Yamana (NYSE:AUY) continues to be the company that is always just about to make it, but leaves shareholders and investors disappointed.
One thing it does have going for it, as do other gold equity companies, is the recent sell off, which may have provided a decent entry point, although the company has regained some of that.
As usual, a number of things have to align right for Yamana to provide solid returns, but it also comes with more downside risk than its peers and larger competitors.
The recent sell off has placed Yamana close to its 50 day moving average and in the process of forming a reverse head and shoulders pattern
If the company can find support, it may have the strength to make a decent run.
One major challenge Yamana faces is in currency risks in South American countries where inflation has been rising.
A short-term negative but long-term positive for Yamana is its selling of its 87.5% stake in the Agua Rica project to Alumbrera partners Goldcorp (NYSE:GG) and Xstrata.
As a result, development costs will drop while the company will get a royalty stream once production at the project begins. Royalties with little in the way of capex will strengthen the company going forward.
Yamana closed Monday at $12.48, gaining $0.38, or 3.14 percent.
Showing posts with label Xstrata. Show all posts
Showing posts with label Xstrata. Show all posts
Tuesday, March 22, 2011
Thursday, March 10, 2011
Yamana (AUY) Offers Option to Partners in Minera Alumbrera
Yamana (NYSE:AUY) has offered an option to its Minera Alumbrera joint venture partners to eventually add the gold company's nearby Agua Rica gold Project to the Alumbrera operation.
Acting through their Minera Alumbrera joint venture, Xstrata Copper and Goldcorp (NYSE:GG) have signed a letter of intent for an option to acquire the Agua Rica copper-gold project in Argentina.
The LOI outlines an agreement in which Minera Alumbrera will be granted an exclusive four-year option to acquire Yamana's interest in the Agua Rica deposit, located 35 kilometers southeast of the Bajo de la Alumbrera copper mine operated by Minera Alumbrera.
Xstrata is the manager and 50% owner of Minera Alumbrera, along with Goldcorp which holds 37.5% and Yamana, which owns 12.5% of the joint venture, which averages annual production of 180,000 tons of copper and 600,000 ounces of gold.
Yamana will receive progressive options payments of up to US$110 million for Agua Rica. Xstrata and Goldcorp will finance all payments related to the option on a 57.14% and 42.86% basis respectively.
Yamana closed Wednesday at $12.92, down $0.07, or 0.54 percent.
Source
Acting through their Minera Alumbrera joint venture, Xstrata Copper and Goldcorp (NYSE:GG) have signed a letter of intent for an option to acquire the Agua Rica copper-gold project in Argentina.
The LOI outlines an agreement in which Minera Alumbrera will be granted an exclusive four-year option to acquire Yamana's interest in the Agua Rica deposit, located 35 kilometers southeast of the Bajo de la Alumbrera copper mine operated by Minera Alumbrera.
Xstrata is the manager and 50% owner of Minera Alumbrera, along with Goldcorp which holds 37.5% and Yamana, which owns 12.5% of the joint venture, which averages annual production of 180,000 tons of copper and 600,000 ounces of gold.
Yamana will receive progressive options payments of up to US$110 million for Agua Rica. Xstrata and Goldcorp will finance all payments related to the option on a 57.14% and 42.86% basis respectively.
Yamana closed Wednesday at $12.92, down $0.07, or 0.54 percent.
Source
Monday, February 28, 2011
Vale SA (NYSE:VALE) Ready to Resume Record Performance
Brazilian miner Vale SA (NYSE:VALE) is looking forward to "a very, very good year," following the company's record financial results in 2010, Chief Executive Roger Agnelli said Friday.
Agnelli told analysts on a conference call that "2010 was the best" and that "higher output of all our products, including iron ore, nickel and copper" bode well for 2011's results.
Global copper prices look set to reach record highs this year, the Vale CEO said.
Vale reported late Thursday that its fourth-quarter earnings rose nearly four-fold to $5.917 billion, contributing to a record-high annual profit of $17.264 billion, about 21% above its previous best in 2008.
Revenue, profit margin and investments also reached record levels, which the company said put it ahead of peers BHP Billiton Ltd. (NYSE:BHP), Rio Tinto (NYSE:RIO), XStrata (LSE:XTA) and Anglo American PLC (LSE:AAL).
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Agnelli told analysts on a conference call that "2010 was the best" and that "higher output of all our products, including iron ore, nickel and copper" bode well for 2011's results.
Global copper prices look set to reach record highs this year, the Vale CEO said.
Vale reported late Thursday that its fourth-quarter earnings rose nearly four-fold to $5.917 billion, contributing to a record-high annual profit of $17.264 billion, about 21% above its previous best in 2008.
Revenue, profit margin and investments also reached record levels, which the company said put it ahead of peers BHP Billiton Ltd. (NYSE:BHP), Rio Tinto (NYSE:RIO), XStrata (LSE:XTA) and Anglo American PLC (LSE:AAL).
