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Teedlum, I'm still in strong and won't be selling any time soon.... I just thought the artical was note worthy...
UPDATE 1-PDAC-Cautious miners pull Major Drilling to loss
8:45 PM ET, 03/04/2013 - Reuters
* Major Drilling posts loss, sees volatility hitting revenue
* Miners have delayed or canceled exploration programs
* Major Drilling ranks world's No. 2 exploration driller
By Euan Rocha and Julie Gordon
TORONTO, March 4 (Reuters) - A growing sense of caution gripping the mining industry is having a big impact on exploration service providers such as Major Drilling Group International Inc, which posted a quarterly loss on Monday and offered little hope of an early turnaround.
The mining sector's new emphasis on austerity in the face of stagnant metal prices has led to a sharp pullback in exploration spending. Juniors and more established miners alike have delayed or canceled exploration programs, clouding the outlook for Major and its rivals for years.
Major Drilling Chief Executive Francis McGuire, speaking on the sidelines of the Prospectors and Developers Association of Canada (PDAC) convention in Toronto, said he saw some potential for a brighter outlook during mid-year, but a full turnaround depended largely on the return of small explorers to the market.
"We are not going to see the peaks of activity in the exploration markets that we saw in the first half of 2012, which was an all-time high," he said. "It's going to take several years before we get back there. It really takes the juniors to come back in."
His comments followed the release of a study by SNL Metals Economics Group warning that a three-year surge in exploration spending would likely come to a grinding halt this year.
The study said a sharp decline in financing for miners with early-stage exploration projects would crimp how much they spend to find and outline new mineral deposits. Spending rose to a record $21.5 billion in 2012.
Major Drilling, the world's second largest metal and mineral exploration drilling company, behind Boart Longyear Ltd , is a bellwether of activity in the mining industry.
With many of the senior mining companies now undertaking major operational reviews, customers are booking shorter-term contracts and starting with just a fraction of their drilling activity last year, said McGuire.
"Everybody's being a little bit careful," he said. "There's a base of work, but it's going to be slow materializing this year as they take their time to do things."
The Moncton, New Brunswick-based company warned that volatility in the mining sector would crimp revenue in the current quarter.
The company's stock closed down 3.88 percent at C$8.42 on Monday on the Toronto Stock Exchange.
Major Drilling reported a loss of C$4.3 million, or 5 Canadian cents a share, in the fiscal third quarter ended Jan. 31. That compared with a profit of C$9.6 million, or 12 Canadian cents a share, a year earlier.
Quarterly revenue fell 32 percent to C$123.2 million.
Metal and mineral explorers, which depend heavily on equity financing to raise capital to fund drilling programs, flock to PDAC's Toronto event each year in search of willing investors to fund the programs.
Investors have panicked this year, leading many to shun the sector, due to lackluster metal prices and weak shareholder returns from some of the world's largest precious and base metal miners.
And it is not just the juniors, but also the intermediate- and large-cap miners that are looking to cut costs, as CEOs of many of the world's top miners have faced the axe in recent months in the face of spiraling costs and writedowns.
Iamgold Corp said Monday it aimed to reinforce its financial position and improve its return on capital by cutting annualized spending by $100 million.
The mid-sized Canadian gold miner said it would achieve its goal by reducing mine operating costs, exploration expenditures and mine site and administrative costs.
PDAC-Mineral explorers brace for shakeout as capital vanishes
6:48 PM ET, 03/06/2013 - Reuters
* Hundreds of Canadian-listed juniors feel financial squeeze
* Capital raised by sector plunged in first two months of year
* Investor interest in mining has waned as boom years fade
By Euan Rocha
TORONTO, March 6 (Reuters) - A purge of exploration-stage mining companies seems inevitable over the next 18 months as cash shortages threaten hundreds with extinction, de-listing or bankruptcy, industry insiders say.
With the mining sector enjoying an extended bull run in recent years, the ranks of explorers listed on Canada's TSX Venture Exchange - the world's biggest market for start-ups in the sector - has ballooned to over 1,300, accounting for almost 60 percent of all companies listed on the exchange.
Hundreds of these companies are now struggling, caught in a tightening squeeze for money, according to executives at this week's Prospectors and Developers Association of Canada mining convention in Toronto - the industry's largest annual meeting.
"There will be a clean-out. It has to occur," said David Strang, chief executive of Lumina Copper Corp. "It's no different than the Internet boom of the late 1990s where there was cheap venture capital money available - everybody built all of those companies and very few survived."
Junior mining companies flock to PDAC each year to drum up cash to sustain their operations, or better yet, entice a larger player to acquire them. But this year's pickings are slim for an expanded group of explorers that has grown desperate.
"A lot of companies are looking for survival financings right now," said Mark Zastre, the global industry head of mining for Grant Thornton, a Canadian accounting firm. "We are seeing it with our clients, every option is on the table right now."
