Hi Idaho Fan
Super Gegend, war schon dort.
Das letzte mal wo wir ueber Timberline geredet haben ist sie -38% gefallen mit wenig volumen was eingentlich das problem ist.
Bei den Silver Valley Minen wird es laenger Dauern bis sie Schlagzeilen und Volumen machen.
Long time junior mines zum Spekulieren, ...in meinen Augen.
Ein paar Stufen unter IMA und Avino, etc.
Good Luck & Gruss
Eldo
excerpt from The McClellan Market Report - Daily Edition of May 16, 2005
http://www.321gold.com/editori…llan/mcclellan051805.html
Current Opinion - XAU & GOLD: Bearish short and intermediate term. Change to short and intermediate term bullish if the XAU closes above 81.27.
Gold dropped for the third trading day in a row, and has now fallen $8.60/oz since last Wednesday. The XAU is in even worse shape, as gold stock traders seem to be abandoning all hope. That index is nearing the level of its May 2004 low. But more important than the level is the fact that the XAU has fallen really far in a short time. That adds up to an oversold condition, as illustrated by the indicator in our chart. Over the past 4 years, only the July 2002 and May 2004 bottoms saw a more oversold condition, and those two were indeed very good bottoms. So even though we see gold prices as being in a generalized downtrend until 2009, we know that such a downtrend won't proceed in a straight line, and that big trading opportunities will appear along the way. It looks to us as though an important trading opportunity for gold stocks is shaping up right now.
This sort of rare oversold condition makes it tempting to "catch the falling knife," but we have to advise against that. The frustrating aspect of oversold conditions is their ability to lead to even bigger oversold conditions, and that is the danger of jumping in too early. We note also that a full moon lies ahead of us on May 23, and we have noted previously that full moons have an interesting ability to act as turning points. 
Because of that, and because of some Timing Model signals that we reported in our last newsletter, we'd be much more inclined to make an early leap into an oversold condition towards the end of this week.
ZitatOriginal von Goldinvest
Ist das etwa ein Anzeichen für die Abkopplung des Goldpreises, auf die alle gewartet haben ?
Zeit waere es ja, aber woher kommt nun die Dollarstaerke ?...
U.S. Dollar Fundamentals
Why has the U.S. dollar strengthened over the past six months? I think there are three broad possible answers and any one or all of them are legitimate factors.
1. Dollar shorts have been unwinding their trades to lock in profits and, as a result, they have prolonged this current dollar rally. The rally began in December 2004 when the dollar bounced off a major, decades-low support level near 80. Had I been more cautious, I would have had the foresight to see this as the opportune time to unload or lighten more gold mining shares than I did. I won't make that mistake again. 
2. Currency traders are going long the dollar based on an expectation of continued rate hikes in the U.S., near-term weakness in the Euro ahead of the EU constitution vote later this month, and perhaps in response to favorable government reports indicating a stronger U.S. economy. Recent reports indicate better than expected job growth and retail sales, coupled with a lower than expected budget deficit and narrowing trade gap, all of which have been reinforced by supporting comments from various Fed governors.
3. In anticipation of an imminent revaluation of China's currency, which is expected to drive the U.S. dollar lower, the U.S. Treasury may be artificially supporting or managing this recent rise in the dollar. Why? To ensure that when the dollar falls, it does so from a much higher level so that it won't take out the decades-low support level of 80. So what? I can only imagine that "never-break" level is closely tied to trillions of dollar derivative contracts that are now at risk of imploding on a breach of that support.
So, fundamentally speaking, where is the U.S. dollar headed next? My guess is a reversal lower as early as next week to eventually retest the 80 support level. Why lower now? Because the market constantly looks forward and this is what it sees.
1. A flattening yield curve will force the Fed to stop or slow its rate hikes. The market knows this will be dollar negative. Long bond yields continue to drop, perhaps anticipating recession, deflation, and future rate cuts.
