Yesterday's entry ran long and I did not get the chance to cover Global Mining Finance.
Rather than re-iterate what they are, here is their bio below:
The publication is available at major mining conferences (and the analysts and editor was at the Vancouver show just days ago)
Global Mining Finance (GMF) is an annual book covering the financial aspects of the world wide mining industry. Written at the beginning of each year, GMF provides mining and finance professionals a look at an overview of the industry for the previous year with an outlook for the upcoming year.
With that said, it's a great comprehensive read for those of you interested in a certain region of the world. It's approach is an free editorial which means even for those who pays to included as an advertiser - it doesn't guarantee a coverage... which really makes the companies covered in each region of interest since the analysts and editor at GMF clearly finds them of interest.
As the blog is named - my interest lies in South America - specifically Argentina. I like the region's relative political risk. The recent worldwide news of Mendoza regarding certain mining process bannings has caused some short-term investors to flee the area in general.
St.LOUIS (ResourceInvestor.com) -- The provincial government of the Mendoza Province in Argentina has passed legislation banning the use of any chemical substance used in mineral processing, mainly in the extraction of gold and other metals. The legislation brings to a head an ongoing battle over mining in the region, immediately impacting at least two advanced projects.When one province has a mining halt, clearly there would be concerns amongst investors. (see Aurelian ARU.V from previous post) However seasoned investors would underestand that in Argentina, provinces vary widely from one to the next.
Mining enterprises in the Mendoza Province, famous for its wine making industry and ski resorts, have faced strong environmental opposition by non-government organizations (NGOs) in recent years.
In September 2005, the province passed a law trying to block exploration by Tenke Mining [TSX:TNK] on environmental grounds, and exploration was stopped for 90 days.
On December 13, 2006, Mendoza’s parliament voted to suspend all open-pit mining and halted issuing any new exploration and mining permits until the province passes a new environmental management plan. Then just one week later on December 20, Governor Julio Cobos vetoed the bill.
Most notable example is the province of San Juan, Argentina. Famous for its wine and scenic views (check tourism site here for more info). I have heard stories that locals ask every foreigner if they are from a mining company - it's a hugely popular industry there, to say the least.
When you think of the amount of gold and copper produced in Chile and Argentina's proximity to it - versus its output so far, there's no question the tremendous potential yet to be discovered by the world so far.
As always - those who are in the region EARLY, stand to benefit the most.
Under South America, GMF covers a few companies and overview. Let's take a look at Latin America section starting on page 92. I've scanned the pages directly for easier access below:
Your own copy of 2008 Global Mining Finance can be downloaded here.
TNR Gold Corp. ($0.24 today on TSX) is the first company listed under Company Snapshots - keep in mind once again these selections are done on merit - not paid commission reports or advertisements.
As mentioned before the Argentina potential is covered by the company President. rising Canadian dollar versus US and Argentina Peso means more project for each invested dollar - while the discovered commodity is still likely going to worth more going forward given rising inflationary numbers (fastest in sixth months!) and the US situation.
Jun 13, 2008 02:17 PM
MARTIN CRUTSINGER The Associated Press
WASHINGTON – Inflation shot up in the United States in May at the fastest pace in six months, pushed higher by soaring costs for gasoline and other types of energy.
The U.S. Labour Department reported Friday that consumer prices rose by 0.6 per cent last month, the biggest one-month increase since last November, as gasoline costs surged by 5.7 per cent. Food prices, which have also been rising sharply, were up 0.3 per cent as the cost of beef and bakery products showed big gains.
The company has several large properties and several key joint venture partners including NovaGold ($7.74 last on TSX - previously mentioned in Donlin Creek project news few entries ago), Suramina Resources ($1.53 last on TSX), and association with industry majors like Xstrata and VALE.
I will provide more backgroound information on my next posts... as the potential for this company is clearly there with so much industry recognition... these are the signs you look for. Management is another huge piece of the puzzle and I will address it next posts.
I wanted to move on to Energold Drilling which is featured on the same page as TNR Gold as their success story really tells you what a junior can do in a rising commodity market.
The company provides drilling services to mining companies primarily in Mexico. Graph on the right is over 5 years and you can see the initial rise from $1 and under to close to $5 today even given the trending down of the 200 day Moving Average.
Case in point - another solid example of GMF listed companies.
Quality and high potential (some already achieved large degree of success, such as Energold)
There is only a total of 4 selected for 2008 - the other two honorable mentiosn include - Ascendant Copper (ACX) and Malaga (MLG on TSX)
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