Law is the same, I was referring to the perception has begun to change ( since the elction) .Additionally the changes in the government officials are beginning to say better things, changes in the rate of devaluation of the peso is real good and the settlement with Repsol was a good step forward...Once Cristina is out I think some of this perception will become reality.IMO..either way anytime there is a shift in power they will be changes, hopefully it becomes more business friendly and we are perhaps seeing some of that now.
more government more sheeps...extreme example is, obamacare manufactured more sheeps, punishable if you resist...more dependences, less choices, less freedom..not good! Big government equals psychological warfare set to influence emotions, reasoning, decisions and behavior..
Yamana Gold to invest $450 million in Argentina's Cerro Moro, situated in Santa Cruz. Being overly ambitious?..contruction to start in 2014 and production starting 2015 despite depressed metal prices...It becomes even more interesting when they already have 3 other mines in risky Argentina....I think that risk is just beginning to blow the other way.
Drfish, The other indicator that is as important to follow is the bond yield. Its been creeping up since its low of 1.5% in march of 2012, especially this past few weeks, presently at 2.93.. As you know it has a inverse relationship to the value of the dollar. Something has to give if the uptrend on the yield continues, especially if it reaches the psychological mark of 3. Rising yields, strong equity market and strong dollar usually doesn't exist. I'm anticipating a much weaker dollar in 2014 and a weaker equity market, especially if the yield gets over 3...the point being gold gets more bullish as higher yield rates places more pressure on the dollar as well as the market.
All this is because a rising trend in long-term interest rates relative to short-term interest rates usually indicates rising inflation expectations, which you know is bullish for gold
The deal definitely has some real good long term benefits . For one, the chances of mining a deposit of any size has grown significantly, considering the high cost involved. Before the agreement it had to be a very large deposit with significant grade to make it worth while building a mine and justify the investment. Also, MSC is much more efficient in the exploring in this area. Over the years they have gained a great deal of knowledge and are much more skilled in exploring in this area. Getting permits will be alot easier. The restrictions can make the process drag on for a extended amount of time, MSC has a excellent relationship with the authority over there and will make this process shorter and smoother. It will also de-risk the possibility a future discovery by HOC and then mining that deposit over at San Jose, which would of caused a huge problem for us..
Mux current ratio is excellent!! They are able to meet all current liabilities , current bills, purchases, wages etc...AISC has been out of the loop up until recently. I brought up this topic a few years ago here and posters still didn't understand where I was coming from....even some fund managers wasn't aware of the lack of transparency. So, during past bear markets this sector has always ran on the edge as we are now but it has never been as transparent as it is now, thus everything now is being magnified!. If you are agambler and have some money to spend I can't think of a better opportunity then we have now. We had bear markets( corrections) last 10 to 20 months...we are presently month number 12 , good chance it will end in 2014.
Employees work at a YPF gas station in Buenos Aires May 23, 2013. REUTERS/Marcos Brindicci
Employees work at a YPF gas station in Buenos Aires May 23, 2013.
Credit: Reuters/Marcos Brindicci
Repsol and Argentina reached a preliminary deal on Monday for the Spanish oil major to get paid for the 51 percent stake in the South American's country's main energy company YPF YPF.PA that the Argentine government seized in 2012.
If the deal is approved by Repsol at a board meeting scheduled for Wednesday in Madrid, it could spark a wave of international investment in Argentina's vast Vaca Muerta shale oil and gas formation.
Spain's government was proposing Repsol receive $5 billion in compensation and that both Repsol and YPF each name investment banks to advise on the valuation of the stake seized, said one source.
Argentina - at loggerheads with the global markets since its 2002 sovereign bond default and subsequent interventionist economic policies - has been slow to attract the billions of dollars in capital needed to exploit Vaca Muerta.
Argentina seized Repsol's majority stake in the Buenos Aires-based energy firm YPF last year, arguing the Spanish company had not invested enough. The move shocked Argentina's European trade partners and put off much-needed energy investment.
After the 2012 expropriation of YPF, Repsol lodged a complaint with the World Bank arbitration tribunal, the International Centre for Settlement of Investment Disputes and has threatened to sue any company that partners with YPF.
The chairman of La Caixa bank (CABK.MC), Isidro Faine, and Emilio Lozoya, the chief executive of Mexican oil company Pemex, joined Spanish minister Jose Manuel Soria for the talks with the Argentine government of Cristina Fernandez and Miguel Galuccio, the chairman of YPF, sources told Reuters.
The Argentina government said in a statement it had struck an initial compensation deal with the Spanish firm including liquid assets. In return,
At least with the political front things are getting much better. With the recent news between Repsol and the Argentina gov't and with a set of new business friendly policies close at hand anew sentiments is just beginning in Argentina.
The government now appears to want to repair relations with global investors and attract badly needed capital to the country’s oil and natural gas industry. Argentina’s Vaca Muerta field, a potentially rich trove of oil- and gas-bearing shale rock, has drawn acute interest from multinational energy companies.
“This is one of the hottest areas now, after Brazil,” said Fadel Gheit, an oil analyst at Oppenheimer in New York.
Argentina is offering about $5 billion in bonds as compensation, and Repsol is likely to accept if the payment is guaranteed, according to a person with knowledge of the matter, who asked not to be identified because the transaction had not been completed.
BaFin, Germany's financial supervisory authority, has begun an investigation into suspected price-fixing of benchmark gold and silver prices, WSJ Deutschland reported Tuesday.
"Apart from Libor and Euribor, BaFin is also looking into other benchmark setting procedures at individual banks such as for gold and silver prices," a BaFin spokesman said.
The WSJ report also claimed that similar probes were under way in the UK and US, though no sources were mentioned.
Regulators around the world have begun to wrestle back oversight authority over the financial sector since the 2008 financial crisis and after a long period dominated by "light-touch" regulatory
We probably(?) see another leg down in gold. So for those who are in it to make a quick buck, that was a mistake. The way i'm looking it is much different. Much when like the twin towers came tumbling down, real estate investors waited on the sidelines till the smoke had cleared . They knew the property underneath was worth tons. Its really about the land underneath and the trust you have on the folks who will build on top of it.
Intercompany loans are funds lent out as funding within the corporation . If MSC makes sufficient profits to have extra cash on hand they pay a dividend within Argentina to the local subsidiaries of ourselves and HOC. Our subsidiary was the recipient of the historical loans - money which was originally lent as funding over a number of years. They could then take this money that they had received as a dividend and then pay it out of the country to the head office as a repayment of the loan..
The conference call spoke of 70 million dollars coming out of Argentina. As I have mentioned recently in a previous post, this is money coming out via inter company loans. Central banks presently have no restrictions on them in terms of sending money out of Argentina, unlike restrictions given to INTRA-company dividends, and thus are more problematic ( red tape). Minera Andes sent out money in this manner for many years.
To me, the El Gallo 2 update was the most important information derived from the report, basically its been deferred tilll Q4 2014 and probably a very good decision.
Except Pandora is not depended on POG, unlike mining companies that are highly depended on it, and as important mining is a finite business, it has a certain mining life. Unlike a regular business So, if you are only considering price to earnings, price to cash flow etc...therein lies the major flaw.!!.. The best way if not the only way to evaluate mining companies is net present value of future cash flow, which is HIGHLY depended on POG. The bottom line mining companies wealth is in the ground and thus you invest in it as leverage to gold/silver prices. The NPV changes up and down dramically!! with just small incremental movements of metal prices.