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   Gold/Mining/EnergyDISCOVERY BOARD ~ PRECIOUS METALS ENERGY URANIUM OIL


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From: PaperPerson4/29/2012 10:11:44 AM
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Gold prices may build on gains established late this week, as market participants look at technical charts and renewed concerns about the eurozone’s economic health for direction in next week’s trade.
Prices were higher on Friday and mixed on the week. The most-active June gold contract on the Comex division of the New York Mercantile Exchange rose Friday, settling at $1,664.80 an ounce, up 1.34% on the week. May silver rose Friday, settling at $31.347 an ounce, down 0.96% on the week.
In theKitco gold surveyout of 33 participants, 26 responded this week. Of those 26 participants, 21 see prices up, while three see prices down, and two are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
Gold prices rose on Friday, supported by a drop in the U.S. dollar after lower-than-expected first-quarter gross domestic product. GDP growth came in at 2.2%, under expectations for 2.7% growth. Friday’s gold rally built on gains posted after the Federal Reserve’s monetary-policy committee Wednesday left interest rates unchanged from their ultra-low levels. There was some initial disappointment that the Federal Open Market Committee did not embark on any new stimulus programs, but market participants were eventually comforted by the fact that monetary policy remains friendly to gold prices, traders said.
Bob Haberkorn, senior market strategist at RJO Futures, said given the disappointing GDP figures and the rise in unemployment claims on Thursday, some in the market are beginning to think that the Fed may have to come back with some sort of stimulus program. That supported metals.
Technical-chart analysts are generally bullish on gold for next week, citing how the market performed at this week’s lows.
Adam Hewison, president and chief strategist with INO and MarketClub.com, said he sees higher prices next week. “The gold market has bottomed out around the $1,620 level. For this coming week, we are bullish on gold and expect it to move higher. The first barrier for this market comes in around the $1,700 level,” he said.
Ken Morrison, founder and editor of the newsletter Morrison on the Markets, also said for the short-term gold has potential to rise. He said open interest in Comex futures, which is the number of outstanding positions in the market, increased after Wednesday’s rally.

“Open Interest has begun rise along with rising prices, a sign that new buyers are willing to step up,” he said.
He said resistance is seen at $1,680, with $1,700 a potential overhead target which may be reached in the next two to four weeks.
A few market participants are pointing to this week’s news of continued central-bank buying of gold as a strong underlying fundamental for the metal as central banks usually buy to add to foreign-exchange reserves.
“Central banks are now creating an upside bias to the market and are reducing the ‘free-float’ available to meet future demand, even at much higher prices. As a consequence, we can expect less downside volatility – and a more sustainable bull market with much higher prices in the years to come,” said Jeffrey Nichols, managing director of American Precious Metals Advisors and senior economic adviser to Rosland Capital.
Looking ahead to next week, some market participants said the direction of the U.S. dollar will influence gold, as concerns about Europe’s economic outlook rise again.
The downgrade of Spain’s credit rating by Standard & Poor’s Thursday night is a stark reminder of the continued problems the eurozone faces. Gold initially rose on the news, but then came off as the euro retreated. Many market participants who see prices rising next week said the problems in Europe underscore gold’s safe-haven aspects.
Safe-haven assets are likely to perform well if there are more jitters around, but not everyone thinks gold is acting as a safe haven, but more as a risk asset. In that case, gold may stumble. “Since gold continues to display a high degree of correlation with commodities and equities, the yellow metal is also likely to suffer as a result,” Commerzbank said.
Mark Chandler, head of currency strategy at Brown Brothers Harriman, noted the weakness in the dollar versus other currencies on Friday was a bit counter-intuitive. “Spain's two-notch downgrade, pressure on the European bonds, the French and Greek elections a week away, an RBA (Royal Bank of Australia) rate cut and still they rally. As we noted at the start of the week, technical indicators are more constructive than our assessment of the underlying fundamentals,” he said.

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From: PaperPerson5/2/2012 10:59:35 AM
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A Motley Fool contributor waxes poetic about sandstorm metals and energy:

beta.fool.com

The stock is currently depressed at about 40 cents. my guess he is right that it is probably a great thing to sock away. But there are some reasons -- other than the depressed state of nat resource stocks -- that sandstorm metals and energy is so cheap that the author does not mention.

