Gold, silver, both or neither: What do you do when fiatUS$ and bond markets crash? Aug 5th, 2011 10:36 by News
You may have heard that the DJIA Dow Jones Industrial Average dropped 512 points Thursday.
e.g., Chinese gold investment demand to double by 2013 China Business News
Now the Web is a-buzz with talk of the gains being experienced by gold and silver — two go-to commodities in times of economic uncertainty.
…This type of long-term economic outlook requires a new way of thinking about how we save, how we spend and how we invest, not only as organizations but on an individual basis.
With that in mind, we want to hear from you. -
Well don't forget to look at CALVF's old video -
but ALL REAL MONEY Au things have still - just got better Golden since last quarter - :-)
- the NAMA, Zambia drilling N/R at any time soon -
Caledonia Mining Corporation ("Caledonia") (TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) is pleased to announce its second quarter and half year 2011 operating and financial results.
The financial results below are reported in Canadian dollars, except where otherwise stated.
Second Quarter 2011 Highlights:
• Gold produced at the Blanket Mine in Zimbabwe in the quarter was 8,226 ounces, 141% higher than the 3,408 ounces of gold produced in 2nd quarter of 2010.
• Gold production increased by 12% from the 7,322 ounces produced in the preceding quarter.
• The average price per ounce of gold sold in the 2nd quarter of 2011 was US$1,512 compared to US$1,192 in the 2nd quarter of 2010.
• Gross Profit (i.e. before depreciation, amortization and administrative expenses) was $6,226,000, over 300% higher than the $1,534,000 achieved in the 2nd quarter of 2010.
• Caledonia recorded net profit before tax of $3,836,000, over 800% higher than the $413,000 achieved in the 2nd quarter of 2010.
• Average gold recovery increased to 92.9% from 92.2% in the first quarter 2011, reflecting the recent investment in the milling and Carbon-in-Leach ("CIL") circuits.
• Cash operating costs at the Blanket Mine in the quarter were US$585 per ounce of gold produced, compared to US$648 per ounce in the 1st quarter of 2011 and US$816 per ounce in the 2nd quarter of 2010.
• Blanket made payments in the quarter totalling US$3,307,000 (Q1 2011, US$1,442,000) in respect of direct and indirect taxes, royalties, licence fees and other payments to the Government of Zimbabwe.
• At June 30, 2011 the Corporation had gross cash and cash equivalents of $5,033,000 (March 31, 2011 $2,217,000).
• The drilling program at the Nama base metals project in Zambia commenced in March 2011 to identify typical copper-belt type mineralization. This program continues and the results are expected in the 4th quarter of 2011.
Commenting on the results, Stefan Hayden, President and CEO, said: "Caledonia has had a very strong performance for the second quarter and first half of 2011. The further increase in production coupled with the strength in the gold price and a continued reduction in Blanket's operating costs has resulted in a substantial improvement in Caledonia's profitability and cash generation.
We have made significant progress in addressing the remaining production constraints which, once solved, should enable us to reach our target of 10,000 ounces per quarter. The new raise bored ore pass became fully operational at the end of July and has substantially improved the efficiency of the underground operations and reduced ore handling costs.
The 10 MVA standby electrical generating system was commissioned at the end of May and Blanket can now maintain full operations during any interruption to the normal power supply. Electricity supply was reasonably stable during the quarter but, as anticipated, Blanket experienced several interruptions and the standby generators operated as designed for approximately 51 hours during the second quarter.
The installation of a second new gyratory crusher, a new triple-deck screen and the commissioning of the standby generators required a five day planned interruption in production during the second quarter. The new crushers and screen are operating well and have contributed to the improved recovery and reduced costs.
Production for the quarter was also impacted by the raise boring of a ventilation raise, a shortage of spare parts for key items of equipment, and the need to remediate some sections of the underground haulages to allow for increased shunting speeds. The historic lack of investment over the past years due to the shortage of funding, which is common to virtually all mines in Zimbabwe, contributed to an increased incidence of equipment breakdowns at the higher production levels which are now being achieved. This will be an area of focus for Management for the second half of the year. It is now anticipated that Blanket will achieve its target production level of 40,000 ounces per annum by the start of the fourth quarter of 2011.
