...and the way U2 rocks a hall like no other band.
...and the way U2 rocks a hall like no other band.
Oh yeah, one more random thing on my mind this morning to mention. This 3 month chart comparing RIO.v to GLD.
HAMBURG Dec 16 (Reuters) - Germany's Aurubis , Europe's biggest copper producer, has agreed long-term copper treatment and refining charges (TC/RCs) for 2012 of $63.50 a tonne and 6.35 cents a pound, up 12.4 percent on 2011 deals, sources close to the company said on Friday.
This means Aurubis has matched the higher TC/RCs for 2012 reached in early December by Freeport McMoRan Copper & Gold .
TC/RCs are paid by miners to smelters to refine concentrate into metal and are a key part of the global copper industry's income. Increases are being sought as smelters believe demand for metal and mining output will continue to rise in 2012.
There was still doubt in past days whether the Freeport level would be accepted as a benchmark for 2012.
Chinese copper smelters were still seeking to convince BHP Billiton , the majority owner of the world's biggest copper mine, to (continues here)
The gold/Silver ratio, three year timescale:
- The influences have been strictly monetary, with the pure asset metal and the asset/industrial metal affected more or less equally.
- It's been a waste of time following this ratio chart recently.
This is what they said:
CONCORD, NH, Dec. 15, 2011 /CNW/ - Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX: JAG) (NYSE: JAG) today provided an update on the strategic review process that it previously announced was initiated by its Board of Directors on November 16, 2011.
The Board has appointed a Special Committee comprised solely of independent directors to review and evaluate any proposals received as part of the strategic review process and to assess whether any such proposal may be more desirable than the continued operation of the Company on a stand-alone basis, and to make recommendations to the Board thereon. The Special Committee is chaired by Gil Clausen and is comprised of Mr. Clausen, Gary German and John Andrews.The Company has retained JP Morgan Securities LLC as its financial advisor and Davies Ward Phillips & Vineberg LLP as legal counsel to assist the Board and the Special Committee.Over the past several weeks, through JP Morgan, the Company has solicited interest regarding a potential change of control or merger transaction with the Company.Any proposal that may be received will be assessed relative to the inherent value of the Company's unique asset portfolio in order to determine the most effective means of delivering value to the shareholders of Jaguar. There is no assurance that this strategic review process will result in a change of control or merger transaction."For a number of months Jaguar's share price has been disconnected from the inherent value of the Company's unique asset portfolio," said Gary German, Chairman of the Board. "The Special Committee has been formed to explore alternatives. Our Board will not support a transaction that does not deliver adequate value to our shareholders."The Board intends to provide a further update to shareholders as circumstances warrant, likely in early 2012.
And this is what it means:
- was at the centre of the clustafark called Ascendant Copper in Ecuador
- and then at the centre of the clustafark called Mercer Gold in Colombia
- and is then hired by a company that makes a point of NOT mentioning the names of companies in Mr Stonehouse's background in the NR, preferring to talk in general terms about his years of experience in The Americas and his fluent Spanish
TORONTO, Dec. 15, 2011 /CNW/ - Scorpio Mining Corporation (TSX: SPM) ("Scorpio" or the "Corporation") has appointed James M. Stonehouse as the Corporation's Vice President of Exploration, based in Mexico, effective January 3, 2012.
Mr. Stonehouse holds an M.A. in Geology from Dartmouth College, Hanover, New Hampshire. He is a professional and highly skilled geologist with over 30 years of experience in exploration, primarily focused in the Americas and on precious and base metal deposits. He is fluent in Spanish and has successfully led multiple teams through grass roots exploration to discovery stage, resource evaluation, feasibility study and development. His ability to recognize and re-evaluate geological settings and design successful exploration programs has resulted in significant discoveries that have increased resources and added satellite ore deposits to existing operations. Mr. Stonehouse is experienced in managing all aspects of exploration and resource development, including turnaround projects that brought sub-valued assets to economic status and production.Mr. Stonehouse is a registered member of SME and a registered Geoscientist in the State of California, and is a Qualified Person as defined by National Instrument 43-101.Parviz Farsangi, President and CEO of the Corporation, commented: "We are delighted to have James as part our dedicated team as Scorpio moves forward with its plans for growth. His extensive experience and expertise will be of great value to the Corporation as we continue to explore, develop and expand our portfolio of projects in the Cosalá and Parral Districts of Mexico.
Moral of the story: Don't let a miner cook you lunch. From RPP news this morning (your author translates):
A total of 140 employees working for the mining services company JJC, contracted to the Chinalco mining company in the city of La Oroya, province of Yauli (Junín region), were poisoned after eating a communal lunch* accompanied by strawberry juice.
Due to stomach pains and vomiting, the employees were evacuated at first to the local health outpost in Morococha, but the severity of some cases caused their transfer to the hospital (45 people) and health centre (10 people) at La Oroya.
