November 13, 2019 
 Wednesday 
 
 

Forum
Topic:
Another U.S. precious metals miner goes foreign

       

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 By cw3343

06/21/2019  1:18PM

In this case, it would be another Canadian precious metals miner goes foreign.

Credit: Jackson Chen (mining.com)

Shares of IAMGOLD Corp. (TSX: IMG) surged over 9% on Thursday — its biggest jump in four years — amid whispers of a possible bid from China. The nation’s second-biggest gold mining company, China National Gold Group Corp., is said to be considering a bid for a stake in IAMGOLD, according to BNN Bloomberg’s latest report.

So far the report only says the state-owned gold miner is in discussions with financial advisers regarding a potential offer. China National Gold has not responded to the bid rumors.

Just last month, IAMGOLD went public to address reports of a planned asset sale, stating there were no material changes in the company. However, the Toronto-based gold miner also did not openly deny it might be in talks with advisers and potential buyers.

China National Gold is the largest shareholder of Hong Kong-listed China Gold International Resources Corp. and Shanghai-traded Zhongjin Gold Corp.

IAMGOLD currently operates four mines — three in Africa and one in Canada — producing a total 882,000 ounces of gold last year.

The company’s most recent quarterly results fell short of analyst expectations, and earlier this year, it cut workforce at the Westwood mine by 32%. Reports of IAMGOLD exploring an asset sale followed shortly after its Q1 release.

A week prior, CEO Stephen Letwin said at the Mines & Money conference in New York that “we are going to see consolidation” and “there are too many mid-tier miners” — commenting on the sizable mergers that have materialized in the industry. Letwin added that IAMGOLD gets “a lot of interest” from Chinese investors.
 By cw3343

06/18/2019  9:28AM

It appears that the Mountain Pass Mine in SoCal is operating again. It was purchased out of BK by JHL Capital of Chicago. Somehow a Chinese company owns 9.9% of it. I wonder who they paid in order for permission to buy in to our only rare earth minerals mine?

https://mpmaterials.com/
 By Michael Miller

06/14/2019  3:09PM

The loss of an economical rare earth producer in southern California is due to ignorance by California Water Boards. Attempts to educate those board members falls on the boards and to a minor degree the various staff advisors. Enlightenment has become a necessity to secure our national defense. Latest news below:

CHINA WEAPONIZED RARE EARTH
May 29, 2019 |
Chinese state-run media outlets published reports Wednesday, including an editorial in the top newspaper of China’s Communist Party, hinting at the possibility of cutting off exports of rare-earth materials to the U.S.

China supplies about 80% of the United States’ rare-earth imports, which are then used in everything from smartphones to electric vehicles.

“China, as the dominant producer of rare earths, has shown in the past that it can use rare earths as a bargaining chip when it comes to multilateral
negotiations,” Northern Minerals CEO George Bauk told Bloomberg.

Rare earths actually are found all over the planet, but China supplies the most largely due to environmental issues and pollution caused by their production. Rare-earth materials are made up of 17 elements from the periodic table that are found in a number of products critical in U.S. manufacturing, including batteries, flame retardants, smartphones, electric cars and fighter jets. They are reportedly used in tiny amounts, but are crucial to the manufacturing process.

It wouldn’t be the first time China weaponized its rare earths. In 2010, Beijing cut off exports to Japan after a Chinese boat captain was captured by Japanese authorities. The ban was so effective, Japan immediately released the captain in what the New York Times described as “a concession that appeared to mark a humiliating retreat in a Pacific test of wills.”
 By Hans Kummerow

06/05/2019  6:25PM

There is High Grade in other parts of the world as well:
Journal: "Australian Mining" reported today:

"RNC Minerals has unearthed its second high-grade gold discovery in nine months at the Beta Hunt mine near Kambalda, Western Australia.

An estimated 987 ounces of coarse gold has been recovered in 238 kilograms of rock from a series of veins, worth approximately $1.9 million at today’s gold price.

