Gold Production

Carlos Slim Catches Gold Fever

Carlos Slim Catches Gold Fever

Carlos Slim beat both Warren Buffett and Bill Gates in stock market performance last year. The reason: a hell-bent plan to start a brand-new gold and silver mining company in Mexico. Slim’s publicly disclosed holdings jumped 37% to $70 billion in 2010, according to data compiled by Bloomberg . Meanwhile, Buffett helped return a 22% gain for Berkshire Hathaway last year, and Gates’ Microsoft fell, hurting his overall annual returns even as he spread his investments into other sectors… The World’s Richest Man catches gold fever Slim — who made his fortune by building one of the world’s biggest telecommunication empires — has recently been making significant investments in gold and silver, particularly with a focus on precious metal mining in Mexico. Carlos Slim became the world’s richest man in 2010 with an estimated net worth of $55 billion. And a new spin-off mining company may help him widen his lead atop the global wealth list… Back in August, Slim’s holding company, Grupo Carso, S.A.B. de C.V., announced it would spin off a new precious metal mining company that would be focused on gold and silver mining in Mexico. The news added billions to Slim’s already ridiculous fortune as the plan to spin off the new company sent shares of Grupo Carso soaring in 2010, making it his best-performing asset last year. The new company (called Minera Frisco) produced nearly 200,000 ounces of gold and 5.5 million ounces of silver from its Mexican projects in 2010. Frisco recently reported plans to spend nearly $750 million this year to ramp up gold and silver production. The company estimates production from new mines in Mexico will more than double the company’s gold production to 440,000 ounces and nearly quadruple its silver production to 19.1 million ounces in 2011. Shares of Minera Frisco began trading Mexican Stock Exchange at the beginning of this year. But Slim and his family received nearly 80% of the new shares of Minera Frisco, and the stock is very thinly traded. Most analysts and investors will most likely avoid covering or owning this stock… However, there are many suitable alternative companies with a focus on gold and silver mining in Mexico. The largest of Minera Frisco’s publicly-traded competitors is the London-based silver major Fresnillo plc (LON: FRES) . Fresnillo plc Exchange: Symbol London: FRES P/E 39.76 Share Price 1,450 GBX Divided 5.90 GBX Market Cap 10.41 Billion GBP Yield 1.12% Fresnillo is the …

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Gold Prices to Rise Through 2010

Gold Prices to Rise Through 2010

Despite record-smashing prices, world gold demand is expected to remain robust. That means consumers are adapting to higher gold prices. It also suggests that investors are still optimistic the yellow metal will reach its inflation-adjusted high of over $2,500 an ounce as world gold production levels remain stagnant. Some even say that gold could reach $8,000-$10,000 an ounce; that means at the current level of about $1,350 an ounce, the bull market might only be less than 14% complete. And in just a second, I’ll tell you exactly how to squeeze the most from your gold investments in this bull market… World gold demand to remain strong through 2010 The global demand for gold is expected to remain vigorous throughout the rest of the year for three key reasons: Robust demand for gold jewelry in Asian markets; Strong gold investment demand as a result of economic and paper currency concerns. Heavy industrial gold demand for consumer electronics; and Gold jewelry demand is expected to increase approximately 11% this year despite record-breaking prices, lead by buying in India. In fact the demand for gold jewelry in India during the first three quarters of this year have already exceeded last year’s level. And the fourth quarter will offer seasonal support as Indians celebrate the traditional gold-buying festivals of Diwali and Dhanteras. Robust jewelry sales demonstrate the fact that consumers are becoming accustomed to higher price ranges. This could mean a new long-term price floor for gold above $1,000 an ounce. Increasing demand for gold for industrial applications also indicates a new price floor for gold. Industrial gold demand has returned to long-term trend levels and is expected to remain strong as economic growth …

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Eldorado (NYSE:EGO) Begins Iron Ore Shipments from Vila Nova

