Repost from Jan 28, 2015. Over the past five years zinc bulls have gone nowhere. However, the metal, used primarily for galvanizing steel in the construction industry, is setting up for a substantial supply deficit as early as next year which could see the spot price pop. Investors interested in the zinc space have very… Continue Reading
Over the weekend a number of African media outlets including Tigrai Online (an Ethiopian news source) have claimed that the Bisha mine operated by Nevsun Resources (NSU.TSX) was the target of an attack by the Ethiopian air force during two bombing raids. According to the reports, the air force also targeted an Eritrean military depot.… Continue Reading
Legendary investor, Warren Buffett says “if a business does well, the stock eventually follows.” It is on this theme that mining executive Peter Breese has built his career. This career which has encompassed over three decades includes the $6.8 billion and $1 billion sales of LionOre Mining and Mantra Resources, respectively. The Zimbabwe native got… Continue Reading
One of the very few bright spots in the resources sector last year was an announcement that came late in the year by Eastern Platinum (ELR.TSX) when they announced a Chinese group (Hebei Zhongbo Platinum Co. Ltd.) would offer to buy the company’s South African platinum assets for US$ 225 million. At the time, Eastplats… Continue Reading
Ray Dalio is the founder of Bridgewater Associates, the world’s largest hedge fund firm and is one of the most iconic money managers on Wall Street. The Harvard graduate created the All Weather fund in 1996 and revolutionized traditional optimal strategic asset allocation models. Instead of balancing portfolios based on total weightings only, he included risk,… Continue Reading
Over the past five years zinc bulls have gone nowhere. However, the metal, used primarily for galvanizing steel in the construction industry, is setting up for a substantial supply deficit as early as next year which could see the spot price pop. Investors interested in the zinc space have very few investable options. The majority… Continue Reading
Although 2015 is only a couple weeks in the books, the beaten down gold developers have so far been on a tear! The GDXJ index is up 19% year-to-date with many of the more leveraged names up even further. Integra Gold (ICG.TSXV), which is developing the Lamaque South mine in Val D’or Quebec has kept pace with… Continue Reading
Shares in Roxgold (ROG.TSX) are up 20% already this year and 35% from their tax-loss influenced low of CAD $0.48 per share in mid-December. This morning, I spoke with John Dorward, President and CEO of Roxgold who was in Burkina Faso last week meeting with the newly appointed Minister of Mines and getting his new General… Continue Reading
The Market Vectors Junior Gold Miners ETF (or GDXJ) is an ETF administered by Van Eck and created to replicate the Global Junior Gold Miners Index which is a basket of small-cap gold exploration, development and production companies. The GDXJ tries to maintain an average market cap of its holdings above $150 million. According to recent… Continue Reading
The Lundin Group is one of the most accomplished resource development groups on the planet. They have a long history of going into tough political jurisdictions, taking advantage of the discounts created by the perceived risks and turning a huge profit thereafter. For Lundin Gold (LUG.TSX), which today announced the closing of the acquisition of the… Continue Reading
A few weeks after rumours began swirling that the largest US silver producer, Coeur Mining, was in talks to acquire Canadian-listed Paramount Gold and Silver (PZG.TSX), the two companies announced this morning that the merger is real. Coeur announced it will absorb Paramount in an all-stock transaction that values Paramount at $0.90 per share or $146 million (based… Continue Reading
“Anybody who says that the super-cycle is over is an idiot, it’s just been deferred for a little bit”, mining tycoon Robert Friedland told a packed audience in London last week. I was there for the 12th annual Mines and Money show. And if you’re in the mining business and haven’t been to London lately, the Mines… Continue Reading
“Wise investors won’t try to outsmart the market. They’ll buy index funds for the long term, and they’ll diversify.” That’s what Jack C. Bogle says. He is the pioneer of low-cost index investing and founder and former CEO of Vanguard which now manages over $3.3 trillion in assets globally. Bloomberg has a new interview with him… Continue Reading
In a recent Ernst & Young study measuring business risks faced by mining companies, capital dilemmas, social license to operate, resource nationalism, and infrastructure access all ranked in the top ten. Integra Gold (ICG:TSXV), a junior Canadian gold developer, recently completed an innovative and transformative acquisition that has removed all of the above risks from… Continue Reading
Quebec is one of the most prolific gold mining jurisdictions in the world. It is home to Canada’s largest gold mine, the Canadian Malarctic mine. It is also home to a plethora of promising junior explorers and developers all of which hope to find the next gold mine. One of these companies has been quietly growing an impressive deposit in… Continue Reading
