In addition to the forced coughing up and give away of nearly $200MM of the Goldfields's & their Shareholders assets in their South Africa ops, we find the ANC and their buddies cooking up a little Lonmin goose for their dinner as well. Or is that Goose Lo Mein? It is not nice to kill the goose that mines the golden ounces.
Lonmin is the worlds third largest producer of Platinum and PGMs. This past week South Africa's Dept of Mineral Resources (DMR) issued an order that effective immediately Lonmin was to cease selling any non-PGM minerals. While they may still market and sell platinum, palladium and Rhodium, they are to have the by product metals that they produce in mining PGMs, expropriated.
In 2009, sales of nickel, copper, chrome, and other non-PGM metals earned Lonmin $80MM.
Power to the people... right on!
This is the stuff the main stream media is going to continue to sugar coat. Thee is no sugar coating what happened in Zimbabwe within ten to 15 years after these kinds of expropriations began. Zambia another "workers paradise" with another "distinguished" history of social normalization or what ever you call it when you take over some one else's property that you have given under legal contract and then expect the people you are stealing from to operate the thing for you.
This whole developing fiasco in this Burnstone mine project is going to be a story of the continuous eroding of the capital assets the company has marshaled there to mine gold. Eventual dilutions of the shareholder interests in this mine by 30-40% are the rest of the story. What a bunch of geniuses, a mine sitting idle fully prepared to start operations but with out a power supply. Just brilliant!
Well I am not sure? HL has a very active message board and I am not sure the guy who was so bullish the stock I call Patrotsky is still pedaling his, end of the paper currency rants there. Based on his outlook he may have been disappointed with HL and moved on from following that stock to other interests, just as I have. I do recognize that "drooy" ID though I am not up to speed on where he is posting these days either.
For now the more dramatic moves in the PMs seem to be on hold until there is further destruction of capital formation, punishing of savings and the dance with dis-inflation. To wit strategic defaults again increased in the latest measure in the mortgage market. The Fed is about to embark on "QE 2" This is all the dance with dis-inflation. Dis-inflation benefits gold as money becomes worth less and there is no cost to owning gold.
There is a state that finally declares a chapter 9 bankruptcy to their state pension funds. The bond vigilantes start to have success in turning the 20 to 30 year bond rate higher. The banks that are still writing off $2 for every $1.50 dollars they are increasing reserves by, are left adrift by the Fed and their assets are marked to market. The coming $4-5 billion "re-structuring" of bond debt at Fannie and Freddie make it clear that not all bond debt thought to be backed by the US gov't undermines the investment grade bond market. Those conditions would be negatives for gold as they would START a sparking of inflationary expectations.
The Ten year bond rate surpassed 7.5% when the rally in PMs would resume as fears of hyper-inflation become real.
thanks-have been tracking metanor since miners drowning-your details take it from accident to tragedy-i was wondering whar caused the most recent drop now i know dilution- but the kind that doesn't bother me -not like marrone at auy-any thoughts on gbg's quarterly and Hollister -if Burnstone gets hooked up i.m in if it doesn't i'll probably buy the bad news if delayed,getting old iv'e read you on other boards can't remember which-i'm strong in cde bought core at crash lows .57- and added to core recent lows 14;s-also trade gss,hl, watching axu,ngd,azk,auy-gbg doesn't get much press or have a board-like to read your interpretation of both mines and what you think will be occur-yhanksing in the next quarters
For the investor interested in Metanor Mining.
