Alcoa beats profit estimates on strength in alumina segment

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.

A proposed coal mine near Hudson's Hope, BC, got a billion-dollar shot in the arm today. The BC government reports that CKD Mines, which is developing the Gething metallurgical coal project, will receive $1.36 billion through two separate investments coming from Chinese companies — the first, $860 million, is from CKD Mines, a partnership formed in 2010 that includes the Kailuan Group Co., Ltd, Shougang Group and Canadian Dehua International Mines Group Inc.

Iron ore prices have turned around after crashing 30% in October, but longer term the outlook is not rosy for smaller players thanks in large part to the aggressive go-to-market strategy of the big three.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 9, 2011) - Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) ("Silvercorp" or the "Company") today announced that its Board of Directors has increased the amount of its quarterly dividend by 25%, from CAD$0.02 per share (CAD$0.08 annualized) to CAD$0.025 per share (CAD$0.10 annualized). The Company first began paying dividends in 2007 with an annual dividend of $0.05.

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%.

Silvercorp Metals on Tuesday reported revenue of $62.1 million for its second quarter, up 71% from the same period last year. Cash flow from operations hit a record $35.2 million, or $0.20 per share, up 140% from 2011 while net income of $18.5 million, or $0.11 per share, showed a 49% increase. Silver production of 1.4 million ounces rose a disappointing 4% but gold production shot up to 2,516 ounces. Silvercorp said it continues to maintain its low cost producer status with a cash production cost per ounce of silver of negative $4.55.

A temporary production stoppage by China's largest rare earth exporter makes the creation of an American rare earth stockpile more likely, according to a report by dealReporter that appeared in yesterday's FT. The stoppage was a "wake-up call" for the US Department of Defense because the rare earth elements are needed for a variety of defense applications, writes dealReporter, citing a congressional source. The article quotes congressional sources and three rare earth companies saying that "the creation of a US rare earth strategic reserve is more likely to get the go-ahead after (Inner Mongolia Baotou Steel Rare-Earth (SHA:600111)) halted production. Such a move would create another source of demand for the metals, likely aiding a rebirth of the US rare earths industry."

Minmetals is not finished acquiring companies to add to its stable of base metal mines, according to Bloomberg. The state-run Chinese miner, with operations in Australia and Laos, a month ago snapped up Anvil Mining for $1.3 billion, thus expanding its reach into Africa. Anvil’s key asset is the Kinsevere mine, located in the Democratic Republic of Congo. Bloomberg reports the firm is planning more takeovers because it needs to extend the life of its mines and boost valuations. Minmetals' stock is undervalued compared to other comparable raw materials producers and consummating more deals would help raise its valuation, says the story, quoting a manager at First Asset Investment Management Inc.:

The cash at the world's top six mining companies is estimated to top out at $144 billion by end 2013 and M&A activity this year is already up 67% over 2010. The gold sector has been leading the frenzy and the stock market is where they will be looking to find additional ounces.