Already one of the top gold miners as measured by low costs, Eldorado Gold (NYSE:EGO) has launched its first shipment of iron ore from its Vila Nova Mine in Brazil, which could help lower gold production costs even more for the company.The first shipment included 45,000 tons of lump ore grading approximately 63% Fe, which was sold to the Chinese spot market, according to a press release from the

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Newmont (NYSE:NEM) Generates Record Revenue, Punished for Weak Guidance

Newmont Mining Corp. (NYSE:NEM) generated record revenue for the quarter and an increase in profits of 38 percent, yet were punished by the market for their guidance, which revealed production costs will rise and their annual gold production will drop.On the gold production side, Newmont dropped their estimated production range from 5.3 million to 5.5 million ounces to 5.3 million to 5.4 million

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The Definitive Guide to Gold Dividend Stocks

The Definitive Guide to Gold Dividend Stocks

It’s one of the biggest gripes among anti-gold investors: Gold bullion doesn’t pay a dividend, nor does it produce any other kind of income. However, there are several gold stocks that do pay dividends. And in just one minute, I’ll reveal the top three gold stocks that are currently paying the highest annual dividends. Plus, I’ll tell you about the top silver dividend-paying stock. But first, you need to understand something about gold dividend stocks… Gold dividend stocks Gold companies have never thrilled investors with their dividend payments. And investors looking for regular high-yield annual dividends of +5% aren’t going to find them among gold stocks. In fact the highest dividend yielding gold stock right now only offers a 2.5% annual return. But I’ve recently found over a dozen energy stocks alone that are paying 8% to 12% annual yields . Skimpy dividend payments keep gold stocks out of dividend funds. Typically, stocks need a minimum yield of about 2%, and have consistent dividend growth for 5 to 10 years to be considered candidates for the dividend investment category. Yet, while gold stocks have not historically offered much in the way of dividends, increasing commodity prices are prompting many gold companies to boost yields and even initiate new dividend programs. Dividends are rising among gold stocks Back in March, Yamana Gold (NYSE: AUY ) began to increase their dividend payment as the rising price of gold drove up revenue. Since that time, the company has doubled its dividend payments. Take a look: Yamana is currently paying a 0.80% annual dividend yield. Other gold companies are increasing their dividend payments as well. Recent gold stocks to boost dividend payouts include: Newcrest Mining (ASX: NCM ) increased their annual dividend this year by 33% to $0.20 per share after the company saw net profit more than double for the year. Kinross Gold (NYSE: KGC ) has kept the company’s semi-annual dividend steady for the past 12 months at $0.05 per share. However, it was increased 25% during the third quarter of 2009. AngloGold Ashanti (NYSE: AU ) dropped their most recent semi-annual dividend payment slightly from $0.092 to $0.09. However, the company has increased their semi-annual yield by 73% from the spring 2009 payment of just $0.052 per share. Newmont Mining (NYSE: NEM ) just raised their quarterly dividend by 50% from $0.10 to $0.15 per share as production revenue rose. Eldorado Gold (NYSE: EGO ) announced the inaugural annual dividend payment of $0.05 per share in February. Even with recent increases, dividend yields among gold stocks are still relatively low. Most annual dividend yields from the world’s largest gold companies are still under 1%. However, there are a few that pay a little more… The top 3 gold dividend stocks Company: Barrick Gold Annual Dividend: 1.05% Barrick Gold (NYSE: ABX ) just increased the company’s quarterly dividend by 20% to $0.12 per share as profits soar for the world’s largest gold firm. If Barrick maintains quarterly dividends at current levels, the company will pay a 1.05% annual dividend. Company: Gold Fields Annual Dividend: 1.25% Gold Fields (NYSE: GFI ) has raised and lowered its dividends based on revenue from the company’s major South African gold production and processing operations over the past several years. The stock is currently paying …

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African Barrick Gold (LSE:ABG) Becoming a Disaster

African Barrick Gold (LSE:ABG), the spin-off from Barrick Gold (NYSE:ABX), is becoming a disaster, as poor management and what appears to be a grossly incompetent human resources department are causing the company to lower production forecasts for the second time in the last 60 days or so. The inability to protect their assets and hire good people has caused the gold miner to lower their gold

