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Weekly Ramblings of an Australian Stock Trader - incorporating
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The Prettiest Horse in the Glue Factory

This article is contributed by Money Morning. Click Here to Subscribe to their free newsletter.

In today’s Money Morning: Sydney Gold Symposium kicks off… 2,677% gain for gold… Where is all the gold coming from…? Gold is money…

The Prettiest Horse in the Glue Factory

Today - and tomorrow - your editor is writing from the Gold Symposium in Sydney.

There are six keynote speakers, including Eric Sprott, chairman of Sprott Asset Management. And our old pal, Australian Wealth Gameplan editor, Dan Denning.

Plus there are 15 company presentations… Ranging from unlisted Tamar Gold Ltd and $2 million market capitalised Invictus Gold Ltd [ASX: IVG] through to $134 million Gold Road Resources [ASX: GOR] and $657 million Silver Lake Resources [ASX: SLR].

Tomorrow’s line up is similar. Four keynote speakers, including Alf Field from Gold Chartist, Ben Davies from Hinde Capital, and an end-of-day panel chaired by your editor. On top of that there are another 20 company presentations.

It’s a lot to get through. But if the standard is even half as good as it has been so far then we’re in for a bumper couple of days. [Read more →]

November 15, 2011   No Comments

Uranium Stocks - Are They Going To Explode?

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Uranium Stocks - Are They Going To Explode?
Saturday, 22 October 2011 – Melbourne, Australia
By Shae Smith

Since the price peak in 2007, it’s been a hard few years for uranium investors.

Uranium Spot Price… And the Great Uranium Bubble of 2007

The price peak is called the ‘Uranium Bubble of 2007′.

The bubble started as investors worried about a uranium shortage.

Back then the uranium supply was a problem… 180 million pounds (81,000 tonnes) were required for nuclear power. But only 108 million pounds were mined. [Read more →]

October 22, 2011   No Comments

Is There Any Upside Left for Gold Investors?

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Is There Any Upside Left for Gold Investors?
By Dr. Alex Cowie, Editor, Diggers & Drillers

Gold fell $32.50 in US dollars yesterday. (It’s still up 17% for the year. But down 14% from the $1895 high in August.) And the gold stocks followed it down.

We guess a question you might ask yourself now is: ‘What’s the upside for me as a gold investor?’

If the experts are calling for gold to get to US$2000… and gold is trading at US$1620… you’re looking at, what, a 23% gain? Is that enough to bring new gold buyers into the market? And if not, what does that mean for you? And what does it mean for gold stocks?

Most gold explorers had a terrible time in September. The junior gold miners ETF fell off a cliff on the 20th of September. This may be down to hedge fund activity in the sector.

In theory, a gold stock is worth the value of its future cashflow. So a stronger gold price should lift gold stocks (remember, gold is up 17% this year). That’s pretty much the pattern we’ve seen in the past. [Read more →]

October 21, 2011   No Comments

What’s The Biggest Mistake Most Investors Make?

By now you would have noticed that I am currently involved in three major areas. Gold, Rare Earths and Coal Seam Gas ( More on CSG later).  Greg Canaavan’s article puts the Rare Earths Lynas (ASX Code LYC ) in the right perspective. I could not agree more.

It is in times like these which we are experiencing at the moment that I get the best bargains for the future. Remember, Buy in gloom and sell in Boom. It works for me.

What’s The Biggest Mistake Most Investors Make?
By Greg Canavan

You might be one of those investors who have been wondering whether now is a good time to look for cheap stocks. At a time like this - with the stock market breaking below 3840 this morning - it’s important to understand the difference between the intrinsic value and the price of a company.

This is something most investors simply can’t do.

When you estimate intrinsic value you’re estimating what a company’s really worth. It’s different to its share price, which is based on Mr Market’s emotional judgement - not rooted in sound knowledge of a company’s financial position or business fundamentals.

But that’s not to say the share price isn’t useful. It is. Because it gives you the chance to buy a company when it’s trading below its real value and sell it when it’s trading at a premium.

Put simply, price is what you pay and value is what you receive. [Read more →]

October 5, 2011   No Comments

Let The Gold Buying Spree Begin.

This interesting article on Gold  was contributed by Money Morning. Click Here to Subscribe to their free newsletter.

Emerging Markets Preparing for Sound Money.

‘I need a dollar, dollar, a dollar is what I need,’

And so goes the current pop song.

Funnily enough, those lyrics were written while the American economy was enjoying its credit boom six years ago.

The dollar, buck, demand note, dead presidents club, the greenback, call it what you will. It’s the cash no one wants. In March this year, Ray Dalio founder of hedge fund Bridgewater Associates, said of the greenback, ‘It’s inevitable that the dollar’s role as the world’s currency will diminish from the dominant world currency to one of a few.’

The US Federal Reserve Bank is doing its best to destroy the value of America’s dollar. What are other countries doing to protect their currency reserves?

Let The Gold Buying Spree Begin.

