist the Preferred Stock in connection with the delisting of the Common Units pursuant to Section 802.01D of the Listed Company Manual (the 'Manual') because of the 'abnormally low' trading price. 1. NYSE Regulation, Inc., on July 12, 2016, determined that the Preferred Stock of the Company should be suspended immediately from trading, and directed the preparation and filing with the SEC of this application for the removal of the Preferred Stock from listing and registration on the Exchange. The Company was notified by letter on July 12, 2016. 2. Pursuant to the above authorization, a press release was issued on July 12, 2016 and an announcement was made on the 'ticker' of the Exchange immediately of the suspension of trading in the Preferred Stock. Similar information was included on the Exchange's website. 3. The Company had a right to appeal to the Committee for Review (the 'Committee') of the Board of Directors of NYSE Regulation the determination to delist the Preferred Stock, provided that it filed a written request for such a review with the Secretary of the Exchange within ten business days of receiving notice of the delisting determination. The Company did not file such request within the specified time period(s). Consequently, all conditions precedent under SEC Rule 12d2-2(b) to the filing of this application have been satisfied.

NOTIFICATION OF THE REMOVAL FROM LISTING AND REGISTRATION OF THE STATED SECURITIES New York Stock Exchange LLC (the 'Exchange' or the 'NYSE') hereby notifies the Securities and Exchange Commission ('SEC') of its intention to remove the entire class of the 8.625% Class D Cumulative Redeemable Perpetual Preferred Units (the 'Preferred Stock') of Atlas Resource Partners, L.P. (the 'Company') from listing and registration on the Exchange on August 15, 2016 pursuant to the provisions of Rule 12d2-2(b), because, in the opinion of the Exchange, the Preferred Stock are no longer suitable for continued listing and trading on the Exchange. NYSE Regulation, Inc. reached its decision to delist the Preferred Stock in connection with the delisting of the Common Units pursuant to Section 802.01D of the Listed Company Manual (the 'Manual') because of the 'abnormally low' trading price. 1. NYSE Regulation, Inc., on July 12, 2016, determined that the Preferred Stock of the Company should be suspended immediately from trading, and directed the preparation and filing with the SEC of this application for the removal of the Preferred Stock from listing and registration on the Exchange. The Company was notified by letter on July 12, 2016. 2. Pursuant to the above authorization, a press release was issued on July 12, 2016 and an announcement was made on the 'ticker' of the Exchange immediately of the suspension of trading in the Preferred Stock. Similar information was included on the Exchange's website. 3. The Company had a right to appeal to the Committee for Review (the 'Committee') of the Board of Directors of NYSE Regulation the determination to delist the Preferred Stock, provided that it filed a written request for such a review with the Secretary of the Exchange within ten business days of receiving notice of the delisting determination. The Company did not file such request within the specified time period(s). Consequently, all conditions precedent under SEC Rule 12d2-2(b) to the filing of this application have been satisfied.

NOTIFICATION OF THE REMOVAL FROM LISTING AND REGISTRATION OF THE STATED SECURITIES New York Stock Exchange LLC (the 'Exchange' or the 'NYSE') hereby notifies the Securities and Exchange Commission ('SEC') of its intention to remove the entire class of the Common Units representing limited partner interests (the 'Common Units') of Atlas Resource Partners, L.P. (the 'Company') from listing and registration on the Exchange on August 15, 2016 pursuant to the provisions of Rule 12d2-2(b), because, in the opinion of the Exchange, the Common Units are no longer suitable for continued listing and trading on the Exchange. NYSE Regulation, Inc. reached its decision to delist the Common Units pursuant to Section 802.01D of the Listed Company Manual (the 'Manual') because of the 'abnormally low' trading price. 1. NYSE Regulation, Inc., on July 12, 2016, determined that the Common Units of the Company should be suspended immediately from trading, and directed the preparation and filing with the SEC of this application for the removal of the Common Units from listing and registration on the Exchange. The Company was notified by letter on July 12, 2016. 2. Pursuant to the above authorization, a press release was issued on July 12, 2016 and an announcement was made on the 'ticker' of the Exchange immediately of the suspension of trading in the Common Units. Similar information was included on the Exchange's website. 3. The Company had a right to appeal to the Committee for Review (the 'Committee') of the Board of Directors of NYSE Regulation the determination to delist the Common Units, provided that it filed a written request for such a review with the Secretary of the Exchange within ten business days of receiving notice of the delisting determination. The Company did not file such request within the specified time period(s). Consequently, all conditions precedent under

At this point, I've decided to work through the pain and follow the money...went with the 9.25 bonds in hopes of a recovery....KIDS don't try this at home!