Just take a look at this: Financing after financing
Metanor Resources Inc. (MTO.V)Stocks | Basic Materials | Precious Metals / MineralsOverviewNewsKey DevelopmentsPeopleChartsFinancialsOptionsAnalystsResearchMTO.V on TSX Venture Exchange
11:13am EDT Price Change (% chg)
$-0.02 (-4.00%) Prev Close
$0.50 Day's High
299,612 52-wk High
Research a stock: Latest Key DevelopmentsMetanor Resources Inc. Announces Second Closing Of Private Placement
Tuesday, 30 Mar 2010 11:02am EDT
Metanor Resources Inc. announced the second closing of a non brokered private placement to European and Canadian investors for gross proceeds of $60,000. The private placement consisted of 120,000 units at a price of $0.50 per unit. Each Unit is comprised of one common share and one half of a common share purchase warrant. Each whole common share purchase warrant will entitle its holder to subscribe for one Common Share of Metanor at a price of $0.65 per share for a period of 24 months following the closing of the offering, ending on March 29, 2012. Metanor will use the proceeds of the private placement for exploration work of the Bachelor Lake Mine, and for general corporate purposes. - - - - - (repeated)
Metanor Resources Inc. Announces Closing of Private Placement
Friday, 5 Mar 2010 01:51pm EST
Metanor Resources Inc. announced the closing of a non-brokered private placement to European and Canadian investors for gross proceeds of $2,850,000. The private placement consisted of 5,700,000 units (the Units) at a price of $0.50 per unit. Each Unit is comprised of one common share and one-half of a common share purchase warrant. Each whole common share purchase warrant will entitle its holder to subscribe for one Common Share of Metanor at a price of $0.65 per share for a period of 24 months following the closing of the offering, ending on March 5, 2012. Metanor will use the proceeds of the private placement for exploration work of the Bachelor Lake Mine, and for general corporate purposes. All securities issued are subject to a holding period of four months and one day from the date of closing. - - - - - (repeated)
Metanor Resources Inc. Announces Closing of Private Placement
Friday, 8 Jan 2010 01:09pm EST
Metanor Resources Inc. announced the closing of a non brokered private placement for gross proceeds of $2,000,000. The private placement consisted of 4,000,000 units (the Units) at a price of $0.50 per unit. Each Unit is comprised of one common share and one-half of a common share purchase warrant. Each whole common share purchase warrant will entitle its holder to subscribe for one Common Share of Metanor at a price of $0.65 per share for a period of 24 months following the closing of the offering, ending on January 8, 2012. Metanor will use the net proceeds of the private placement to increase and upgrade its mineral resources on its Barry property, to advance development activities at Bachelor properties and Bachelor Lake Mine, and also for general corporate purposes. All securities issued are subject to a holding period of four months and one day from the date of closing. - - - - - (repeated)
Metanor Resources Inc. Completes $7.0 Million Private Placement
Friday, 11 Dec 2009 11:35am EST
I got in and averaged down a couple times in the CDE-PC in late 2009. It was a pretty nice obscure situation in the "CUMMULATIVE" preferred with the suspended/delinquent distributions. They subsequently paid down a big finacing of ~$32MM and started to report some very positive earnings. The preferred shares suddenly were "realized" by the market. All the delinquent distributions were eventually paid out, that is the delinquent distributions paid to the current stock owner. I sold into that news. I had a smaller position in the common but lost interest when silver started to become clearly a range bound commodity. So you might have read me on the CDE board bashing the "Patrotsky"guy and all his fiat currency platform of nonsense estimating the US $ as being worthless and silver heading for $100. I moved over to trading DBS and AGQ. I have had big gains in AGQ with more than $6000 in profits while trading the $16.35 to $19.90 trading range in silver with less than $12K invested in the 2 silver Etns. I am currently out of DBS having exchanged it for more AGQ on a price swing into silver's lower range.
Besides GBG there is the Australian miner Intrepid/IAUFF with their .5-1.0 g/T ores in their Indonesian enterprise. A good strong chart for that one. Also Dynasty/DMMIF in Ecuador. Their three projects range between 4.0 and 1.2 G/T ores with huge proven reserves and looking like a value stock after the Gov't of Ecuador recently re-affirmed their property rights to these mineral claims they had previously paid for, and then paid the licensing fees etc as well. That is the story this time. A new Ecuadorean Gov't may have a different view. These are also two great mining companies with properties/endeavors that are fraught with the same political risks GBG has. DMMIF is definitely under valued based on their Ecuadorean assets if they are truly theirs. But you can see the valuation as near $6/sh reflected in the stock price before expropriation became an issue. Now the Ecuadoreans say oh we are going to give you a little more rope and "re-confirm" your property and mineral rights. This then gets more development and infrastructure investment so that what they expropriate 2-3 years from now will be worth 10 times what they would get stealing these mining properties now. I like DMMIF here at this current price but it would be something to trade out of sooner than later. So DMMMIF from peaking near $6 to getting the snot knocked out of it at near $3.40 now. I think those are the kind of valuation metrics I would appply to GBG. I would buy GBG but not at these prices.
A micro cap gold miner in Quebec.
"Aboot" a year ago while exploring & evaluating the prospects of a closed mine that they thought had potential to access what was believed to be probable/proved ores by drilling surveys, they dropped two guys down a mine shaft. They were not too careful in this endeavor and the two miners ended up dipped in the freezing cold dark flooded mine. Apparently the communications equipment was not up to speed and they kept lowering when these guys were trying to get hoisted back up. This resulted in a tragic accident and these two unfortunate souls perished. All this then depressed the price of the shares.