Last year, media outlets like The Age, Reuters, and Financial Times reported the big gold purchases from China and India.

But they aren’t the only countries on a gold-buying spree. [Read more →]

October 1, 2011   No Comments

Is This the Turning Point for Gold?

Today we have another great article on Gold by Moneymorning.  I could not agree more. Today FML  dived by over 10% ,so  I  jumped in and bought a heap at 0.06 cents per share. Money for jam. I  do so enjoy these dips. Anyway read and learn.

Is This the Turning Point for Gold?

In Today’s Money Morning: Gold tumbles 8.8% from peak… Stocks have fallen further… Economic problems front page news… Why nothing has changed… Top 10 short sold stocks…

One month ago, the spot price of gold was about AUD$1,835.

Today it’s AUD$1,672.

That’s an 8.8% drop.

When something falls more than a couple of per cent you feel it. Naturally, you start to question your reasons for buying it in the first place.

We mean, what if the gold bubble crowd were right? And gold is in a bubble.

After all, gold did fall. And who’s to say it won’t fall further?

Of course, we don’t want it to fall. And we won’t blurt out the old cliché that “we hope it falls so we can buy more on the cheap…”

But if you followed our advice and just bought gold a bit at a time, then the 8.8% fall isn’t all bad news. Because now you can buy more on the cheap… [Read more →]

September 26, 2011   No Comments

$90 Billion Buried Smack Bang in the Middle of Taliban Country…

Apart from Gold and Energy i.e. Coal Seam Gas ( more on this later)  The other area I am interested in is the rare earths sector. Here are a couple  of companies for you to research .  LYC  and KOR,  Now to Money Mornings article.

$90 Billion Buried Smack Bang in the Middle of Taliban Country…

China owns the rare earths market.

It has the world’s largest resource. Each year the ‘Middle Kingdom’s’ rare earths mines account for over 90% of all rare earths produced.

And last year, China cut exports of rare earths by 70%. It now only exports about 30,000 tonnes per year.

So, in order to gain access to rare earths, foreign companies have had to set up manufacturing facilities in China.

Last month the New York Times reported:

‘Companies like Showa Denko and Santoku of Japan and Intermatix of the United States are adding factory capacity in China this year instead of elsewhere because they need access to the scarce metals.’

The International Business Times reported ‘The Organisation for Economic Cooperation and Development has estimated that non-Chinese producers pay at least 31% more for raw rare earth metals than Chinese producers.’

But to counter the Chinese dominance, the market is changing.

Even though America has higher labour costs and tough environmental restrictions, it didn’t stop Molycorp [NYSE: MCP], from reopening its rare earths mine, Mountain Pass in California. [Read more →]

September 17, 2011   No Comments

Three Gold Bubble Signals You Should Ignore.

By now you would have realised that I am currently biased towards Gold. So you might find this article interesting reading.

Three Gold Bubble Signals You Should Ignore

For years your editor - and our colleagues - has written things like, “Well, you’ll know it’s a bubble and the time to sell gold when [blank] happens.”

Some of those “blanks” have included, when Michael Pascoe says gold will go higher… or when mainstream bankers are bullish on gold… or when the mainstream press prints a “Gold Special Issue” edition of a newspaper.

Of course, we’ve made those throw-away lines to make a point. The point being that gold wasn’t in a price bubble, and that it would only go higher.

But, what do we do when the warning signs appear? Not just one, but all three.

And how can we justifiably explain that despite the warning signs, we’re still bullish on gold? And that we advise you to ignore the bubble warning signs. [Read more →]

September 15, 2011   No Comments

Gold’s Golden Run Continues.

Since my “Weekend Ramblings” were on the Gold sector. I thought that this article from Australian Investment Review was very apt.

Feature: Gold’s Golden Run Continues
September 09 2011 - Australasian Investment Review – (AIR)

Gold prices hit a new high of more than $US1,921 an ounce this week, or rather a new 31 year peak, then fell by $US90 an ounce.

It then closed up 2.2% early Friday at $US1857 an ounce in a reminder that it is very volatile even when it’s very popular.

Gold is one asset that has come through recent turmoil pretty well. But why is it doing so well?

Is it a forewarning of inflation to come, or is it telling us something much more serious? Can it be sustained? AMP Capital Investors asks this week, Is it something investors should have in their portfolios? [Read more →]

September 10, 2011   No Comments

Why China Won’t Always Own the Rare Earth Market

In my weekend ramblings yesterday I mentioned rare earths. So I thought it very advantageous that this article from Money Morning came along. Enjoy.

Why China won’t always own the Rare Earth market.

There is oil in the Middle East; there are rare earths in China‘, said Chinese President Deng Xiaoping back in 1992.

This statement went unnoticed for a very long time.

Twenty years ago, rare earths were of little importance to most consumers. In fact, you probably wouldn’t even know that cerium and lanthanum were rare earth metals, much less what products contained them.

But as consumer technology blossomed in the late 1990s, so did our need for these metals. [Read more →]

September 4, 2011   No Comments