The discovery continues what has been a successful period for the Canadian company, after finding a 90-kilogram stone with a gold content of 1000 ounces in October last year at the Father’s Day vein at the Beta Hunt mine."

By the way: RNC (Royal Nickel Corporation) CEO Mark Shelby, is listed at TSX in Toronto.
 By Michael Miller

04/11/2019  3:09PM

April 11, 2019
Newmont Shareholders Vote to Create World's Leading Gold Company

Newmont Mining Corp.'s shareholders voted overwhelmingly to approve the proposed transaction with Goldcorp Inc. Goldcorp's shareholders have also voted overwhelmingly in support of the combination with more than 97% of votes cast in favor of the transaction. Newmont shareholders approved the increase in Newmont's authorized common stock with more than 76 percent of the outstanding shares voting for the proposal and approved the issuance of shares pursuant to the transaction with more than 98 percent of the votes cast for the proposal. The transaction is expected to close in the second quarter.


Thank you Newmont, a USA corporation, for moving forward with the organization. How about California?


Men and Mines of Newmont by Robert H. Ramsey identified Fred Searls, Jr as the leader in 1925. “Newmont found a man whose experience and capabilities matched the company’s needs. People who knew him well characterized him as being generous, stingy, courageous, fearful, uncommunicative, forthright, decisive hesitant, intuitive, and pragmatic”. On page 71: In 1931 Newmont bought the Original 16 ti 1 mine near Alleghany, California, a small, very high-grade gold property Searls remembered from his early exploration days. (Factually incorrect: Searls, General Lucius Clay and Bernard Baruch participated in a joint venture with the Sixteen to drive the 1500 foot level north into the Red Star mine in 1964-65.) They found gold but not enough to profit at the fixed price of $35 an ounce. Our crew is working successfully in the area today. Gold is $1298 an ounce.
 By Michael Miller

03/07/2019  4:33PM

March 7, 2019 Breaking News 2:49 PM

Newmont Mining Corp. has rejected a proposal from Barrick Gold Corp. to merge the two companies. Newmont said a merger with Barrick poses a "significant risk" and was not in the company's best interest. Instead, Newmont decided to continue with its agreement to acquire Goldcorp.

Newmont CEO Gary Goldberg says it best unaltered. Quote:
“Our thorough review of Barrick’s unsolicited proposal and its associated risks has reaffirmed our conclusion that the combination of Newmont and Goldcorp represents the best opportunity to create value for Newmont’s shareholders and deliver industry-leading returns for decades to come,” “Unlike Barrick, Newmont Goldcorp will be centered in the world’s most-favorable mining jurisdictions and gold districts. The combination with Goldcorp is significantly more accretive to Newmont’s shareholders on all relevant metrics compared to Barrick’s proposal, even when factoring in Barrick’s own synergy estimates.”

While the hostile takeover by Barrick would have no potential impact on Sixteen to One, It is not a good move for our Country. Americans must get real about the topics of domestic natural resource production. There is so much yacking from children and their future due the sorry projections of our environment. Well, without domestic capabilities to produce the very required essences of life, the future will guided by others. Historical warfare does not lie
 By Michael Miller

02/22/2019  3:48PM

THIS IS INCREDIBLE……………………………………………………………………………………………………………………

Just received the following news:
February 22, 2019

Barrick Gold could soon be involved in a US$19-billion hostile bid for Newmont Mining, but the miner stated a decision has not yet been made.

According to the source quoted by The Globe and Mail, which has been noted as “familiar with the matter,” said Barrick is looking at Newmont for approximately US$19 billion in stock, in what could potentially be one of the largest-ever deals in mining history.

“Barrick Gold today confirmed that the company has reviewed the opportunity to merge with Newmont Mining in an all-share nil premium transaction. No decision has been taken at this time,” Barrick stated in a press release.