Full Story
Wednesday, January 5, 2011
Vale (Nasdaq:VALE), Rio Tinto (NYSE: RIO) Xstrata (LSE:XTA), Freeport (NYSE:FCX) Top Iron Ore, Copper Picks of Barclays (NYSE:BCS)
Talking on their outlook for copper and iron ore going forward, Barclays (NYSE:BCS) identified Vale (Nasdaq:VALE), Rio Tinto (NYSE: RIO) Xstrata (LSE:XTA) and Freeport-McMoRan Copper & Gold (NYSE:FCX) as their top picks.
Barclays said, "While there has been much concern in the market recently that copper has become a speculative bubble, we disagree. We remain confident in our long-held bullish copper thesis. In our opinion, many observers continue to underestimate the difficulty the mining industry is likely to face growing copper supply. The projects that are likely to be constructed in coming years are much smaller in scale and far more capital intensive than the projects developed in the 1990s..."
"As we have said for some time, with limited supply growth and inelastic demand, we believe the market may see several years of copper prices above $5 per pound. We remain confident there is material upside risk to our copper price assumptions. Globally, our favorite copper-levered mining equities are Xstrata and Freeport-McMoRan Copper & Gold. In our opinion, equity markets continue to underappreciate the barriers to entry inherent in mining and the prospects for an extended period of high prices..."
"And, we see potential for prices to remain at elevated levels for several years as the lead time to bring online new supply is lengthening, even for the majors. We believe high-cost Chinese iron ore capacity (production costs greater than $140 per tonne) will be needed to balance the market for the foreseeable future, which should be supportive of higher than expected prices. Our preferred iron ore leveraged equities in our global coverage are Vale and Rio Tinto ..."
Xstrata closed Tuesday at 1,510.00, up 4.50, or 0.30 percent. Vale closed at $35.82, up $0.69, or 1.96 percent. Rio Tinto ended the session at $71.08, down $0.52, or 0.73 percent. Freeport closed the trading day at $118.75, losing $0.83, or 0.69 percent.
Barclays said, "While there has been much concern in the market recently that copper has become a speculative bubble, we disagree. We remain confident in our long-held bullish copper thesis. In our opinion, many observers continue to underestimate the difficulty the mining industry is likely to face growing copper supply. The projects that are likely to be constructed in coming years are much smaller in scale and far more capital intensive than the projects developed in the 1990s..."
"As we have said for some time, with limited supply growth and inelastic demand, we believe the market may see several years of copper prices above $5 per pound. We remain confident there is material upside risk to our copper price assumptions. Globally, our favorite copper-levered mining equities are Xstrata and Freeport-McMoRan Copper & Gold. In our opinion, equity markets continue to underappreciate the barriers to entry inherent in mining and the prospects for an extended period of high prices..."
"And, we see potential for prices to remain at elevated levels for several years as the lead time to bring online new supply is lengthening, even for the majors. We believe high-cost Chinese iron ore capacity (production costs greater than $140 per tonne) will be needed to balance the market for the foreseeable future, which should be supportive of higher than expected prices. Our preferred iron ore leveraged equities in our global coverage are Vale and Rio Tinto ..."
Xstrata closed Tuesday at 1,510.00, up 4.50, or 0.30 percent. Vale closed at $35.82, up $0.69, or 1.96 percent. Rio Tinto ended the session at $71.08, down $0.52, or 0.73 percent. Freeport closed the trading day at $118.75, losing $0.83, or 0.69 percent.
Wednesday, December 15, 2010
BHP (NYSE:BHP), Rio Tinto (NYSE:RIO), Xstrata, Looking For Better Deals in Obscure Regions
BHP Billiton Ltd. (NYSE:BHP), Rio Tinto Group (NYSE:RIO) and Xstrata Plc have been expanding their search for new deals by focusing on more obscure regions for acquisition, in light of the high commodity prices and valuations of companies.
They are particularly looking for emerging markets as their next growth target.
Mining acquisitions have soared in 2010, rising to about $132 billion. Miners have had to pay on average a 23 percent premium under the strong market conditions.
That was about double what companies located in Africa, the Middle East and Latin America went for.
Companies with strong exposure to gold, copper and coal are the more desirable candidates to be acquired, according to Sanford C. Bernstein & Co.
More important companies named as takeover targets are Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) and Ivanhoe Mines Ltd. (NYSE:IVN).
They have a strong presence in emerging markets, but they definitely wouldn't come cheap in the commodity environment we're now in, somewhat going against the grain of the overall acquisition strategy.
Ivanhoe especially has some extraordinary upside, and are considered to be one of the leading candidates to become one of the top miners in the world, based on their Mongolian assets.
With the soaring commodity prices, large-cap miners are flush with cash and looking for new revenue streams to push out revenue far into the future.
They are particularly looking for emerging markets as their next growth target.
Mining acquisitions have soared in 2010, rising to about $132 billion. Miners have had to pay on average a 23 percent premium under the strong market conditions.
That was about double what companies located in Africa, the Middle East and Latin America went for.
Companies with strong exposure to gold, copper and coal are the more desirable candidates to be acquired, according to Sanford C. Bernstein & Co.
More important companies named as takeover targets are Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) and Ivanhoe Mines Ltd. (NYSE:IVN).