A couple of key investments have proved troublesom for SND. so do your research!

STTYF.PK = SND.V

sandstormmetalsandenergy.com

LikeSSL.V, which is a unique kind of royalty business based on godl mining, this sandstorm metals and energy is a junior designed to create a stream of income from other kinds of nat resources including base metals and nat gas and coal.

like SSL, the company capitalized by selling lots of shares. there are more than 300 million shares of SND now.

Total Issued & Outstanding 317,849,272

and someday like SSL, if all goes well and the cash starts flowing, this one will become a candidate for a reverse split.

the SSL reverse split gets voted on friday. i am in the ssl-wta warrants, which are in the money and still have three plus years of life left on them, providing excellent leverage both to the price of gold rising and to SSL's investments in various gold mines maturing into higher and higher flows of cash.

i do like SSL more because i want to exposure to gold.

sandstormresources.com

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From: PaperPerson5/7/2012 8:25:57 PM
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USGS: U.S. Gold Production Declines During February
04 May 2012, 10:01 a.m.
By Kitco News
kitco.com

(Kitco News) - U.S. producers mined 17,000 kilograms of gold during February, a 7% decline compared to revised January output of 18,300, the U.S. Geological Survey said Friday.
Production was also down year-on-year, falling 1% from 17,200 kilograms in February 2011.
Average daily gold production in the U.S. was 587 kilograms in February, down from 589 in January and 635 for full-year 2011, the agency said.
Nevada’s output was 12,700 kilograms in February, down from 13,600 in January and 12,800 in the same month a year ago, the USGS said. Alaska’s output was 1,780 in February, down from 1,890 in January and 1,800 in the same month a year ago.

The total for all other states was 2,580 kilograms in February, a decline from 2,770 in January and 2,680 in February 2011. This included output for Arizona, California, Colorado, Idaho, Montana, New Mexico, South Dakota, Utah and Washington.

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From: PaperPerson5/8/2012 7:58:10 AM
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HSBC: Removal Of Excise Tax First Step Toward Recovery Of Indian Gold Demand

Tuesday May 08, 2012 7:45 AM

Removal of an excise tax on gold by the Indian government is a step toward recovery of Indian gold demand, says HSBC. If the Indian rupee were to strengthen against the U.S. dollar, “gold prices at current levels may be an attractive entry point for price-sensitive buyers,” the bank says. Introduction of the tax in mid-March prompted a majority of Indian jewelers to close for three weeks in protest, hurting demand from one of the world’s largest gold consumers. Analysts say weakness in the rupee made gold more expensive when priced in the country’s currency, and this was also blamed for hurting Indian demand.

By Allen Sykora of Kitco News

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From: PaperPerson5/8/2012 4:07:48 PM
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Mitsubishi: Gold Hit By 'Another One Of Those Tsunamis Of Selling'
Tuesday May 08, 2012 2:45 PM

Gold’s weakness was exacerbated by “another one of those tsunamis of selling,” says John Howlett, division vice president with Mitsubishi International. “Supposedly upwards of 14,000 lots of gold were sold in the 5 minutes from 8:20 to 8:25--the old open-outcry opening time,” he says. “After the 7,500 that went on April 30, it may be safe to say that somebody’s system is telling them to abandon ship. And that somebody has some substantial volume to chuck around.” He cites two technically bearish items for gold: “the market is significantly through and closing belowthe 300-day moving average for the first break since 2008 and the market is also ‘under the cloud’ on the ichi moku chart for the first time since Q1 2009. The caveat on the second item is that it’s best on a weekly chart and it’s only Tuesday.” Meanwhile, a trendline back to November 2008 puts support in the area from $1,595 to $1,605, he adds. As of 2:10 p.m. EDT, Comex June gold was $34.40, or 2.1%, lower at $1,604.70 an ounce.

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From: PaperPerson5/10/2012 7:30:32 AM
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Tax Charges Affect Gold Miner Kinross’ 1Q Profit, Falls 57% to $105.7 M

By Esther Tanquintic-Misa

May 9, 2012 11:19 AM EST

One-time tax-related charges instituted in the first three months of the year have affected the profit of Canadian miner Kinross Gold Corp., falling by as much as 57 per cent in the first quarter.

