Elsewhere in the precious metals patch, JPMorgan was busy doling out downgrades to Harmony Gold (HMY) and AngloGold Ashanti (AU).
Harmony was dinged to a neutral rating from overweight, while AngloGold was clicked down to underweight from neutral. Still the shares were both up modestly in recent action.
J.P. Morgan cuts Anglogold to underweight vs. neutral - MarketWatch
LONDON (MarketWatch) -- J.P. Morgan downgraded three miners and upgraded one as part of a review of South Africa's mining sector. It remains a palladium bull, overweight platinum equities and neutral gold equities. It downgraded AngloGold (AU: anglogold ashanti ltd sponsored adr) to underweight from neutral, Lonmin (UK:LMI: lonmin ord usd1) to underweight from neutral and Harmony Gold (HMY: harmony gold mng ltd sponsored adr) to neutral from overweight, while it upgraded Anglo Platinum (AGPPY: anglo platinum ltd adr) to overweight from neutral.
JOHANNESBURG, Mar 15, 2007 (Dow Jones Commodities News via Comtex) -- South Africa's Aflease Gold Ltd. (AFO.JO) may bid for the company expected to be formed from the proposed merger of Randgold & Exploration Co. (RNG.JO) and JCI Ltd. (JCD.JO), Business Report reports Thursday, citing the company's chief executive.
Aflease CEO Neal Froneman said the new company would have a market value of about 4 billion rand ($541 million), and the junior mining company is interested in the Gold Fields Ltd. (GFI) shares held by R&E and JCI as well as other assets that could be turned into cash.
An acquisition of the combined R&E-JCI would in effect be a capital raising for Aflease, the CEO said, the newspaper reports.
The newspaper cites R&E and JCI spokesman Brian Gibson as saying the companies held about 15.4 million Gold Fields shares worth more than ZAR1.9 billion.
TORONTO, ONTARIO, Mar 15, 2007 (MARKET WIRE via COMTEX) -- IAMGOLD Corporation (CA:IMG: news, chart, profile) (IAG: iamgold corp com) (ASX: IGD)(BOTSWANA: IAMGOLD) -
HIGHLIGHTS:
- Net earnings for the year were $72.5 million, approximately a 250% increase over 2005. Net earnings for the fourth quarter were $9.4 million compared to $6.2 million for the fourth quarter of 2005.
- Attributable production in 2006 was 642,000 ounces compared to 447,000 ounces in 2005. Average Gold Institute (GI) cash cost of production was $322 per ounce. Attributable production for the fourth quarter of 2006 was 219,000 ounces at an average GI cash cost of $368 per ounce.
- Cash, short term deposits and gold bullion position as at December 31, 2006 was $218.3 million valuing gold bullion at market.
- On March 22, 2006, the acquisition of Gallery Gold Limited was completed.
- On November 8, 2006, the acquisition of Cambior Inc. was completed.
Newmont Mining Corp.'s (NEM) Newmont Canada Ltd. unit will fully participate in Gabriel Resources Ltd.'s (GBU.T) previously announced common-share offering, participating in up to 20% of the offering and related over-allotment option.
As reported, Gabriel is offering 25 million shares at C$4.35 each and has granted the underwriters an over-allotment option to purchase up to an additional 3.75 million shares at the same price.
Gabriel said Newmont Canada holds about 36.2 million of its shares, or about a 17.2% stake, before completion of the offering.
Upon completion of the offering, it will hold 46.3 million shares or about a 17.5% stake. Assuming completion of the offering and the option, it will hold 43.3 million shares or a 17.6% stake, Gabriel said.
Gabriel, Toronto, is a mineral-exploration company with a gold project in Romania.
Turning to the miners, Barrick Gold (ABX) is said to be mulling a bid for Newmont Mining (NEM), according to a report in Business Week.
Shares of Newmont were rallying 1.9%, while those of Barrick were off fractionally.
