Monday 11th December 2017

Resource Clips


July, 2014

A tale of two miners

July 31st, 2014

Cameco and Paladin respond to market vagaries, put their faith in the future

by Greg Klein

A second quarter of relatively low cash costs and high realized prices might have added an understandably rosy tint to Tim Gitzel’s outlook. During a Q2 discussion on July 31 the Cameco Corp TSX:CCO president/CEO expressed optimism in Japan’s—and ultimately the world’s— nuclear industry.

Nine Japanese utilities have submitted applications to restart 19 reactors, he pointed out. Two plants, Sendai units 1 and 2, have entered a 30-day public comment period after passing safety evaluations.

Cameco and Paladin respond to market vagaries, put their faith in the future

Safely distant from the radioactive ore, a McArthur River miner operates
a scoop tram by remote control. Like Cigar Lake, the Cameco operation contains grades 100 times the world average.

“While the initial restarts will be positive, we expect it will take some time for a significant number of reactors to resume operations and begin to consume the inventory built up over the past several years,” Gitzel said.

“While the near to medium term remains uncertain, let me assure you that there are brighter days ahead for the nuclear industry,” he declared. “Today there are 70 reactors under construction around the world, representing billions of dollars of investment and significant growth in future uranium consumption. We expect a net increase of 91 new reactors over the next 10 years and continued growth in the decades to come. Nuclear energy continues to be an integral part of the world’s energy mix.”

The company’s sticking to its previous forecast of annual demand rising from 170 million pounds U3O8 today to about 240 million pounds within 10 years.

As for the present, Cameco’s “marketing strategy and strong portfolio of contracts continue to serve us well in an uncertain market and provide us with an average realized price that continues to outperform both the spot and long-term prices,” he maintained.

With mines in Saskatchewan, the U.S. and Kazakhstan, Cameco currently supplies about 15% of world uranium supply.

For the three months ending June 30, revenue reached $502 million, a 19% increase over the same period last year. Gross profit surged 37% to $136 million and adjusted net earnings rose 30% to $79 million, or $0.20 per share.

Evidently prospering despite market vagaries, Cameco continues to bring new supply onstream. Although a technical problem caused a short-term suspension of the newly opened, 50.025%-held Cigar Lake operation, the mine’s forecast to bring into the world 18 million pounds U3O8 by 2018. A Scotiabank analyst asked Gitzel, “In an environment of excess supply, why wouldn’t you keep those pounds in the ground until they’re needed?”

Replying that it’s “a great project” with favourable cash costs, Gitzel added, “We need the pounds. We’ve got sales commitments for those pounds.”

But not all the company’s projects withstand the storms so strongly. Earlier this week the company received conditional environmental approval for its 70%-held Kintyre mine proposal in Western Australia. A 2012 prefeasibility study, however, “indicated the project would require higher uranium prices or greater total production,” Cameco has stated.

Even so, its expansionary activities contrast with Paladin Energy TSX:PDN. Dismal uranium prices consigned its Kayelekera mine in Malawi to care and maintenance last May and forced the sale of a 25% interest in the Namibian Langer Heinrich mine to China National Nuclear Corp. The sale closed in July, helping Paladin refinance its flagship.

Production cutbacks notwithstanding, cost-cutting measures helped Paladin pull in revenue of US$69.28 million for three months ending June 30. Apart from developments in Japan, the company’s July 28 statement noted China’s expanding fleet. According to Paladin, China put two more reactors into commercial operation last May, bringing the total to 20, with another 29 under construction and 57 planned. “The country anticipates adding 8.6 gigawatts electrical of nuclear capacity during 2014, as compared to 3.2 GWe in 2013.”

Looking to the future, the company continues to develop other projects. In June Paladin announced a 25% increase in measured and indicated resources at its Michelin deposit in Labrador. “Future drilling will concentrate on expanding the mineral resources at both the Michelin deposit and the deposits and prospects occurring in the immediate surrounds,” Paladin stated.

Arctic Star VP of exploration Buddy Doyle points to new advances that increase the odds of diamond discovery

July 31st, 2014

…Read more

July 31st, 2014

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Eric Sprott: “COMEX data is corrupted” GoldSeek
From Argentina to the Athabasca: Etienne Moshevich on hot prospects Streetwise Reports
Consumer confidence in the U.S. rises to highest since October 2007 VantageWire
Hawaiian island to run on lithium-ion batteries Industrial Minerals
Minerals on the edge—plate boundaries and minerals Geology for Investors
When nations unite against the West: The BRICS development bank Equedia

July 31st, 2014

Diamond exploration watch: Canadian billionaire takes 19% stake in Canterra Stockhouse
Eric Sprott: “COMEX data is corrupted” GoldSeek
From Argentina to the Athabasca: Etienne Moshevich on hot prospects Streetwise Reports
Consumer confidence in the U.S. rises to highest since October 2007 VantageWire
Hawaiian island to run on lithium-ion batteries Industrial Minerals
Minerals on the edge—plate boundaries and minerals Geology for Investors
When nations unite against the West: The BRICS development bank Equedia