Caledonia submitted an indigenization proposal on May 9, 2011 and awaits a formal response from the Minister. Caledonia continues to work closely with, amongst others, the Chamber of Mines Zimbabwe (the "Chamber") regarding the continued engagement between the Chamber and the Minister in respect of the indigenisation of the mining sector.
During the second quarter Blanket made payments of approximately US$3.3 million to the Government of Zimbabwe in respect of direct and indirect taxation, royalties, licence fees etc. I hope that payments of this magnitude will address the widespread misconception in Zimbabwe that mining companies do not pay tax.
The initial drilling program on the Konkola West area of the Nama base metals project in Zambia commenced during March 2011 to identify whether typical copper-belt type mineralisation, which is the primary type of mineralisation found in Zambian copper and cobalt deposits, exists similar to that on the adjacent property to the east of the Nama Licence Area. At the end of the second quarter, 2 holes had been drilled and the drill rig was being moved to the 3rd hole. This drilling program is expected to be completed by early in the fourth quarter 2011 and the final assay results received thereafter. The conclusions arising from this program will be made available once management has received and evaluated all of the results. This is anticipated to be during the fourth quarter of 2011."
Caledonia Management will host a conference call starting at 1000 (EDT) on August 15, 2011. Please dial-in 10 minutes beforehand and quote the conference ID number: 837504#.
Toll-Free Number*
Toll Number
Canada
+ 1 866 561 8617
+1 416 915 9520
USA
+ 1 866 928 6049
+1 631 510 7490
UK
+44 800 368 1950
+44 (0)20 3140 0668
International
+44 (0)20 3140 0668
*
If you are calling from a mobile phone your provider may charge you when connected to the toll-free numbers.
Financial Highlights
Condensed Consolidated Statement of Comprehensive Income (unaudited)
(In thousands of Canadian dollars except per share amounts)
For the 3 months ended June 30
For the 6 months ended June 30
2011
2010
2011
2010
$
$
$
$
Revenue
11,990
4,154
23,216
8,614
Royalty
(593
)
(147
)
(1,048
)
(292
)
Production costs
(5,171
)
(2,473
)
(10,121
)
(5,755
)
Amortization
(633
)
(575
)
(1,206
)
(1,160
)
Gross profit
5,593
959
10,841
1,407
Administrative expenses
(1,733
)
(469
)
(2,679
)
(895
)
Share-based payment
-
-
(1,102
)
-
Results from operating activities
3,860
490
7,060
512
Finance income
-
63
-
162
Finance expense
(24
)
(140
)
(179
)
(154
)
Profit before income tax
3,836
413
6,881
520
Income tax expense
(962
)
(2
)
(2,112
)
(2
)
Profit for the period
2,874
411
4,769
518
Profit/(loss) on foreign currency translation
(361
)
575
(1,075
)
(101
)
Total comprehensive income for the period
2,513
986
3,694
417
Earnings per share (cents)
Basic
0.58
0.08
0.96
0.10
Diluted
0.54
0.08
0.88
0.10
Weighted average number of common shares outstanding (thousand)
Basic
500,313
500,169
500,241
500,169
Diluted
542,853
500,169
542,781
500,169
Condensed consolidated statements of financial position (unaudited)
(In thousands of Canadian dollars)
As at
June 30,
December 31,
2011
2010
$
$
Total non-current assets
31,382
28,348
Inventories
2,826
2,620
Prepayments
89
93
Trade and other receivables
4,028
2,314
Cash and cash equivalents
5,033
1,145
Total assets
43,358
34,520
Total non-current liabilities
7,995
7,070
Trade and other payables
5,287
3,882
Bank overdraft
2,421
747
Total liabilities
15,703
11,699
Capital and reserves
27,655
22,821
Total equity and liabilities
43,358
34,520
Condensed Consolidated Statement of Cash Flows (unaudited)
(In thousands of Canadian dollars)
For the 6 months ended June 30
2011
2010
$
$
Cash flows from operating activities
Profit for the period
4,769
518
Adjustments for:
Reconcile net cash from operations
4,580
957
Changes in non-cash working capital
(512
)
139
Income tax paid
(1,312
)
(2
)
Net cash from operating activities
7,525
1,612
Cash flows from investing activities
Property, plant and equipment additions
(5,171
