Gold touches over three-week high, palladium hits 17-year peak

Toronto-based Crocodile Gold Corp swung into a quarterly loss of over $6 million on flat revenues of $30 million and lowered its gold production forecast for 2011 on expectations of much lower-than-expected grades at its open pit mines in Australia's Northern Territory. Crocodile cut its gold production outlook for the year to 66,000 – 69,000 ounces at a cash cost of $1,400 – $1,500 per ounce in 2011, from its earlier forecast of 85,000 – 100,000 ounces, with a cash cost of $875 – $975 per ounce. The bad news sent the company's stock down 25% at 40.5c by Friday's close on the Toronto Stock Exchange bringing its year to date losses to a whopping 73%.

According to a new report by MarketWatch, gold's allure is shifting to a new generation. Many people in their 20s and 30s have little faith in equities and, unlike older investors, are more inclined to consider alternative investments. Others seek tangible, hard assets as a counterweight to stocks, bonds and cash in the aftermath of the 2008 US financial crisis. And these new investors are not just gold hoarders of the doomsday variety.

Reuters reports Canadian gold miner IAMGold is on the look-out for acquisitions and while it is not itself up for sale, its chief executive said on Friday the company represents good value right now. IAMGold has in the past said interested in various stage projects, from exploration through to production and just over the last fortnight has put money into three South American juniors. IAMGold produces roughly 1 million ounces per year from operations in Africa and North and South America and sees bullion topping out at $2,000 an ounce this year or next from current levels around $1,790.

Rainy River Resources' received a 3.2% bump on Friday after the Toronto-based company released a highly positive preliminary economic assessment of its property in Western Ontario. Friday's move also came after Canaccord Genuity upgraded the stock to speculative buy. Rainy River is up more than 9% over the last two days and is worth some $600 million on the Toronto big board. The study envisions an open pit and underground operation that would have life-of-mine average annual production of 329,000 oz of gold and 497,000 oz of silver. In the first four years of the 13-year mine-life, the average cash cost net of silver credits is estimated at $417/oz of gold generating over $1.6 billion free cash flow at current metal prices.

While peace in Afghanistan still looks to be a utopian dream, AFP reports that developing nations like China and India are eager to make resource deals in the troubled country even before the guns fall silent: While an end to the fighting seems remote for now, mining lots are being quickly parcelled out among Afghanistan's resource-hungry neighbours, potentially sparking a new "Great Game" for control of its battle-worn ground. According to mining ministry documents seen by AFP, Afghanistan is planning to sell extraction rights for up to five mines every year until the departure of the last foreign combat troops in 2014 -- a rattling pace, say experts.

Treasury Metals (TSE:TML) failed to generate excitement this week from news that it has doubled the resource estimate at its Goliath gold project near Dryden, Ontario. The stock barely moved on Wednesday, opening and closing at $1.05. It was down around 5 cents in mid-day trading on Thursday.

Caledonia Mining, an African focused mining and exploration company with a mine in Zimbabwe, shot up 20% to 11 cents a share after announcing a six-fold increase in profits in Q3. The company said that gross profit was $9.36 million compared to $1.607 million in the comparative quarter. "This is almost a six-fold increase on the comparative quarter and is the seventh consecutive quarterly increase in gross profit," said the company in a statement.

Minera Andes, an exploration company looking for gold, silver and copper in Argentina, announced net income of $6.8 million in Q3 compared to a $5.6 million loss during the same period a year ago. The company also reported that it has US$45 million in cash as at September 30, 2011 with no debt. The company, which has a 49% ownership interest of the San José Mine, attributed the gain to high gold and silver prices.

Gold for December delivery only briefly broke the psychologically important $1,800/oz level on Wednesday and in after hours trade pulled back sharply to trade at $1,770.50. Gold failed to take advantage of its traditional role as a hedge against inflation and a safe haven in troubled economic times, despite European Union finance ministers failing to make progress on ways to shore up the zone's sagging banks and Italy's deepening credit crisis. Bullion's failure to build on a three-day rally also comes after data out this week showed a quickening in demand from China's consumers who bought a record 56.9 tonnes in September, a sixfold increase year-on-year.