The Miners

One of the best charts on the miners' page on the Nowandfutures.com website is how Baron's gold mining index performed during the bull market in gold during an era of negative real interest rates. The rest seem utterly indecipherable.

At first, the miners were favoured during the 1971 - 1975 era. Then, the miners sold off, as they have now, and languished as people favoured the metal, as is happening now. But, gold miners eventually caught up with the bull market in gold bullion prices as their returns became whopping and there yields were unheard of. Yields on bonds were also considered astronomical.

The gold mining index went parabolic after the gold price crashed, since people began jumping on the miners and selling the metal. One thing we haven't seen is gold mining stocks differentiating with the Dow, rather they have been rising and falling concomittantly with equities.

source: http://www.nowandfutures.com/miners.html

Bloomberg FA Advisor

http://www.fa-mag.com/fa-news/11961--gold-ceo-departures-fastest-in-decade-on-stock.html

King World News - Ben Davies

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2012/8/19_Ben_Davies.html

Good discussion here, listened to it several times. GBN.V's costs are on guidance, their production is on guidance, their grade is better than was reported in the 2009 PEA. Costs, which you can calculate by yourself by adding all four quarters of cash from operations are about 10% higher than called for in year two of the PEA. They have a small operational surplus which was drawn down in Q3.

Where did the money go? You have to look under long term liabilities and add them together.

Bloomberg doesn't have any real mistakes here and is a god-send in attempting to figure it out.

IMO, this is a very strong balance sheet if long term liabilites fall under cash flow by year-end.

http://www.bloomberg.com/quote/GBN:CN/balance-sheet

The only long term liabilities that I can see are towards their shareholders that have been carrying undue risk for years. And I'm not trying to be sarcastic.

BNN.ca

Clive Johnson is reminiscing about how miners were favoured over the metal at one time, especially in 2006 and how nobody wants to sell to him. My how things change.

Priceless comments by Christopher Ecclestone regarding Kinross and their penchant for making bad bets on deposits by likening them to Godzilla stomping through the gold sector and swallowing anything they could.

http://watch.bnn.ca/commodities/august-2012/commodities-august-17-2012/#clip742201

-F6