Gold price snaps losing streak as Chinese buyers return |
- Gold price snaps losing streak as Chinese buyers return
- Vale halts Mozambique coal shipments after rebel attack on train
- Goldcorp halts operations at Los Filos mine in Mexico
- Sepro Mineral Systems Corp. Introduces Complete Range Of Horizontal and Vertical Sepro Pumps
- White knight rides to Osisko's rescue, shares soar
- Anglo American considers closing platinum mines in S. Africa
| Gold price snaps losing streak as Chinese buyers return Posted: 02 Apr 2014 04:02 PM PDT The price of gold snapped a five-day losing streak on Wednesday as bargain hunters re-entered the market. On the Comex division of the New York Mercantile Exchange, gold futures for June delivery settled at $1,290.80 an ounce, up $10.80 or 0.8% from Tuesday's close at a 7-week low. While gold is off more than $90 an ounce from its 2014 high struck in mid-March, Asian buyers appear to have returned to the market. Chinese bullion buyers, who overtook India for the first time as top global consumers of the metal, are nothing if not price sensitive. From premiums that topped out at $37 when gold was trading around $1,200 last year, traders on the Shanghai Gold Exchange are now offering gold at a discount to the quoted London spot price. Driven in part by a weakening renminbi discounts on gold in China widened to as much as $9 an ounce below when the price were headed towards $1,400 in March. That gap has now shrunk to $2–$3 an ounce as the lower gold prices drives fresh demand and could strengthen further if the yuan begins to appreciate again as expected. Australia's ANZ Research reports its barometer of China's physical demand has increased sharply towards the end of March and the only reason for the discount is the weak yuan: "A return to the CNY's appreciation trend would be a crucial factor in improving the price differential. On current gold prices, had USD/CNY continued to trade at 6.05 (it's level before the spike to the 6.20 area), the Shanghai premium would calculate to +USD32.0/oz." Not everyone sees physical demand from Asia returning in a big way. Bullion Vault quotes Deutsche Bank's commodities team as saying physical "tightness" in the market is receding with Shanghai premiums staying low and gold offered forward rates – the interest offered by bullion banks to gold borrowers – turning positive: "We view it as only a matter of time before gold re-tests the [US Dollar] lows hit in December last year," says Deutsche, a market-maker for wholesale gold and silver in London.  |
| Vale halts Mozambique coal shipments after rebel attack on train Posted: 02 Apr 2014 01:17 PM PDT Brazilian giant Vale (NYSE:VALE) said on Wednesday it has suspended coal shipments from its mines in Mozambique after a Vale train carrying coal from the Moatize mining complex came under gunfire. The attack, which injured a train conductor, is being blamed on disaffected members of Renamo (Mozambican National Resistance), the Western-backed rebel movement that battled the government during the Southern African nation's 16-year civil war. In June last year Renamo also threatened the Sena Railway line which is the sole link to the Beira port for a handful of coal mines operated by Anglo-Australian giant Rio Tinto and Vale located in central Tete, a province in Renamo's heartland. Shortly after that Mozambique troops attacked the base of Renamo's leader, Afonso Dhlakama in central Mozambique, sending him into hiding. Renamo said the attack signaled the end of the Rome Peace Accords, the 1992 deal that ended the civil war that began not long after independence in 1975 during the height of Africa's Cold War proxy fights and killed an estimated 1 million people. Mozambique is holding general elections in October and Frelimo is widely expected to be returned to government. The Wall Street Journal reports Portuguese-speaking Mozambique is "the biggest destination for Vale's investments after Brazil, receiving 22% of the company's capital expenditures." Vale plans to spend just over $2 billion through 2015 to construct a second open pit at Moatize to up annual production to 11 million tonnes. The company also aims to finish its more than $4.4 billion transport corridor to the Nacala port by the end of this year. |
| Goldcorp halts operations at Los Filos mine in Mexico Posted: 02 Apr 2014 10:56 AM PDT
The Vancouver-based company, at $22.5 billion the world's second most valuable gold miner after Barrick Gold (TSX:ABX), said certain activities related to environmental safeguards and site security will continue during the suspension. Los Filos mine directly employs about 2,600 people from the surrounding communities with an estimated 10,000 additional jobs created as a result of the mine's presence in the region. The operation comprises two open-pit mines – Los Filos and El Bermejal – and one underground mine. The open-pit operation began commercial production in January 2008. The news come on the same day the company has learned that it is now competing with Yamana Gold (TSX:YRI) over the potential takeover of Quebec-based Osisko Mining (TSX::OSK). |