Any Comments?
 By Michael Miller

12/13/2018  12:34PM

I’m working on a future project for a project. I’m finding what I want and in the process reading old writings. You may enjoy some I read but not on the subject of my project. The following was written July 31, 2009 by Scoop. China was not getting much recognition for its economic shift to gold, the yuan and the declining influences of the all mighty US dollar. Today China is getting a lot of press. Are you seeing it in your publications?



“Slow morning in Alleghany but the following seems worth repeating.

China has gone crazy for gold.
In April the government's Foreign-Exchange Agency announced the purchase of an additional 16 MILLION ounces for state coffers.
A few months earlier, National Geographic Magazine reported that for the first time China had surpassed the U.S. as a buyer of gold jewelry.

But here's the amazing thing few investors realize...

What the Chinese government did for oil over the past decade... they are today doing for gold. This is a huge development. China is also one of the few countries in the world where known gold reserves are increasing... not shrinking.
In short, the Chinese government wants more gold. It realizes gold is one of the only buy-and-hold investments in the world right now. The Chinese have a lot of money to spend... nearly $2 Trillion according to a recent report in The New York Times.

The Ministry of Land and Resources has completely rewritten the country's mining laws (known as the Minerals and Resources Law) to encourage local and foreign companies to explore for and produce more gold. The government has also recently created the Shanghai Gold Exchange, to allow anyone to trade gold, on the open market, without government interference.

Twenty years ago, China produced an inconsequential amount of gold. Today, China is the #1 gold-producing nation in the world (a fact Scoop lacks multiple sources to support).

When it comes to gold mining in China, it's a whole different world than what is found in America or Canada. There's no such thing as a NI43-101 disclosure form for mining companies. Instead of a handful of giant companies running the industry (how global gold mining has evolved, especially in the US), it’s basically thousands of small operations scattered across the country.

In short, it's like the American Wild West. Ah, the American wild west; frontier freedom and frontier justice; pioneering spirit as defined by the California gold rush and the population and development of the west; exploiting the natural resources for the benefit of society; producing new wealth. Go, China, go!

As Mike has offered “The California gold belt is the most proven deposit with the fewest miners working it on earth.”

Scoop asks, “Why is the American investor asleep and ignoring gold and developing the gold assets of its oldest gold mining company?”
 By Michael Miller

07/19/2018  6:33PM

WAY TO GO NEWMONT MINING

Newmont Mining has completed a US$69-million expansion at its Exodus operation, which has resulted in a 10-year extension to production and will lower all-in sustaining costs by about US$25 per ounce at its Carlin mine during its first five years of operation. The expansion, which was the company’s second in the last month, was completed both ahead of schedule and within budget and will add between 50,000 ounces a year and 75,000 ounces a year of gold production. The expansion will also lower Carlin’s all-in sustaining costs by about US$25 per ounce in its first five years of operation.

Thanks to John Livermore and friends; Nevada continues supporting America with new gold production.

Fred Searls Jr., one of initial Leaders of Newmont, began his lifetime interest with gold mining in California. His history with Sixteen to One mine differs from the inaccurate account In “Men and Mines of Newmont” by Robert H. Ramsey (page 71). No disrespect intended. Mining exudes folk-lore, myths, legends and downright fabrications. Fred cut his geological teeth going north in the 250 level beyond the Tightner Shaft. He rued his mistake in surveying the level which is clearly noticeable on old maps. He, General Lucius D. Clay and the famous stock guru and statesman, Bernard Baruch liked mining ventures.

Baruch Clay and Searls were buddies. Searls told them about his days as a geologist at the Sixteen to One. He told a friend of mine, Donald Dicky that it was the only mistake he ever made in mining. Don and I laughed because Don told me years earlier when I was down and pouting about a story of mining. We failed to find enough gold in the fall of 1991. I had to lay off the crew shortly before Christmas.

Don liked Fred and spoke of his large idiosyncrasies as well as his large ego. (He was also a colorful dresser.) “One mistake?” Don grunted. “Mistakes are many when it comes to mining. Don’t worry Mike, Let it go. It’s your comeback that counts.”