2. China will revalue its currency sooner than later. The market knows this will be dollar negative. Add to this recent comments from other major trading partners like Russia, North Korea, India, and Japan who all have expressed a desire to diversify their foreign reserves, which means they plan to hold or buy fewer U.S. dollars in the future.
3. Despite recent government reports, the concept of a stronger U.S. economy may be an illusion. The market anticipates weaker corporate earnings and is even starting to question the credibility of favorable U.S. data being reported. For example, mega-retailer Walmart reported disappointing first quarter results that contradict U.S. reports of strong retail sales. Reports of better than expected job growth significantly aided by a "plug" from the BLS birth/death business model fail to stand up to scrutiny. And Commerce Department reports of a "narrowing" trade deficit can't distract from record debt and trade imbalances again this year......
In conclusion, the data and arguments presented above tell me that the U.S. dollar is ready to reverse direction lower sometime over the next two weeks and, as a result, gold and mining shares are at or near bottom prices. This is the moment to acquire shares of strong gold producers and quality explorers with substantial reserves. At a minimum, hold tight to the shares you already own and resist temptation to sell them amid the fears and despair that accompany all major market bottoms.
May 15, 2005
Lou Passi
What goes up must come down, so the USD...
Over the long-term gold stocks are counter-cyclical investments in that they trend higher during periods of stock market weakness and trend lower during periods of stock market strength; or, putting it another way, when the broad stock market is in a long-term upward trend the gold sector will be in a long-term downward trend, and vice versa. There will, however, be periods of a year or even longer when the gold sector and the broad stock market trend in the same direction. Also, during brief periods when the broad stock market falls at a very rapid rate the gold sector will almost always gets dragged down regardless of what is happening to the gold price at the time (the only exception we know of occurred in September of 2001 when the terrorism-related crash in the stock market was accompanied by moderate strength in the gold sector). The long-term trends, however, are invariably opposite.
Has Ivanhoe Capped the Upside on Entrée Gold?
By Michael J. DesLauriers
17 May 2005 at 02:18 PM EDT
TORONTO (ResourceInvestor.com) -- Recent diamond drilling intersected high-grade copper at the northern end of Ivanhoe’s [TSX:IVN] Oyu Tolgoi deposit in Mongolia, and over the boundary into Entree Gold’s [TSXV:ETG] Lookout Hill property. The upshot is that investors in the latter are faced with a classic dilemma. The deal between the two companies calls for Ivanhoe to earn between 70-80% in Entrée’s property by spending $35 million and financing ETG’s subsequent share of project expenditures. So if one wishes to play the Mongolia/Oyu Tolgoi story, which vehicle presents better value?
On the face of it, the odds of a continuation of high-grade material into Entree’s territory seem highly favourable, and given the quality of Ivanhoe’s Hugo North deposit the results of further drilling on Lookout Hill will be hotly anticipated. Given that probability, the reasonable assumption is that Ivanhoe will ultimately take-out their northern partner.
Chinese Investment Surging in Mongolia
Nothing Like it on Planet Earth - Robert Friedland's Tour d' Tolgoi
Populists Target Miners in Mongolian Election Warm-Up
Ivanhoe Says Finds 'Massive' Mongolia Coal Resource
Ivanhoe Mines Pairs With Mitsui on Mongolian Mining Projects
Friedland's Oyu Tolgoi "Not For Sale at Any Price"
Despite the potential for the above to eventuate, Entrée’s shareholders now have to justify the company’s current market capitalization of nearly C$70 million and decide how much it could be worth going forward. The market is currently valuing Ivanhoe at about C$2.5 billion.
Clearly, a comparison cannot be made on that basis, as Ivanhoe has completed 550 kilometers of drilling. That has produced a measured and indicated resource of 32.9 billion pounds of copper and 17.3 million ounces of gold.
Entree on the other hand, despite excellent location and targets, has barely scratched the surface.
