The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Nomura slashes gold price estimate, sees significant headwinds 10:52 am by Philip Whiterow The Japanese broker today suggested the gold price could go as low as US$1,025 in the next six months. After last year’s unbridled optimism, gold analysts are now seemingly locked into a race to the bottom in their predictions for the gold price. US heavyweight Goldmans Sachs chopped its estimate for 2013 by 5% to US$1,787 an ounce and to US$1,200 longer term earlier in the week, but this has been comfortably topped by Nomura. The Japanese broker today suggested the gold price could go as low as US$1,025 in the next six months, a drop of a third from the current US$1,580 spot level. It’s a far cry from three months ago, when a third burst of US monetary easing led to predictions gold would hit US1,800, move to US$2,000 and possibly go as high as US$2,500 by the close of 2013. Few are saying that now, least of all Nomura. What’s happened is a dive in investment demand, according to the broker, It estimates total investment demand in gold over the last four years increased to an average US$60.6bn per annum, up from US$12.5bn in the previous four. Early indications of gold investment are weak so far in 2013 due to the growing confidence in the global economy, low inflation and an increasing doubt over how long the accommodative US monetary policies will continue. These all add up to significant headwinds to gold investment and the potential for much more downside in the price from current levels, suggests analyst Tyler Broda. If investment demand does nothing more than mark time, Broda sees an average gold price over the year of US$1,350, but anything worse than that would push prices much lower and possibly down to US$1,025, with the first half seeing the worst of the fall. Physical demand from China and India could provide some support, but Nomura says this is hard to assess. Longer-term, Broda is more bullish and still expects higher gold prices driven by central bank buying, unforeseen events and the US fiscal outlook. Strong demand for jewellery will also help offset the weak investment over time, while supply will be constrained if the miners' switch their focus to boosting returns rather than growth.
Citigroup’s metals experts heaped more misery on the precious metals sector today with a raft of downgrades on top tier miners. Fresnillo (LON:FRES) and Randgold Resources (LON:RRS) were the main victims as Citi cut them to ‘sell’ from ‘neutral’, with shares tumbling 2.6% and 3.3% respectively. The heavyweight broker now no longer believes any UK gold and silver stocks are worth a ‘buy’ tag. “We have been concerned about gold and silver prices for some time and the recent further loss of momentum has concerned us even more,” said analyst Jon Bergtheil. On Monday, the mining tipster urged investors to switch from precious metals to industrial metals stocks. “We rated Fresnillo and Randgold Neutral at that time [October 25], and were unwilling downgrade them to Sell despite our valuation concerns,” Begtheil continued. “We have been waiting for gold to lose further momentum before doing that and we feel that the time has now arrived.”
Tiddlers spring to mind!
He means Mrs H! Lol
for the technicals!...no kilt long enough eh!....lol
MINING CODE CHANGES POSE THREAT TO FUTURE INVESTMENT IN AFRICA Cape Town, 5 February 2013 - Mining code changes proposed by a number of African countries will deter further investment there, Randgold Resources chief executive Mark Bristow cautioned today. Speaking at the Mining Indaba, Bristow said that with gold exploration and mining shifting from the developed countries to the world's emerging prospective regions, Africa had to compete for investment with South America, Asia, the Pacific Rim, Eastern Europe and Russia. While Africa had the advantage of great mineral wealth, its competitors generally had better infrastructures, greater skills pools and more sophisticated economies. Bristow pointed out that in the countries where Randgold has operations - Mali, the Côte d'Ivoire and the Democratic Republic of Congo - the present mining codes returned a substantial slice of the net revenue pie to the State in spite of the fact that Randgold had funded the entire discovery and development cost and carried all the risks. "The host country is already a significant if not the main beneficiary of its mining activities. That is why it is disturbing that there is a growing tendency among the sub-Saharan mining countries to want more without giving anything back. Even a moderate change in their current codes will diminish these countries' ability to compete for direct fixed investment or to encourage reinvestment," Bristow said. "There's a much better way for these countries to get more from their mining industries, and that is to participate positively in the value creation process. As we've seen only too often in the mining industry, mergers and acquisitions hardly ever deliver value to shareholders, let alone other stakeholders. Real value, as I believe Randgold has demonstrated over the years, is created by the discovery of multi-million ounce gold deposits and their development into profitable mines. Governments' role in this should be firstly to provide a stable, business-friendly regime that will attract or at least not drive away investors, and then to partner the mining company in the development cycle, helping to drive the project up the value curve and sharing fairly in its proceeds."
Hicks..yeah agree...stick to what I know...works so much better...therefore..NKOTB...has to be the one to touch his toes!!!!..lol
well got my little behind skelped here today!!! bought today at 6117 and then 6088....but sold out way way too early....proceeded to trade throughout the day and ended up..over all but if i'd just held those 1st 2 purchases of the day and sold at 64ish...ah well never mind...you all sorted for the wedding....no nobbly bits on show I hope!!!!
