Video : Juniors , Mining Industry

Videos- Investing in Mining Industry, Gold, Silver, Uranium, Copper , Junior companies. Panel of mining industry experts.

Part one

Investing in Mining & Commodities for the Long Term Investor, St Andrew Goldfield, Ora Silvia.






Part 2

Investing in Mining & Commodities for the Long Term Investor, Yorbeau, starfire, valgold, sandvick.

Gold mining in China

Interesting review of China gold mining industry including foreign exploration companies active in China. Goldletter International - China will emerge to the world’s largest gold producer ?

Europe largest gold mine to be opened in Finnish Lapland

The largest gold mine in Europe is to be opened in Finnish Lapland. The Canadian mining company Agnico-Eagle has decided to start excavation of a gold deposit in the Suurikuusikko area of Kittilä.
The topsoil is already being removed from what will be an open-pit mine. The construction of a gold refinery is also scheduled to begin this summer. Test drilling has been going on in the area since 1998.
The Suurikuusikko deposit is known to contain at least three million ounces of pure gold. Geologists say that there could be even more gold ore deeper in the ground. The world market price of gold has been rising recently; one ounce, which is about 31 grammes, is currently worth more than 600 US dollars.

The mine is expected to help create more than 200 jobs in the area for at least 13 years before the deposit is exhausted.
Heino Alaniska of Agnico-Eagle, says that preparations to open the mine have been underway for a long time. He was hired by the Canadian company a year ago. Previously he had worked in Sodankylä as the local head of the Pahtavaara gold mine, owned by the Swedish company Scan Mining.
"Opening the mine requires many kinds of construction and road work, which will employ at least 300 people for about two years. In addition, the company will hold an event in a couple of weeks to recruit people to work at the mine", says Kittilä’s municipal mayor Seppo Maula.
Kittilä has also mapped out properties for housing for outsiders moving to the area to work at the mine. Kittilä gets most of its revenue from tourism, and the gold mine is seen as an effective way of diversifying the business structure.

Two years ago Agnico-Eagle acquired ownership of the shares of the Swedish Riddarhyttan Resources, which had previously studied the Kittilä deposit. Since then, the company has spent nearly EUR 10 million on test drilling and other studies.
"Opening the mine has hinged on finding the right refining method", says deputy CEO Ebe Scarcest, who visited the area in December.
The gold in the deposit is not in nuggets visible to the naked eye, which could be extracted mechanically by panning or sluicing. The ore in question requires more complicated refining methods. Original plans were for a method involving the use of bacteria, but Agnico-Eagle opted for a more traditional pressure method, which is more expensive, but it is also more environmentally friendly, as it uses less cyanide. -source

Gold, Silver, Metals Mining Exploration & Political Risk reports

• Special report on world mining exploration trends prepared by Metals Economics Group (MEG). The report examines the nonferrous exploration activities of all mining companies worldwide. The report Includes summary of trends in exploration spending and an industry-wide analysis of allocations by location, target, and stage of development. - Link

• Annual Survey of Mining, Exploration, Development and Mining consulting companies around the world. The report by the Fraser Institute is based on 322 companies and trying to asses the political risk for mining operations world wide. - Link

• Special risks when investing in a mining company

Concern over future supply

Author: jade davenport

While it may be argued that there is an upsurge in the field of exploration owing to the 25-year-high gold-trading price, it would seem that many mining majors are not investing enough capital into the exploration section of the business value curve, opting rather to acquire and con-solidate existing operations.

In effect, this is creating an insur-mountable challenge for the supply of new gold ounces because, without sufficient exploration projects undertaken now, there will not be enough new operational mines to maintain the current supply of gold by the time that the discoveries of the 1990s are depleted. read more here

Special risks when investing in a mining company

In addition to the usual risks involved when investing in a stock of given company like: mismanagement, corporation frauds, dilutions, Etc. Investing in a mining company carries specific additional risks:

1) Mining is depleting business, the more you mine the less reserves you have, unless you explore and find new reserves fast enough.

2) The revenues are completely dependent on the market price of the metal and the mining company is a price taker.

3) Hedging, some mining companies have sold some of their future production through the futures and derivatives market. They have sold in much lower prices, so higher metals prices do not always translate to higher revenues and higher profits.

4) Geo political risk, as the prices of metals are going up it is tempting for government to increase mining taxes. Under some circumstances mining licenses could be frozen or canceled.


The conclusions are: the price of some gold and silver mining stocks could outperform and give better appreciation then the price of gold and silver, but the risk is also higher. Be sure to do a good research before putting good money into any stock and don’t place all your eggs in one basket – diversify.
If a gold or silver company has only one mine or no production at all the situation is even more risky as is the case with exploration companies.