EMERGING MARKETS REPORT
Bringing it all back home
Congo's the latest country striving to benefit more from natural resources
NEW YORK (MarketWatch) -- Like many developing countries seeking to gain more from their mineral wealth, the Democratic Republic of Congo has announced plans to review contracts with foreign mining companies to ensure they favor the African nation.
...
In another instance, Uzbekistan expropriated the Zarafshan-Newmont Mining (NEM: Newmont Mining Corporation) joint venture gold operation last year. Newmont lost control of its 50% stake and is currently seeking compensation from Uzbekistan in two separate international arbitration venues.
Goldcorp Declares Third Monthly Dividend Payment for 2007
VANCOUVER, BRITISH COLUMBIA, Mar 12, 2007 (MARKET WIRE via COMTEX) -- (All dollar amounts in United States dollars (US$))
GOLDCORP INC. (CA:G: news, chart, profile) (GG: goldcorp inc new com) is pleased to declare its third monthly dividend payment for 2007 of $0.015 per share. Shareholders of record at the close of business on Friday, March 23, 2007 will be entitled to receive payment of this dividend on Friday, March 30, 2007.
Pursuant to new tax legislation, Canadian resident individuals who receive "eligible dividends" in 2006 and subsequent years will be entitled to an enhanced gross-up and dividend tax credit on such dividends. All dividends paid in 2006 and subsequent years by Goldcorp Inc. are "eligible dividends" for this purpose.
Goldcorp is one of the world's lowest-cost and fastest growing multi-million ounce gold producers with operations throughout the Americas.
Canyon Resources Corporation Fourth Quarter and Fiscal Year End Results Conference Call
GOLDEN, Colo., March 5, 2007 /PRNewswire-FirstCall via COMTEX/ -- Canyon Resources Corporation (CAU: canyon resources corp com new) , a Colorado based mining company, today announced that its Senior Management will hold a conference call today, Monday, March 5, 2007, at 3:00 p.m. (EST). The Company will discuss its fourth quarter and year end results as well as its future outlook.
Live audio of the call will be accessible to the public by calling US/Canada dial-in number: 877-576-0177; international dial-in number: 706-679-4128. Conference ID number: 1022617. Callers should dial in approximately 10 minutes before the call begins.
A conference call replay will be available two hours following the call, through midnight March 7, 2007, and can be accessed by calling: 800-642-1687 or 706-645-9291. Conference ID 1022617. The conference call will also be Web Cast and is available at http://audioevent.mshow.com/325318/ or via the Company's website http://www.canyonresources.com
FOR FURTHER INFORMATION, CONTACT:
James Hesketh, President and CEO (303) 278-8464
Valerie Kimball, Investor Relations (303) 278-8464
http://www.canyonresources.com
SOURCE Canyon Resources Corporation
North American Palladium Appoints New Chief Financial Officer
TORONTO, ONTARIO, Mar 07, 2007 (MARKET WIRE via COMTEX) -- North American Palladium Ltd. (CA:PDL) (PAL: north amern palladium ltd com) is pleased to announce the appointment of Fraser Sinclair, C.A. to the position of Vice-President, Finance and Chief Financial Officer effective April 1, 2007.
Mr. Sinclair brings over twenty years of senior management experience and has a diverse industry background with TSX and NASDAQ listed companies. His senior management experience includes financial management, strategic planning, financings, acquisitions and corporate restructurings.
Prior to joining North American Palladium, Mr. Sinclair ran his own independent consulting practice providing senior level financial and business advisory services. Assignments included involvement in a $40 million private equity financing and an income trust initial public offering. Mr. Sinclair has been Chief Financial Officer of three publicly traded companies, for one of which he supported the successful completion of a $50 million bought deal equity financing. Mr. Sinclair earned his C.A. designation with the accounting firm Arthur Young & Company and has a Bachelor of Commerce degree from the University of the Witwatersrand in Johannesburg, South Africa.
