Welcome To The Golden Band Resources HUB On AGORACOM
Saskatchewan's SECRET Gold Mining Development.
Message: Charts & Comments
Daily Ichimoku
The downside panic in GBN.V shares may finally be completely exhausted. In the complete absence of any buyers, the sellers are in control, but in the complete absence of any sellers, the arbitrageurs will have to finally settle.
They first sold millions upon millions of shares into the market without owning any, profiting from the revulsion in the gold mining sector. People firmly believe that gold mining does not form part of the gold markets and are bound to fail. People also have superstitious beliefs about geological facts, as if they were so much astrological hokum. Sellers took full advantage here, knowing that a rising price trend in long term treasury bills is the downfall of the gold miners.
The rising price trend may continue in treasuries, since governments can print money ad infinitum and buy treasuries out of the market. They did this during the depression, winding up with debts up to 500% GDP. Japan wound up with interest rates below 2% in their long treasuries and debts over 200% GDP. The gold miner had better be fully prepared to provide dividends in such a scenario, if you ever want a fairly valued stock.
But as it turns out, the regulators are working to the benefit of the commercial traders in the banks, rather than the mining companies. The 43-101 standard actually prevents any established technical information of value to the shareholders from seeing the light of day, and will make it difficult, if not impossible for the investor to properly assess the investment case. (IFRS is clearly intended to compound the difficulties.)
The laws are clearly failing investors, and favouring fraudulent trading activity in the markets. Gold miners for their part have gone out of their way to exaggerate grades and widths. But when you compare with the historical information, they're engaged in a swindle. (The results out of the EP Zone show that GBN.V is not exaggerating in any way, it must be said.)
Historical information gathered in decades preceding the 43-101 'standard' would make an excellent comparative tool in the hands of investors wanting an in depth picture. Throwing out the historical data is the great failure of the regulators. But of course, mining regulation and IFRS were written by the banks, n'est-ce pas?
You can say it 'till you're blue in the face, that certain information about the nature of the deposits is not forthcoming to shareholders, but it won't matter. The laws were clearly written to favour the commercial banking sector. And commercial traders set upon destroying value (or creating value when there apparently isn't any) have the distinct upper hand.
A 'standard' which summarily dismisses historical facts is no standard after all.
supersize: http://www.flickr.com/photos/11747277@N07/6684492671/sizes/l/in/photostream/
Saskatchewan Is Venezuela, Apparently
Saskatchewan First Nation lawsuit claims billions in resource dollars denied
By: The Canadian Press
Posted: 01/11/2012 11:59 AM
REGINA - A First Nation in southeastern Saskatchewan has filed a multibillion-dollar lawsuit claiming the band has been denied billions from oil and potash developments.
The claim by the George Gordon First Nation is against the provincial and federal governments.
The band says it should have been consulted about several projects under a treaty land deal signed in August 2008.
It gives as an example BHP Billiton's Jansen potash mine not far from the band's reserve near Punnichy (PUNN'-ih-shy), Sask.
The First Nation alleges BHP Billiton was given exclusive control over potash exploration rights in the region without the band's knowledge.
A spokesman with Saskatchewan's Justice Ministry says the government doesn't believe it has done anything wrong.
One Mining Company To Pay All The Taxes In Poland
Poland tentatively approves mining tax proposal
Thu Jan 12, 2012 1:04pm GMT
WARSAW Jan 12 (Reuters) - Poland tentatively approved on Thursday a new mining tax plan aimed at securing 1.8 billion zlotys ($511.3 million) for state coffers this year, the finance ministry said.
The bill, approved by a key committee that prepares government legislation, must now receive final clearance from the government and parliament.
Earlier on Thursday, the ministry said it had again rejigged its proposal for the new levy, softening its impact on copper miner KGHM, which will bear the brunt of the tax. ($1 = 3.5205 Polish zlotys)
http://af.reuters.com/article/metalsNews/idAFW8E7NK02P20120112
Treasury fund attracts big put spread
The TLT Treasury exchange-traded fund is trading near its highs but drew a huge put spread yesterday.
The iShares Barclays 20+ Year Treasury Bond Fund closed the session at $118.32, down fractionally on the day. Shares were down at $95 back in July before the S&P 500 sold off and have been range-bound for the last few months between $115 and $125. The correlation between the S&P 500 and the TLT is -0.8, which is fairly typical as the two move in opposite directions.
optionMONSTER's systems show that 62,457 TLT options traded yesterday, almost twice the fund's daily average. Puts outpaced calls by more than 5 to 1, and most of the action was in one spread.
The first leg of the trade involved 10,000 February 117 puts that went for $2.18. The second part of position comprised 30,000 February 109 puts, 10,000 of them going for $0.32 and another 20,000 for $0.33, all at the same time.
It appears that the 109 puts were bought and the 117 puts sold in a backspread . The volume at both strikes was significantly more than open interest, so this is a new opening position.
The trade will make a small profit if the TLT remains above $117 and can make big gains if it falls sharply. But there was a large stock position as well, as 140,000 shares were bought for $118.60 a minute or so after the options changed hands, so this may be hedging some of the trade in such a way that the position can profit if the TLT rises or falls.
-F6
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