I still intend to lock in some profits soon now that $400 has been taken out (hopefully around $408-415) but if the expected round of profit taking comes in I will reload. ==============================================================
I think that is a very wise move,my friend.
There seems to be a fairly strong record of decent pullbacks in the PoG when it trades in excess of 10% over it's 40 day MA. I read that little tidbit in an old Saville (I think?) market letter and it has helped me do some decent repositioning on some margined shares on a couple of occasions. My problem is that I've seemed to jump out a bit too soon and, as a result, have had to wait until after dark for the cows to come home. <vbg>
G'morning ml, THIS one should get your attention. <gg>
Bema and Kinross Plan to Recommence Gold Mining at Refugio Thursday December 4, 6:32 pm ET
VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 4, 2003--Bema Gold Corporation (TSX:BGO - News; AMEX:BGO - News; AIM:BAU) ("Bema") and Kinross Gold Corporation (TSX:K - News; NYSE:KGC - News; "Kinross") are pleased to announce that their respective boards of directors have approved the recommencement of gold operations at the Refugio heap leach mine located near Copiapo, Chile.
Compania Minera Maricunga ("CMM") owns the Refugio mine and is owned 50% by Bema and 50% by Kinross. The Refugio mine had been placed on care and maintenance in May 2001 due to low gold prices and has produced declining amounts of gold from residual leaching of existing heaps since that time. During the past year, a 56,000-metre drill program was successful in expanding reserves to justify a greater than 25% expansion of daily throughput compared to historic production levels. Initially the Verde pits are scheduled to produce 40,000 tonnes of ore per day which will be crushed and placed on the leach pads. Subsequently the new Pancho pit, expected to be mined at 35,000 tonnes of ore per day, will extend the mine-life to approximately 10 years at an assumed gold price $350 per ounce. Life-of-mine annual gold production is expected to range from 230,000 to 260,000 ounces on a 100% basis at total cash costs averaging approximately $225 per ounce.
Production is expected to recommence late in the fourth quarter of 2004. Initial capital costs on a 100% basis for the expanded project are estimated at approximately $71 million to repair and replace critical components of the existing infrastructure, increase reliability, improve serviceability and provide a safe and efficient work environment. In addition, a new mining fleet will be purchased and is anticipated to be financed through a capital lease of approximately $30 million. Major capital items include plant modifications and upgrades, a modest pre-stripping program and 110-kilometre power line, connected to the Chilean grid, which will replace the previous diesel generated power. Bema is currently evaluating various financing options including project debt and convertible debentures for its 50% of capital requirements.
The combination of improved gold prices and expanded reserves have resulted in robust economics for the expanded project. At the base case gold price of $350 per ounce, the proven and probable reserves (100% basis) are estimated at 124,054,000 tonnes at a grade of 0.86 grams of gold per tonne for 3,433,000 ounces of gold. The base case project economics indicate a pre-tax internal rate of return ("IRR") of almost 22% and a payback of approximately 3.8 years. The sensitivity analysis of the project economics yields an IRR of approximately 34% and a payback of 2.6 years at the current gold price of $400 per ounce.
Hi ml, This makes me wonder if Bema's 'papers' w/r to their Kupol interests are in order.
Ministry of Natural Resources to check execution of license agreements
Dec 04, 2003 20:08 Moscow time (16:08 GMT)
On December 18, 2003, the Russian Ministry of Natural Resources will meet representatives of companies involved in production of oil, gas, coal, gold, diamonds, etc. As the press service of the ministry reported, joint work with companies that use natural resources for specifying the structure and estimation of executing license agreements is to be completed by January 1, 2004.
Analysis of supervision activities of the ministry testifies to numerous discrepancies between conditions of licenses and the real situation at specific sites of use of natural resources. The ministry suggested all involved companies go for a constructive dialog regarding all these discrepancies, and to voluntarily submit complete objective data and detailed professional arguments in this respect. In the opinion of Deputy Minister of Natural Resources Alexander Povolotsky, these companies are the ones who are first of all interested in eliminating all the discrepancies as they damage their long-term outlooks and impute their reputation on the market.
The official stressed that this would make relations between the state and the companies regarding use of natural resources more transparent, prevent a lot of conflicts, and finally contribute to an increase in the efficiency of using natural resources. /RosBusinessConsulting/
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