Atlas Resource Partners on Course for Quick Resolution of Bankruptcy Case

2:56 pm ET July 29, 2016 (Dow Jones) Print
By Stephanie Gleason

Atlas Resource Partners LP is on course for a lightning-quick bankruptcy case, winning court approvals to continue operating under chapter 11 protection and further its goal of completing its restructuring by Labor Day.

Judge Sean Lane of the U.S. Bankruptcy Court in Manhattan on Friday granted Atlas's request to spend $17 million in cash it has on hand to fund its operations, in addition to a number of other approved requests that allow the company to pay bills and employees, as well as manage its cash.

Judge Lane also set a tentative date of Aug. 26 to consider Atlas's bankruptcy-exit plan, although that date will be nailed down next month.

Atlas filed for bankruptcy proceedings on Wednesday, with a fully prepackaged bankruptcy agreement in hand. The deal would slash $900 million in debt from the oil and gas producer's books and has the support of 90% of the company's debtholders, including 33 separate lenders and bondholders, the company's lawyers said during the hearing on Friday.

Atlas lawyer Ron Meisler of Skadden, Arps, Slate, Meagher & Flom said the company is one of 85 oil and gas exploration companies to falter under the weight of what he called an "epic downturn."

But the company is one of only a handful that has been able to execute a fully prepackaged bankruptcy, meaning creditors already have voted formally to accept the restructuring plan, he said. The ability to complete this feat is "a vote of confidence for the debtors' assets and management team," he added.

Under the terms of the plan, two sets of bondholders would exchange $668 million in debt for a 90% ownership stake in the restructured company.

Atlas's current revolving loan, under which the company owes more than $670 million, would be repaid via the liquidation of its hedge positions, and a new $410 million facility would be provided when Atlas exits bankruptcy.

The holders of $250 million in junior loan debt would receive the remaining 10% equity in Atlas in exchange for an interest-rate reduction.

Upon completion of the deal, Atlas's tax status will change to a traditional corporation and its name will be changed to Titan Energy. Its current investors will see their stakes eliminated and could face a tax bill as a result of the company's debt elimination.

Atlas is based in Pittsburgh and has 14,000 producing wells in 17 states.

Write to Stephanie Gleason at stephanie.gleason@wsj.com

(END) Dow Jones Newswires

July 29, 2016 14:56 ET (18:56 GMT)

I converted some of my RESIDUALS into bonds as well this morning. Would you know a decent quote server for these...I can find trades...but looking for the bid /ask spread.

Thank you.

Higher highs, and higher lows...the chart is saying what you need to know.

Natural gas is now up to 2.40, as we approach the summer cooling season....it should help the bottom line with ARP.

CRAZY.....like a Fox.

A year ago the dividend was delivering more than that...that might turn this into a long term holding....down the road.

Pulled the reason for the debt reclassification out of the filings...it was pretty prominent there. A lot of random speculation going on ....best to try and stay informed.

At March 31, 2016, ARP had $1.553 billion of total debt, including $672.0 million outstanding under its revolving credit facility. On May 10, 2016, ARP entered into a ninth amendment to its revolving credit facility due July 2018 to waive compliance with certain financial covenants as of March 31, 2016, which automatically waived compliance with similar covenants under its term loan facility due February 2020. Based on the terms of the amendment, ARP classified $906.2 million of outstanding amounts under these facilities, net of certain deferring financing costs and unamortized discounts, as current portion of long term debt within its consolidated balance sheet as of March 31, 2016.

Any strength here revolves around their hedge position. It also appears that they are working on relaxation of debt covenants to create some breathing room to weather the storm.

I read a few posts questioning the reason for the transfer of debt from long term to short term.

Thought I would post the facts around the re–classification of debt.