The Toronto-based gold miner on Tuesday reported Tuesday profit generated in the quarter ended March 2012 slid to $105.7 million compared from the $250.1 million a year ago. This represented a ratio of 9 cents a share presently, from 22 cents a share the previous year.

Total sales, however, jumped 11 per cent to $1.04 billion from $937 million over the first quarter of 2011.

In a statement, Kinross Gold Corp., with mines in North and South America, Russia and Africa, said tax liabilities coupled with a $110.3 million non-cash item related to an income tax rate change in Ghana primarily affected its first quarter yields.

Discounting one-time items, Kinross Gold Corp. reported profits jumped to $203.1 million from $175.3 million, or 18 cents a share from 15 cents a share, respectively.

While gold produced during the first three months of the year reached 604,247 ounces, 6 per cent less from the 642,857 produced a year ago, the cost of producing the precious safe haven yellow metal soared 22 per cent for Kinross Gold Corp. due to lower grade ore, higher power, labor and contractor costs.

Total cost of production was $742 per gold equivalent ounce versus $545 a year ago. The company saw an average realized price of $1,644 per ounce of gold, up from $1,327.

Tye Burt, President and CEO of Kinross Gold Corp., said the company anticipates production to increase for the remainder of 2012.

"We expect to be within our previously-stated full-year guidance for production and costs," Burt said in a statement.

"Kinross remains in a strong operating and financial position. We are committed to maintaining our financial strength and liquidity as we advance our growth projects in the framework of our capital and project optimization process."

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From: PaperPerson5/14/2012 7:57:02 AM
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Gold Holdings In SPDR GLD Relatively Stable Even As Prices Drop
11 May 2012, 1:16 p.m.
By Debbie Carlson
Of Kitco News
kitco.com

(Kitco News) - Gold prices are down about $200 an ounce since making their 2012 high of $1,795.10 an ounce on Feb. 28, but the outflows from the largest gold exchange-traded fund, the SPDR Gold Trust (NYSE: GLD), have been relatively modest so far.
As of May 10, according to data on the SPDR Gold Trust website, total tonnage in the ETF was about 1,277, when the most-active June futures on the Comex division of the New York Mercantile Exchange settled at $1,595.50. Comparatively, this year’s high for total tonnage was set March 1, at 1,293 tons, two days after June gold hit the 2012 high.
Part of that “stickiness” – or the retention of investors - is the design of exchange-traded funds, said Kevin Quigg, global head of SPDR ETF strategy and consulting, State Street Global Advisors.
“ETF products are designed so that tactical and strategic investors can cohabitate in the same vehicle with no adverse effect,” Quigg said.
Tactical investors usually have short-term horizons while strategic investors generally take a “buy-and-hold” mentality.
While a roughly 16-ton drop in gold holdings this year may seem large, compare that to the sharp drop in speculative positions in the futures market. In the Commodity Futures Trading Commission’s weekly commitment of traders report, bullish positions by managed-money accounts are just off their lowest levels recorded since the agency started tabulating that particular report in September 2009.
Pinpointing how many investors are in the ETF as a short-term trade and how many are using the ETF as a portfolio diversification tool is hard to do, Quigg said.
“We don’t know how much is tactical and how much is strategic. In the secondary market you can see tactical, but they may be cross selling with someone who is a buy-and-hold person. We only have anecdotal evidence and that is the growth of the fund. The price of gold has had dramatic moves, but … there have not been tremendous outflows. From a volume perspective, there’s not been a tremendous decrease in volume,” Quigg said.
Most of the news headlines about the fund are tactical in nature as they usually come when famous investors like John Paulson or George Soros are reported to have bought or sold holdings. That information comes in a Securities and Exchange Commission filing called a 13-F. The agency requires quarterly reporting of stock holdings by institutional investment managers with at least $100 million in equity assets under management via this form.
“When you get into the realm of hedge funds … you don’t know (all of) what they’re doing. Hedge funds do gain access to the spot price via futures or physical, too. How Paulson uses GLD, I don’t know. He doesn’t call and tell me,” Quigg joked.
LATIN AMERICAN INSTITUTIONS USING GLD
Although gold investment “fever” has cooled now that gold’s price is off the all-time higher set in September at $1,923.70, interest in the ETF continues, Quigg said. One trend that’s been developing is greater use of the fund by Latin American institutions. In particular, Quigg cited increasing interest by the privatized social security funds in the Andean region of South America. “Colombia privatized their social security fund recently and we’ve just seen they’re holding the SPR GLD,” he said.
Institutions are not the only holders of the fund, just the most visible because of the SEC filings. Large individual and retail investors also buy the fund. It’s the combination of these various investor classes that made the fund the fastest-growing in history when it debuted in November 2004 and it still remains the second-largest ETF based on assets under management at roughly $65 billion behind the SPDR S&P 500 ETF (NYSE:SPX) at $95 billion.
When the fund was launched, it was considered a major innovation, finally allowing gold to trade like a stock. The fund is now nearly eight years old; are there plans for any new products that might spur demand? No, Quigg said.
At most there are some modifications to the fund that are generally operational, he said, such as when the fund went to being 100% physically allocated last year from 99.85% allocated. That small 0.15% non-allocation was used to accrue and pay expense ratios, but that’s now being handled in a different manner, he said, as part of an ongoing evaluation process of the product structure and in an effort to take advantage of any enhancements that will benefit clients.
“Customer demand is quite the opposite (from wanting new innovations). They’re very happy with the product; the draw is the 100% allocated physical bars. You get the benefit of gold ownership,” he said.

