Red Back

Weekend: A Digital Pearl Harbor

Welcome to the Wealth Daily Weekend Edition— our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles. From Sun Tzu to “Stormin’ Norman” Schwarzkopf, the goal of every military commander has always been pretty simple: to kill people and break things. Beat the other guy, and your name will find its way into the history books… The only thing that changes is the technology. From the longbow to the ballistic missile, the arms race is one that never sleeps. One of the fastest growing fronts in this struggle is in cyberspace. Today’s style of combat is geek versus geek. But don’t believe for a second that it’s not just as dangerous… Because while it doesn’t involve tanks or fighter squadrons, cyberwar’s ability to disrupt an enemy is just as effective, and often equally destructive. It’s war by other means — one that focuses on using computer code to strike an enemy’s Achilles’ heel. Full-scale cyberwar The recent discovery of a computer worm called Stuxnet is a perfect example of the damage a hacker armed with code can create. Using the “most advanced and aggressive malware in history,” cyberwarriors have now set Iran’s nuclear ambitions back by two years, according to most estimates. (Not surprisingly, Israel and the United States are at the top of the suspect list.) The worm itself attacked controllers critical to operations at Natanz, a sprawling enrichment site in Iran’s desert. As operators stared blankly at their screens, the bug’s centrifuges spun wildly out of control, tearing systems apart. “This was nearly as effective as a military strike, but even better since there are no fatalities and no full-blown war. From a military perspective, this was a huge success,” said Ralph Langer, a top German Security expert. “It will take two years for Iran to get back on track.” This is only the latest cyber skirmish… Back in 2007, Estonia fell victim to what Wired Magazine dubbed “Web War One”. Hounded by three weeks of digital assaults, Estonia’s electronic Maginot Line proved as feeble as the original. The country’s firewalls withered as a flood of data sent by the nation’s unknown opponents quickly crashed one system after another, crippling numerous vital public services. Websites of government ministries, banks, and newspapers all fell victim. And while the rest of the world watched the attacks with a combination of curiosity and indifference, military planners…

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Exodus from USD Subsides

Filed in commodities, dividend, euro, Gold, lead, Quantitative Easing, Red Back, sov, sovere by on September 23, 2010 0 Comments
Exodus from USD Subsides

In FX, it’s all about the QE2. Tuesday’s FOMC meeting has clearly trigger a mass exodus from the USD. Yesterday’s Portuguese auctions were a situation of a cup half full, at best, with a healthy bid to cover ratio, yet at a high price and overall spreads between peripherals and bonds remain wide. In addition EU industrial new orders fell off a cliff, printing at -2.4% m/m vs. -1.4% exp. So far this EU sovereign risk / weakness has been completely overlooked as traders scramble over each other to exit the USD. Its also important that this is not just a normal rally in risk correlated trades as commodities (barring gold) have been relatively sideways and US stock markets closed lower yesterday. We suspect that the recent EURUSD move should be now considered overdone since we really have not gotten any new information from the FOMC (policy shifts or economic forecasts) that had not been anticipated. We have been slightly surprised by the markets violent reaction to the Feds language, suggesting preparedness to ease again. Of course they stand ready; Bernanke has never implied that he would take QE off the table, in fact significantly he has said the opposite. Let us not forget that there are still considerable problems in the EU, which have been …

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Kinross (NYSE:KGC) CEO Says Tasiast Mine Production will Exceed Estimates

With the vote on whether or not Kinross Gold Corp. (NYSE:KGC) shareholders will give the go ahead for the proposed $6.6 billion acquisition of Red Back Mining Inc. (TSE:RBI), coming up, the focus is on the Tasiast mine, which will be the key to a successful transaction.Kinross Gold Corp. Chief Executive Officer Tye Burt has been out stumping for the deal to go through, saying the analysts’

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Kinross (NYSE:KGC) Acquires Rest of Red Back (TSE:RBI)

Kinross Gold Corporation (TSX:K)(NYSE:KGC) announced late Monday that they’ll be acquiring the rest of the common shares they don’t already own in Red Back Mining Inc. (TSX:RBI).On a fully diluted basis, the deal is valued at $7.1 billion.Shareholders in Red Back, per terms of the deal, will receive 1.778 Kinross common shares, plus 0.110 of a Kinross common share purchase warrant for each Red

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Red Back Mining (TSE:RBI) Drawing Acquisition Interest

The recent investment by Kinross Gold (NYSE: KGC) in Red Back Mining (OTC:RBIFF.PK) (TSE:RBI) has drawn the attention of industry watchers as to the possibility of Red Back being an acquisition or merger target.Red Back produced around 340,000 ounces of gold in 2009, and estimates it’ll produce about 485,000-525,000 ounces in 2010. Those production levels going forward is what makes the company

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Barrick (TSE:ABX), Red Back Mining (TSE:RBI), Iamgold (TSE:IMG) Down in Toronto

Barrick Gold (TSE:ABX), Red Back Mining (TSE:RBI), Iamgold (TSE:IMG) were all down today, as Candian stocks fell, led by commodities producers and banks. This is the first drop in the Canadian market in three days. This follows gold investors again selling off some of their gold and other precious metal holdings in order to cover equity losses. The dollar also rose in value, which put some

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Barrick Gold (TSE:ABX), Red Back Mining (TSE:RBI) Up, Eldorado Gold (TSE:ELD) Drops

Gold prices today were under pressure early, but found support over $1,200 an ounce, as gold mining stocks like Barrick Gold (TSE:ABX)(NYSE: ABX) and Red Back Mining (TSE:RBI) were up, especially Red Back, which surged by over 7 percent during the session, gaining $1.87 a share. Barrick was up modestly, rising a little over 0.50 a share, and gaining a little more in electronic trading.

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Kinross Gold (TSE:K) Invests Red Back (TSE:RBI)

Kinross Gold (TSE:K) has acquired 24 million shares of Red Back (TSE:RBI) in a private placement, an overall investment of $588 million. Kinross paid a slight premium for the shares, acquiring them at C$25 a share, a little above the C$24.46 close on the Toronto Stock Exchange. Recent acquisitions by Kinross include the Dvoinoye project in Russia, for which they paid $368 million, and gold

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