At March 31, 2016, ARP had $1.553 billion of total debt, including $672.0 million outstanding under its revolving credit facility. On May 10, 2016, ARP entered into a ninth amendment to its revolving credit facility due July 2018 to waive compliance with certain financial covenants as of March 31, 2016, which automatically waived compliance with similar covenants under its term loan facility due February 2020. Based on the terms of the amendment, ARP classified $906.2 million of outstanding amounts under these facilities, net of certain deferring financing costs and unamortized discounts, as current portion of long term debt within its consolidated balance sheet as of March 31, 2016.

Eagle Ford Struggles, But It’s Still The Sweet Spot

By Dex Dunford
Posted on Sat, 20 February 2016 00:00 | 0
If development in Eagle Ford from 2008 to 2014 felt like a drag racer flying down the track, then 2015 must have felt like skidding to a halt. This year will be like hitting a brick wall—or a shale wall, but it’s a wall that will eventually be torn down.

For now, though, the bad news keeps piling up.

Baker Hughes’12 February rig count for the Eagle Ford is grim. Currently, there are only 58 rigs active in the region. That’s a staggering drop from 164 during the same period in 2015, and 216 in 2014.

Pioneer Natural Resources announced earlier this month that it would be pulling all drilling rigs out of Eagle Ford. Pioneer had six rigs operating as of December 2015. This cut is fresh on the heels of a $27 million fourth-quarter loss for the Irving-based producer.

Pioneer is also moving two pressure pumping fleets from the Eagle Ford to the Permian Basin.

Related: Why Is Well Decommissioning So Slow In Canada?

Oilfield workers in the Eagle Ford are also feeling the pinch. According to the University of Houston, each rig equals 224 jobs on and off the drilling pad, which translates into 35,000 jobs lost since 2014 from Baker Hughes alone.

On a wider scale, fewer rig workers in the area has hit local business hard. Cotulla, dubbed the “hotel capital of the Eagle Ford,” has been one of those communities, with brand new hotels shutting down operations. This is a difficult change for a community that saw 20 new hotels erected during the oil boom prior to 2015.

But comparing this downward trend to North Dakota’s Bakken play shows that the Eagle Ford isn’t the only play in jeopardy.

In December 2015, the average production from the Eagle Ford Shale was 1.5 million barrels per day, down 7% from December 2014. The North Dakota section of the Bakken play produced 1.2 million barrels per day in November 2015—down a similar 6% from November 2014.

The average price per barrel in both regions dipped 35% in 2015 over the previous year, and both lost their fair share of active rigs as producers stopped production on all but the fastest, most efficient rigs. The total rig count in the Eagle Ford dropped from 200 to 70 in Eagle Ford, and from 150 to 50 in Bakken.

Related: Oil Rally Stalls After Iran Declines to Commit to Freeze

Analysts predict the decline is not over for either shale play.
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In late January, Sami Yahya, Platts Bentek energy analyst, commented on the outlook for both plays: “If prices remain sub-$40 per barrel and producers are unable to further bring down completion costs, then they might defer completions until the pricing market makes a comeback.”

When that might be is anyone’s guess.

Texas’ Permian Basin is likewise faring poorly.

This time last year, the Permian Basin had 454 rigs operating. Now it has 182. The most recent figures for this month from Baker Hughes show the Permian rig count falling by 17 rigs. Four weeks into this year, there has been a 12.92% decline in rigs.

But when it comes to the Permian, Chevron, for one, views this as the most cost efficient play in the US. With that in mind, the company spent much of last year switching over to horizontal drilling in this play, insisting that the “economics in some of the best areas at strip type prices work”. But it would still take $50 oil to make it work, and we’re not close to $50 oil.

Related: Activist Investors Crushed By Oil Crash

About 10% of the 40,000 wells drilled in 2014 sit uncompleted, and most of them are in Eagle Ford, Bakken and the Permian Basin—but no one’s turning off the taps.

There is, however, a bigger picture that could be the saving grace for these three major US shale plays. Under the surface of grim rig counts there is a shifting focus in the works, with operators honing in more narrowly on the real sweet spots. This shift, say some analysts, could see a move away from the Williston Basin toward more concentrated efforts in the Eagle Ford and Permian.

