Wednesday 13th December 2017

Resource Clips


December, 2012

December 31st, 2012

Desperate times, desperate measures? by Equedia
Pick up junior gold mining bargains now by GoldSeek
Leonard Melman finds the fiscal cliff a boon for precious metals by the Gold Report
Byron King’s shocking 2013 predictions by VantageWire
Spy agency warning on China security threat dogged takeover debate in Canada by the Financial Post
Recently discovered footage of Ben Bernanke’s childhood by the Grandich Report

Year in review: Part II

December 29th, 2012

A mining and exploration retrospect for 2012

by Greg Klein

Read Part I of Year in Review.

Next Page 1 | 2

Graphite boom, bust and echo

One of the commodities that excited the 2012 market, graphite began stirring interest in 2011 and really gained momentum early this year. But the precipitous fall, right around April Fool’s Day, let cynics bask in schadenfreude. It was a bubble all along, they insisted.

Well, not quite. Despite reduced share values, work continued as the front-runners advanced their projects and earlier-stage companies competed for position in graphite’s second wave of potential producers. By autumn some of the advanced-stage outfits, far from humbled by last spring’s events, boldly indulged themselves in a blatant bragging contest.

Old king coal to regain its throne

If clean carbon doesn’t excite investors like it used to, plain old dirty carbon might. By 2017 coal’s share of the global energy market will rival that of oil. So says the International Energy Agency, which issued its Medium-Term Coal Market Report in December.

A mining and exploration retrospect for 2012

The forecast sees China consuming over half the world’s production by 2017. “Even if Chinese GDP growth were to slow to a 4.6% average over the period, coal demand would still increase both globally and in China,” the report stated. India, with the world’s “largest pocket of energy poverty,” will take second place for consumption.

Coal’s growth in demand is slowing, however. But its share of the energy mix continues to increase even though Europe’s “coal renaissance” (sic) appears to be temporary.

Bringing coal miners to new hassle

Chinese provide much of the market and often the investment. So why shouldn’t they provide the workers too? That seems to be the rationale of Chinese interests behind four British Columbia coal projects.

The proponents plan to use Chinese underground workers exclusively at the most advanced project, HD Mining International’s Murray River, for 30 months of construction and two additional years of mining. Only then would Canadians be initiated into the mysteries of Chinese longwall mining. But with only 10% of the workforce to be replaced by Canadians each year, Chinese “temporary” workers would staff the mine until about 2026. The B.C. government has known about these intentions since at least 2007.

The HD Mining saga has seen new developments almost every week since the United Steelworkers broke the story on October 9.

As Greenland’s example suggests, the scheme might represent another facet of China’s growing power.

Geopolitical geology

Resource imperialism aside, resource nationalism and other aspects of country risk continued throughout 2012. South American Silver TSX:SAC continues to seek compensation after spending over $16 million on a silver-polymetallic project that the Bolivian government then snatched as a freebie. Centerra Gold TSX:CG escaped nationalization in Kyrgyzstan but works its way through somewhat Byzantine political and regulatory intrigue, as does Stans Energy TSXV:HRE. In November the latter claimed a court victory over a hostile parliamentary committee.

Next Page 1 | 2

December 28th, 2012

Pick up junior gold mining bargains now by GoldSeek
Leonard Melman finds the fiscal cliff a boon for precious metals by the Gold Report
Byron King’s shocking 2013 predictions by VantageWire
Which countries will be next year’s emerging markets? by Equedia
Spy agency warning on China security threat dogged takeover debate in Canada by the Financial Post
Recently discovered footage of Ben Bernanke’s childhood by the Grandich Report

Year in review: Part I

December 27th, 2012

A mining and exploration retrospect for 2012

by Greg Klein

Read Part II of Year in Review.

Next Page 1 | 2

Good riddance to all that

As the year comes to a close, 2012 hardly evokes sentimentality—not, at any rate, from most observers of the exploration and mining sector. Some typical remarks range from Michael and Chris Berry’s “Yes we are very happy 2012 is coming to an inglorious end” to Peter Grandich’s “I really don’t give a %@&* what markets do until after the New Year.” ResourceClips therefore eschews macro analysis to look instead at selected issues that helped characterize the last 12 months.

