Junior explorers may be underperforming the gold price this year, but Macquarie Capital Markets Equity Analyst Michael Gray is finding opportunities for mergers and acquisitions within the precious metals space.
Lundin Mining (TSE:LUN) said Monday that higher grades of ore and a ramp up of production is expected to boost zinc and copper production in 2013 and 2014.
Anglo American said on Tuesday its board had approved the $1.7 billion Grosvenor metallurgical coal project in Queensland, Australia, which is expected to produce five million tonnes per year over a projected life of 26 years. The London-based diversified miner said it plans to triple production of met coal in Australia over the next 8 years.
Lonmin joined AngloPlat and Implats, this week signing a far-reaching two year wage pact ensuring a steady supply from Southern Africa where 75% of platinum is produced. The price of platinum has crashed from $1,915/oz in August as PGMs come under pressure due to sagging demand from the automobile sector which is slashing use of the precious metals to cut costs. And miners reducing supply to up prices is unlikely say analysts.
The Philippines will offer 30 coal exploration projects in the central and northern provinces, where mining is not yet banned that may need total investments of $600 million at a tender to be held in the first quarter of 2012.
Environmental groups are calling for the withdrawal of a Norwegian firm seeking to mine for nickel in Mindoro after it was found in violation of guidelines for multinational enterprises established by the Organization for Economic Cooperation and Development.
Rockland Minerals Corp has completed the definitive agreement for the Blue Lake copper-nickel-platinum group metals project.
North American stock exchanges are on a tear today after central banks made more funds available to lenders, giving investors hope for a way out of the European debt debacle. The markets were also cheered by better than expected private sector job growth in the United States. The mining-heavy S&P/TSX Composite was up 2.5% to just over 12,000 at time of writing. The Dow Jones Industrial Average gained 384 points, or 3.3%, the most on a closing basis since Aug. 11, according to Bloomberg. Spot gold was up $32 from yesterday to $1747 which is just above the 20-day moving average of $1744, noted Kitco. Silver was up marginally to $32.86 from yesterday's $31.92, while benchmark copper was up more than 5% to a two-week high of $7,885/tonne. Zinc, lead, aluminum and nickel were also up from Tuesday.
Miners are looking to enter the potash business, or expand existing operations, as they look for increased demand from developing nations such as China, India and Brazil.
Franco-Nevada Corporation (the "Company") (NYSE: FNV) (TSX: FNV) announced today the closing of its previously announced public offering (the "Offering") of 9,200,000 common shares ("Offered Shares"), including the full exercise of the over-allotment option, at a price of C$42.50 per Offered Share for aggregate gross proceeds to the Company of C$391,000,000.