Two minutes into the Confederations Cup, Brazil 1, Japan 0. Neymar.
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Two minutes into the Confederations Cup, Brazil 1, Japan 0. Neymar.
- Narco gang attacks police station en masse and murders eight police officers.
- Your country plays an international friendly football match against Argentina.
And tonight's winning entry in the Friday-night-bury-that-news-while-the market-players-are-at-happy-hour NR stakes is...
It's gonna be peaches and cream.
Why this song occurs right now is beyond my ken.
...has just been sent to subscribers, Thursday morning around 11:20am EDT. The truth will set you free, baby.
...the US Dollar index (DXY) versus the gold bullion ETF (GLD) over the last ten trading days:
The mining industry faces a confidence crisis. Confidence over whether costs can be controlled, return on capital will improve and commodity prices will not collapse, among others. Over the past decade, the mining industry has outperformed the broader equity markets, but this trend has recently changed. While 2012 saw mining stocks fall slightly, they fell nearly 20% in the first four months of 2013.
Regaining confidence depends on how the mining industry responds to its rising costs, increasingly volatile commodity prices and other challenges such as resource nationalism. Despite this drop in confidence, it’s not all bad news. Production volumes and dividend yields are up and while prices have fallen, they have not crashed. China continues to be the industry’s most important customer. While Chinese growth rates are slowing down, they are coming from a bigger base, so future demand for commodities still looks healthy.
Miners are trying to rebuild the market’s confidence - capital expenditures have been scaled back, hurdle rates are being increased and non-core assets are being disposed of. Across the board, there is a shift from maximising value by increasing production volumes, to a renewed focus on maximising returns from existing operations through managing productivity and improving efficiencies.
How do you say "Where's your sense of humour?" in German, anyway?
This is the two year price chart of junior exploreco Oronova (ONV.v).
Translation time: "Oro no va" is Spanish for "Gold doesn't work". Just thought I'd mention it.
- Why haven't you published the metallurgy results you received for the Crucero project a few weeks ago?
- Are they really as bad as the rumours make out?
- Isn't this type of thing supposed to be material, meaning that you can't just sit on this development and must disseminate to shareholders?
- Is it true that the results basically render uneconomic all of the gold ounces you've already found at Crucero?
You could I suppose bet the ranch on Chile beating Bolivia because even 1/4 looks reasonable value, but weird things happen in this world and I wouldn't like to feel responsible for anyone's house getting foreclosed due to a bad bet call. Yup they're way likely to win, but if Bolivia (as is likely) go to Santiago with 10 in defence and Chile can't find a way through or a final touch or three fail them...
The hottest contest is the improving Venezuela versus the underperforming Uruguay, because both are gunning for the important 5th spot and a chance to go to the finals via the play-off (with the 5th in the Asia group, if memory serves). Neither will want one point, both want three. Uruguay is the incognito here because if they hit form the team is simply world class, but up to now they've been misfiring. Venezuela is a good team these days, long gone is the epithet of South American whipping boy team and after beating Colombia in their last home match they'll like their chances here.
Argentina goes to the altitude of Quito Ecuador without Lionel Messi in the starting line-up and traditionally Argentina doesn't perform well up the Andean mountains, either. Ecuador lost a couple of players due to yellow cards and injury during their 1-0 loss to Peru last time, but nobody vitally vital and they're a different kettle of fish at home.
Colombia versus Peru has the makings of the surprise result. For sure Colombia has to be favourite, but they've lost their two first choice central defenders for this match (yellow cards vs Argentina last time). Peru played well against Ecuador, no ifs and no buts. They go to Colombia as outsiders for the match but the odds on offer above are value-laden.
- $20 on Ecuador to beat Argentina at 6/4, total potential return $50. I think the altitude (big plus for Ecuador, negative for Argentina), the lack of Messi and the comfort of knowing that they're already virtual certainties to get to the finals will do for Argentina.
- $10 on a Colombia/Peru draw, at 7/2, total potential return $45.
UPDATE: I suck at this. Colombia ran rings round Peru, with two goals in the first half and easy containment of the clearly inferior team in the second. Meanwhile, Ecuador could only draw with Argentina which means both my bets went down the drain. This leaves the treasury position at a very thin looking $70.55 to take to the next two fixtures in September.
...Peru's IGBVL "general" index from the Lima stock market.
Are we levelling out at 16k here? I think so. By the way, the thing is about 50% mining stocks.
...has just been sent to subscribers this Tuesday morning, pre-bell. Buying a stock.
