Newmont having problems with new protests at the Conga Mine.
I've tried to post a Seeking Alpha article fron this evening but our web host won't let me. New protests are blocking the draining of the lake.
"Protests in Peru over Newmont Mining's (NEM) $5B Conga gold mine make "no sense" and could spell the end of the project if they succeed in preventing the draining of a nearby lake, the CEO of junior partner Buenaventura (BVN) says. Tensions flared up again this week over the proposed mine, with hundreds of protesters taking to the streets and ending nine months of relative calm."
BVN has a 49% stake in this project. If it falls apart, what will be the financial impact in BVN?
Per the last Q report BVN stake is 43.65% and due to the way information is presented its very hard to determine just what percent of revenues and net income is derived there. Mining is experiencing problems all over for all types of commodities - the good thing is less product is being mined which makes the gold and silver that does come out more valuable and with the recent more depressed rates miners are holding back production - the recent rate reductions are due to the fed which wanted to squelch investors appetite for gold as a flight to safety from their excessive printing of money, so they dumped gold on the market temporarily redirecting investors appetite to other areas - the fed does not have the ability to keep doing this and China and India want REAL MONEY - GOLD, not US printing press dollars that lack any value as an inflation hedge. BVN is a bargain at under $20.00 and should end the year about $25.00 in my opinion.
I think the Fed is pulling back because stocks have ramped up pretty high and the fake CPI and unemployment numbers allow politicians to claim things are not getting worse. If you count number of people who have left the job market since May 2007, unemployment this May was 14.6% instead of 7.6%. Commodity inflation (the real value of dollars) since May 2007 has been 5.5% annually which means the GDP 3% annual growth since then has been negative 2.5%. But then there's another $1 trillion per year printed directly and openly (not counting the $20 trillion give-aways to the banks) which is another -6.6% in terms of self-sustained GDP. So all exaggeration aside U.S. economic "growth" has been about negative 9% annually for the past 6 years, which is a 40% reduction in the sustainable part of the economy, but of course 2007 was still in the midst of an unsustainable housing credit boom. The credit boom is still here, only shifted from banks to the taxpayers. Now the government has to default on everything from bonds to retirement and SS and medicare, and continue the money printing since that will make interest rates rise so that the debt has to be printed away....instead of going to main street like 1/2 of the money printing does now.