Pedro Rau Lavado, director of the Essalud Hospital, said that the condition of all patients was stable and the nauseas, colic and vomiting was caused by food poisoning.
"Many of them are on intravenous saline drip, but fortunately everything is now under control. The discharge of each patient depends on their individual evolution", he said.
*called "pachamanca" and consisting of meats cooked in an underground pit covered in earth, much the same style as a Hawaiian luau.
...an update on our 2011 Small Silvers Sweepstakes with just two weeks to go:
By the way, apparently some problems with Google Mail this morning, just so you know.
That was Benamin Franklin. This is the chart for Jaguar Mining (JAG.to) (JAG), November 1st to date.
UPDATE 20 minutes later: Word starting to filter through on local media now.
(Reuters) - Peruvian leftists who supported President Ollanta Humala for years are leaving the government and may stop supporting him in Congress, saying his emerging authoritarian tone amounts to a further drift to the right.
At least two high-profile leftist aides who felt betrayed have quit their posts and more resignations are expected after Humala, a former military officer, shuffled his Cabinet over the weekend.
Shame on Reuters and Bloomberg for falling for the Jaguar Mining (JAG) (JAG.to) market rigging bullshit
UPDATE: To answer a couple of mailers, yes i have heard rumours of exactly why Titcomb was fir...SORRY!!...decided to resign but even though the source is pretty good, the reasons heard are unsubstantiated as yet and therefore (due to the sensitive nature of the issue and that JAG people are apparently miffed at IKN) we're not running them here. However, from what's going around on the junglydrum network, your humble scribe thinks that it's high time Jaguar Mining came clean and informed its shareholders exactly why Titcomb was resigned. And JAG is now threatening to go back to a 5-handle after trading over $8 on the BS buyout rumours last month. We'll leave it at that.
"I wonder why people still listen to Dennis Gartman's calls on the price of gold. Here is a chart showing the Gartman Letter performance, the TSX, the S&P and GLD as a proxy for gold over the past year.
Zinc looks ‘cheap’ from a supply-side perspective
We review the outlook for zinc mine supply between 2011 and 2015 and find that committed zinc mine supply is set to rise by only c.1% pa (predisruption), as Chinese mine supply growth slows and closures of depleted mines offset a large portion of the anticipated growth in supply ex-China.
Assuming growth in global zinc demand of c.4% pa over the period, this lack of supply growth means prices will need to rise to incentivise high cost Chinese mine supply to produce (at least 10%, and as much as 30% of Chinese supply is under pressure at current zinc prices of $2,000/t). Prices also need to rise to incentivise some of the c.1.9mt of ‘probable’ zinc project capacity to come online between now and 2015, although some of this capacity is likely to be developed despite the zinc price trading below incentive prices of $2,200-$2,400/t (10% and 15% pre-tax IRR, respectively). For 2012, we nonetheless believe that zinc upside is capped by high refined inventory levels and concentrate stocks recently built at Chinese mines.
- 2010, inflation was real, largely to the continued commodities rebound after the Lehman deflation event.
- 2011, inflation is imaginary and exists only in the mind of financial quacks and idiots with Weimar fixations or think household-scale economics is a perfect miscrocosm of how macro-scale economics works. Two hundred years ago that might have been the case but this is the 21st century people and you're wrong.
According to PBI spokesperson Moira Birss, mining activities are frequently accompanied by a disregard of the constitutional rights of minorities and threats and attacks on leaders of these communities.
"Community leaders who oppose mining projects, or the organizations that accompany those leaders and communities, have at times been targeted with threats and even attacks in what would appear to be a result of their opposition, as was the case with the priest who was killed in Marmato," said Birss, referring to an area where mining company Gran Colombia Gold and the local community are at odds over who has the rights to mine for gold.
PERU: Cabinet changes reinforce investor-friendly policy, but could increase protests
12 December 2011 02:25 PM EST
A recent cabinet reshuffle reflects President Ollanta Humala's desire to have a tighter grip on the government, but is unlikely to yield any substantial shift in policy. If anything, it confirms Humala's commitment to investor-friendly economic policies. The cabinet changes probably suggest that the government will take a harder line towards protests against mining projects. This means the government will seek to protect mining investments and will neither fuel nor politically use protests against the mining sector, as some feared. Still, taking a hard line could generate additional instability by further fueling protests. Humala could lose some political support from leftist groups, but this is unlikely to significantly affect his ability to govern.