"Fraser's talents are ideally suited to North American Palladium at this stage in our development," stated Jim Excell, President and Chief Executive Officer. "He brings a depth of experience to our organization and his proven track record as a senior financial executive with publicly-held companies will be invaluable as we enter an exciting phase of our development projects in Canada and Finland".
North American Palladium's Lac des Iles Mine is Canada's only primary producer of platinum group metals and is among the largest open-pit/underground palladium mining operations in the world. The Mine also generates substantial revenue from platinum and by-product metals including nickel, gold and copper. NAP is focused on expanding its production profile through joint ventures in Canada and the Arctic Platinum Project in Finland. Palladium's catalytic qualities are expected to play an increasing role in the automotive industry in response to growing concern for global environmental solutions, in fuel cell technology for alternative energy sources and a burgeoning jewellery market, while continuing to have widespread application in the dental, electronics and chemical sectors.
DJ PRECIOUS METALS HIGHLIGHTS: Top Stories Of The Day
Apex Silver Files For 15-Day Extension For 10-K Report >SIL
Apex Silver Mines Ltd. (SIL) plans to delay its annual report for 15 days to give it time to fully evaluate an estimated $43 million loss in the value of its open metal derivative positions.
- Results for the Island Zone show good continuity and several high grade zones - Reserve and resource calculation for the Island Zone is expected at the end of the first quarter of 2007 - Results for the Goudreau and Lochalsh zones show excellent exploration potential
MONTREAL, CANADA, Mar 5, 2007 (CCNMatthews via COMTEX) -- Richmont Mines Inc. (CA:RIC) (RIC: richmont mines inc com) announces an update on the exploration results at the Island Gold property. The Island Gold Joint Venture (Richmont Mines 55% - Patricia Mining 45%) is an advanced underground exploration and development project located 15 km from Dubreuilville (90 km from Wawa) in Northern Ontario.
Goldcorp 2006 Net Earnings increase 43% to $408.3 Million
VANCOUVER, BRITISH COLUMBIA, Mar 8, 2007 (CCNMatthews via COMTEX) -- (All figures are in US dollars unless stated otherwise)
Goldcorp Inc. (CA:G) (GG: GG ) is pleased to announce its 2006 annual results, highlights of which are:
- Net earnings increased to $408.3 million, or $0.94 per share, compared to $285.7 million, or $0.91 per share, in 2005. Adjusted net earnings (1) amounted to $434.2 million, or $1.00 per share, for 2006.
- Operating cash flows increased substantially to $791.3 million, or $1.82 per share, compared to $465.8 million in 2005.
- Gold production increased nearly 50% to 1,693,300 ounces compared to 1,136,300 ounces in 2005.
- Total cash costs of $33 per ounce (net of by-product copper and silver credits), compared to $22 per ounce in 2005. (2)
- Dividends paid of $79.1 million in 2006.
- Cash and cash equivalents at December 31, 2006 totalled $555.2 million compared to $562.2 million one year ago.
TOP STORIES: Goldcorp 4Q Net Slips On Impairment Charge >GG
Vancouver gold producer Goldcorp Inc. (GG) reported lower fourth-quarter net income on an impairment charge for the Amapari mine of $175 million, which was partially offset by a gain on sale of Silver Wheaton Corp. (SLW) shares of about $88 million after tax.
DJ Goldcorp 4Q Net Slips On Impairment Charge >GG
Vancouver gold producer Goldcorp Inc. (GG) reported lower fourth-quarter net income on an impairment charge for the Amapari mine of $175 million, which was partially offset by a gain on sale of Silver Wheaton Corp. (SLW) shares of about $88 million after tax.
Goldcorp said its net income in the quarter was $66 million or 11 cents a share, down from $102 million or 30 cents a year earlier.
Adjusted (non-GAAP) earnings were $113.5 million or 19 cents a share in the latest quarter, it said. The Thomson First Call mean earnings estimate was 17 cents a share.