Fred and group put up some money in the early 1960’s to keep the Sixteen mining. Gold spot price, frozen in 1933, caused the other mines to close. What must have interested Fred was where he screwed up his survey was this new target: north on the 1500 level into the Red Star. The miners found speckled gold along the drift, but expenses caught up to the Sixteen and in December 1965, management laid off the miners; however management allowed those loyal men to continue mining, which they did for years. Fred never owned stock in our Company. He and his buddies loaned some cash for operating. They tore up the note. Maybe Fred cleared his conscious. One mistake? Baloney!
 By Michael Miller

06/26/2018  9:54AM

Problems continue with major gold producers in foreign countries.

As the tax dispute between Acacia (Barrick owns 63.9 percent of Acacia and the Tanzanian government continues, the company’s representative, Barrick Gold, has decided that it won’t provide a definite deadline to end the negotiations. The decision comes after Barrick, which is negotiating on behalf of Acacia, failed to meet a mid-year target to complete talks surrounding the ongoing tax issue.

Despite failing to meet the deadline, both Acacia and Barrick remain positive about the situation, noting that the discussions between Barrick and the government of Tanzania are constructive and that progress has been made towards creating a “definitive agreement,” which is necessary for the “implementation of the proposed framework.”

The tax dispute between the miner and the East African country transpired when Tanzania began making sweeping changes to its mining industry in order to reap more benefits from its minerals.

As part of these changes, the Tanzanian government slapped Acacia, its biggest gold miner, with a US$190 billion bill in unpaid taxes, penalties and interest in 2017. This is not the first time that the company has suffered as a result of the Tanzanian government making changes to policies and procedures within the mining sector. The miner has lost almost 80 percent of its value following a ban on unprocessed ore that was set into motion in March of last year.

According to the deal, Acacia would give the government a 16-percent stake in its mines, as well as a payment of US$300 million and equally split any “economic benefits” from operations.

California has mining problems but not ones like those outside USA.
 By Michael Miller

06/22/2018  12:31PM

The following headline caught my eye and stimulated the question, “why”:
Sumitomo Buys 5-percent Stake in Yanacocha Gold Mine for U$48 Million.

The sub heading was, “in an effort to boost its metals assets, Japan’s Sumitomo has purchased a 5-percent stake in Peru’s Yanacocha gold mine for US$48 million. “ My curiosity is not that Sumitomo bought an interest in a big gold producer. No. it is, who is Sumitomo?

Sumitomo Corporation (Sumitomo, Head Office: Chuo-ku, Tokyo; President and Chief Executive Officer: Masayuki Hyodo), is pleased to announce that Sumitomo has reached an agreement with Newmont Mining Corporation (Newmont) and Compania de Minas Buenaventura S.A.A. (Buenaventura) to purchase certain ownership interest of Yanacocha Gold and Copper Mine in Peru (Yanacocha).

Newmont is the world’s largest gold producer. Sumitomo had a long and productive partnership with Newmont at Batu Hijau Copper-Gold Mine in Indonesia from 1996 to 2016.
Buenaventura is a leading precious metals producer in Peru. Sumitomo has partnered with Buenaventura at Freeport’s Cerro Verde Copper mine in southern Peru since 2003.

Sumitomo’s investment comes as Japanese trading companies enjoyed their best profit in six years and are now searching for assets to add to their portfolios. Profits have been driven by higher prices for commodities such as coking coal and copper.

If this interest’s you read about Sumitomo and all the extensions of this Japanese corporation. It definitely crosses natural resources with varied financial business. What if banks and other dollar related institutions gobble gold producing companies?

By the way,today I turn 76 years from a birth in Sacramento. If you are a shareholder in Original Sixteen to One Mine, Inc. our company is older than Sumitomo, I congratulate you for becoming a part of another natural resource producer.
 By Michael Miller

05/15/2018  12:47PM

ARE US DOLLARS AND GOLD CLOSELY RELATED? Turkey is making a statement.