| Sepro Mineral Systems Corp. Introduces Complete Range Of Horizontal and Vertical Sepro Pumps Posted: 02 Apr 2014 09:48 AM PDT Sepro Mineral Systems Corp is pleased to announce the 2014 launch of the Sepro Pump equipment line for the mining, aggregate, chemical and industrial sectors. In line with Sepro's vision of becoming a single source supplier of modular plant solutions, this powerful new line of pumps for dewatering, slurry, mineral froth, tank and various sump applications provides high abrasion resistance for medium to heavy-duty slurry transfer. Mill discharge, mineral concentrate, course or fine tailings and aggregates are key applications for the continuous duty Sepro Pump range. Each Sepro Pump model has various materials of construction available including chrome, rubber, and the newly developed SH46® material for enhanced wear protection. Inventory of ready-to-ship units are being held at Sepro's corporate headquarters in Langley, British Columbia with plans to also hold inventory at Sepro Mineral Systems Limited (Ghana) in the near future. The first order for Sepro Heavy Duty Slurry Pumps has been placed by Ressources Appalaches for the Dufferin Mines Project in eastern Canada. More information can be found at www.sepropumps.com. SEPRO MINERAL SYSTEMS CORP. is a Canadian company operating internationally in the mining and metals industries. Sepro's core business for the last 25+ years has been the supply of mineral processing equipment, metallurgical testing and process consulting. Specialized services range from evaluative studies to equipment design, fabrication and commissioning. Sepro is committed to providing state-of-the-art equipment and process solutions for new and existing projects worldwide. To learn more about Sepro Mineral Systems Corp. please visit www.seprosystems.com. |
| White knight rides to Osisko's rescue, shares soar Posted: 02 Apr 2014 09:44 AM PDT Canada's Yamana Gold (TSE:YRI) and Osisko Mining (TSE:OSK) on Wednesday announced a partnership in which Yamana will acquire a 50% interest in Osisko's mining and exploration assets, in an attempt to stave off a hostile takeover from Vancouver's Goldcorp (TSE:G). Toronto-based Yamana will pay C$441.5 million (US$400 million) in cash and 95.7 million in common shares having an aggregate value of $929.6 million for the assets. Under the agreement, Yamana will become an equal partner in all of Osisko's mining and exploration assets. Osisko will continue to operate the Canadian Malartic Mine and all other projects under the guidance of a joint operating committee, and will also maintain its head office in Montreal. As part of the deal Caisse de dépôt et placement du Québec and Canada Pension Plan Investment Board will provide funding of $550 million in a gold stream agreement. Together with the cash consideration from Yamana, the deal will generate approximately $1 billion in cash to be distributed to Osisko shareholders.  Osisko CEO Sean Roosen shows off Canadian Malartic's first gold bar poured at inauguration Osisko's shares soared 9% on the Toronto Stock Exchange to bring its market value to $3.3 billion, but shareholders in Yamana were more cautious taking the $7.3 billion counter down a notch. Vancouver's Goldcorp, at $22.5 billion the world's second most valuable gold miner after Barrick Gold, was also higher, gaining 2.1%. The miners were also boosted by a recovery in the gold price Wednesday after five straight sessions of losses for the metal. In lunchtime trade June gold futures were changing hands for $1,292 an ounce in New York. |
| Anglo American considers closing platinum mines in S. Africa Posted: 02 Apr 2014 08:59 AM PDT Anglo American's (LON:AAL) platinum unit, Amplats, may decide to close or sell some of its mines in South Africa as a now three-month strike over pay in the sector continues to impact its operations, forcing the miner to declare a force majeure on a long list of suppliers to its Rustenburg operations. The firm —the world's top platinum producer— has "already indicated we're exiting Union mines; Rustenburg mines are now part of the consideration," CEO Chris Griffith was quoted by Bloomberg as saying. "We're now thinking very seriously: does it form part of the future of this company?" He added the company "like platinum longer term," but he noted every asset has to deliver return and "if the business can't deliver return than we'll look at all options." Last month, the three main platinum companies Amplats, Impala Platinum (JSE:IMP) and Lonmin (LON:LMI) said in joint statement the ongoing strike in the platinum belt was "unprecedented," and at a stage where some of its impacts are becoming irreparable. To date, they have lost over a billion dollars in revenue. Amplats is still producing about 60% of its platinum capacity from a few mines not affected by the strikes. Anglo's chief executive Mark Cutifani said recently the company is in conditions to go ahead for months without depleting its inventories. South Africa, Africa's largest economy, holds about 80% of the world's known platinum reserves, accounting for about 70% of global output, used for jewellery, catalytic converters in vehicles, and as a key source of hard currency for the country, among other applications. |
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