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Eldorado (NYSE:EGO) and Low Cost Benefits

Eldorado Gold (NYSE:EGO) received a lot of attention recently when they were named as the fastest growing company in 2010 by Fortune, but growth isn’t the only strengh of Eldorado, as their low operational costs puts them in an enviable place. The two major benefits of any company with low costs advantage are the flexibility it has and the ability to navigate its way through difficult economic

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Gold Fields Targets Annual Production of 1 Million Ounces from South Deep

Gold Fields Targets Annual Production of 1 Million Ounces from South Deep

Gold Fields (NYSE: GFI ), one of the largest unhedged gold producers in the world, is working on plans to increase gold production at its South Deep Mine to 1 million ounces a year, making it South Africa’s largest gold mine. The South Deep Mine began initial gold production in December 2006 and produced 163,000 ounces of gold during it first year of production. In 2009, gold production from South Deep fell from the previous year to 175,000 ounces. This year, Gold Fields expects to increase South Deep gold production by 71% to 300,000 ounces. South Deep Mine The company is spending 8.5 billion South African rand (US$1.2 billion) to get the South Deep Mine into full production by 2014, when it is expected to yield 800,000 ounces a year. After that Gold Fields’ vice-president in charge of the South African region, Vishnu Pillay, says the company is looking at ways and means to bump gold production from the South Deep Mine over 1 million ounces per year. The company plans to increase annual gold production from all of is South African mines to 2.2 million ounces by 2015. However, some analysts doubt this target can be met. Referring to the 2.2 million ounce annual South African gold production target, Citigroup’s Johann Steyn wrote in July: In our view, achieving this target is unlikely as the majority of gold mining projects of late have taken between six to eight years to move from conceptual phase into production. Also, Gold Fields has struggled just to keep production constant over the past 10 years, despite previous growth ambitions and a fourfold increase in its capital expenditure. As a result, we cannot help but caution that these growth targets are unlikely to be achieved. Despite pessimism from some analysts, others are bullish on Gold Fields’ business strategy. Gold Fields was recently upgraded from Equal Weight to Overweight by Morgan Stanley. To reach the 800,000 ounce per year target, the company is upgrading its processing facility to handle 330,000 tonnes a month. To achieve the 1 million ounce per year target, Gold Fields will need to expand the South Deep plant capacity to process 450,000 tonnes a month. With a focus on Africa, and Australiasia, the company is an important exporter of gold to India, where the demand for the yellow metal is soaring as investors seek a safe haven against financial woes. I recently published a new report for Wealth Daily that discusses the investment highlights mining companies that are working in countries that export gold to India. You can read my latest report for free by clicking here or finding it on the Wealth Daily website called: India’s Gold Bull Market . Good Investing, Luke Burgess Editor, Wealth Daily Investment Director, Hard Money Millionaire and Underground Profits Gold Fields Targets Annual Production of 1 Million Ounces from South Deep originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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China’s Gold Production Drops in July

China’s Gold Production Drops in July

Chinese miner holds gold-bearing ore The production of gold in China fell to 31.059 tonnes in July according to the country’s Ministry of Industry and Information Technology. Gold production in China was 2.7% lower than June’s record production of 31.897 tonnes of gold, but was still 17.8% higher than production in July 2009 and the third highest month total ever. Output of gold from China during the half of 2010 totaled 159.240 tonnes, about 10% higher than the same period of last year. Here are China’s gold production figures for the first half of 2010 and July: China has been able to increase the output of gold each year since 2004, producing a total of 313.980 tonnes last year. But skyrocketing Chinese investment demand is quickly outstripping supply. In an effort to help the gold market meet rising demand, the Chinese government recently made further steps toward to the complete liberalization of the gold sector in China. In a recent free Wealth Daily report, I discuss how relaxed regulations on China’s gold industry could have dramatic effects in the fragile world supply/demand balance for gold, which could send gold prices surging higher. I also briefly talk about two junior gold stocks that are hoping to strike it rich with some very prospective gold properties in China. You can read my latest free report by clicking here or finding it on the Wealth Daily website called: China’s Gold Bull Market Good Investing, Luke Burgess Editor, Wealth Daily Investment Director, Hard Money Millionaire and Underground Profits P.S. To learn even more about China’s rapidly developing precious metal industry, check out another of my recent Wealth Daily articles called China’s Silver Bull Market . China’s Gold Production Drops in July originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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Barrick (NYSE:ABX), Newmont (NYSE:NEM) Drive Nevada Mining Costs Lower