In the last three years alone, some 218 new metal and mineral exploration companies listed on the TSX-V. But equity financings, the life-blood of juniors, have all but dried up. A bigger pool of companies is trying to tap a smaller pot of capital.
"I think we need to clean up the junior sector," said Greg Gibson, chief executive of Northern Gold Mining Inc. "There are just too many junior companies."
INAUSPICIOUS START
Juniors typically raise most of the money they need to fund exploration programs in the first quarter. But January and February data from Oreninc - a firm that tracks financing activity in the sector - suggests a bleak year ahead.
Total equity capital raised by miners on the Toronto Stock Exchange and TSX-V in the first two months of 2013 dropped 58 percent to C$558 million. That's down from C$1.36 billion in the first two months of 2012, and C$2.46 billion in Jan-Feb 2011.
Even more worrying, the average offering raised only C$2.9 million this year, down from C$4.6 million in 2012 and C$9.7 million in 2011. Much of that will be used to pay listing fees, bankers, lawyers, auditors and other overhead costs, leaving little to fund a drill program and generate value for investors.
DIRE STRAITS
Not long ago, investors were infatuated with mining. But their enthusiasm waned as stagnating metals prices and spiraling costs brought big cost overruns and writedowns on the value of assets acquired for top dollar at the peak of the boom.
Chief executives of some of the biggest mining companies have been axed, their successors vowing austerity.
"There is a mood across the board that mining companies are not running their operations properly, that they are not giving clarity to investors and that there are perpetual cost overruns and write-offs being taken," said Daryl Hodges, chief executive of Jennings Capital, which helps raise financing for miners. "So there is a complete change in (investor) attitudes."
A Grant Thornton survey of 389 miners in the United Kingdom, South Africa, Australia and Canada showed that 43 percent of them had cash balances of less than $2 million. Nearly 40 percent needed to tap markets within the next six months.
The picture for the Canadian companies surveyed is even worse, with 54 percent having cash balances of less than $2 million and 49 percent needing cash in the next six months.
"The big concern is where the financing markets are going to be for the mining sector in the near future," said Carmen Diges, who heads the mining group at Miller Thomson. "I don't think ... We can look at the traditional equity markets as a source of financing for the juniors for a long time."
DESPERATE TIMES, DESPERATE MEASURES
To be sure, there are alternatives to equity financing, said Michael White, chief executive of IBK Capital, an independent investment banking firm.
"There's always the ability to raise funds through a royalty deal or stream deal and that can be done at a very early stage," said White. "Some juniors have looked at convertible debt, where the asset is the collateral or the security."
There is also the prospect of joint ventures or partnerships with larger players, and even acquisitions or mergers, but many say only companies with strong assets will attract attention or secure such deals.
And for such companies with great assets, Hodges sees hope.
"This is sort of the darkest hour just before the dawn" said Hodges. "I'm of the view that from this point forward very high quality projects and stories will get financed, it won't be a strong momentum play, it will be a rifle shot game."
With all the bitching "give me news, Give me news". Well you got your news.... Those of you who don't like it, sell.... I bought a real nice chunk of SRSR today [Cheep]..... I will have additional funds Monday.... Anyone selling, I'm buying....
Bugsy....
I like fudge.....
It’s called dilution…
Why 0 volumn???? At least thats what Schwab has...
Berman is still at it I see..... I got burned for over 5 grand with that yahoo. I had a million + shares, he reversed it so many times. I still hold 2 shares of ALGF. I keep it only as a reminder.....
Good luck....
Not hard to figure out.... After all "Green" is the color of money.....
The price normally goes down just before a break out.... Shorty needs to cover. I have to thank those who brought the price down today, I picked up another nice chunk....
Don't you mean beat a dead moose... Just staying on topic....
Something strange is afoot at the Circle K.... Volumn just over 8000 on Schwab???????
Scott is from Midland. Saginaw is south of Bay City which is close to Midland. Most likely PR'd from Home after his trip to China. I'm not reading much into it.
I'm all for free samples to all stock holders....
Still doing my homework but I like what I see....
New to the board, bought a nice little chunk.... Couldn't beat the price....
I know why you call yourself Butterfingers, you're dropping the ball on this one. Go away and leave SRSR to the believers.
I put in a bid this morning for 25000 @ .07.... Needless to say I didn't get them and I'm not even disappointed. I'll put in another bid tomorrow, but I need to see the close.
Tee, Spin-out and Spin-off are 2 different things. A company that has been spin-out is a subsidery of the parent company. A spin off ends up having no ties to the parent co and in most cases get packed with a certain portion of debit from the parent. Its a write off for the parent, sink or swim for the company that was spun off.
Or crosseyed...
