Asia Gold-Demand firms ahead of Chinese New Year; India discounts widen

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.

Fortune Minerals (TSE:FT), the Ontario company behind a huge anthracite coal project in BC, has signed a cooperation agreement with a native group for its NICO gold--bismuth-copper project in the Northwest Territories, Canada. "The signing of this agreement expands on our existing long-term relationship with the Tlicho Government and the Tlicho people", said Fortune Minerals President Robin Goad. "The agreement lays the foundation for discussions on fundamental topics of interest such as the possible environmental and cultural impacts of the NICO Project on Tlicho owned lands."

CALGARY, ALBERTA--(Marketwire - Nov. 9, 2011) - Gold Royalties Corporation is pleased to announce that it has signed a binding letter agreement with Strategic Metals Ltd. (TSX-V: SMD) ("Strategic"). Under the terms of the letter agreement, Gold Royalties Corporation will acquire Strategic's net smelter royalty interests (the "Royalty Interests") in the Kink 3 mineral claim and the Northern Dancer tungsten-molybdenum property for $13.8 million, less any royalties earned on the Royalty Interests up to the closing date for the sale. "Having recently announced our expansion into Yukon with the acquisition of a royalty interest on the highly prospective Blende silver-zinc-lead deposit, Gold Royalties Corporation is very pleased to have reached this agreement with Strategic to add further high-quality Yukon mining royalties to our company. Combined with our existing royalty interests in Canada, we remain committed to the execution of our acquisition-focused business model and to our continued growth as an emerging royalty holder on mineral ore bodies in Canada," said Ryan Kalt, President of Gold Royalties Corporation.

AngloGold Ashanti posted record quarterly adjusted headline earnings* of $457m and boosted its dividend to improve cash returns to shareholders. Payouts to shareholders will now be made quarterly, instead of twice yearly. "Our power to generate earnings and strong cash flow is clear in these numbers," Chief Executive Officer Mark Cutifani said. "The upward jump in the dividend demonstrates the fundamental strength of the business and the market, while maintaining the ability to fund our growth pipeline."

Consumers made the most of the dip in the price of bullion and mainland China's gold purchases via Hong Kong hit a record 56.9 tonnes in September, a sixfold increase year-on-year and up 30% from August, according to figures released by the Hong Kong government and reported by the FT. Quarterly data from the Hong Kong census and statistics office showed the Middle Kingdom imported about 140 tonnes of gold via Hong Kong in the three months from July to September ahead of the festival season, more than the roughly 120 tonnes for the whole of 2010. Over the last decade China's share of total global demand for bullion has climbed from 6% to 18%.