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Posts Tagged ‘Goldcorp’

This company has been our favourite since we started our website, it was our second gold/silver buy (first was International Royalty Company, sold at a 101,4% profit right before it was taken over by Royal Gold). It has been the backbone of our portfolio, and we expect it to be so for years to come.
We bought Silver Wheaton in June 2009 @ US$9,95 and in March 2010 @ US$14,95
Just in July of this year we issued a buy alert on Silver Wheaton to buy below $US 19,95
Using today’s intra-day high of $US37,20 this means respectively up 273,8% ; up 148,8% and up 86,4%
These results are slightly below our expectations, but because of logistical reasons within the company, and record breaking silver prices we expect a whopping fourth quarter.
The gold/silver ratio we continue to fall. With the influx of more investors searching an inflation hedge and gold getting very expensive, silver will get more attention. It just feels better if you can buy almost 50 grams of silver instead of one gram of gold.
Before the quarterly results were released yesterday, we issued another buy alert to our newsletter subscribers to buy below US$ 34,00 ; price target: US$ 52,00

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Press Release from Silver Wheaton:

VANCOUVER, Nov. 8 /CNW/ – Silver Wheaton Corp. (“Silver Wheaton” or the “Company”) (TSX, NYSE:SLW) is pleased to announce its unaudited results for the third quarter ended September 30, 2010.

THIRD QUARTER HIGHLIGHTS
————————————————————————-
– Net earnings more than doubled to a record US$69.2 million (US$0.20
per share), compared with US$33.6 million (US$0.11 per share) in
2009.

– Operating cash flows increased 55% to US$70.5 million (US$0.20 per
share)(1), compared with US$45.4 million (US$0.14 per share)(1) in
2009.

– Record attributable silver equivalent production of 5.9 million
ounces (5.5 million ounces of silver and 7,000 ounces of gold),
representing an increase of 41% over the comparable period in 2009.

– Silver equivalent sales of 4.7 million ounces (4.3 million ounces of
silver and 7,100 ounces of gold), lagging production for the quarter
due primarily to the build-up of concentrate inventory as the
Penasquito mine ramps up production, as well as timing of concentrate
shipments from the Yauliyacu and Campo Morado mines.

– As at September 30, 2010, approximately 2.2 million payable silver
equivalent ounces attributable to the Company have been produced at
the various mines and will be recognized in future sales as they are
delivered to the Company under the terms of their contracts.

– Total cash costs(1) of US$4.09 per silver equivalent ounce, compared
with US$4.08 per ounce in 2009.

– Cash operating margin(1) increased 42% compared to 2009, to a record
US$15.72 per silver equivalent ounce, while average silver prices
over the same period increased by 29%.

– Goldcorp Inc. announced that its world-class gold-silver-lead-zinc
Penasquito mine achieved commercial production during the quarter
with peak throughput rates as high as 105,000 tonnes per day. The
ramp up to full production capacity of 130,000 tonnes per day is
anticipated by early 2011. Annual production attributable to Silver
Wheaton from the mine is expected to average approximately 7 million
ounces of silver over the estimated 22 year mine life.

– Barrick Gold Corp.’s world-class gold-silver Pascua-Lama project
remains on track to enter production in the first quarter of 2013,
with detailed engineering and procurement nearing completion and
earthworks underway. Once in production, Pascua-Lama is forecast to
be one of the largest and lowest cost gold mines in the world with an
expected mine life in excess of 25 years. In its first five years of
operation, Silver Wheaton’s attributable silver production is
expected to average 9 million ounces annually.

– Goldcorp completed the sale of the San Dimas mine to Primero Mining
Corp. In conjunction with the sale, Silver Wheaton amended its silver
purchase agreement relating to the mine. The term of the silver
purchase agreement, which was set to expire in 2029, has been
extended to life of mine. During the first four years following
closing of the transaction, Primero will deliver to Silver Wheaton a
per annum amount equal to the first 3.5 million ounces of payable
silver produced at San Dimas and 50% of any excess, plus Silver
Wheaton will receive an additional 1.5 million ounces of silver per
annum to be delivered by Goldcorp. Beginning in the fifth year after
closing, Primero will deliver to the Company a per annum amount equal
to the first 6 million ounces of payable silver produced at San Dimas
and 50% of any excess. Goldcorp will continue to guarantee the
delivery by Primero of all silver produced and owing to the Company
until 2029, and a payment of US$0.50 per ounce for any shortfall
below 215 million cumulative silver ounces delivered to Silver
Wheaton by the end of 2031. Primero has provided Silver Wheaton with
a right of first refusal on any metal stream or similar transaction
it enters into.