They have a strong presence in emerging markets, but they definitely wouldn't come cheap in the commodity environment we're now in, somewhat going against the grain of the overall acquisition strategy.
Ivanhoe especially has some extraordinary upside, and are considered to be one of the leading candidates to become one of the top miners in the world, based on their Mongolian assets.
With the soaring commodity prices, large-cap miners are flush with cash and looking for new revenue streams to push out revenue far into the future.
Thursday, October 7, 2010
Morgan Stanley (NYSE:MS) Raises Gold Projection for 2011
As gold prices continue to break records on a weekly basis, projections continue to rise based on a number of factors, and Morgan Stanley (NYSE:MS) has raised its forecast for gold prices in response.
Morgan Stanley, "Accelerating weakness in the U.S. currency, driven by fears of renewed quantitative easing to confront sluggish U.S. growth, is proving to be a boon to commodity markets."
At a support level, Morgan sees gold holding at about $1,315 for 2011, while under a bull scenario rising to as high as $1,512.
Morgan noted they like other commodities and commondity stocks, including copper and iron ore. They see iron ore rising to $135 a ton in 2011.
Two copper companies they like are Kazakhmys Plc and Xstrata Plc.
Morgan Stanley, "Accelerating weakness in the U.S. currency, driven by fears of renewed quantitative easing to confront sluggish U.S. growth, is proving to be a boon to commodity markets."
At a support level, Morgan sees gold holding at about $1,315 for 2011, while under a bull scenario rising to as high as $1,512.
Morgan noted they like other commodities and commondity stocks, including copper and iron ore. They see iron ore rising to $135 a ton in 2011.
Two copper companies they like are Kazakhmys Plc and Xstrata Plc.
Thursday, March 25, 2010
Queensland Mining Corporation (ASE:QMN) Flamingo Resources
Queensland Mining Corporation Estimate Flamingo copper-gold
Queensland Mining Corporation (ASE:QMN) announced its estimate of the Flamingo copper-gold resource project. Shares in the company rose as identification of mineralization of a 300 meter long area reinforced company assertions in the past.
All resources have been classified as Inferred Resources at the site, and the estimate has been reported in compliance with the 2004 edition of the JORC Code.
Drilling by Xstrata (formerly Mount Isa Mines) in 1994, along with data garnered from drilling by QMC in 2009 was the basis of the resource estimate.
The drilling program to define the resources at the Flamingo copper-gold will start on April 7. The drilling will be 2,500 meters and will commence to find out the size of the resource and to expand the search of the overall area in the project targeted.
Queensland Mining Corporation (ASE:QMN) announced its estimate of the Flamingo copper-gold resource project. Shares in the company rose as identification of mineralization of a 300 meter long area reinforced company assertions in the past.
All resources have been classified as Inferred Resources at the site, and the estimate has been reported in compliance with the 2004 edition of the JORC Code.
Drilling by Xstrata (formerly Mount Isa Mines) in 1994, along with data garnered from drilling by QMC in 2009 was the basis of the resource estimate.
The drilling program to define the resources at the Flamingo copper-gold will start on April 7. The drilling will be 2,500 meters and will commence to find out the size of the resource and to expand the search of the overall area in the project targeted.
Thursday, March 11, 2010
Barrick Gold (TSE:ABX) Suing Xstrata
Barrick Gold wants to add Xstrata to Lawsuit
Barrick Gold is attempting to add Xstrata to a lawsuit over a Chilean mine.
The battle is over the attempt by New Gold Inc. to sell the property to Goldcorp.
Barrick sued Goldcorp and New Gold where Goldcorp agreed to advance New Gold $463 million to let it buy a 70 percent stake in the El Morro property from Xstrata Plc. Goldcorp also agreed to pay an additional $50 million to purchase the stake from New Gold, which already owned 30 percent and had right of first refusal.
The case centers around Xstrata agreeing to sell its stake in the property to Barrick for $465 million on Oct. 11, on the condition New Gold’s right of first refusal expired, according to Barrick. Since a shareholder agreement didn't allow the transfer of the stake to a third party, Goldcorp’s acquisition was illegal and Barrick was entitled to complete the transaction, according to Barrick.
Barrick Gold wants to add Xstrata to Lawsuit
Barrick Gold is attempting to add Xstrata to a lawsuit over a Chilean mine.
The battle is over the attempt by New Gold Inc. to sell the property to Goldcorp.
Barrick sued Goldcorp and New Gold where Goldcorp agreed to advance New Gold $463 million to let it buy a 70 percent stake in the El Morro property from Xstrata Plc. Goldcorp also agreed to pay an additional $50 million to purchase the stake from New Gold, which already owned 30 percent and had right of first refusal.
The case centers around Xstrata agreeing to sell its stake in the property to Barrick for $465 million on Oct. 11, on the condition New Gold’s right of first refusal expired, according to Barrick. Since a shareholder agreement didn't allow the transfer of the stake to a third party, Goldcorp’s acquisition was illegal and Barrick was entitled to complete the transaction, according to Barrick.
Barrick Gold wants to add Xstrata to Lawsuit
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