The company said its gold production nearly doubled to 587,900 ounces in the quarter from 296,200 ounces in the same period of 2005. Gold sales also doubled to 599,500 ounces at a total cash cost of $160 an ounce, compared with 307,300 ounces at minus $73 an ounce. The increase in cash costs is reflective of lower copper by-product credits in the latest quarter combined with increasing operating costs experienced industry-wide, it said.
Crystallex International to Appoint New Auditor
TORONTO, ONTARIO, Mar 9, 2007 (CCNMatthews via COMTEX) -- Crystallex International Corporation (CA:KRY) (KRY: Crystallex International Corporatio) announced that it has been advised by Deloitte & Touche LLP that it has decided after completion of the audit of Crystallex's 2006 annual financial statements not to stand for re-appointment as auditor of Crystallex for the fiscal year ending December 31, 2007. There were no reservations or Reportable Events (as defined in National Instrument 51-102 - Continuous Disclosure Obligations) relating to Deloitte & Touche's reports in respect of the audits of the Company's three most recently completed fiscal year-ends which were on December 31, 2005, December 31, 2004 and December 31, 2003, respectively. The decision by Deloitte & Touche LLP not to stand for re-appointment as the Company's auditor for the 2007 fiscal year does not involve the occurrence of any Reportable Events.
The Company is currently in discussions with a top 5 national auditing firm and will announce confirmation of the appointment of a new auditor at the appropriate time.
About Crystallex
Crystallex International Corporation is a Canadian based gold producer with significant operations and exploration properties in Venezuela. The Company's principal asset is the Las Cristinas property in Bolivar State that is currently under development and which is expected to commence gold production in 2009 at an initial annualized rate of some 300,000 ounces at the initial planned production rate of 20,000 tonnes of ore per day. Other key assets include the Tomi Mine, certain Lo Increible properties and the Revemin Mill. Crystallex shares trade on the TSX (symbol: KRY) and AMEX (symbol: KRY) Exchanges.
TORONTO, ONTARIO and VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 20, 2007) - Kinross Gold Corporation ("Kinross") (TSX:K)(NYSE:KGC) and Bema Gold Corporation ("Bema") (TSX:BGO)(NYSE:BGO)(AIM:BAU) announced today that the closing of the acquisition of Bema has been set for February 27, 2007. Bema shareholders voted 91 per cent in favour of the transaction on January 30, 2007, and the transaction was approved by the Ontario Superior Court of Justice on January 31, 2007.
In connection with anticipated completion of the transaction, Kinross has waived the condition of closing relating to the reclassification and the securing of a long term lease of Bema's Kupol lands, having become satisfied that the remaining administrative steps to complete this process are well advanced and supported by the Russian authorities. All other regulatory approvals required for the completion of the transaction have been obtained, and subject to the remaining customary conditions of closing, the transaction will be completed on February 27, 2007.
It is expected that the common shares of Kinross issuable in connection with the transaction will be listed and posted for trading on the Toronto Stock Exchange and the New York Stock Exchange on or about February 27, 2007 and that Bema common shares will be delisted from the Toronto Stock Exchange and the New York Stock Exchange on or about the close of business on February 28, 2007 and February 27, 2007, respectively. It is anticipated that the Bema warrants currently listed on the Toronto Stock Exchange will commence trading under "Kinross" at the opening of business March 1, 2007.
Kinross Today
Kinross, a Canadian-based gold mining company, is the fourth largest primary gold producer in North America and the eighth largest in the world. With eight mines in Canada, the United States, Brazil and Chile, Kinross employs more than 3,700 people. Kinross maintains a strong balance sheet and a no gold hedging policy. Kinross is focused on the strategic objective of maximizing net asset value and cash flow per share through a four-point plan built on growth from core operations; expanding capacity for the future; attracting and retaining the best people in the industry; and driving new opportunities through exploration and acquisition. Kinross maintains listings on the Toronto Stock Exchange (symbol: K) and the New York Stock Exchange (symbol: KGC).