July 30th, 2014

Eric Sprott: “COMEX data is corrupted” GoldSeek
From Argentina to the Athabasca: Etienne Moshevich on hot prospects Streetwise Reports
Consumer confidence in the U.S. rises to highest since October 2007 VantageWire
Beijing lawyer to face sanctions in Hathor Exploration insider trading case Stockhouse
Hawaiian island to run on lithium-ion batteries Industrial Minerals
Minerals on the edge—plate boundaries and minerals Geology for Investors
When nations unite against the West: The BRICS development bank Equedia

The Gryphon steps out as Denison advances Wheeler River

July 29th, 2014

This story has been moved here.

July 29th, 2014

From Argentina to the Athabasca: Etienne Moshevich on hot prospects Streetwise Reports
Consumer confidence in the U.S. rises to highest since October 2007 VantageWire
Beijing lawyer to face sanctions in Hathor Exploration insider trading case Stockhouse
Rick Rule: This gold sell-off is a normal event in this market GoldSeek
Hawaiian island to run on lithium-ion batteries Industrial Minerals
Minerals on the edge—plate boundaries and minerals Geology for Investors
When nations unite against the West: The BRICS development bank Equedia

Frank Callaghan resigns from Barkerville, company extends credit facility

July 29th, 2014

by Greg Klein | July 29, 2014

Considered a flamboyant Howe Street character who helped revive an historic British Columbia gold mining region, Frank Callaghan resigned from Barkerville Gold Mines TSXV:BGM on July 29. Chairperson Norman Anderson replaces him on an interim basis. Callaghan remains a director.

Callaghan resigns from Barkerville, company extends credit facility

Callaghan presides at Barkerville’s first gold pour for 2014.

In a statement accompanying the announcement, Callaghan said the company “has entered a new phase as a producer and with what I believe are world class assets to be developed at Cow, Island and Barkerville mountains, I feel now is the appropriate time to bring in an executive management team that can lead the company through what could be a much larger development.”

Barkerville lauded him for “many notable achievements” which included assembling a “world-class land tenure” in the Cariboo Gold Rush region, developing the Cow Mountain open pit, moving the historic Gold Quartz mine resource into 43-101 compliance, acquiring and operating the QR mine and mill, and leading the Bonanza Ledge project from discovery to production. Callaghan also “led the company through a 14-month securities commission review surrounding a June 2012 Cow Mountain resource estimate announcement.”

Considered extravagant by the BCSC, the resource provoked a cease trade order that lasted from August 2012 to October 2013.

Barkerville began exploration drilling on Cow Mountain’s Gold Quartz mine in 1995. Since then the company has compiled 1,164 square kilometres of property near Billy Barker’s 1862 discovery. In 2011, while anticipating the opening of the Bonanza Ledge mine, Callaghan told the Vancouver Sun, “And 150 years later, we are mining on Barkerville Mountain probably a kilometre upstream from where they initially struck gold. It’s pretty comical when you think about it.”

His interim replacement has been a Barkerville director since June 2012. An engineer, Anderson spent 35 years with Cominco, holding the positions of president/COO and chairperson/CEO. He’s also held senior roles with International Corona, Hudbay Minerals TSX:HBM, Compania de Minas Buenaventura NYE:BVN and Anatolia Minerals Development.

“Contemporaneously with the said management changes,” Barkerville also announced a one-month loan extension to August 30. “During that time period the parties will be reviewing potential loan amendments that might better fit with the company’s business operations going forward.” The amount of the loan wasn’t divulged.

Read more about Barkerville Gold Mines.

July 29th, 2014

Paul Renken: Bottom-fishing for the best junior resource equities Streetwise Reports
Hawaiian island to run on lithium-ion batteries Industrial Minerals
Minerals on the edge—plate boundaries and minerals Geology for Investors
Will the economy’s fate be set by the next two weeks’ earnings? VantageWire
When nations unite against the West: The BRICS development bank Equedia
Eric Sprott: The ongoing rot in the economy GoldSeek
Ottawa states Canadian national securities regulator may soon be reality Stockhouse

July 28th, 2014

Paul Renken: Bottom-fishing for the best junior resource equities Streetwise Reports
Hawaiian island to run on lithium-ion batteries Industrial Minerals
Minerals on the edge—plate boundaries and minerals Geology for Investors
Will the economy’s fate be set by the next two weeks’ earnings? VantageWire
When nations unite against the West: The BRICS development bank Equedia
Eric Sprott: The ongoing rot in the economy GoldSeek
Ottawa states Canadian national securities regulator may soon be reality Stockhouse