Any of the company’s other assets aside; the market is placing its main bet specifically on the 22% (approx. 40,000 hectares) of the Lookout Hill property, which is the subject of its earn-in agreement with Ivanhoe. If Entrée’s twenty percent stake in this area is worth $51 million (market cap minus cash), without any real drilling, then simple math dictates that the market values the entire joint venture at $257 million (assigning no value for Entree’s other properties).
A quarter of a billion dollars is a tall order for a largely untested project, even in the shadow of a world-class deposit. That said, Lookout Hill (Shivee Tolgoi) might be a higher-grade facsimile of Turquoise Hill (Oyu Tolgoi), but at this point only God is privy to that information.
As mere mortals however, the majority of Entrée shareholders must decide where their tolerance lies on the spectrum of risk to reward. To justify a double from current levels and consequent market capitalization of C$140 million, the Entrée/Ivanhoe JV would have to find at least 5 million ounces of recoverable gold equivalent proven and probable ounces, or 1 million ounces net to Entree’s interest – that generously provides a current weighted average market valuation ($140/oz 2P), or a take-out multiple in the present environment.
The latest exploration data indicates that most of the mineralization is below the depth at which Ivanhoe’s interest rises from 70% to 80% of the joint venture.
As a proportion of Ivanhoe’s total resource and considering the size and proximity of Entrée’s property, a discovery of that magnitude is not implausible. But in view of Entrée’s current valuation and share structure, the time that it will take to prove up a resource that can underpin that size market capitalization, and the fact that Ivanhoe is the only realistic bidder, will investors be rewarded commensurately for their risk and patience?
Ivanhoe currently owns roughly 18% of Entree, which stock changed hands at C$1.34 at Monday’s close in Toronto.
@ alle
Kann ich mitkaufen, wer kann mir was leihen ?.
Herr Siegel trompetet heute auch zum Kauf.
So eine Schei...., ich habe Pech mit schoenen Namen wie Apollo, Harmony,Golden Eagle,Goldfields, so gut es sich auch anhoert.
Apollo ist vom Berg gestuerzt, Harmony ist eine Disharmony,der Golden Eagle ist nun eine lahme Ente, unsw...
Man lernt nie aus.
Cést la vie !
Gruss
Eldo
China denies yen manipulation
18/05/2005 08:41
Singapore - China is not manipulating its currency to enjoy a trade surplus with the United States, a senior Chinese economic official said here Wednesday as he urged Washington to get its "own house in order" before making currency demands on Beijing.
Wei Benhua, China's State Administration of Foreign Exchange deputy administrator, also reiterated that China had no time frame for moving to a more flexible exhange rate.
"US senators are blaming us on the grounds that China was using the exchange rate to obtain a surplus from the US. We can not accept that," Wei told reporters at a Singapore-China business forum.
"We do have a surplus with the US. However we also have (trade deficits) with many of the European countries ... and also with the Southeast Asian region.
"So how do you manipulate your currency just to get surplus from the US? On the other side, you are having a deficit with other countries ... that's just impossible."
Wei said there were problems with the fundamentals of the US economy that were also contributing to the nation's trade woes.
"My suggestion to them ... is to put their own house in order before blaming others," he said.
Wei's comments were in answer to a reporter's question for a reaction to a US Treasury report released on Tuesday that said China's "highly distortionary" currency regime threatened global growth.
The report stopped short of saying China was a currency manipulator under a US legal definition, :D, which could have opened the way to US sanctions, but warned it may earn that label if "current trends continue".
str-kma/bmm
Genauso sehe ich es auch, da haengen auch schwarze Mr.X mit drin.
Die bedanken sich jetzt wo die Aktien im Keller sind bei Swanepoel und den Shareholders die verkauft haben.
ECONOMY
Bright economic future predicted
By 2015 South Africans could expect prime interest rates below ten percent, Rand Merchant Bank chief economist Rudolf Gouws said on Tuesday.
"I expect a less volatile and low nominal and real interest rate will be likely and in five to ten years single digit prime rates will be the norm," Gouws said at the release of the KreditInform Barometer findings on the South African economy.
Speaking in Johannesburg, Gouws also predicted South Africa's long term business environment would have a higher growth potential.
Economy in upswing since 1999
The economy had been in an "upswing" since 1999, he said, which was the longest upswing ever recorded.
"People sense in some way we are going back to the golden sixties," he said, but added we are in a much better position now than we were then.
"In the sixties it was a case of ''bo blink en onder stink'' (shiny above, stinky below) as the politics laid a foundation for the economic crises in the next decades."
Capital investment needed
However, now future economic growth would be aided by increasing fixed capital investment, he said.
This would boost domestic demand while creating better infrastructure, lowering manufacturing costs, facilitating exports and increasing public sector expansion.
But, he said, this could be hampered by various factors — including skills shortages, infrastructural weaknesses, regulatory impediments, HIV/Aids and labour market rigidity.
"If all the current initiatives are fully implemented and bear fruit then this ceiling will gradually be lifted," he said, mentioning government's capital expenditure and other plans to boost the economy.
Rand at about the right level
Gouws said the rand was around the right level. "We are more or less where we should be now," he said.
In the short term, Gouws predicted the rand might weaken somewhat although he hedged his bets.
"The rand is structurally healthier but will or may or should weaken later this year and in 2006, but this depends on the US dollar," he said, adding that there would always be some volatility.
Positive sentiment towards economy
Respondents to the KreditInform Barometer expressed the same positive sentiment towards the South African economy.
Sixty two percent said they expected the economy to grow between 3.5 percent to 3.7 percent in the next 12 months.
Although this is lower than the 2004 growth rate of 3.7 percent, it still reflected an optimistic outlook.
Rates, rand seen stable
Gouws said 58 percent of those surveyed expected both interest rates and the rand exchange rate to remain the same.
He agreed that interest rates could remain stable for the short term, but said "the odds on a rate cut are marginally higher than a hike".
The low interest rate meant the real cost of borrowing money was cheaper, he said.
"There is nothing wrong with growth in demand for credit... Our debt levels relative to income are low compared to international levels." Gouws said.
The KreditInform Barometer surveys over 100 major corporations in South Africa bi-annually.
Sapa
ECONOMY
Rand 'needs to balance interests'
Helmo Preuss
The African National Congress (ANC) said at a media briefing to discuss the release of discussion documents on Tuesday that the rand needs to balance the interests of exporters and importers and would not be drawn on what it considered to be an appropriate competitive level.
Head of the ANC presidency Smuts Ngonyama said: "We need to look at the rand from many different perspectives — if we look at mining for instance , the profit level of platinum mining is far higher than that of gold mining . This profit level is impacted both by the level of the international prices of these commodities as well as the cost of production of these commodities. So we need to balance what needs to be done with the cost of any intervention."
The Congress of South African Trade Unions (Cosatu), the ANC's alliance partner, wanted a weaker rand but the ANC — which has a broader mandate than looking after the interests of workers only — also wanted to encourage foreign direct investment (FDI).
The two largest foreign FDI deals namely the Barclays-Absa deal this year and the Telkom deal in 1997 took place when the rand was relatively strong after a period of weakness.
I-Net Bridge
NEW DELHI, May 17 (Reuters) - Gold demand in India, the world's largest consumer, has surged this week because of lower prices and strong wedding season demand, traders said on Tuesday. Jewellers were placing large orders and banks were running out of ready stocks, they said…Gold buying has jumped to 1,000 to 1,500 kg a day in Ahmedabad from 500 kg during the off season. In Jaipur, the capital of Rajasthan state, gold imports have doubled to 1,000 kg…300 kg of gold was being sold everyday in Madras compared with 175 kg in April." (JB emphasis.) 
Gold Update
The Pressure From Above
Enrico Orlandini
Lasco Report
18 May, 2005
There are an awful lot of disappointed gold bugs at this point in time. In fact, confused would probably be a better way to describe it. How can the dollar be rallying and gold prices declining if we have inflation on the doorstep? After all, Alan Greenspan is raising rates in an effort to keep inflation in check. These gradual adjustments will be necessary in order to maintain a well-balanced economy. Greenspan said so! Unfortunately, I suspect that he may be mistaken. I have contended for some time that Greenspan's real fear is deflation and he's just trying to reload the Fed interest rate gun with as many silver bullets as he can in case his worst nightmare comes to pass. The evidence available now indicates that he won't have long to wait.
I see a number of possible scenarios here but the three most obvious seem to be the following:.
The higher low made back in February of 414.00 holds as we compress into a tighter and tighter trading range. Given the fact that we are in a Bull Market for gold, the result of this compression should be an explosion to the upside..
The $414.00 higher low is violated and we continue down to test $400.00 and maybe $375.00 as deflationary pressure become more and more evident..
Gold becomes range bound in the $414.00 to $440.00 area for some weeks or even months to come. .....
Which way will it go? I really don't know but I do know that gold is oversold here and it would be difficult to drive the price much lower. The fact that the Commercial traders have added on to their long positions for the second consecutive week also seems to indicate that the rally may come sooner rather than later. Personally, my bet is that we trade in a range for some weeks, but that's just a guess.
In any event, the long term outlook for gold is quite bullish for a number of reasons. First and foremost involves the fact that the world's Central Banks led by the Federal Reserve, are currently flooding the planet with liquidity. If deflation really takes hold, the flood will become similar to the storm that lasted forty days and forty nights. Other reasons for a continued bull market in gold shouldn't be overlooked either. They include an out of control fiscal deficit, declining gold production, increased problems in the Middle East, and a non-productive U.S. economy based on debt and consumption. Couple this with the lack of any real political will to deal with the hard choices and you begin to see a real problem in the not too distant horizon.
more..... at
Swanepoel & Co haben die meisten Shareholder ganz schoen reingelegt und mein Verdacht den ich schon vor Monaten hier geaeussert habe hat sich somit bestaetigt falls er so viel Geld im Ausland gebunkert hat wie du schreibst.
Woher hat Herr ""Gold De Klerk"" das Geld bekommen,wer hat ihn bezahlt ?
Diese Frage ist noch offen, wird aber nie beantwortet werden.
Pfui Teufel Swanepoel, aber Geld stinkt nicht !
Vielleicht ist er verwandt mit Mr.Koslovsky von Tyco, der hat auch Alzheimer wenn es um Auslandskonten geht, alte Familienkrankheit so wie es aussieht.
Save the Swan, buy Harmony or Yukos now !!
Is the U.S. Economy Teetering On the Brink of Collapse?
http://www.alkalizeforhealth.net/Ldebtclock.htm
No problem, mir Druckmaschine und Ex- Eisenbahnchef Snow.
Der Schuldenzug faehrt weiter !!
Mr. Sinclair:
I view the following statement as THE critical timing component of this gold bull market.
"Nothing has become as important as the TIC figures in terms of their impact on the US Trade Deficit. The reason for this is that the TIC provides an indication of the ability of the US to continue to finance itself from international sources. Should the TIC figure fall below the US Trade Deficit numbers then the market will be on a razor's edge waiting to see the following month's figures. Both sides of the question will begin to speculate on how this will play out. That could well be gold at $480 and the USDX at say, .7800. Should the second month confirm the TIC is trending below the Trade Deficit, then the dollar will encounter severe selling pressure and huge spin to hold it. That well could be .7600 on the USDX. If the spin fails for the third consecutive month, then all hell could break loose and one could expect .7200 on the USDX and gold at $518-$529."
After the most recent TIC numbers were reported you commented, "Yesterday's trade report was pushed higher by booking India's aircraft purchases as consummated sales which resulted in almost the entire improvement in those figures. So there is a clear probability that we are now going to have to work with figures that are so massaged and so spun as to become almost meaningless except as one views them in the form of a trend that takes into consideration revisions of past figures that seem always to be of significance one way or the other. Not that this is new but it has become egregious in terms of the monthly reporting to the point that borders on a "Wag the Dog.""
Having spent 20 years in "Corporate," I am well aware that the numbers can be made to reflect whatever management desires. Regardless of the "true" figures, will the "published" TIC numbers EVER be allowed to trend below the Trade Deficit? If so, under what circumstances would this be "permitted?"
CIGA Francis
Dear CIGA Francis:
You can spin all you want but the cash flows or it does not to pay the Federal bills. Since the government has to finance itself regardless of what it says, three months of TIC below the US Trade Deficit and the dollar will be well below USDX .8000 - and gold will be headed, in my opinion, not only to $518-$529 but on its way to $1,650.
This is true because the dislocations in the debt market and therefore the OTC derivative market will occur no matter how skewed the figures are. The cash flows into the Federal checking account or it simply does not! That is the simple mechanics as you do or you do not pay your bills and suffer the consequences..
Regards,
Jim
Guter Lese und Gedankenstoff hier.
Ich bin Eurer Meinung und fuer mich ist es nun wichtig das erstmal die > 170 HUI zurueckerobert werden und Gold ueber den 200ma geht was ca.> 180 HUI bedeutet. Ehrlich gesagt ich kann mir keine 410 $ vorstellen da bei HUI 160 mein Glaubenssytem zusammenbrechen wuerde und eine Kapitulationsmarke fuer mich mehr oder weniger bedeuten wuerde. Der USD IDX kann auf dauer die 87 nicht ueberschreiten und bei 80 wartet der Grizzly Bear fuer diesen Index.
Charttechnisch gesehen sind Gold/HUI Momentum am steigen sowie RSI, Stochs, auf den selben level wie bei den anderen grossen washouts der letzen drei Jahren. Jedes Jahr gibt es einen tsunami, die letzte welle sollte eigentlich nun durch sein. Wenn ich meiner Intuition folge ist gerade in diesen Moment die beste Gelegenheit sich mit Juniors und Seniors einzudecken, kaufen und nicht verkaufen !!. A once in a lifetime chance.
Jeder glaubt es wird noch billiger aber die specials sind nun meiner Meinung ausverkauft. Da ist nicht mehr viel zum fallen.
Ohne irgend welche wetten zu machen denke ich mir das in zwei Tagen die 175 HUI erscheinen und Gold/HUI weiter nach oben zieht, weg von der Sturzlinie 418 USD>410 $
Aber ich kann mich natuerlich irren,sagt mir nun mein Gefuehl. 
Wie Frr schon sagt, wir sind nun auf der Crest of the Wall und nur wenige koennen es sehen.
Es wird sicherlich interessant die Volumen der Aktien in den naechsten Tagen zu verfolgen, der Grossteil hat verkauft und jetzt kommt die Vorstufe vom Bullen,hoffentlich! :))
Man kann sich auch in den naechsten Jahren auf Rueckschlaege von minus 35% einstellen, wer es beherrscht kauft und verkauft in dieser Zeit.
Ich kenne keinen der genau zu richtigen Zeitpunkt gehandelt hat, aber es ist ja Wurst, Gold geht auf die 500 USD, irgendwie !
So kurz vor HUI 2380 denke ich an Profitmitnahme die ich beim letzten mal versaeumt habe. 
Gruss und good luck
Eldo
Ivanhoe to form Falcon(TM) exploration joint venture with world's largest mining company on 28,000 square kilometres in Mongolia's South Gobi region
Tuesday May 17, 12:01 pm ET
ULAANBAATAR, Mongolia, May 17 /PRNewswire-FirstCall/ - Ivanhoe Mines Deputy Chairman Edward Flood announced today that the company has agreed to form a joint- venture partnership with BHP Billiton to use BHP Billiton's proprietary Falcon(TM) airborne gravity gradiometer system to explore approximately 28,000 square kilometres of Ivanhoe's non-core exploration ground in southern Mongolia. The new Ivanhoe-BHP Billiton joint-venture, called the Falcon Gobi Project, provides BHP Billiton the right to earn up to 50% of all minerals found on the project, other than coal, by spending US$8 million in exploration costs.
The Falcon Gobi Project covers approximately 22% of Ivanhoe's land holdings in this region. Ivanhoe's advanced exploration and development-stage projects - Oyu Tolgoi, Kharmagtai, Yellow Hills and Bronze Fox - are not included in the Falcon Gobi Project.
Under the terms of the agreement, and subject to the execution of the definitive Option and Joint-Venture agreements, BHP Billiton will use its proprietary Falcon system and solely fund a major geophysical survey of a minimum of 30,000 line kilometres over the whole or selected parts of the Falcon Gobi Project. BHP Billiton expects to complete its Falcon survey before December 31, 2006. BHP Billiton will fund all aspects of the survey; inclusive of mobilization, as well as processing and interpretation, using the most advanced and proprietary techniques. Following BHP Billiton's vesting in the project, a 50/50 joint venture will be established between BHP Billiton and Ivanhoe, and the parties will contribute all further exploration and development costs on a pro-rata basis.
"This joint venture provides Ivanhoe with access to BHP Billiton's state- of-the art Falcon airborne technology to quickly evaluate a significant portion of our exploration ground in the South Gobi that is not amenable to conventional exploration techniques," said Mr. Flood.
Falcon is an airborne gravity gradiometer that measures minute changes in the earth's gravity. This technology gives BHP Billiton a competitive advantage in the search for mineral and hydrocarbon deposits and has helped in the resource evaluation of some major operations, such as the Ekati Diamond Mine in Northwest Territories, Canada, and the Cannington Silver and Lead Mine in Queensland, Australia. This competitive advantage is backed by BHP Billiton's exclusivity on the technology coupled with its unique value-added processing and interpretation capabilities.
Ivanhoe has a 100% interest in the Oyu Tolgoi copper and gold project in Mongolia and owns or controls exploration rights covering approximately 130,000 square kilometres in central and southern Mongolia, where additional copper-gold and coal discoveries have been made. Ivanhoe produces LME grade A copper from its Monywa joint venture in Myanmar.
.... da schauts aber ! ....
TVI PACIFIC ANNOUNCES POSITIVE CASH FLOW FROM CONSOLIDATED OPERATIONS IN ITS INTERIM FIRST QUARTER FINANCIAL AND OPERATING RESULTS FOR 2005
TVI Pacific announces financial and operating results for the first quarter ended March 31, 2005. All amounts are expressed in Canadian dollars. The highlights provided in this release should be read in conjunction with the Company’s consolidated, unaudited interim financial statements and Management Discussion and Analysis for the first quarter which are available on Sedar at http://www.sedar.com or at the Company’s website at http://www.tvipacific.com.
Major Milestone Reached
A major milestone for the Company occurred in the first quarter with the first mine in the history of the Company to be brought into commercial operations. This mine is a reflection of the determination of the Company’s management and employees who worked together in order for this mine to become a reality. The positive cash flow of $1,023,900 generated from mine operations is a reflection of the robust nature of the mine. The expected future cash flow from the mine will be used to fund our exploration programs and additional mining projects.
First Quarter Highlights:
The Company generated positive cash flow from consolidated operations in the first quarter of 2005 of $49,261 after including exploration expenses of $242,561.
Effective January 1, 2005, the Canatuan mine has become a commercial operation. The revenue and expenses related to the Canatuan mine are being reported on the income statement starting January 1, 2005. On revenue of $2.8 million, the mine generated cash flow of $1,023,900.
New capital investment of $586,004 was made to further expand the facilities at the Canatuan mine.
Exploration has been re-established in the Philippines with applications being filed for new tenements. In April additional tenement applications were filed and an agreement was signed on the advanced-stage Balabag exploration property.
TVI’s Chinese exploration program continues in the Golden Triangle region and in 2005 will focus on Guangxi and Yunnan portions of the Golden Triangle. The corporate exploration objective in 2005 for China is to acquire at least two additional properties of merit and to commence exploration work as soon as possible in 2005. The Shuikoushan project is still being re-negotiated prior to evaluating a second phase of exploration.
TVI’s Drilling Division incurred a small cash loss in the first quarter ($23,194). The Division has undergone a major management change with the result that improved performance is now being experienced.
A major exploration program is underway at Rapu Rapu with the objective of finding new resources which will extend mine life. Rapu Rapu has also started commissioning of its gold processing plant in late April. TVI expects therefore, to receive its first NSR payment from Rapu Rapu in the third quarter of 2005.
The Company completed a private placement of convertible debentures for $1.5 million on February 24, 2005. The convertible debentures included the conversion of an existing loan from a shareholder.
Significant financial highlights included:
Cash of $667,665 as at March 31, 2005.
Operations generated at positive cash flow of $49,261 in the first quarter of 2005 compared to a cash outflow of $161,999 in the same quarter of 2004.
Total assets increased to $16,003,179 at March 31, 2005 compared to $15,929,233 at December 31, 2004.
Consolidated net loss for the three months ending March 31, 2005 of $670,757 ($0.002 per share) compared to a net loss of $551,435 ($0.002 per share) in the same period in 2004. The net loss for the first quarter of 2005 included depreciation and accretion of $616,164 ($36,494 in 2004) and stock-based compensation expense of $85,911 ($354,255 in 2004). Exploration costs including both Philippines and China increased from $128,546 in 2004 to $242,561 for the 2005 quarter.
Administrative and general expenses increased from $308,505 to $579,502 reflecting additional costs at the Canatuan mine related to the commercial operations, increased shareholders costs reflecting increased shareholders and the new website, increased legal and auditing fees and administrative costs for China.
TVI’s focus is to increase cash flow from its Canatuan mine through increased production and increased recoveries. The final planned expansion of the mine in the Gossan Mining Phase is expected to be completed in July 2005 at which time throughput should reach 750 tpd with increased recoveries. The throughput at the mine is expected to decrease in May and June to allow completion of the expansion including the installation of a second ball mill and completion of the gossan tailings dam. TVI has re-established its exploration program in the Philippines with the application for new tenements and the signing of an agreement on the advanced stage Balabag property and is currently evaluating several other properties. The exploration program in China continues to focus on the Golden Triangle region. TVI intends to complete renegotiation of the Shuikhousan Gold Project property prior to starting a second phase exploration program. In the second quarter of 2005, the drilling division expects to see increased revenues with at least six drills operating by June 2005. The Company is focusing on improving overall performance of the drilling division operations through reduced overhead costs and better fleet utilization. A major exploration program is underway at Rapu Rapu with the objective of finding new resources which will extend mine life. Rapu Rapu has also started commissioning of its gold processing plant in late April. TVI expects therefore, to receive its first NSR payment from Rapu Rapu in the third quarter of 2005.
The Company’s cash position is expected to remain tight in the short term with the further expansion of the Canatuan mine which is currently being financed from cash flow generated from mine operations and vendor credit. Management believes however, that its current cash position, together with the anticipated cash flow from operations, cash from anticipated option and warrant exercises and short term funding, if required, should be sufficient to fund current operations and meet obligations as they become due.