Bema Today
Bema Gold Corporation is one of the world's fastest growing intermediate gold producers with operating mines and development projects on three continents. Bema is projected to produce one million ounces of gold annually by the year 2009. Bema is listed on the Toronto Stock Exchange and the New York Stock Exchange (symbol: BGO) and on the AIM Exchange in London (symbol: BAU).
GOLDEN, Colo., March 2, 2007 /PRNewswire-FirstCall via COMTEX/ -- Canyon Resources Corporation (CAU: canyon resources corp com new) , a Colorado-based mining company, is pleased to provide a summary of the results for the Company's full year ended December 31, 2006.
Financial Results
We recorded a net loss of $2.7 million, or negative $0.07 per share, on revenues of $1.3 million for the year ended December 31, 2006. This compares to a net loss of $15.6 million, or negative $0.46 per share, on revenues of $4.1 million for the year ended December 31, 2005. The decrease of $12.9 million in net loss was due primarily to the following factors:
* Positive variance of $11.0 million due to last year's $9.2 million
impairment of McDonald Gold Project that also reduced depreciation by
$1.8 million.
* Negative variance of $1.8 million in selling, general and
administrative expenses primarily due to the expensing of share-based
payments and holding costs at the Briggs Mine.
* Positive variance of $1.7 million in asset retirement expenses due to
no significant upward adjustments during 2006 and the elimination of
the asset retirement obligation related to the McDonald Project.
* Positive variance of $1.6 million due to the gain on asset exchange
with Newmont. The gain was the result of the estimated fair value of
the acquisition of Briggs Mine royalty previously held by Newmont.
* Positive variance of $0.9 million related to the gain on sales of
securities.
* Negative variance of $0.7 million in gross gold sales margin due to
lower gold sales and higher cost of sales.
* Positive variance of $0.4 million regarding last year's debenture
conversion expense.
* Negative variance of $0.2 million related to the cumulative effect from
the adoption of FASB Staff Position No. EITF 00-19-2, Accounting for
Registration Payment Arrangements.
We ended the year with $4.0 million of unrestricted cash and short term investments. The $2.5 million of short term investments are all auction rate certificates that have maturities ranging from seven to 28 days. We began the year with $5.6 million in cash. Sources of additional cash during 2006 included a net of $5.2 million raised in equity transactions and the sale of securities for $0.9 million. Cash used in operations during 2006, excluding purchases of short-term investments, amounted to $6.1 million, and capital spending for the Briggs Mine re-start totaled $1.6 million. Significant uses of cash for operations are summarized as follows:
* Selling general and administrative expenses amounted to $3.2 million.
- Includes holding costs at the Briggs Mine of $0.6 million, and
- Includes ongoing legal costs for McDonald of $0.2 million.
* Exploration spending amounted to $1.3 million.
* Asset retirement obligation spending amounted to $1.5 million primarily
for capping the old leach pads and water treatment studies at the
Kendall Mine and leach pad rinsing at the Briggs Mine.
For the year ended December 31, 2006, we sold 2,165 ounces of gold at an average price of $585. For the comparable period of 2005, we sold 9,263 ounces of gold at an average price of $445. The London PM Fix gold price averaged $603 and $445 per ounce for the year 2006 and 2005, respectively.
Mar 02, 2007 (Dow Jones Commodities News via Comtex) -- DOW JONES NEWSWIRES
Canyon Resources Corp.'s (CAU) 2006 loss narrowed to $2.74 million, or 7 cents a share, from $15.7 million, or 46 cents a share, a year ago that includes an impairment charge of $9.24 million.
The Golden, Colo., mining company said Friday the latest period includes a gain of $1.59 million for an asset exchange and a gain of $882,200 for the sale of securities.
Revenue decreased to $1.27 million from $4.14 million, as Canyon sold 2,165 ounces of gold at an average price of $585 in 2006. A year earlier, the company sold 9,263 ounces of gold at an average price of $445.
