To hear the mainstream media tell it, the commodities bubble has burst. Commodities are plunging across the board in response to the latest U.S. data, most of which seems to suggest that the American economic recovery is waning. Oil, which closed at $100 a barrel yesterday, was particularly hard hit, which is why so many suggest the commodities bubble has met its end.
Nickel Mining News
This month, Vale opened its first nickel operation in Brazil. Onça Puma, in Ourilândia do Norte, southeast Pará, is one of the largest ferronickel production plants in the world. The project, which covers the municipalities of Ourilândia do Norte, Tucumã and Parauapebas, has an annual production capacity of 220,000 tons of ferronickel, containing 53,000 tons of nickel, a highly valued product in the steel industry. Read more
Noront Resources has completed a brokered placement worth $17.4 million, the Toronto-listed junior explorer announced yesterday. The deal will give Baosteel the right to increase its stake in Noront to 19.9%. It will also give Baosteel, a large steel producer owned by the Chinese government, a seat on Noront's board of directors. Proceeds from the placement will be used for feasibility studies on Noront's Eagle's Nest nickle-copper-palladium property and the Blackbird chromite deposit in the Ring of Fire poly-metallic mining district in northern Ontario, Canada.
Metals Economics Group Strategic Report: Base metals and gold 2010 acquisitions spending totals $50.7 billion
The 2010 dollar volume of large ($25 million minimum) acquisitions totaled $50.7 billion—the third-highest annual total in 10 years—a whopping increase of 260% over 2009’s $14 billion, and 23% over 2008’s $41 billion. According to Metals Economics Group’s (MEG) recent Strategic Report, the 2010 total signifies a general return of confidence to the industry after a period of significant strategic retrenchment and caution due to the worldwide recession and sharply lower metals prices that began in late 2008 and lasted into early 2010.
Franco Nevada reported an adjusted net income of US$21.4 million or 18-cents per share for the first quarter, a 157% increase over the adjusted net income of US$8.3 million or 7-cents per share for the first-quarter 2010. Net income for the first quarter of 2011 was $21.2 million or 18-cents per share, which included a $5.6 million gain, $6.5 million in forex losses and $1.7 million in losses recorded from the equity accounting of Franco's investment in Gold Wheaton prior to the acquisition, which closed on March 14, 201
Intergeo, the Russian copper and nickel company owned by billionaires Mikhail Prokhorov and Maxim Finskiy, hopes to raise from C$100 million ($104.2 million) to C$500 million in a initial public offering on the Toronto Stock Exchange by the end of the year. Finskiy, the company's chairman and 20 percent stakeholder, told Reuters in an interview on Wednesday the company would float about 10 percent of its shares in the offering.
The Canadian province of Quebec plans to develop its huge frozen northern reaches into a powerhouse of mining and renewable energy, targeting C$80 billion ($83 billion) of private and public investment. Quebec's 25-year "Plan Nord," launched on Monday, envisages funding for infrastructure, mines and the development of renewable energy, taking advantage of an improving investment climate as the earth warms and polar ice melts.
The Company recorded first quarter earnings of $168 million or $0.88 per share (basic) compared to earnings of $55 million or $0.55 per share for the previous year. The higher earnings in the current quarter were driven by a $134 million pre-tax gain on the disposition of Gold Wheaton shares, higher average copper prices and the inclusion of the Sudbury operations following the merger with FNX. These factors were partially offset by lower sales volumes at Robinson and Carlota. Adjusted earnings for the first quarter totalled $51.8 million or $0.27 per share (basic) compared to $55.3 million or $0.56 per share (basic) for the previous year.
No word yet from China's Jinchuan Group as to whether the company is officially in the market for Canada's Lundin Mining. Canadian media reports claim a consortium headed by Jinchuan, which includes sovereign wealth fund China Investment Corp., was planning a takeover bid for the Canadian base metals miner.
True North Gems is pleased to announce the completion of the second tranche of its $3.4 million private placement
True North Gems Inc. (the "Company") (TSX VENTURE:TGX) announces that it has completed the second tranche of its previously announced and oversubscribed non-brokered private placement. The second closing is for proceeds of $615,000. The Company issued 6,150,000 units at a price of $0.10 per unit. Each unit is comprised of one common share and one half non-transferable common share purchase warrant, each warrant exercisable for one additional common share for a period of two years at a price of $0.15 per share for year one, and $0.20 per share for year two. Two finders received finders' fees of in the aggregate $21,500 in cash and 215,000 finders' warrants in connection with the closing of this second tranche, each finders' warrant exercisable for one common share for a period of two years at a price of $0.12 per share.