President Ollanta Humala faced his first substantial political crisis with the unexpected resignation on 10 December of Prime Minister Salomon Lerner, one of his key advisors. Lerner's resignation led to a significant cabinet reshuffle (over half of the cabinet was replaced). While Lerner's departure seems to have been brewing for several weeks, the trigger appears to have been a disagreement over how to handle social protests, in particular his handling of the conflict over Newmont's $4.8 billion Conga gold and copper project (Humala reportedly favored a tougher approach). Growing protests led the company to suspend the project and the government to declare a state of emergency on 5 December. It also seems Humala became frustrated with his a somewhat conflicted cabinet, whose differing views on key issues (such as mining) were generating the impression that the government lacked control over the country's political situation. As such, Humala is probably seeking to gain more direct control of the government now that he has been in office for several months, and also have a more homogeneous cabinet with less dissenting views.Daniel Kerner
Lerner has been replaced by military-man Oscar Valdez Dancourt, who was interior minister. The cabinet reshuffle is unlikely to lead to a major shift in policy, and if anything will probably reinforce the current investor-friendly direction of economic policy. Economy Minister Luis Castilla will remain in his post, and Jorge Humberto Merino Tafur will be the new mining minister (he also comes from the industry). Other replacements include the ministries of agriculture, production, culture, environment, women issues, justice, interior, labor, and defense. These replacements leave the cabinet with a higher proportion of technocrats and a lower proportion of more leftist appointees (including Lerner, who was more of a leftist than many seem to remember), which if anything will reinforce the government's market-friendly orientation.
Perhaps the main signal emanating from this cabinet shift is that it suggests that Humala will deal with protests against mining and other natural resources forcefully, and will seek to protect mining projects and investments. It shows, first, that Humala will not side, fuel or politically use protests against mining projects, as some had feared, and is willing to clash with groups that could put mining investment at risk. Clearly the Humala administration understands the importance of mining investment in terms of economic stability and, more importantly, as a source of fiscal revenue needed to fulfill the government's ambitious social spending agenda, which will in turn determine his political success. As such, he is not willing to tolerate major risks to the investment pipeline.
The future of Newmont's Conga project however, remains uncertain. Valdez said the government would seek an international evaluation of the project in order to reduce tension with local communities. The conflict will not necessarily be resolved, but it seems the government will throw its weight behind such an important mining project, increasing the likelihood that it moves forward, despite local opposition.
If the government does indeed take a hard line attitude towards protestors, it would generate the risk that this actually aggravates social tensions and thus causes increased, or more intense, instability. Widespread protests against mining companies have been one of the main risks affecting the mining sector in Peru. To a great extent they are a function of a weak political system that does not provide institutional mechanisms for channeling popular demands or concerns. A more repressive stance will do little to ease those problems. On the contrary, it may reinforce the sense that the government is on the side of mining companies and thus strengthen anti-mining groups. As such, we do see some risk that the government strategy could backfire.
The cabinet reshuffle has been criticized by leftists groups that believe either this is a move towards the right or a "militarization" of the cabinet (neither of which is true, in our view). Former president Alejandro Toledo also said he would not support the government anymore (apparently Humala did not offer him any cabinet posts), which could diminish Humala's support in congress. Humala's Gana Peru bloc has 47 (out of 130) seats in congress, while Toledo's has 20. Still, none of this is likely to have a major impact on Humala's ability to govern. Majorities in congress can be built given Peru's weak party system, at least as long as the president remains popular and legislation is not particularly controversial. Thus, even though Humala could lose some support, we don't see this as a threat to his ability to govern effectively.
Analyst, Latin America
Two months don't make a trend, but three might be a charm so watch out for the November number.
On Saturday (December 10), preliminary Chinese trade data was released for the month of November. Unwrought copper imports reached 452,022 tonnes, up 17.9% from 383,507 tonnes in October and 28.6% from 351,597 tonnes in November 2010; this represents the highest level since March 2010. The import deficit implies net copper imports of 320,000 tonnes for November, up 25% from October’s level.In addition, China’s production of copper semi-fabricated products (wire, plate, etc) reached an all-time high of 1.055m tonnes last month. All indications point to China continuing a growth trend in copper consumption.
Here's how that June 10th piece by Lobito finished up, by the way:
"PC Gold seems to bottom in the 70-cent range, near where we are now. That and the pending drill results make this a good time to take a first tranche. Of course, Shopping Season is upon us, so you should not chase this stock, and should look for opportunities to take a second tranche below 65 cents, perhaps even at 60 cents or less, if given a chance to do so in the weeks ahead."
...gold, last week or so, comex futs chart:
Justice: Juan JiménezMeanwhile, these are the ministers who will get to keep their jobs:
Environment: Manuel Pulgar Vidal
Agriculture: Luis Ginocchio
Women and Social Development: Ana Jara
Interior: Daniel Lozada
Defense: Alberto Otárola
Culture: Luis Peirano
Work: José Villena
Production: José Urquizo
Energy and Mines: Jorge Humberto Merino
Economy: Luis Miguel Castilla
Development and Social Inclusion: Carolina Trivelli
Tourism and Foreign Commerce: José Silva
Health: Alberto Tejada
Education: Patricia Salas
Transport and Communications: Carlos Paredes
Housing: René Cornejo
Foreign Relations: Rafael Roncagliolo
We live in interesting times, unfortunately. By the way, be clear that this list is unconfirmed and if there are any differences when the real deal happens later, an update to this post will happen.
Guess what this is: