Quote of the Week“It is a sad world when Fortescue Metals is larger than Ford Motor Co, Randgold Resources is bigger than General Motors, Freeport McMoran is larger than Fiat [and] First Quantum Minerals is almost as large as Tata Motors." -Fairfax IS PLC, London
End is nigh
MINERAL Deposits might not survive in its current form past the next three or four months, according to frustrated company director Nic Limb. He says that the writing is on the wall after the market again showed its disdain for the company by selling the stock down despite it netting nearly $A100 million from restructuring its hedge book.
A tough road ahead for juniors
HAVING successfully called the top of the cycle, Robin Widdup has the credibility that the vast majority of those in mining markets around the world don’t have. As such, his prognosis for the future is well worth bearing in mind.
The view from the bottom
GEOLOGISTS face tough times but experienced market watchers don’t expect any permanent damage to the junior and mid-cap resource sector in the future despite the extraordinary losses (real and/or notional) suffered by investors this year.
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Credibility the new test
FIRST gold is due next week from the most credible new gold miner to emerge in Australia in the past few years. While the cynics might argue that isn’t such a great achievement given the steady stream of debacles and the general demise of the sector, its arrival has proved again that quality operational and corporate management is critical.
Mixed up, shook up world
MINERAL exploration expenditure in New South Wales galloped to $A189.9 million in 2007-08, according to the state’s mineral resources minister Ian Macdonald. However, the total could fall dramatically in the next two years, the Australia Mining Congress 2008 in Sydney heard.
Drilling the key to real security
THE Australian gold industry has been littered with corporate collapses in recent years, with failure to accurately delineate deposits often being the catalyst for the disasters. New gold miner Apex Minerals is diligently doing everything in its power to ensure the gold is there when the miners get to work underground at its Wiluna project in Western Australia.
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Market wonders what's in store for gold
GOLD looks like it is starting to gain some significant traction with investment demand in the third quarter up 179% on the previous quarter and total demand up by 50% or 386 tonnes to more than 1133t. Meanwhile, reports continue filtering in that China wants to add to its reserves.
Waiting game is over
PETER Ingram wasn’t contemplating corporate activity last time HighGrade caught up with him, about two months ago. He is now. And he’s no longer prepared to “just wait”.
HudBay board belted
THERE are strikingly different analyst opinions being voiced on the merits of HudBay Minerals’ merger with fellow base metal miner and ambitious project developer, Lundin Mining.
Straits to Madagascar
FORGET Mongolia, Botswana, Mozambique and Australia. Instead think Madagascar. For it’s that low profile country off the east coast of Africa that will deliver the best next generation of thermal coal projects.
AUSTRALIA MINING CONGRESS 2008
No Movember
ALAN Heap, Citi Investment Research’s managing director, global commodity analysis, might agree with Macquarie Bank’s declaration of force majeure on the super cycle but he’s not ready to call the end of the cycle. It could be seen as a close shave though.
MEDITERRANEAN'S GHOST
Iron will perhaps not enough
IN A situation like the crisis unfolding around us right now, there’s no shortage of topics for pontification available to lazy columnists. With fortunes eroding all around, the peers of Mediterranean Ghost’s aren’t experiencing any problems in finding the falling and fallen stars who – thanks to a hefty dose of hindsight – allow us columnists to write all about how silly other people have been.
ReGENERATION
Time to get smart
‘GET THE cow and we’ll talk some more’, sounds like a line out of an episode of popular 70s spy sitcom Get Smart. It’s basically the deal Phil Welten signed on for when he became managing director of Indo Mines early last year.
AUSTRALIA MINING CONGRESS 2008
The case for gold
THE GOLD sector is Australia’s ship without a rudder at the moment. Buffeted by the general market malaise and seemingly unable to raise itself from a decade of decline, the sector is crying out for stand-out discoveries, mines and companies, the Australia Mining Congress 2008 heard.
AUSTRALIA MINING CONGRESS 2008
Iron horses for courses
BC IRON managing director Mike Young spoke to Andrew Forrest the morning of his presentation at last week’s Australia Mining Congress in Sydney and it must have been a typical pep talk from the Fortescue Metals boss because Young injected some spark into a sombre room.
VIEW FROM THE WEST END
Not fun
NOV 17: NEGOTIATION is from the Latin words, neg (not), and otium (ease or leisure). The inference being, presumably, that negotiation was not meant to be fun. Rather obvious I guess, but probably more so to anyone involved in metal price negotiations.