Turkish Gold Imports Triple As Central Bank Diversifies Out Of Dollars
Turkish gold imports surged due to a sharp increase in investment demand as well as renewed Central bank purchases. Turkey added 86 metric tons to its official holdings in the last seven months of 2017.

According to the 2018 World Gold Survey, Turkish official gold holdings reached a new record high of 565 metric tons (mt) last year as the government decided to replace a significant amount of its Dollar reserves with gold.

Turkish gold imports more than tripled from 106 mt in 2016 to 361 mt in 2017. Again, the large increase in Turkish gold imports was due to a 60% increase in investment demand and the 86 mt purchase by the Central bank.

What is quite interesting about the increase in Turkish gold demand and imports is how it compares to the United States. In 2017, Turkey imported 361 mt of gold versus 255 mt for the United States. Thus, Turkey, whose population is one-quarter of the United States, imported 100+ mt more gold. Look at the major foreign holders of U.S. Treasury securities, Turkey has been liquidating its Dollar holdings by $16 billion since its peak in October 2017.

Russia has also been liquidating U.S. Treasuries by approximately $11 billion since its peak in November 2017. However, Russia wasn’t selling U.S. treasuries to purchase gold; rather they were diversifying out of Dollars and into IMF Bonds.

While there are countless reasons why Russia is adding gold to its official holdings, the most important reason is quite simply, because IT CAN. The majority of countries is running massive trade and balance account deficits and cannot purchase gold. Russia is one of the few countries that export a great deal more oil than it uses domestically which is part of the reason it enjoyed a $115 billion trade surplus last year.

U.S. Government could print money to purchase gold. There are no western central banks buying gold. They just can’t. Most of the Central Bank sold into the market has come from the IMF and western central banks. Second, for a western central bank to start purchasing gold, it would be seen as a huge red flag to western fiat currencies.

Gold is a barometer for the U.S. Dollar. If the U.S. Government started printing money to buy gold, think about how that would not only impact the price but market sentiment. Western central banks will continue to liquidate gold until the financial markets and the fiat monetary system disintegrate. When more countries like Turkey add to their gold reserves, it’s a clear sign that all is not well in the global financial markets.
World Gold Council Edit.
May 14, 2018
 By Michael Miller

12/07/2017  2:03PM

This date stands strong with me for two reasons: Pearl Harbor and my father’s birthday, December 7, 1906. Now it also stands with September 11 as 9/11, as infamous days of terror.

The Japanese, with few natural resources, sought to copy the pattern of European colonialism in Asia. The Japanese military faced a particular tactical problem in that certain critical raw materials — especially oil and rubber were not available in Japan or their colonies. The intensification of Chinese resistance to the pressure of the Japanese military drew Japan into a draining war in the vast reaches of China proper. Japan was not militarily or economically powerful enough to fight a long war against the United States, and the Japanese military knew this. Its attack on Pearl Harbor was a tremendous gamble.

Our country and today my state home, California, must reform its understanding of our own natural resources. Our public service industries lead the nation in economic and scientific ignorance regarding its value and development. Let’s begin meaningful reformation today.
 By Michael Miller

10/19/2017  8:59AM

Scotiabank will sell its gold trading unit following a scandal involving a US refinery and smuggled gold from South America.

The Canadian bank’s ScotiaMocatta business is one of London’s main gold-trading banks, and was acquired by Scotiabank almost two decades ago., Chinese buyers are the key targets of the sale, which is being led by JPMorgan. What prompted the sale was Scotiabank’s lending to Elemetal, a precious metal refinery in Dallas.

Earlier this year, US prosecutors accused workers at NTR Metals, a subsidiary of Elemetal, of a money-laundering scheme using “billions of dollars of criminally derived gold,” mostly from Peru: “knowingly conspired to purchase gold with the intent to promote the carrying on of organized criminal activity, including illegal gold mining, gold smuggling and the entry of goods into the US by false means and statements to US Customs, and narcotics trafficking.”