"Pursuant to the spin-out transaction, Sarissa shareholders on the record date for the spin-out will be entitled to receive one share in Shining Tree Resources Corp. for each thirty-five shares of Sarissa held by them. The spin-out is subject to, among other things, Board approval of the final structure and terms of the spin-out, and regulatory approvals, as required."
I copied this off the SRSR website..... See for your self....
In the mean time save your pennies to buy more ST. Me, I'll continue to buy more SRSR... .05/.10 for every 35 shares of SRSR sounds good to me.... At the curren't price thats .05 for every .70 invested in SRSR... But I don't expect the SRSR share price to be @ .02 for much longer, so get em while there hot...
Correct me if I'm wrong, but wasn't the 1:35 ratio for Neo-Star and not ST.
After the news, the price went up a little then down, now its on its way up again... MM's must be scrambling to cover... Stay tuned [Film @ 11:00]
With yeaterdays FINRA Short Sale Report @.00175% and 0 volume @ noon today, I'd say the shorts have covered and are waiting on news. Glad I got those .017 yesterday. Something strange is afoot at the Circle K....
I had 1,300,000 shares. I had a couple grand tied up in it. This guy has R/S'ed so many times. I still hold (2) shares as a reminder of lesions learned. Bermans no good and thats the only thing you can take to the bank.....
Bugsy....
HKHE was laying on our leg. Time is money and HKHE was taking to much time... Wasn't there a time line for HKHE to meet their objective... Its understandable as to why were looking at other options....
Come now, play nice.... I think we just need to wait and see. Good things are happening [Slowly] but there happening. Scott will PR when he gets all the ducks in place.
1hr 43min into the day with 0 trades. Whats up with that?
After the spins of NEO & ST I believe we will kick the Dead Moose into play with whats left of SRSR. [Wishfull Thinking]....
Ameritrade big spread this morning..... Bid .02 Ask .1417.... Could this be a sign??????
My opion is, once our other 2 gems are spun, SRSR will continue via Deadmoose. It may very well end up being our third spin........ One could only hope.....
Key word is "Expected" So don't blow a gasket if it takes a little longer..... It's going to happen.......
And Tech Resources [TCK] will be attending.
I believe, the spin outs will provide revenue streams for the parent SRSR. Also if I'm not mistaken doesn't SRSR hold other properties. I wouldn't call it a shell.... SRSR would still have assets in the other properties...
.068 EOD
Just look what he did to AERO.... He helped broke it off in a lot of folks..... Me included....
GTSO: Chinese Rare Earths Output Ratio to Decrease Sharply
9:00 am ET 07/11/2011- Business Wire
Chinese Official Reports Output will Fall to 60% of Global Supply
SAN JOSE, Calif.--(BUSINESS WIRE)--Jul. 11, 2011-- As Green Technology Solutions, Inc. and others work to develop new sources of rare earths outside of China, Wang Caifeng, a former official at China's Ministry of Industry and Information Technology (MIIT) who is now in charge of establishing the Asian superpower's rare earths industrial association, says China's production ratio will fall sharply as a percentage of the global total in the next two years.
In a recent interview with China Daily, Caifeng stated that rare earths output from other nations will reverse the global reliance on Chinese exports significantly in the near future. Currently, China is responsible for 95 percent of the world's supply of rare earths. Caifeng predicted that over the next two years, that total will shrink to 60 percent.
According to GTSO President and CEO John Shearer, China's reduced production creates a perfect window of opportunity for Green Technology Solutions and others working to establish stable and affordable new sources of rare earths to help supply the needs of the U.S. and its economic allies.
“Caifeng's statement is further evidence that China can't be counted on to continue supplying 95 percent of the world's growing demand for rare earth,” Shearer said. “The market is rapidly increasing for rare earth suppliers outside of China, and GTSO is positioning itself to capitalize on those dynamics.”
Earlier this year, GTSO formed a joint venture with Rare Earth Exporters of Mongolia to develop new rare earth mining operations in Mongolia, China's neighbor to the north. Last month, GTSO signed a Profit Participation Agreement with Mongolian mining and trading company Ar Erkhes, LLC, to explore rare earth production on three mining sites in the former Soviet state.
In recent years, China has implemented strict new policies aimed at reducing its exports of rare earth elements in order to avoid overexploitation of the resources and gain more leverage over pricing in the global market. Prices have risen dramatically worldwide as China has cut back on mining licenses, slashed export quotas and cracked down on illegal mining operations. The new policies have sparked fears in the U.S., Japan and some European countries that demand will soon exceed global output. Those concerns have driven a new rare earths mining boom around the world.
Rare earths are crucial to the production of wind turbines, electric engines, solar panels and other green energy solutions. The critical materials are likewise essential for the manufacture of automobiles, smartphones and military hardware. GTSO is planning the initial shipment to South Korea as the first step in gaining approval to sell rare elements to buyers there.
Well said Slosh....
You get em Gravy.....