At the end of the day, grim or not, it’s certainly not game over for the three big boys. Producers are making progress in reducing high break-even costs, and particularly the Eagle Ford and Permian could end up benefitting from shifting sweet-spot sentiments.

By Dex Dunford for Oilprice.com

More Top Reads From Oilprice.com:

ATLAS RESOURCE PARTNERS

Discussing third-quarter numbers during an earnings call earlier this week, Atlas Resource Partners CEO Daniel Herz noted that it had been a "challenging quarter.
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The firm did, however, have one bright spot — its oil wells in the Eagle Ford shale region just south of San Antonio.
During the third quarter, Atlas drilled and completed its first three Eagle Ford wells. Those wells are producing an average of 3,573 barrels of oil per day, and an average of 313,000 cubic feet of natural gas per day, Herz noted during the earnings call, adding that the company has "shifted entirely to the Eagle Ford."
"Our sole focus in development activity is in the Eagle Ford shale where we have a substantial position," Herz continued. "The economics there remain very attractive on a heads-up basis, and even more attractive to us through our investment partnership business."
Company officials added that the company currently has one active rig in the entire US, and it is in the Eagle Ford Shale.

Atlas Resource Partners entered the region back in November 2014 — buying thousands of acres of oil leases in Atascosa County from Cima Resources LLC and Cinco Resources LLC, according to records filed by the U.S. Securities and Exchange Commission. The $340 million purchase included 22 already-producing wells and 19 undeveloped locations.
Sergio Chapa covers the energy industry

These guys are pretty well hedged...I believe the distribution should remain intact.

Nice looking double bottom formation on the 3 month and the daily chart with a narrowing of the range.....a double bottom within the double bottom....ripe for a pop. We will see if she can develop a little strength....recent gains held up reasonably well through all the market turmoil....cash distribution coming shortly.

Secondly, we are taking steps to further reduce debt outstanding. We're well along in our efforts to obtain additional funding with which we will further reduce debt. We will structure any additional funding so that this additional capital enhances common unit holder value.

Here's what's on tap:

Atlas Resource Partners Enters Eagle Ford – $225 Million Deal
Deal Includes 22 Producing Wells in Atascosa County, TX
Oct 1, 2014 By Kirk Eggleston Leave a Comment

Atascosa County, TX
Pittsburgh-based Atlas Resource Partners (ARP) is entering the Eagle Ford in a $225-million deal. ARP will acquire 22 producing wells and 19 undeveloped locations containing estimated net reserves of 12-million BOE, according to company officials. The seller was not disclosed.
The producing wells are all located in Atascosa County, TX, which is the heart of the Eagle Ford oil window. The oil cut from these wells is 87%, with 7% NGLs and 6% natural gas. ARP officials did not indicate the exact county or counties for the undeveloped drilling locations.
The transaction, which has an effective date of July 1, 2014, is expected to close some time in the fourth-quarter. The company will pay $200-million of the purchase price at closing.
ARP CEO Edward E. Cohen, said, “we expect this transaction to immediately enhance ARP’s cash flow, distribution coverage and credit metrics, providing additional visibility and growth.”
In connection with the acquisition, Atlas Energy, L.P.’s (ATLS) E&P development subsidiary will purchase eight wells that have already been drilled, but are uncompleted, in the play. The $115-million purchase also includes 53 undeveloped Eagle Ford locations.
ARP is an exploration & production master limited partnership which owns an interest in over 14,000 producing natural gas and oil wells, located primarily in Appalachia, the Barnett Shale (TX), the Mississippi Lime (OK), the Raton Basin (NM), Black Warrior Basin (AL) and the oil-rich Rangely Field (CO).
Read more at atlasresourcepartners.com
The following two tabs change content below.
Bio
Latest Posts


Kirk Eggleston
Contributor at EagleFordShale.com
Kirk Eggleston writes on significant news developments in the Eagle Ford and Bakken Shale plays. He is a former broadcast journalist, and has experience covering news and politics in the Texas and Louisiana markets.

The companies expectations are to increase revenues by bringing more production online in the Eagle Ford field, and bring in substantially more revenue through their management of drilling partner wells...all by the 4th quarter. Give the conference call a listen...it's all spelled out pretty clearly.

