Headwinds In A Bull Market

With Kinross, you probably have the absolute best example of the side effects of money printing, where assets don't multiply, only liens against those assets. The market is overwhelmingly short this company, if you depend on Bloomberg's key statistics for the company:

"Shares Short (% prior month) 193.6878%"

Almost twice the shares in the public float are held short, primarily through derivatives. Derivatives is just a fancy word for bucketshopping.

http://www.bloomberg.com/quote/K:CN/key-statistics

via Kitco- The miners involved in Argentina, such as McEwen, Yamana, Agnico all make potential hostile bidders for GBN.V. The share price is so cheap that a miner could buy this company with pocket change. Company book value is a mere fraction of the development capital that has gone into the La Ronge Gold Project, its persistent curse.

Argentina tightens trade restrictions screws on mining operators

In an effort to protect local industries and businesses, the Argentine Mining Ministry is steadily increasing the regulatory trade burden on mining operators doing business in the country.

Author: Dorothy Kosich
Posted: Wednesday , 30 May 2012

RENO (MINEWEB) -

Argentina's Mining Ministry this week ordered mining companies to prioritize the purchase of local products and services, as well as seek prior government approval 120 days before making overseas purchases of goods and services.

http://www.mineweb.co.za/mineweb/view/mineweb/en/page72068?oid=152331&sn=Detail&pid=33

The following outlook on gold mining companies simply hasn't changed during this bull market:

Big gold producers spending faster than earnings rise

“The growth-at-any-cost route, I think, is the wrong way to go,” George Topping, a Toronto-based analyst at Stifel Nicolaus & Co., said in a telephone interview. “The only people that are making money off building these new mines are the employees, the government, contractors. The shareholders aren’t actually getting any of the rewards here.”

http://business.financialpost.com/2012/05/03/big-gold-producers-spending-faster-than-earnings-rise/

-F6