Of course the whole issue has layers of responsible entities downstream from the bank. NTR Metals is said to have imported more than $3.6 billion worth of gold from Latin America between 2012 and 2015. Scotiabank and ScotiaMocatta have not been accused of any wrongdoing.
Scotiabank has been seeking a buyer for the unit for up to a year, and is likely to shrink the business if a sale is not completed. Scotiabank has the biggest foreign presence of any Canadian bank, and is focusing its international strategy on the Pacific Alliance, a Latin American trade bloc comprised of Mexico, Peru, Chile and Colombia.
 By Michael Miller

07/20/2017  4:50PM

US President Donald Trump and staff were approach with a suggestion to nationalize the whole Mountain Pass enchilada to turn it into a national laboratory “dedicated to rebuilding America’s rare-earth mining industry, so the world knows it is safe to build high-tech manufacturing plants in the U.S.”

The Trump administration has not commented on the proposal that Mountain Pass be nationalized by eminent domain via the Takings Clause of the Fifth Amendment. Yikes!!
Shall I make a comment regarding my belief that the U.S. must retain a domestic mining industry? Yes.

Whether it is gold in California or rare earth minerals in California, state and federal governments must take notice as to reasons our rare earth deposit fell into a mixture of foreign hands and the Sixteen to One mine is again the last commercial underground gold operation. BUT, nationalization?

No, our governments have projected a negative attitude to miners. We ask for a neutral behavior of regulating the industry or even a helping hand. Nationalization will bring more harm than benefits. Yet, to make America greater than it has been for a while, how about governmental bureaucracy easing the pain to our miners? Hey business leaders…find another way.

Here is a tiny story of what I currently face regarding California water regulations. The Sixteen to One mine is a mineralized area commonly called a deposit. Surface water trickles through the earth and discharges from an underground hole excavated in 1865. The water has done this over 150 years with no adverse effect to Kanaka Creek and its environment. When the federal and state bureaucrat launched its broad brush to save the environment, identifying mineral levels jumped from measurements in parts per million to parts per billion. The number becomes larger and frightening to the “soft knowing eyes.”

Here is the result: California water public servants decided that the water from the Sixteen to One mine must be treated to meet drinking water standards before it passes into mineral rich Kanaka Creek, previously recognized as highly mineralized. This is governmental insanity without doubt! Mine water is not a problem. Using precious funds to negate a non-problem without beneficial gain is money lost towards production. There is no economy here that provides benefit to the public.
 By Michael Miller

06/15/2017  9:59AM

What a surprise!!!

A buyout group backed by a Chinese company has been declared the winner at a bankruptcy auction yesterday (June 14, 2017) for the Mountain Pass rare earths mine, the sole U.S. source of elements essential to electronic devices. Molycorp, the mine’s original owner, poured $1.5 billion into Mountain Pass in 2011, when rare earths prices were high. A drop in light and heavy rare earths prices forced the mine to close in mid-2015, and Molycorp went bankrupt. The US currently imports most of its rare earths from China. What contributed to the drop in price? China began dumping inventory into a market it controls.

An Australian led group of companies was designated as backup bidder. The group will be submitting an objection on or before June 19th to object to issues related to the auction process. Swiss bases mining investment fund, Pala, plays a role in the take-over as does ERP Group of Companies (private company). Russian-born billionaire Vladimir Iorich established Pala Investments in 2007.

The high bid was $20.5 million.
 By Michael Miller

02/21/2017  8:24AM

TEN TOP GOLD PRODUCING COUNTRIES

Once again, China was the world’s top gold-producing country with output of 455 MT. The country has now held that position for 10 years in a row. (MT = metric tons)

Gold production in Australia took a bit of a tumble in 2016, dropping from 278 MT in 2015 to 270 MT.