Even though gold production in the state of Nevada fell for the first time in ten years, the state remains the sixth-largest gold producer in the world, still led by mining giants Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM). Nevada, which lags behind only China, South Africa, Australia, Russia and Peru in gold production, ended 2009 producing $5.1 billion in gold and silver combined.

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Credit Suisse (NYSE:CS) Raises Agnico (NYSE:AEM) Price Target

Agnico-Eagle Mines (NYSE:AEM) had its price target raised by Credit Suisse (NYSE:CS), increasing it to $79. Agnico was up to $64.74, gaining gaining $0.03, or 0.05 percent, at 3:21 PM EDT. Credit Suisse had a price target of $75 a share on the gold miner before their increase. In a note to clients, Credit Suisse said, “On Sept. 8, 2010, AEM provided an update on its 2010 exploration program.

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Top Five Russian Gold Stocks

Top Five Russian Gold Stocks

Russia is very rich in natural resources. Some estimates suggest that the total value of Russia’s natural resources exceed $200 trillion. So it’s no surprise that Russia is one of the world’s leading suppliers of gold. Russia is currently the world’s sixth-largest gold producing country with 11% of the world’s unmined gold reserves. But considering the country’s massive land expanse that covers 11 timezones, many geologists consider Russia to be the single largest unexplored gold region in the world, with large deposits only recently being discovered. Russia is the world’s top energy supplier. The country is the global leader in both crude oil and natural gas production. Russia is also the third-largest exporter of black coal, recently inking a deal to supply 475 tonnes of coal to China over the next 25 years . Estimates widely vary, but geologists estimate Russia to hold between 25% and 40% of the world’s unmined gold resources. Russia’s gold industry is highly fractured, with over 600 companies (half private) working in the sector. The country has increased total gold production 38% since the collapse of the Soviet Union in 1991. This year, Russia expects to increase gold production slightly to 6.6 million ounces. After that, experts predict the country will increase output to 7.9 million ounces by 2015. The development of large gold projects held by companies such as Kinross Gold (NYSE: KGC ) and Polyus Gold (OTCBB: OPYGY ) are projected to the main contributor to the increase in Russia gold production. Below you’ll find the top five public-traded Russian gold companies by production volume: Rank Company Exchange: Symbol¹ Share Price Market Cap Annual Russia Gold Production² Percent of Company Production Percent of Russian Production 1 Polyus Gold OTCBB: OPYGY US$26.00 US$9.9 Billion 1.26 million ounces 100% 19% 2 Kinross Gold NYSE: KGC US$16.50 US$11.6 Billion 694,000 ounces 31% 11% 3 Petropavlovsk LSE: POG £11.50 £2.2 Billion 487,000 ounces 100% 7% 4 Polymetal LSE: PMTL £14.00 £5.6 Billion 311,000 ounces 100% 5% 5 High River Gold Mines TSX: HRG C$1.00 C$800 Million 236,000 ounces 70% 4% ¹Most accessible to North American investors ²Figures from 2009 In my most recent report for Wealth Daily , I go into much more detail about Russia’s metals and mining industry and tell you how I think the best approach to investing in the country’s gold sector. You can read my report called The Definitive Guide to Russian Gold Stocks by simply clicking here . Good Investing, Luke Burgess Editor, Wealth Daily Investment Director, Hard Money Millionaire and Underground Profits Top Five Russian Gold Stocks originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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