TNM names 2024 award winners: Jack and Adam Lundin, Amparo Cornejo, and Ross Beaty
The Northern Miner has named Jack and Adam Lundin as its Persons of the Year for 2024.
Despite suffering a major setback for its flagship project on Monday, Canadian miner Gabriel Resources (TSX: GBU) hasn’t given up on its massive gold mine in Rosia Montana, Romania, even though it will now cost the firm an estimated US$1.5 billion to bring it into production and cash flow positive.
Delivering its third-quarter financial report Friday, the Toronto-based company said Rosia Montana’s cost is now about $100 million higher than the estimate of US$1.4 billion in October 2012.
The miner reiterated the parliamentary commission tasked with reviewing the project did not reject the plans. Rather, the commission found that existing mining laws are not broad enough to make decisions on gold and silver mines in Romania.
“Gabriel will now assess the impact of the report and the government’s revised strategy on initiating and implementing a new framework legislation for gold and silver mining,” President and CEO Jonathan Henry said in a statement.
He added the company has initiated a defamation suit in response to “completely ungrounded accusations made before the Special Committee concerning the falsification of certain maps relating to the Corna Valley basin and will examine all possible legal action to counter such unfounded allegations and protect its rights.”
While the firm isn’t generating revenue from operations, it said it had $56.2 million of cash and cash equivalents as of Sept. 30.
During the quarter, it received a refund equivalent to $4 million from Romanian authorities in respect to taxes, penalties and interest.
Net profit for the three months was $2.1 million.
16 Comments
rosiamontananews
To be clear: the Special Commission’s rejection of the Draft Law was not a rejection of the Roşia Montană mining project.
In fact, the Commission concluded that the wording of the Draft Law
was inadequate. Instead, they recommended that a new legislative
framework be put in place for the implementation of large scale mining
projects across Romania.
This has the potential to be great news for the people of Roşia
Montană, the vast majority of whom, as we know, are in favour of the
project. And for the Romanian economy which, as we know, stands to
receive a direct contribution of $5.3bn USD from the project (at an
assumed gold price of $1,200/oz).
What was encouraging about the Special Commission report was that it recognises the huge importance of mining in Romania. For more facts and figures go to http://www.rosiamontananews.com
Rose_Mountain
That is exactly what the Mining.com article says… Looking for traffic to your site?
Chris Hvid
Sounds like the Rob Ford of gold mining. I’ll stick to my Rubicon thanks.
frankinca
Good lesson for junior miners and the time it takes to make MOST people happy. The lengthening of the time or mine life seems to be a concern to some. Love um and leave um is not what a country wants. Secure jobs for a decade at least gets votes, and the savings of a slower ramp-up to maximum output can be considered. Not an investors ideal but there is always a price to pay for almost a sure thing. With easy money around, the company wants to get the financing done now, at good rates, which is sensible.
Leonid Budge
$457 million in taxes
$590 million in royalties
$1.246 billion to the State as dividends
$3,257 million in wages, salaries, fuel, consumbale, mostly spent in Romania
$2,101 million in capital
Gabriel get to keep 26% of the revenue
Leonid Budge
Romania desperately needs this development. The average wages per day
is less than most in Canada spend on a good bottle of wine. romania is
the poorest country in Europe. Romania needs money for health care and
money for education. What Romania DOES NOT need is more poorly paid
jobs picking mushroom and seasonal berries. Romania need well paid jobs
that make a contrinution to romanian society it needs Rosia Montana and
it needs it today.
filip
and we will remain the poorest country in Europe unless we attract significant levels of foreign investment. Restarting the mining industry is an excellent opportunity for our country!
Leonid Budge
Gabriel Resources simply needs to be persistent. the Government of
Romania knows that it must develop Rosia Montana or close the door on
massive opportunity. The direct and indirect contributions to the
romanian Economy are likely more than $30 billion dollars. Romania can
not walk away from an environmentally good project – a project which
cleans up a mess from mining dating back to Roman times.
Be patient Gabriel you will succeed and the people of Romania will be forever grateful for the contrinution to their society
Leonid Budge
This mine will be built – it is simply in the best interests of the people of Romania – and the Government knows this.
Leonid Budge
If the Government did not support this mine development – then why have they been so quick to move a new law through the Parliament. Rosia Montana should start placing orders for long lead items this week.
Leonid Budge
Here is my analysis using the
update RM CAPEX data increased state interest and increased royalty and
based upon current gold price.
CAPEX including sustaining capital and environmental bond: $2,347 million
Revenue $10,340
Direct costs: $3,257 billion
Royalties: $626 million
Taxes: $500 million
State Cashflow (pre-financing): 972 million
RM Cashflow (prefinancing): $2916 billion
Financial Metrics for Gabriel Interest:
NPV @ 10% – $ 617 million
IRR – 19%
The project gives a reasonable return for the risk for a huge investment.
The benefits to Romania are enormous. Let me explain a little about
GDP impact from a point source like the RM project. GDP from a single
from a single project is the market value of all the FINAL goods and
services produced from that project over the life of the project. GDP
impact is not merely the immediate inputs from the project but the
downstream impacts of those unputs. e.g. an employ gets paid (that is a
direct cost), he then spends his income to purchase a service, the
service provider then purchases additional inputs to be able to provide
the service etc etc.
The net impact on GDP of a project like RM is 4-6 times the original
input to the economy. Hence the figure reported as $24 billion . This
was however based upon a gold price of US$ 900 not the current price
hence the higher number.
This project not only poses a small environmental risk – very small –
but it cleans up mess created by Roman age to socialist era mining and
processing activity.
This project is the best thing to happen to Western Romanian in 3 generations.
Leonid Budge
Balkanska
More independent scientific study to undermine Rosia Montana Mining project. http://www.miningwatch.ca/sites/www.miningwatch.ca/files/rosia_montana_rem_rpt_final_8-21-06.pdf
Leonid Budge
The level of spam on this comments on this page is becoming absurd. Seems that once the left has stopped personal and abusive attacks on the writer they simply report to long repetitive cut and past posts of other peoples materials. Are you Incapable of independent thought: Certainly looks like it.
Leonid Budge
Eldorado gold has announced an updated resource estimate for the Certje deposit near rosia Montana. It contains 6 million ounces of gold. when Rosia Montana gets developed this will be the next project to get built and add to the revitalisation of the region. It will create yet more direct and indirect employment opportunities.
If however RM is not permitted this opportunity will also be delayed and the impact on romania will be very grave.
Leonid Budge
Down there in Greece Eldorado are going well after the terrorits attack by the eco-anarchists of the left. At Olympias they treated tailings and cleaned up a mess from historic mining activity and put it into a modern engineered tailings disposal facility. At Skouries General earthworks in the plant site area and site clearing of the first tailings dam footprint continued during the quarter. The main decline work advanced as planned, with a total of 115 meters completed. Geotechnical investigations to support underground and open pit designs
progressed during the quarter.
The Stratoni-Olympias 8km decline advanced 55 meters during the quarter,
putting the face at 1,242 meters. Water inflow increased during the
quarter, impacting the rate of advance and requiring cover grouting to
slow the inflow. More extensive controls will be implemented during the
fourth quarter to deal with anticipated continuing inflow. Olympias mine
rehabilitation and development advanced 212 meters and 270 meters,
respectively, as the pace of hiring and new employee training increased
during the quarter to meet the mines objectives.
Leonid Budge
Companies like Gabriel are important to the economy. They drive growth and create jobs. At this time of the year year its important to praise their important role in the economy and to praise the endeavours of business people who work long and hard to create a better world.