El Nino is suppressing the gold price. [Mining.com] Drought in India => no income for farmers => poor gold sales.
Chinese copper smelters to slash production by 5% in 2016. [Mining.com] Happy New Year.
World Platinum Investment Council says the PGE market will be in balance next year. [MetalMiner] Despite the Volkswagon scandal.
Iron ore futures plummet to <$40 / t as new Australian production comes on line. [Mining Weekly] Gina Rinehart’s Roy Hill comes on stream just in time to kill the iron ore market for the year. It’s now a game of chicken in the producer’s end; who will blink first?
Rough diamond prices may have bottomed. [Paul Zimnisky] You decide.
“It’s never been a better time to become an economic geologist, working with a mining company. It’s one of the better-kept secrets of employment in a recession-hit world.”
Lithium X Energy hits the board today. [CEO.ca] All Howe Street hands on deck for this one. They’ve got it all: Flashy space-age name name, ~$1.4 M financing, Frank Guistra and other notables on the board. And the property? Don’t worry – details will follow. It’s right next to Ablemarle’s operation so it has to be good. If this exercise in Howe Street promotional onanism goes limp, it will be a sign of real investor capitulation.
Brent Cook interview from the Silver Summit in San Francisco. [Korelin Report]
- He’s adding to his portfolio and looking at maybe hiring another geologist-analyst.
- Most juniors are broke and the first money will be made in the mid-tier producers. These will be the first take-out targets. Richmont and Premier mentioned.
- Cash rich prospect generators are attractive. Mirasol mentioned as an attractive junior.
- Area plays are an idea from the past; don’t expect them to save us soon.
It isn’t China or the post-Lehman hangover: Rio Tinto and Vale killed the commodities supercycle. [Forbes / Republic of Mining] The view from that center of mining insight, Wall Street. This is like blaming garbage on garbage men.
Hot hole at NexGen’s Arrow. [Junior Mining Network] 31.5 m @ 10% U3O8 including 5.0 m @ 49.6% U3O8. Everybody into the lead suits.
Northquest takeover possible. [Stockwatch] On the heels of announcing its Pistol Bay results, partner Nordgold NV up its ante to 52% of the company.
Dr. Jon North’s Northquest Ltd. (NQ), up one cent to 15 cents on 115,000 shares, is expecting an imminent takeover bid from its majority shareholder, Nikolai Zelenski’s Netherlands-based Nordgold NV. Nordgold has just exercised 1.39 million warrants at 24 cents, five million at 27 cents and another 11.1 million at 30 cents, giving it 55.6 million shares, or 52.3 per cent of the company’s stock. Dr. North, chairman and chief executive officer of Northquest, says that according to a deal between the two companies, Nordgold must now offer to buy out the minority shareholders at a price of approximately 25 cents per share.
Mr. Zelenski has officially said nothing about an offer, and in the company’s early warning report it said it “may increase or decrease” its ownership of Northquest depending on the evolution of Northquest’s business and other factors. He does speak highly of Northquest’s main project at Pistol Bay, in Nunavut. Mr. Zelenski says the positive results obtained this year confirmed the potential of the project and Nordgold is “pleased to provide continuing support” to the project through its $5-million exercise of the warrants.
The fate of Dr. North and his $250,000-a-year salary is unclear in the event Mr. Zelenski proceeds with a full takeover bid for Northquest. Unlike many of his peers, Northquest is Dr. North’s only source of income, but he would apparently be in line for a $600,000 lump sum payment if he is fired as a result of a takeover.
Hawkeye closes $250K raise. [Canadian Financing Bulletin] What the heck is happening here? Hawkeye has been poking around the Yukon for several years (since Carmacks Caldera days) and the last news of them doing anything was in April when they picked up a wanna-be Pt-Pd-Ni prospect (Rex) near Wellgreen. There’s been a repricing of warrants down to $0.10 at the AGM as well. Prez Greg Neeld spent 10 years playing for the Canucks before trying mining. They’ve been the ultimate zombie junior of late but hope springs eternal:
Mr. Neeld will apply the entrepreneurial skills and knowledge derived from his industry-diverse commerce’s to assist in transforming HAWKEYE from a junior exploration company to a revered mine-producing-concern at the forefront of the mining industry.
Barrick and Novagold submit draft EIS on Donlin Creek. [Marketwired] Let the games begin.