What isn't spelled out is who their potential partner will be for growth/ expansion....but give that list of institutional investors a look over....some heavy hitters in there.

Finally, we are formally working to find a partner that will allow us to take advantage of this low commodity price environment and acquire assets which, over time, can be dropped down into ARP.

It looks like some things are afoot, enjoy the ride.

Top Institutional Holders
Holder Shares % Out Value* Reported
Riverstone Holdings LLC 7,593,800 8.71 47,537,188 Jun 30, 2015
Carlyle Group L.P. 7,593,800 8.71 47,537,188 Jun 30, 2015
Omega Advisors Inc 4,785,197 5.49 29,955,333 Jun 30, 2015
Morgan Stanley 1,213,146 1.39 7,594,293 Jun 30, 2015
Cushing Asset Management, LP 1,009,422 1.16 6,318,981 Jun 30, 2015
UBS Group AG 736,430 0.84 4,610,051 Jun 30, 2015
GLG Inc. 647,190 0.74 4,051,409 Jun 30, 2015
Stifel Financial Corporation 641,855 0.74 4,018,012 Jun 30, 2015
Credit Suisse/ 551,782 0.63 3,454,155 Jun 30, 2015
Walnut Private Equity Partners, LLC 400,700 0.46 2,508,382 Jun 30, 2015



Finally, we are formally working to find a partner that will allow us to take advantage of this low commodity price environment and acquire assets which, over time, can be dropped down into ARP.

Our target leverage is three and a half times debt to EBITDA and we hope to drive that even lower over time. Second, we are focused on providing long-term comfort around our distribution. Atlas Resources should be able to self-fund all capital investments while being able to provide a stable and substantial distribution. Finally, we are formally working to find a partner that will allow us to take advantage of this low commodity price environment and acquire assets which, over time, can be dropped down into ARP.

Now the second misconception, that misconception is that ARP like other E&P MLPs operates on a negative cash flow basis. In fact, ARP for the second quarter had a static positive operating cash flow in excess of $0.50 annualized and the EBITDA should rise sharply by the fourth quarter. We are taking various steps to increase this amount even further including further reductions in cost.

January 08, 2015
Tonogold -- Strategy Update
January 8th, 2015. Tonogold Resources Inc. (OTC: TNGL) wishes to advise the market with regard to its strategy in light of the current low iron ore price environment.

Background
Since completing the acquisition of Mil-Ler, the owner of the NevMex Iron Ore project in Mexico, Tonogold has been developing and formulating various strategies in light of the current weak environment for iron ore. The NevMex project has remained on care-and-maintenance during this period, at minimal holding cost and in doing so we are not suffering from operating losses being incurred by other producers as a result of the low iron ore price.

The NevMex iron ore project is located 40kms north of Hermosillo (the capital of Sonora, Northern Mexico). The ore is predominantly magnetite and utilizes a simple two-stage crushing and dry magnetic separation process that produced approx. 30,000 tonnes of iron ore per month containing 58% Fe. Total costs (including shipping to China) are ~$55/t.

The current price for 58% Fe is approximately $63/t1 to which an off-take discount of 18% ($11/t) was applied, mainly due to high sulfur levels (~0.7%) in the final product.

Tonogold's strategy has been reviewed and it has been decided that delaying re-commencement of production, until we see signs of a price correction and/or confirmation of our ability to produce a higher quality product with increased margins, would be in the best interests of the Company.

We strongly believe that the current low iron ore price is not sustainable in the long run and that at a long-term sustainable price the NevMex project would generate positive net margins of at least $10/t, which exclude the benefit of any project optimization initiatives that we believe, can be achieved.

Optimization strategies
We are currently assessing a number of project optimization strategies including those that could provide significant benefits from milling and wet magnetic separation. In this regard, we have recently conducted, through an independent laboratory in Hermosillo, initial test-work on the 58% Fe product previously produced from the NevMex project. This test-work highlighted that by grinding the product to around 150 microns followed by wet magnetic separation, ~96% of the iron could be successfully recovered within 82% of the mass, resulting in a high-grade product containing +68% Fe being achieved. The current price for a 68% Fe product is around $90/t1 (i.e. $30/t higher than for a 58% Fe product).

Additional test-work is now planned to include further grind size/recovery optimization work as well as sulfur reduction with the objective of eliminating the sulfur penalty previously imposed. In addition, we have identified and are assessing various commercial opportunities (both organically and externally) that would enable us to produce a high-grade premium product in the medium-term.

Site Activities
Site activities have recently re-commenced whereby we are mining approximately 250,000 cubic meters of overburden (waste), over an expected 9-month period, crushing the material and selling the product as road base under contract with a local road contractor. The net proceeds from the sale of the road base will more than cover all site costs over this period, resulting in a zero-cost waste removal program and, at the same time, expose more of the ore body in advance of a subsequent production decision.

Gold
Our strategy with regard to our gold properties in Nevada has not changed and we continue to assess and pursue various opportunities (including sale, joint venture etc.) in order to realize the value of these assets in the near-term.

Capital Raising
In light of the new strategy and the current market conditions, we no longer need to raise $10 million previously contemplated which has therefore been deferred. However a smaller raising (of between $1.0 to 1.5 million) to Accredited Investors to fund the work program pursuant to the new strategy is now planned.

Iron Ore price
Current iron ore price ($71/t for 62% Fe CFR Qingdao basis) is trading below long-term levels necessary to provide economic supply/demand equilibrium. Various short/medium term issues have exacerbated the situation, including:
Higher global production triggered by the rapid consumption and price increases in China during two periods; 2004-2008 and again in 2010-2012. China has accounted for 95% of the global demand increase since the year 2000.2
As a result of the perceived continued growth of Chinese steel consumption, considerable over-investment has been focused on the sector. More than 60% of Chinese domestic iron production (> 300 million tonnes) and nearly half of global supply, (> 800 million tonnes) is currently unprofitable.3
Large debt burdens, required to finance the infrastructure associated with many of the world's largest operations require those operations to sustain production even in a loss making price environment; advantaged producers are those with low Capital Expenditure per tonne of annual capacity which are not burdened by debt3, such as Tonogold.
Cumulative cost curve for iron ore confirms that the current price cannot be sustained in the long run, with few producers, outside the four largest, remaining profitable in today's environment.

CEO Comments
Tonogold's CEO, Mark Ashley, stated: "Although the current weakness in the global iron ore price is having a significant negative impact on the profitability of iron ore producers and, as result, their share prices, we have positioned ourselves such that we are effectively protected from the current price weakness".

He added "Our revised strategy ensures that the inherent value of our iron ore assets are maintained, to be realized once we confirm the commercial viability of producing a high-grade premium product with significantly higher margins and/or the inevitable recovery in the iron ore price".

Tonogold Resources, Inc. is a minerals exploration company based in La Jolla, California. For more information on the company visit their website www.tonogold.com.

Safe Harbor Statement

This press release contains certain forward-looking information about Tonogold Resources, Inc. ("Tonogold") which is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Words such as "expect(s)," "feel(s)," "believe(s)," "will," "may," "anticipate(s)," and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of Tonogold Resources, Inc. that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include: our lack of operating revenue and earnings history, our need for additional capital to pursue our business strategy, some of our managers lack formal training in the mining business, the grade and quantity of minerals in our projects may not be economic, we do not have fee title to our properties, but derive our rights through leases and the Mining Law, changes to the Mining Law may increase the cost of doing business, we are a non-reporting company and as such do not make periodic filings with the Securities and Exchange Commission, we trade on the Pink Sheets and there can be no assurances that a liquid market will develop in our securities, mining is subject to extensive environmental regulations and can create substantial environmental liabilities, gold, silver and other metals are commodities which have substantial price fluctuations, a drop in prices could adversely affect future profitability and capital raising efforts, and mining can be dangerous and present operational hazards for employees and contractors. Readers are cautioned not to place undue reliance on these forward-looking statements. Tonogold does not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

China Demand Drop Pushes Iron Ore Shipping Rates to 5-Year Low
By Naomi Christie
December 17, 2014 11:56 AM EST

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Iron ore and shipping costs plunged to the lowest in five years amid signs China’s slowing economic growth and a glut of the commodity are sapping seaborne trade.

China imported 67.4 million tons of iron ore in November, down 15 percent from October, according to customs data. This was the first November decline in China’s iron ore imports since 1998. The only other time November imports fell since records began was in 1996.

China’s economic growth will slow to 7 percent next year from 7.4 percent in 2014, according to economist forecasts in a Bloomberg survey. The rate to ship the commodity on a Capesize vessel to Qingdao, China from Tubarao, Brazil fell 4.4 percent to $12.47 a ton today, the lowest since Jan. 9, 2009, data from the Baltic Exchange in London show. The Latin American country’s shipments fell 18 percent in November to 26 million tons, the lowest for the time of year since 2010, government data show.

“December might be even more disappointing than November,” Alex Gray, chief executive officer of Clarkson Securities Ltd., a unit of the world’s biggest shipbroker, said by phone on Dec. 15, citing his firm’s initial discussions with port agents in Brazil. “The absence of Brazilian volume in the scale we’d anticipated has been the key cause of the Capesize drop.”

Brazil is the second largest exporter of iron ore in the world after Australia. Such cargoes have a greater impact on freight rates, as the country is three-times further from China than Australia, the biggest shipper of the commodity. It takes 35 days to ship ore from Brazil to China, according to Axsmarine.com.

Baltic Dry
Iron ore delivered to China fell 0.8 percent to $68.05 a ton today, the lowest since June 3, 2009, according to Metal Bulletin data. The market needs to absorb a surplus of about 110 million tons next year, almost double the 60 million tons in 2014, Goldman Sachs Group Inc. estimated in October.

The Baltic Dry Index, a measure of dry shipping costs, had its longest declining streak in 18 months today, falling 1.3 percent to 827 points on the Baltic Exchange.

China’s GDP growth in 2015 would be the lowest in 25 years, and was revised down from 7.3 percent growth forecast in March, according to Bloomberg surveys.

“Whatever happens in China has a profound impact on the economics of steel production and industrial activity globally,” Paul Gait, a London-based research analyst at Sanford C. Bernstein & Co., said by phone on Dec. 16.

To contact the reporter on this story: Naomi Christie in London at nchristie5@bloomberg.net

This company is all about the future.
More like a holding company...if they can hold on that long.
No finances to do anything else...except beach their shareholders.
Yep, all about the future...
Later....Later

It was probably this one:

11/04/2014 13:09:25 Bought 530000 GPXM @ 0.0033

-1,758.95


But that was awhile back, and other than a few pocket change trades the real supply seems to be drying up....

Golden Phoenix Completes Phase-Two Sampling of Vanderbilt Silver and Gold Project; Grades Average 91.4 g/t Silver; 1.74 g/t Gold





SPARKS, Nev., March 22, 2011 /PRNewswire/ -- Golden Phoenix Minerals, Inc. (the "Company") (OTC Bulletin Board: GPXM) is pleased to announce the completion of phase-two sampling for assay analysis as it relates to silver and gold mineralization at the Vanderbilt Silver and Gold Project ("Vanderbilt") near Silver Peak in Esmeralda County, Nevada.

Silver Spartan LLC collected a total of 26 channel samples from approximately 5 kilometers of underground workings within the historic Vanderbilt silver and gold mine. The sample locations included walls and ore veins at the back ends of drifts. The average grade of all samples is 91.4 grams per metric tonne ('g/t') silver and 1.74 g/t gold with an average sample weight of 4.67 kg.

"Phase-two silver grades are an average of 50% higher than our phase-one analysis," stated Tom Klein, CEO of Golden Phoenix. "Gold grades of 1.74 g/t are encouraging. Further exploration of the Vanderbilt, Coyote Fault and Mineral Ridge properties can help determine the potential for what could evolve into a district-sized resource estimate."

The highest grade of silver was in the 4.3 kg sample number 18, which assayed at 304 g/t Ag and 3.11 g/t Au. The highest grade gold was in the 3.94 kg sample number 22; it assayed 4.87 g/t Au and 261 g/t Ag.

Silver Spartan LLC is proceeding with further analysis of its phase-two work at Vanderbilt. A topographic map overlaid with a map of the underground network is being developed to help pinpoint high-priority drill targets. A report will be generated following completion of the mapping sequence.