)
(3,438
)
Sale of investment
-
51
Net cash used in investing activities
(5,171
)
(3,387
)
Cash flows from financing activities
Bank overdraft increase
1,675
1,766
Finance expense
(179
)
(154
)
Finance income
-
162
Shares issued
38
-
Net cash from (used in) financing activities
1,534
1,774
Net increase in cash and cash equivalents
3,888
(1
)
Cash and cash equivalents at beginning of period
1,145
1,623
Cash and cash equivalents at end of period
5,033
1,622
Further information regarding Caledonia's exploration activities and operations along with its latest financials and Management Discussion and Analysis may be found at www.caledoniamining.com
US will revalue gold to $7000.0 per ounce - Rickards – Aug 15th, 2011 15:10 by News August 15 (King World News) —
He (Nixon) said first of all I am imposing national price controls because there was an inflation problem in the United States at the time. The second thing he said was I am putting a 10% surtax of imports on all imported goods coming into the United States. Then about 10 minutes into the speech, very much en passant, he said, ‘Oh by the way we are suspending the convertibility of dollars into gold’ and he immediately went into this Nixonian rant about speculators.
So it was very interesting, there were three earth-shaking announcements. Can you imagine any one of those three things going on today?
President Obama or any President saying he was going to impose nationwide price controls, or all Chinese goods would have a 10% surcharge.
It would be cataclysmic, yet Nixon did both of those things. Plus (Nixon) took us off the gold standard, so it was quite a dramatic speech.
In a strange way he did us all a favor by making sure we (the US) held on to the gold.
So I do think the United States is in a position to revalue the currency using gold to that $7,000 level.
That will obviously be a huge benefit to all of the people who invested in gold because they are going to be along for the ride, along with the United States when that gold goes to $7,000.”
Excerpted from an interview that is available here.
CALVF GOLD chart TA Alert bull breakout strong :-)
CALVF chart TA alert bull breakout overdue :-)
September is one of the best seasonal month for gold - a short snippet below:
The Nixon Shock Heard ‘Round the World - Aug 15th, 2011 12:36 by News
By severing the dollar’s convertibility to gold in 1971, the president ushered in a decade of inflation and economic stagnation.
By LEWIS E. LEHRMAN August 15 (The Wall Street Journal) — On the afternoon of Friday, Aug. 13, 1971, high-ranking White House and Treasury Department officials gathered secretly in President Richard Nixon’s lodge at Camp David. Treasury Secretary John Connally, on the job for just seven months, was seated to Nixon’s right. During that momentous afternoon, however, newcomer Connally was front and center, put there by a solicitous president. Nixon, gossiped his staff, was smitten by the big, self-confident Texan whom the president had charged with bringing order into his administration’s bumbling economic policies.
…The most dramatic Connally initiative was to
“close the gold window,” whereby foreign nations
had been able to exchange U.S. dollars for U.S. gold—an
exchange guaranteed under the monetary system set up
under American leadership at Bretton Woods, N.H., in July 1944.
Recently the markets had panicked.
Great Britain had tried to redeem $3 billion for American gold.
So large were the official dollar debts in the hands of foreign
authorities that America’s gold stock would be insufficient
to meet the swelling official demand for American gold at
the convertibility price of $35 per ounce.
GOLD August a good month for the harvest and wedding festivals begin in September in India --- the world's largest consumer of gold.
Then come year-end holidays in the United States and finally Chinese New Year.
By late December, Gold demand can be up to the moon as a Safe Heaven in future foresight for the People with fiat$currencies in the Gold basket -
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