Seeking Alpha

Sufiy's  Instablog

Sufiy
Send Message
Sufiy is a Seeking Alpha contributor.
My blog:
Sufiy
  • Los Azules Copper - McEwen Mining And TNR Gold: Yamana Gold To Invest $450 Million In Argentine Mine MUX, TNR.v, LCC.v 0 comments
    Dec 9, 2013 2:33 PM | about stocks: ABX, TRRXF, MUX, GDX, GG, GLD, SLV, NEM, RGLD, AUY, SLW, FCX, RIO, BHP, TCK, VALE, SSRI, PAAS, NG, KGC, EGO, GDXJ, FXI, CU, BVN, PPP, GORO, ASM, HL

    It looks like the shift in Argentina for the better is happening for real this time. Rob McEwen has discussed it in his recent presentation and that in his opinion "we have seen the low in Argentina after a lot of disappointment". Shevron special Shale Oil deal, repayment to Repsol and now Yamana Gold investment are certainly the things we would like to see now after elections. Lumina copper is holding above CAD5.00 these days and McEwen Mining and TNR Gold should benefit from Los Azules copper revised valuation now.

     

    Copper M&A: Lumina Copper, McEwen Mining and TNR Gold LCC.v, MUX, TNR.v


    David Strand - CEO of Lumina Copper is discussing on BNN Taca Taca Copper project, copper market, situation in Argentina after elections and Las Bambas Copper recent developments.

    Lumina Copper CEO David Strand on BNN.

     

    Copper M&A: Teck, Newmont, Blackstone in joint Las Bambas bid MUX, TNR.v, LCC.v

    "Reuters reports about the building up some competition to Las Bambas Copper Chinese bidding war. The best Copper assets can now be found on stock exchanges and in the project portfolios. This demand will filter through to the more early stage projects soon like Los Azules copper and Taca Taca in Argentina. Recent developments in Argentina indicate further sign of economic normalisation after the elections."

     

    McEwen Mining And TNR Gold: Repsol shares soar on Argentina compensation news MUX, TNR.v, LCC.v


    "We have more positive news coming from Argentina. Business climate is changing to the more positive investment outlook after the recent elections in the country. It should be translated in higher valuations of Los Azules Copper project for McEwen Mining and TNR Gold now."

     

    Rob McEwen's Presentation At Cowen & Company's Global Metals, Mining and Materials Conference MUX, TNR.v, GDX

    Brutal Past 24 Months For Precious Metals Investors, Nearing A Bottom - Rob McEwen MUX, TNR.v, GLD, GDX, SLV, CU

    "Rob McEwen can not control Gold, Silver or Copper prices, but he can control the management of his company. McEwen Mining has delivered solid results in the very tough environment and shows very entrepreneurial approach to advance its business plan.

    We would like to see the more aggressive approach in the promoting and marketing of Los Azules copper deposit in Argentina now. This is truly the world class asset, according to McEwen Mining and this project deserves the spotlights on the scene where Chinese companies are scooping all available resources now. After delivered PEA in September and recent elections in Argentina there is a window of opportunity to capitalise on the recovery - like Lumina Copper price action has demonstrated this year. Las Bambas copper project bidding war amongst Chinese conglomerates is just another reminder about the smart money actions in this market.

    Without the advance of Los Azules the dream about S&P 500 in 2015 will stay as a dream, but any development here will be the Catalyst for McEwen Mining and TNR Gold. McEwen Mining is very heavily shorted and it will provide the rocket fuel for the launch.

    Among other positive developments we would like to mention ongoing exploration on a number of projects and combination of the McEwen Mining and Hochschild Mining properties around San Jose Mine in Argentina; received environmental permit for El Galo 2 in Mexico and 10 million in tax return from Mexico in addition to the reported cash position.