Crisis in South Africa

The horrific climax took place August 16, when 34 protesters died and 78 were injured under police fire. In total, over 50 lives have been lost since a wildcat walkout at Lonmin’s Marikana platinum operation spread to other South African mines and industries. At one point an estimated 75,000 people were on strike. Helping inflame the crisis were political rivalries, political corruption and a union turf war, while the gap between rich and poor continued to grow.

A mining and exploration retrospect for 2012

A mood of cautious optimism set in by late October, when many strikers had returned to work. But a November clash between the National Union of Mineworkers and the newer Association of Mineworkers and Construction Union killed two more. A December walkout led Harmony Gold to suspend 600 workers, resulting in a protest by 1,700 in which several people were hit by rubber bullets.

Wage increases notwithstanding, the turmoil settled nothing. Uncertainty remains about South Africa’s biggest industry, as well as its economy and society.

Saskatchewan mine fire ends safely

In Canada, the industry’s biggest scare happened on September 25 when a fire trapped 20 miners underground for 17 hours. Rescuers battled the blaze at PotashCorp’s TSX:POT Rocanville operation for 12 hours, then waited for the mine to cool and ventilate. The trapped workers bided their time in four well-equipped refuge stations before emerging safely.

The following month PotashCorp attributed the blaze to friction caused as a cable reel was dragged on a skid up to 16 kilometres. The incident wasn’t mentioned in a company announcement stating “the employees of Rocanville division achieved one million hours without a lost-time accident on December 11, 2012.”

Next Page 1 | 2

December 27th, 2012

Leonard Melman finds the fiscal cliff a boon for precious metals by the Gold Report
Byron King’s shocking 2013 predictions by VantageWire
Which countries will be next year’s emerging markets? by Equedia
Eric Sprott: Why smart investors are buying 50 times more physical silver than gold by GoldSeek
Spy agency warning on China security threat dogged takeover debate in Canada by the Financial Post
Recently discovered footage of Ben Bernanke’s childhood by the Grandich Report

December 24th, 2012

Big Ben’s Ghost of QE Past, Present and Future by GoldSeek
Spy agency warning on China security threat dogged takeover debate in Canada by the Financial Post
Recently discovered footage of Ben Bernanke’s childhood by the Grandich Report
Rohit Savant: Gold’s bull market will pause in 2013 by the Gold Report
Is JP Morgan too late with its copper ETF? by VantageWire
John Kaiser: Algorithmic trading could push juniors from TSXV to ASX by Equedia

Week in review

December 21st, 2012

A mining and exploration retrospect for December 15 to 21, 2012

by Greg Klein

Next Page 1 | 2

Algorithmic short-sellers could drive juniors to ASX

“The world’s number one stock exchange for mining companies”—that’s the consensus about Toronto, even from companies with operations and headquarters in other countries. But John Kaiser fears TSXV traders will drive juniors to the Australian Securities Exchange. In a Business News Network interview posted by Equedia on Sunday, the editor of Kaiser Research Online explained why.

Monitoring systems now in use can immediately spot significant buying, allowing traders to “intercept the capital that’s flowing in from real investors who are betting on fundamental outcomes, and they sell into this. Then, when that inflow is exhausted, they can simply lean into the order book and continue selling stock that they don’t have, selling short on a down-tick, creating a cascade of buyer’s regret and discouraging the longs, and actually facilitating being able to cover by the end of the day. So their intent to deliver the borrowed stock never has to be materialized. This sort of culture now lurks on top of a system where trading value has been in steep decline since April and May of last year.”

A mining and exploration retrospect for December 15 to 21, 2012

That’s especially troubling, he emphasized, because he believes the sector is moving back to a “discovery/exploration cycle” as prevailed during the 1980s and ’90s, “after a decade of resource feasibility demonstration.” Early-stage exploration companies are especially vulnerable, he said.