Caterpillar (NYSE:CAT) reported Friday a surprising five-fold jump in first quarter profits, reaching an all-time quarterly record as the company benefits from a recovering economy and a resulting boost in construction equipment demand.
We feel that some commodity prices are getting overextended and very close to their tipping pint. Far from an ultimate top but ready for a healthy correction. Crude traded to its highest level in two […]
Sherritt's Q1 earnings rose 116% over the same quarter a year ago. The company reported net earnings on Thursday of $63.6 million or 22 cents a share. A year ago, the company reported only $29.4 million in net earnings or 10 cents a share. The company's sales volumes were up slightly. Sherritt's sales volumes of nickel, reported in thounsands of pounds, was 9,438 in 2011 and 9,392 in 2010, less than a one per cent increase.
I found an interesting dataset at the IMF of commodity prices going back to 1980. What makes it interesting is to look at the longer-term price trends of some of the industrial metals you don't often don't see charted, such as aluminum, tin, lead, zinc, and nickel.
With commodity prices up so much over the past several years, you can forgive long-term value investors for giving them a miss. Who wants to risk exposure to another asset bubble so soon after the dot-com implosion and the U.S. housing mess?
Nothing new to report from Uncle Ben and his cronies but at least there was more talk of inflation with rising commodity prices. The $2.50 range carried on in Crude again today as traders try […]
First Nickel Inc. ("First Nickel" or the "Company") (TSX:FNI) is pleased to provide an update on its Lockerby Depth Project and its plans to resume production at the Lockerby nickel/copper mine, located in Sudbury, Ontario, […]
A nickel mine in northern Manitoba will start producing again after a 6-month suspension of operations due to a dispute over contractors, Business in Vancouver reported: Vancouver-based junior mining company Crowflight Minerals Inc. (TSX: CML) […]
The commodity bull has shown little sign of running out of steam - until now. Prices began to stumble as soon as a note from Goldman Sachs, the American banking giant, whizzed around trading desks across the globe last week. The broker advised clients to close its profitable "CCCP" play, which involved investing in a basket of crude oil, copper, cotton, platinum and soybeans. The commodities team, led by Jeffrey Currie, argued that after gaining 25pc since December, the risks to the trade had changed.
Yesterday was quite a weak day in the commodity markets, with a few staging outside reversals on their charts. It appears some (much?) of this weakness was due to a report by the very influential […]
When a Chinese vase that might be barely a century old fetched $18 million recently at a Sotheby’s auction in New York—obliterating its pre-sale estimate of just $1,000—that was surely based on inflation fears and money printing by the Federal Reserve. Conversely, when the sale of a much more esteemed ceramics collection failed to live up to the hype Thursday night in Hong Kong, clearly worries about slowing economic growth were to blame, exacerbated by Chinese monetary tightening.
Glencore International plc plans to raise up to $12.1 billion in a London and Hong Kong IPO, according to a term sheet seen by Reuters on Thursday, cashing in on a resources boom and giving the trading giant the fire power to grow through acquisitions. The much anticipated initial public offering, set to value the company at up to $60 billion, will mark the end of four decades of closely guarded privacy for the world's biggest commodities trading company.
Mining contractor Barminco continues to drive growth in its domestic market with the award of a three year, A$60 million underground mining services contract for Western Areas’ Spotted Quoll nickel mine located 5 km from the Flying Fox underground complex and 80 km east of Hyden in Western Australia. Read more
Nunavut to benefit from 'tsunami' of money flowing into Canadian mining, oil and gas: Nunatsiaq Online
Nunavut is attracting the attention of the world's miners like never before, says Scotiabank commodities analyst Patricia Mohr, speaking at a mining summit in the mineral-rich Canadian northern territory. Nunatsiaq Online reports: Pushed by the developing world’s growing hunger for consumer items, civil unrest in many countries, and “random” events like the recent tsunami, earthquake and nuclear power plant disaster in Japan, mining companies around the world are eying Nunavut with far more interest than before.
Miners, especially of base metals, will drive Canadian merger and acquisition activity for the rest of 2011, although oil and gas and financial services will also be significant, bankers said on Tuesday.