MTO then had an airing out period to blow out the smell of death surrounding it. Eventually insurance was settled and fines for violating safety procedures were paid.
At that time I think the stock started to become attractive. Then about 7 months ago they did a BDF at C$0.50 for C$7MM that ended up being either over subscribed or some such and another C$4 million was subsequently raised. Now they have just done another $2MM BDF and the stock is back down to the .50 C$ price.
It depends on your outlook, either this is just a stock with endless dilutions by way of financings or these financings are actually investments in upgrading of the capital net book value of the shares or that is investment in plant and equipment, that is eventually going to be reflected in some serious ramping up of production. MTO seems to have some very decent ores that are proven and defined. they have the total infrastructure in place including their own milling capacities. The bulk of their better higher grams/ton ore seems to be at depth. So there is an increased associated cost with getting it out. So that is what all the BDFs have been. The mine currently has production and would seem to be a case where a higher gold price coupled with the Loonie moving to 1.05 before year end may make this company a decent investment in the shadow of this latest BDF of an additional C$2MM.
I would think all conditions being IDEAL, a stronger Loonie, some quarterly reports showing strong production increases, guidance that those increases would be continuing and there is a capacity to sustain and increase that production, with a $1291 gold price the Shares could have a target near US$0.80.
There is that risk involved that these frequent BDFs will continue and dilutions will erode the potential for share price to move higher. But the Barry pit mine is an operating one and does have a reliable power supply. The dilutions may continue but it may be assumed most of it is for up grade of capital equipments and infrastructure. Most of the operating expenses should be met by the production outputs. At some point you expect then that production will exceed operating costs and amortizations of investments to capital equipment. That could result in the shares starting to have earnings and then increasing earnings. A Burnstone is vulnerable to a 26% (BDF type) dilution at near zero cost per share.
Among micro cap miners MTO is possibly one of the better stories?
Why don't you offer some positive feedback on GBG? Let's see ...on a 5 year chart we find gold gaining ~40% and Great Bag of Garbage a so called gold exploration and mining company knocking out a 5 year 7% return? Or is it less than that?
This week wheat has advanced by 19% and ADM has added on 11% to it's share price. Duhh!!! But with gold up ~40% do we find the GB of Garbage up by 21%?
But now after five years of miserable share price performance in a secular bull market for gold we are to be convinced this is a "restaurant under new management"? The rest rooms are still filthy and the walls have holes in them. The bottom 6 inches of the establishments walls have not been cleaned or painted in +20 years. The wait staff still think that B&B is a rap group. The portions of pasta on those Italian entrees are smaller than ever now that wheat is knocking on $10 bshl. The A/C so cold you have to wear flannel or bring a sweater on a Summer day.
We await the Grand Opening of Burnstone in a few months time when the power line is finally supplying power to operate.
You never know... that huckster Adam Graf of Dahlman-Rose may be steering his clients to or have designs on manipulating this stock. It is just like Chuck at the end of "Soylent Green". "Somebody's gotta tell 'em. Somebody's gotta tell them that soylent green is..."
Somebody's gotta tell 'em that this stock is a Great Bag of Garbage. I am posting as to why that is.
Please do explain why South Africa or Africa is a great place to invest? This is a continent where the most successful industry continues to be genocide. The Shoprite/SRHGY and Sasol look interesting to me, but I am not sure about that apple juice in the OJ. The lamb is as good as any from NZ or Australia. If those W.*.G.s get hungry enough they might even expropriate the Shoprite stores. I wonder which black guy was the leading scientist on Sasols liquid fuels from coal technology development? Eventually we must suppose that 26% of any successful business enterprise in South Africa is going to be expropriated. Like 200 lawyers on the bottom of the ocean? ... It's a start?
Mean while over in West Africa, Mali a similar fiasco as to the Burnstone power supply issue. Earlier in the week Rand Gold shares plunged 5.6% in London trading, the steepest decline since 2/5. Product costs at their mine in Mali surged after "Power cuts curbed out put".
Duuhh..Even if you have a power line to your mine there is no guarantee that power will be provided consistently and with out interruptions or voltage/phase abnormalities that can cause damage to electric motors.
Great Bag of Garbage has a tough row of watermelons and coconut trees to whoe here. If only I had a bigger fridge I could stop "wishin' I had a whatamelon" & buy one at the Piggly Wiggly.