But Down Under has its downside too. “I don’t like the Australian stock exchange system because they don’t have a proper reporting system on a scale of technical detail that we in Canada have,” Kaiser added. “I think the Canadian system is fabulous for the entire resource exploration and development cycle. And I think it’s a shame that they allow this type of algorithmic hook-up that basically victimizes real speculators, as opposed to those simply trying to harvest the volatility that they’re literally manufacturing in this sector.”

Credit-card-sized gold bars as a crisis currency

A new product might make physical gold a more practical response to economic fears, according to a Friday Reuters story. The size of a credit card, the CombiBar is made up of 50 one-gram gold squares that can be broken off to use as currency. It’s selling well in Switzerland, Austria and especially Germany, where memories linger of post-WWI hyperinflation. The CombiBar is produced by the Swiss refinery Valcambi, which wants to introduce it to the American and Indian markets next year, while producing platinum and palladium CombiBars for Japan. Valcambi, by the way, is owned 60.6% by Newmont Mining TSX:NMC.

European demand “is rising every week,” Reuters quoted Andreas Habluetzel, head of the Swiss gold trading company Degussa. “Particularly in Germany, people buying gold fear that the euro will break apart or that banks will run into problems.”

Another company, Ex Oriente Lux, has sold 21 million euros of gold through its 17 vending machines in the United States, Europe and United Arab Emirates, Reuters added. “Sales rise according to the temperature of the crisis,” CEO Thomas Geissler told the news agency.

Former Solid Gold CEO accuses natives of slander

Darryl Stretch, the former CEO of Solid Gold Resources TSXV:SLD, has accused two native chiefs of “slanderous and defamatory remarks,” the Sudbury Star and Timmins Daily Press reported this week. He’s demanding public apologies from Wahgoshig chief Dave Babin and Nishnawbe Aski chief Harvey Yesno, who called him a “racist” at a Sudbury press conference in November, the Daily Press stated on Wednesday.

Stretch’s letter to the chiefs warned, “In the event that you do not respond to this notice I will take whatever action is available to me.”

Monday’s Star said Babin has no plans to respond and Yesno couldn’t be reached for comment.

Solid Gold replaced Stretch on December 3 after ongoing controversy between the outspoken CEO and native bands.

Rhodes redux in Zimbabwe

Zimbabwe’s policy of “indigenisation and empowerment” requires foreign miners to divest 51% of their operations to Zimbabwean companies and community groups, as these examples show. Monday’s Harare Herald quoted Defence Minister Emmerson Mnangagwa explaining that the country was willing to work with foreign companies as long as Zimbabweans were the major beneficiaries.

Next Page 1 | 2

December 21st, 2012

Recently discovered footage of Ben Bernanke’s childhood by the Grandich Report
12 gold bugs bring Christmas cheer by GoldSeek
Rohit Savant: Gold’s bull market will pause in 2013
Is JP Morgan too late with its copper ETF? by VantageWire
Scandals prompt TMX Group to step up scrutiny on foreign firms by the Financial Post
John Kaiser: Algorithmic trading could push juniors from TSXV to ASX by Equedia

December 20th, 2012

Gold and silver déjà vu by the Grandich Report
Byron King: How to increase your gold-investing IQ
Why Japan’s new prime minister is a gold bug by GoldSeek
Scandals prompt TMX Group to step up scrutiny on foreign firms by the Financial Post
John Kaiser: Algorithmic trading could push juniors from TSXV to ASX by Equedia
How gold miners can leverage the price of gold by VantageWire

December 19th, 2012

Byron King: How to increase your gold-investing IQ
Why Japan’s new prime minister is a gold bug by GoldSeek
Scandals prompt TMX Group to step up scrutiny on foreign firms by the Financial Post
John Kaiser: Algorithmic trading could push juniors from TSXV to ASX by Equedia
How gold miners can leverage the price of gold by VantageWire
The anticipated attack on gold is upon us by the Grandich Report