    Very strict cost control in mining and production and, particularly, in the new projects development demonstrates the solid potential of Rob's team. Higher Gold and Silver prices will help to ignite this story again, but Los Azules development is potentially the most explosive value driver with the right amount of effort on its marketing now. Today's perception of country Risk can be the main valuation driver tomorrow."

     

    Copper M&A: Peru Officials Meeting Chinalco, Minmetals This Week on Las Bambas Bids MUX, TNR.v, LCC.v, CU, GDX

    "With Chinese economy in the recovery mode quest by Chinese companies for the best mining assets is ongoing worldwide. Lumina Copper is getting some bids today again and Los Azules copper will be getting on the investors' radar screens with the changing political landscape in Argentina again."

    "Los Azules Copper Project, Argentina (100%)

    In September, McEwen Mining announced an updated PEA for the Los Azules Copper project. The results from the PEA demonstrate that Los Azules has the potential to become one of the largest, lowest cost copper mines in the world. In addition, there remains excellent exploration potential to further expand the size of the existing mineral resource. Highlights from the PEA are shown below:

    • Pre-tax Net Present Value of $3.0 billion (8% discount rate) and an Internal Rate of Return of 17.7%.
    • Annual copper production during years 1-5 to average 258,000 tonnes (568 million lbs), which would have placed it in the top 3%1 of copper mines in the world during 2012. Life of mine annual copper production to average 171,000 tonnes (377 million lbs) over 35 years.
    • Indicated resource of 5.4 billion pounds of copper (grading 0.63% Cu) and 0.8 million ounces of gold (389 million tonnes with a cut-off grade of 0.35% Cu) and Inferred resource of 14.3 billion pounds of copper (grading 0.46%) and 2.6 million ounces of gold (1,397 million tonnes with a cut-off grade of 0.35% Cu).
    • Initial capital costs to construct the mine and process plant have been estimated at $3.9 billionwith a payback on a pre-tax basis has been estimated at 3.8 years at $3.00/lb copper and$1,300/oz gold.


    1 Based on internal market data.

    The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.

    The PEA has been filed under the Company's profile on SEDAR (www.sedar.com) pursuant to the requirements of Canadian National Instrument 43-101 and is also available on the Company's website - www.mcewenmining.com."

    All slides are from McEwen Mining presentations.

    Reuters:

     

    Yamana Gold to invest $450 million in Argentine mine

    Dec 2 (Reuters) - Canadian-based gold miner Yamana Gold Inc will invest $450 million dollars to bring a gold mine in Patagonia on stream by the end of 2015, the Argentine government said on Monday.

    Work on the Cerro Moro mine, located in Puerto Deseado in southern Santa Cruz province, is set to kick off at the beginning of next year, the government said in a statement. It said Yamana Chief Executive Officer Peter Marrone announced the investment at a meeting with mining authorities.

    The Canadian company currently operates a gold mine called Gualcamayo in San Juan province and has a 12.5 percent stake in a gold and copper mine called Alumbrera in Catamarca province. Glencore Xstrata Plc holds 50 per cent of Alumbrera and Goldcorp Inc 37.5 per cent.

    Yamana, which also has mines in Brazil and Mexico, reported a 28 percent fall in third-quarter profit because of weaker metals prices and lower earnings from the Alumbrera mine."

    Please Note our Legal Disclaimer on the Blog, including, but Not limited to:

    There are NO Qualified Persons among the authors of this blog as it is defined by NI 43-101, we were NOT able to verify and check any provided information in the articles, news releases or on the links embedded on this blog; you must NOT rely in any sense on any of this information in order to make any resource or value calculation, or attribute any particular value or Price Target to any discussed securities.

    We Do Not own any content in the third parties' articles, news releases, videos or on the links embedded on this blog; any opinions - including, but not limited to the resource estimations, valuations, target prices and particular recommendations on any securities expressed there - are subject to the disclosure provided by those third parties and are NOT verified, approved or endorsed by the authors of this blog in any way.

    Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advice on this blog and there is no solicitation to buy or sell any particular company.

Back To Sufiy's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.