You are about to witness how 1,448 words can be condensed into just five.
This is what they wrote
McEwen Mining Inc.: Lower Metal Prices and Higher Cost of Capital Drives Decision to Reduce Forecast Production Growth from 290,000 to 225,000 Gold Equivalent Oz in 2016
Capital Requirements Now Significantly Reduced; Los Azules Sale Deferred
(647) 258-0395 ext 410 or Toll Free: (866) 441-0690
181 Bay Street Suite 4750
Toronto, ON M5J 2T3
PO box 792
And this is what it means:
After more than two years of negotiations on exploitation and investment protection agreements for the project, the Government of Ecuador and Kinross have been unable to agree on certain key economic and legal terms which balance the interests of all stakeholders. Therefore, despite pending legislative amendments to the mining and tax law regime in Ecuador, Kinross has concluded that it is not in the interests of the Company and its shareholders to invest further in developing FDN.
"We have said that we will exert strict capital discipline across our Company, that we will allocate our capital only to projects which meet our investment criteria, and that we will only enter into agreements that are in the best interests of the Company and its shareholders," said CEO J. Paul Rollinson. "After a great deal of effort to arrive at a mutually agreeable outcome, it is unfortunate that the parties were unable to reach an agreement on FDN which would have met those criteria. That said, we respect the Government of Ecuador's sovereign authority and its right to determine how its resources are developed," he added.
UPDATE: It gets better, as apparently Chile's Minister of Culture started false rumours of Mandela's death.
UPDATE 2: Sure enough, that Rafa tweet has been pulled. I kinda thought at the time that a screenshot wasn't a bad idea...
UPDATE: Peru's Mining and Energy Minister, Jorge Merino, refutes the stories about hundreds of layoffs and says that Conga is going ahead as planned with the reported layoffs being part of personnel rotation at the project, which kind of reminds your humble scribe of the way a certain Norwegian Blue parrot wasn't dead. It was just restin'.
As for the company their lawyer and main representative at the meeting, one Hugo Rosales, was reported as taking a somewhat aggressive tone and saying things like, “This is not (foreigners coming to The Americas and exchanging) glass beads for gold, this is jobs and right now it (the regional government) could bring an industrial project to set up a carmaking plant and hear it was also ecological murder....If the governor doesn’t want the mine we’ll leave and if the EIA isn’t approved we’ll leave....the mining company has other projects in other viable States (in Mexico). This project is the most advanced (but) if this project doesn’t happen the investment will go to another State where there are acceptable conditions, where there’s a governor that says “yes, i want to create jobs”.
Greg Smith, President and CEO, commented, "We believe the reasons given by SEMARNAT for withholding approval at this time are reasonable and relate to deficiencies in the submitted MIA rather than issues with the project itself. Further, we are confident these deficiencies can be adequately resolved in a revised MIA. While disappointed with this initial result, we are pleased with the detailed assessment and consideration by SEMARNAT of the MIA and toward comments made by other government agencies and the public as a normal part of SEMARNAT's review. This notification provides substantial clarity regarding permitting considerations for various aspects of the Esperanza gold project. The Company will focus on ensuring these considerations are sufficiently addressed to secure the approval of the revised MIA."
"Let's never forget that copper is cyclical. Today we're in a tremendously complex world: Europe zero growth, Japan zero growth, the USA still without its growth consolidated and China with all its own problems. I'm a little worried, becuase it's very difficult to know what's happening with copper in the world. The fundamentals of copper, which are supply and demand, have been very good for years but we're now entering a cycle of this year, next and then the year after in which we'll have a production surplus, we're going to accumulate stock. There's a change, and watch out if China stops doing the things it's been doing."
...Nouriel Roubini doesn't understand gold:
Phew James, thank the Lord for that. Y'know, for a moment back there I thought we were in trouble.
The difference: This time the Chinese workforce will get paid.
Here's the LAHT story, here's how it starts:
MANAGUA – Nicaragua is moving closer to granting a Chinese company a 100-year concession to build and operate a canal linking the Atlantic to the Pacific.Construction of the waterway would take 10 years and cost $40 billion.Bills opening the way for the project were submitted last Friday to a legislative committee, which began looking at the proposal’s viability before debate in the full Congress.The bills would give China’s HK Nicaragua Canal Development Investment Co. Limited, which is based in Hong Kong, a 50-year concession that would be renewable for another 50 years.President Daniel Ortega has asked Congress to fast-track debate on the continues here