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From: canucklehead805/14/2012 8:50:19 PM
   of 4690
 
Where East Meets West
Greenfields Prospers With Oil and Gas in Azerbaijan
By G Joel Chury

Independent only since 1991, the former Soviet republic of Azerbaijan is a small country with a population of only nine million. It is, however, rich in oil and gas, and development of these resources for export is increasingly central to Azerbaijan’s burgeoning prosperity. Its state-owned oil fund currently brings in US$5 billion per quarter or US$625 per capita every 90 days.

Oil tankers are filled every six to 10 days on the Black Sea, while the country gears up for the completion of natural-gas pipeline routes into neighbouring Georgia and Turkey for European distribution. Britain’s BP and France’s TOTAL SA are among the majors in the region, but a junior headquartered in Houston, Greenfields Petroleum TSXV:GNF, thrives with its production from the Gum Deniz oilfield and the Bahar gas field.

Read more about Greenfield's central Asian oil and natural gas play.

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From: PaperPerson5/15/2012 4:59:37 PM
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Claude Resources Posts Loss on Higher Costs



May 14 (Reuters) - Gold miner Claude Resources Inc posted a first-quarter loss as operating costs increased.

The company had a net loss of about C$500,000 in the quarter compared with a net profit of C$1.8 million, or 1 Canadian cent per share, a year earlier.

Claude's gold revenue, from the its Seabee Gold operation in Saskatchewan, rose 21 percent to C$16.1 million, or C$1,681 per ounce.

The strong gold price was offset by increased mine operating costs and resulted in lower operating margins, Claude said in a statement.

Cash cost rose 34 percent to C$1,236 per ounce, lowering the net cash margin per ounce to C$445 per ounce in the quarter from C$484 a year earlier.

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From: PaperPerson5/17/2012 8:45:38 AM
   of 4690
 
Magellan is worth a look here.

$24 mm market cap and money from SSL.

Two nice sounding good sized gold prospects in brazil. Ssl did our DD for us.

$$$

Magellan Closes Financing With Sandstorm Gold

Press Release: Magellan Minerals Ltd. – Tue, May 15, 2012 7:40 PM EDT

VANCOUVER, BRITISH COLUMBIA--(Marketwire -05/15/12)- Magellan Minerals Ltd. (TSX-V: MNM)(MAGNF.PK) ("Magellan") is pleased to announce the closing of the previously announced transaction with Sandstorm Gold Ltd. ("Sandstorm") (see press release dated May 11, 2012), whereby Magellan will grant Sandstorm Gold Ltd. a 2.5% net smelter returns royalty ("NSR") on the Coringa gold project ("Coringa") and a 1.0% NSR on the Cuiu Cuiu gold project ("Cuiu Cuiu"), both of which are located in Para state, Brazil. As consideration, Sandstorm paid Magellan a cash payment of US$7.5 million and subscribed for one million common shares of Magellan at a price of $0.50 per share for total proceeds of $500,000.
Magellan Minerals (TSX-V: MNM)(MAGNF.PK) is a TSX Venture Exchange-listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

www.magellanminerals.com

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