Mr. Bristow said that in 2014, the company expects to produce 650,000 ounces from Loulo and 550,000 ounces from its Congolese Kibali mine. If Tongon gets to 300,000 ounces "we will go well over a million ounces," he said. "Our milestone has been to break 1.2 million ounces by 2015. We could well break it by next year," he said. Mr. Bristow noted that cash costs rose about 7% to $735 a troy ounce in 2012 but said this was lower than for its peers. "We haven't gone up as much as everyone else," he said. The company now expects its cash cost per ounce to range around $700 to $750 in 2013 and then drop to its target of $600 in 2015. Mr. Bristow said that the 6% increase in cost of the Kibali gold project to $1.66 billion from $1.57 billion is in line with revised capital spending by its partner, AngloGold Ashanti Ltd (ANG.JO), and shouldn't result in "any panic attack." http://www.marketwatch.com/story/randgold-ceo-expects-to-exceed-gold-output-target-2013-02-04-54853318
Results for the fourth quarter and the full year, published today, show profit for the year up 16% at US$511 million and production up 14% at 794 844 ounces of gold. Quarter on quarter, profit increased by 18% and production by 5%. Cash and gold on hand at the year end amounted to US$403 million despite capital expenditure of US$563 million, mainly on the Kibali project. The board has proposed a 25% increase in the annual dividend to 50 US cents for shareholder approval at the annual general meeting. http://www.investegate.co.uk/randgold-resources-(rrs)/rns/q4-results-and-updates/201302040700089865W/
Hope we don't get our bahookie's slapped the morrow!... You got your alarm set nice and early Nkotb?
Thanks yeah still in kmr missed the recovery on pfp last time hesitated was off on a trip up north ... stopped at Gretna looked and should have bought so at current levels tempted to buy £200 just incase! Nothing ventured nothing gained! Realise it's very risky! NKOTB... Yeah gofer!.. Go for this go for that.... Trouble is takes him a week to just get there
I'm half in and half out here so either way tomorrow I'm happy.. But Ideal scenario for me dip under 60 ... top up...then a recovery upwards!
Old men are usually far easier to wind up Imo...lol... :0).... Wonder!... Yes guess thats all you can do at your age..bet I can walk faster than you 2 can run!.... 2 against 1 very unsporting behaviour gentlemen, Hicks pfp? Worth a small punt. Or still far too risky
For Monday then?... Up or down... Or the usual roller coaster!
Agree with everything you said and thats why im holding onto my cash...atm... Still trading this for small amounts but all adds up!... philski... Lol...blast from the past
Thanks :0) yeah already have Rio... Fres out of my price range atm last bought in the 14's so reluctant to pay £2 more! Lol...Kaz never owned but have looked once or twice a while back..got a few of yours on my watch list but not buying yet!. Thanks again... Up 25%....well done!
Do you know anything about Aureus Mining?...thanks in advance Bank of America Merrill Lynch The broker likes Randgold Resources (LON:RRS) among the majors and fancies Aureus Mining (LON:AUE) as a cheap alternative.
Plant Health Care plc, a leading provider of innovative patent-protected biological products to global agriculture markets, announces 2012 trial results which once again demonstrated that its Harpin seed treatment delivers substantial yield increases when combined with industry standard seed treatments in corn, soybeans and wheat, the United States' three largest-area field crops. Soybean treated with Harpin in addition to other leading market products produced an additional two bushels per acre. This is equivalent to an uplift in yield of approximately 3.5%, worth $25 per acre at current market prices1. This indicates an 8:1 return on US farmers' investment in Harpin. In corn, the use of Harpin increased yields over base insecticide and fungicide treatments by 18.6 bushels per acre, offering potential incremental revenue of $111 per acre1. In wheat, the use of Harpin added 2.8 bushels per acre in average yield beyond that achieved from a treatment consisting of only insecticide and fungicide. This would equate to additional revenue of $23 per acre1. Field trials were conducted as part of Direct Enterprise, Inc.'s (DEI's) annual comprehensive seed treatment study and involved evaluation by independent contract researchers across 14 states using the Random Complete Block design, with three replications per treatment at each location. John Brady, CEO of Plant Health Care, commented: "These results clearly demonstrate that Harpin delivers an incremental yield beyond that which can be achieved using other market-leading treatments. We are very pleased with the corn and wheat data that came through the expanded 2012 testing program, while acknowledging that the corn results are extremely favorable as a consequence of the severe drought conditions experienced across much of the Midwest. While we're aware of the favorable effects that harpin can deliver in the presence of drought, we realize that similar conditions aren't likely to occur every year, and that the yield gains in corn will, under normal growing conditions, likely drop back into the three to five percent range that's consistent with what was seen in soybeans and wheat. "As a result of DEI's aggressive marketing and product demonstration trials, Harpin's use as a seed treatment on Soybeans climbed to over 3.0 million acres in the 2012 US growing season, or about 4% of total US soybean crops, compared to 800,000 acres in 2011. We are experiencing growth into the corn seed treatment market for the 2013 season. "We appreciate DEI's decision to include Harpin in their annual seed treatment evaluation program once again, and we anticipate another year of substantial growth for Harpin-treated seed http://www.investegate.co.uk/plant-health-care/rns/harpin-field-trials-results/201301240930012700W/
Resurrected even... Thought you were on the stock pile of banished posters... Dont believe the hype eh!... Lol