Vanderbilt Phase-Two Samples:
SAMPLE
Sample
Sample Wt.
Au
Ag
DESCRIPTION
Number
kg
ppm
ppm
001RCB02222011
1
5.08
0.08
1.3
002RCB02222011
2
4.97
0.04
0.3
003RCB02222011
3
4.85
0.26
6.6
004RCB02222011
4
4.46
0.24
1.0
005RCB02222011
5
4.38
1.25
89.9
006RCB02232011
6
4.68
1.11
6.5
007RCB02232011
7
4.14
2.95
144.0
008RCB02232011
8
4.26
0.53
33.0
009RCB02242011
9
5.4
1.79
107.0
010RCB02242011
10
5.06
4.70
164.0
011RCB02242011
11
4.23
2.06
268.0
012RCB02242011
12
3.74
3.92
95.8
013RCB02242011
13
4.49
0.04
2.5
014RCB02252011
14
4.58
2.25
94.0
015RCB02252011
15
4.98
1.82
171.0
016RCB02252011
16
4.62
4.03
285.0
017RCB02252011
17
4.95
0.75
68.4
018RCB02252011
18
4.3
3.11
304.0
019RCB02252011
19
4.87
3.24
90.4
020RCB02262011
20
4.57
0.08
55.2
021RCB02262011
21
5.02
0.19
5.0
022RCB02262011
22
3.94
4.87
261.0
023RCB02272011
23
4.44
0.07
2.1
024RCB02272011
24
4.69
0.33
11.6
025RCB02272011
25
5.37
4.42
72.3
026RCB02272011
26
5.28
1.13
36.4
Average
4.67
1.74
91.4



Mr. Klein concluded: "We are advancing the Vanderbilt to drill-ready status. Based on the mapping and recommendations by Silver Spartan LLC, we expect to begin our initial drilling program this summer."

Although the early results of exploration on the Vanderbilt property look promising and may support the Company's decision to continue expending its resources on further exploration, the test results set forth above are not yet sufficient to establish any proven or probable ore reserves under traditional mining standards, including SEC Industry Guide 7, nor has there been sufficient exploration to determine if the extraction of precious metals on this property is feasible, from an economic point of view. Investors should not infer from these early assay results that there exists sufficient amounts of precious metals on this property to support profitable mining operations now, or in the immediate future.

Please visit the Golden Phoenix website at: www.golden-phoenix.com.

Golden Phoenix Minerals, Inc. is a Nevada-based mining company whose focus is Royalty Mining in the Americas. Golden Phoenix is committed to delivering shareholder value by identifying, acquiring, developing and mining superior precious and strategic metal deposits throughout North, Central and South America using competitive business practices balanced by principles of ethical stewardship. Golden Phoenix is a 30% joint venture partner with Scorpio Gold on the Mineral Ridge gold and silver property near Silver Peak, Nevada, and owns the Adams Mine and Duff Claim Block near Denio, Nevada, and the Northern Champion molybdenum mine in Ontario, Canada. Golden Phoenix has an option to earn an 80% interest in the Vanderbilt Silver and Gold Project, and the Coyote Fault Gold and Silver Project, both of which are adjacent to the Mineral Ridge gold and silver property near Silver Peak, Nevada. Golden Phoenix has entered into a Memorandum of Understanding to acquire an 80% interest in five gold and molybdenum properties in Peru; two on the Pataz Gold Trend in the north and three in the Porvenir area in the south. Golden Phoenix has entered into a Definitive Acquisition Agreement to acquire a 100% interest in four gold and base metal properties in the Shining Tree Mining District in Ontario, Canada.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements by officers of the Company, and other statements regarding optimism related to the business, expanding exploration and development activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many factors including continued market prices for the Company's mineral products. In addition, actual results could vary materially based on changes or slower growth in the gold and base and precious metals markets; the potential inability to realize expected benefits and synergies in the Company's mining operations; domestic and international business and economic conditions; changes in the mining industry for base and precious minerals; unexpected difficulties in restarting or expanding production at the Company's mines; the need for additional capital and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere. The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.

For More Information Contact:
Robert Ian, Director of Corporate Communications (775) 453-4741
robertian@golden-phoenix.com

SOURCE Golden Phoenix Minerals, Inc.



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That's pretty much all you are left with...a hope and a prayer...a wait and see...and a shrinking interest...