Let me begin by saying that I believe the premise of this question is mistaken. It is quite incorrect to think that fossil fuel resources are finite. It may be true that there is a finite quantity of such resources in the earth's crust, but that does not mean that we will ever run out.
Palladium Mining News
Stillwater Mining Company (NYSE: SWC), commenting on today's significant strengthening in palladium and platinum prices, indicated that the market outlook for increasing demand and constrained production underlies the significant move in metal prices today.
A Conference Board of Canada report says high energy and metals prices "are prompting resource companies to invest billions in iron ore projects, nickel processing and offshore oil developments" in Newfoundland and Labrador, generating the largest growth in real GDP this year of all the Canadian provinces." The board's Provincial Outlook - Spring 2011 report issued Wednesday also forecasts that Saskatchewan "will benefit from tax breaks and a hot mining industry."
It was another week of mixed markets where we did see some bottoms in stocks and US markets seem to have turned up thus far. Their not yet trending higher, but they look about to. The uncertainty of the end of QE2 coming in a little over a month is still weighing heavy as well as more issues over in Europe. It’s all par for the course though as the charts tell all, and usually in advance.
Fast-growing Danish jewellery maker Pandora (PNDORA.CO: Quote) missed forecasts with a 55 percent rise in first-quarter profit as price rises failed to match surging gold and silver costs, hitting its shares on Thursday. The German […]
Miner Lonmin LMIJ.J (LMI.L: Quote) said on Friday that there was unspecified industrial action taking place at its Marikana operations in South Africa by members of the National Union of Mineworkers (NUM). "Lonmin announced today that it is currently experiencing unprotected industrial action by NUM members at the Karee operations of its Marikana operations. As a result, production at Karee has been disrupted since the night shift of Tuesday 17th May," it said in a statement.
Latin America used to be known for its economic and political instability. But it fought off the global financial crisis with relative ease. Poverty is now falling, the middle classes are growing rapidly and asset […]
Post by Krista Smith, Palladium Researcher Cadillac Ventures Inc. (CVE:CDC) reports assay results for the CV-11-02 and CV-11-03 deep holes successfully drilled into the “tooth” at depth at Thierry. The press release is quoted as saying, Upon the
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.
As the chart below demonstrates commodity prices are driven by different factors. The precious metals prices have been the hyperbolic driver of headline commodities news relative to the broader based commodities index and oil. The latter two are more geared to industrial use as gold’s commercial use is limited. The chart highlights the divergence in the components of the commodities index. iShares S&P GSCI Commodity-Indexed Trust (GSG) tracks 24 different commodities including energy (67%), industrial metals (16%), livestock (7%) and precious metals (3%).
Advances in energy and agriculture are creating demand for previously ignored metals such as scandium, tellurium and indium. In this exclusive interview with The Energy Report, Mining Analyst John Kaiser, editor of Kaiser Research Online, explains the science that could exponentially increase the value of overlooked stocks.
While China continues to make asset driven economic decisions and now looks like a traction control experiment where the economy is like a car that is driving on ice that doesn't yet know it, QE2 ignited the bunsen burner for commodity price speculation. Last I checked, Ben Bernanke has decided to continue on with QE2 but has decided that QE3 is probably a bad idea because the true positive impact of additional money coming into the economy would be more than offset by inflation. In my opinion he's making the right call, but this call is likely going to put downward pressure on commodities and other assets.
QE, of course, only happens when interest rates hit the zero bound, so it’s impossible to disentangle the effects of QE from the effects of G3 interest rates all coming down to 1% or lower. But the effect of all these investment flows is clear: if you look at commodities as an asset class, total commodity assets under management have risen from just over $150 billion at the end of 2008 to over $400 billion today.
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
Has oil moved into backwardation yet? What does corn’s roll yield look like? How do you know when it’s time to buy—or sell? Each week, we investigate the futures curves of the U.S.’ most important […]
Canadian precious metals company North American Palladium Ltd's first-quarter loss narrowed, but the company cut its 2011 palladium production forecast as it shifts focus to development from production. The company cut its full-year production forecast to 145,000-155,000 ounces of palladium from its earlier view of 165,000-175,000 ounces.
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.
GFMS, in its recently-published "Platinum & Palladium Survey 2011", is forecasting that platinum will sustain a gross surplus in 2011 of a similar magnitude to that of 2010. Mine production is expected to increase modestly this year, and while GFMS describes the situation in South Africa as "challenging", including risks surrounding this year's wage negotiations, the prospect of a repetition of the major disruptions of 2007 and 2008 is relatively low. The prospect of relatively buoyant prices also underpins increased supply from recycling and GFMS doubts that fabrication demand this year and keep pace with supply, let alone exceed it.
[Highlights from] Stillwater Mining Company:
- Net income of $36.2 million or $0.34 per diluted share -- nearly triple first quarter 2010 earnings
- Mined PGM production increased to 131,200 ounces
- Continued strong prices for palladium and platinum
North American Palladium Ltd. ("NAP" or the "Company") (TSX:PDL)(NYSE Amex:PAL) today released an updated mineral reserve and mineral resource estimate for its Vezza gold project and Sleeping Giant gold mine, located in the Abitibi gold district in Quebec. "We are pleased to see the Vezza gold project advance in accordance with the budget and timeline, as this supports our strategy to organically grow our gold division," said William J. Biggar, President and CEO. "Future growth will come from the continued exploration and development of our advanced gold projects in the Abitibi region, where we have a significant land position and an underutilized mill."
If you’ve been long palladium, you know much of the ride over the last two years has been remarkable. The white metal gained 350% in value between January 2009 and February 2011. It practically doubled in price in 2010 alone – the best performance of any commodity (followed by silver, corn and wheat). Palladium investors were flying high.
The latest bonanza grade gold-PGM drill results from the Serra Pelada project in Brazil are making it easy for Colossus Minerals (TSX: CSI) to live up to its name. Since 2007 Colossus Minerals and 25-percent joint-venture partner COOMIGASP have been pushing the southwestern extent of high-grade gold, platinum and palladium mineralization beyond a historic open-pit mine.
Colossus Minerals drills 7.30 metres at 1494.7 g/t gold, 516.6 g/t platinum and 558.9 g/t palladium in extensions of central mineralized zone at Serra Pelada, Brazil
Colossus Minerals Inc. (the "Company" or "Colossus")(TSX:CSI) is pleased to announce additional assay results from the 25,000 metre surface drilling program at the Serra Pelada Gold-Platinum-Palladium Project, the Colossus-COOMIGASP Joint Venture located in Para State, Brazil. "Drilling such high-grade gold, platinum and palladium approximately 700 metres down plunge from the outcrop of the Central Mineralized Zone in the historic Serra Pelada pit continues to demonstrate the robustness of this mineralized system," commented Ari Sussman, Colossus CEO. "We wait with great anticipation for early 2012 when construction of the underground decline advances to the point that enables the Company to see the Central Mineralized Zone first hand and extract the first of three 2,500 tonne bulk samples from it."
One way precious metals investors try to maximize their results is buy predicting which of gold or silver (and some people also consider platinum and/or palladium) will outperform the other going forward. A correct judgment has often led to dramatic results.
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.