US gold production dipped last year, dropping from 214 MT in 2015 to 209 MT in 2016. Most of the gold in the country was produced at more than 40 lode mines, several large placer mines in Alaska and a number of smaller placer mines in the western USA.
The USGS further notes that the 26 top operations in the country were responsible for 99 percent of its gold output.

Gold production in Canada rose noticeably in 2016. Last year, the country reported output 170 MT of gold, compared to 153 MT in 2015.

Peru saw a slight increase in gold production last year, with output rising from 145 MT in 2015 to 150 MT in 2016.

South Africa’s gold production has steadily over the last several years. In 2016, production dropped to 140 MT from 145 MT in 2015.

Gold production Mexico has stayed relatively stable over the last several years, although it dropped last year to 125 MT from 135 MT in 2015.

Indonesia’s gold production increased from 97 MT in 2015 to 100 MT in 201.

Rounding out the list is Uzbekistan, which produced 100 MT of gold in 2016, down from 102 MT in 2015.

In 2015, global gold production increased by just under one percent in 2015. This is the seventh annual increase for gold production in a row, although that growth is slowing.
 By Michael Miller

06/28/2016  2:39AM

American mining companies face unlawful enforcement of laws by its government and quasi-government entities along with numerous obstructions in America’s production of needed natural resources. It’s a fact! One hazard felt in some active mining places that we do not face is kidnapping our miners. For national security reasons, America must produce minerals from its own country.

News from headline June 27, 2016: “RELEASE OF KIDNAPPED MACMAHON WORKERS”

Macmahon Holdings has confirmed the release of all seven of its men who were abducted near its operations in Calabar, Nigeria on June 22, 2016. Five of the men have been injured – two of them seriously – and they are receiving medical attention. The two uninjured men are also undergoing medical assessment. Arrangements have been made for the men’s safe return to their families once they receive medical clearance to travel.

During the attack on June 22,, Matthew Odok, who was driving a vehicle the men were travelling in, was killed. The kidnapped workers were three Australians, two Nigerians, a New Zealander and a South African. According to reports one Macmahon worker, mechanic Tim Croot, managed to evade capture.
 By Michael Miller

04/20/2016  1:00AM

Overnight a historic event took place when China, the world's top gold consumer, launched a yuan-denominated gold benchmark as had been previewed here previously, in what Reuters dubbed "an ambitious step to exert more control over the pricing of the metal and boost its influence in the global bullion market."

Considering the now officially-confirmed rigging of the gold and silver fix courtesy of last week's Deutsche Bank settlement, this is hardly bad news and may finally lead to some rigging cartel and central bank-free price discovery. Or it may not, because China would enjoy nothing more than continuing to accumulate gold at lower prices.

The first Chinese benchmark price, derived from a 1 kg-contract traded by 18 participants on the Shanghai Gold Exchange (SGE), was set at 256.92 yuan ($39.69) per gram on Tuesday, equivalent to $1,234.50/ounce.

China's gold benchmark is the culmination of efforts by China over the last few years to reform its domestic gold market in a bid to have a bigger say in the bullion industry, long dominated by London where the global spot benchmark price is currently set.

As is well known, as the world's top producer, importer and consumer of gold, China has balked at having to depend on a dollar price in international transactions, and believes its market weight should entitle it to set the price of gold.

Thank you, shareholder for sending this historic event. Otherwise I may not have seen it.
Thanks also to zerohedge.com for your news. Speculations welcomed about the effect this will have.
 By cw3343

03/13/2015  11:08AM

Shareholders will lose all (including CalPERS, who own over 2% of the stock). Looks like Wells and Bank of Nova Scotia will provide financing. The Hycroft mine will stay operating, as this is essential for any of the creditors to recoup funds. It looks like they lost (mark to market) around $95 million on currency swaps, which were necessary because of operations in Mexico/S. America. Their all-in cost for 2015 is a little over $1000 per ounce - not much room for error.
There is a ton of info on the recent form 8-K.

Good point on Barrick - I am very familiar with their current debt/leverage position. The Pascua Lama project in Chile/Argentine really set them back, bad...

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