———————-
(1) Refer to discussion on non-GAAP measures at the end of this press
release.

“Silver Wheaton had record production in the quarter, anchored by the continued successful ramp up of one of our cornerstone growth assets, Goldcorp’s world-class Penasquito mine in Mexico,” said Peter Barnes, Chief Executive Officer of Silver Wheaton. “Penasquito reached commercial production during the quarter and expects to achieve full production capacity in early 2011, in what promises to be another year of significant production growth for Silver Wheaton.”

“While quarterly sales were lower than production, due in part to the build-up of concentrate inventory as Penasquito ramps up production, as well as the timing of shipments from the Yauliyacu and Campo Morado mines, we still achieved record earnings. Increased shipments in the fourth quarter are expected to make up for the sales shortfall and we remain on track to meet production guidance of 23.5 million silver equivalent ounces in 2010, growing to approximately 40 million ounces by 2013.”

“In an environment of continued economic uncertainty, investment demand for silver remains very strong, and silver prices approached 30 year highs in the quarter. This resulted in record cash operating margins of US$15.72 per ounce, generating strong free cash flows to fund future growth.”

“Lastly, during the quarter, Goldcorp finalized the sale of its San Dimas mine to Primero Mining, an emerging mid-tier gold producer. In conjunction with this, Silver Wheaton amended its silver purchase agreement, which continues to provide Silver Wheaton with a Goldcorp guarantee, extends the agreement from a fixed term to life-of-mine and, most importantly, incentivizes Primero Mining to increase silver production at this high-quality, low-cost, mine. San Dimas remains a key asset within our portfolio and we are confident that the amended silver purchase agreement will create additional long term value for our stakeholders.”

This earnings release should be read in conjunction with Silver Wheaton’s unaudited MD&A and Financial Statements, which are available on the Company’s website at www.silverwheaton.com and have been posted on SEDAR at www.sedar.com.

A conference call will be held Tuesday, November 9, 2010, starting at 11:00 am (Eastern Time) to discuss these results. To participate in the live call use one of the following methods:

Dial toll free from Canada or the US: 1-888-231-8191
Dial from outside Canada or the US: 1-647-427-7450
Pass code: 15809030
Live audio webcast: www.silverwheaton.com

Participants should dial in five to ten minutes before the call.

The conference call will be recorded and you can listen to an archive of the call by one of the following methods:

Dial toll free from Canada or the US: 1-800-642-1687
Dial from outside Canada or the US: 1-416-849-0833
Pass code: 15809030
Archived audio webcast: www.silverwheaton.com

About Silver Wheaton

Silver Wheaton is the largest silver streaming company in the world. Forecast 2010 production, based upon its current agreements, is 22.0 million ounces of silver and 28,000 ounces of gold, for total production of 23.5 million silver equivalent ounces. By 2013, annual production is anticipated to increase significantly to approximately 40 million silver equivalent ounces. This growth is driven by the Company’s portfolio of world-class assets, including silver streams on Goldcorp’s Penasquito mine and Barrick’s Pascua-Lama project.

TORONTO, Nov. 2 /CNW/ – Rubicon Minerals Corporation (RMX:TSX: | RBY:NYSE-AMEX) is pleased to announce that, pursuant to the recommendations in its recent NI 43 – 101 technical report filed on September 27, 2010, it has retained Geoex Limited. (“Geoex”) to prepare an initial NI 43-101 resource estimate for its F2 Gold System, part of its 100%-owned Phoenix Gold Project, located in the heart of the prolific Red Lake Gold Camp. The resource estimate is expected to be completed on or before the end of November, 2010 and will be based on 161,000 metres of diamond drilling conducted up to July 31, 2010. Accordingly, it will not include approximately 29,000 metres of drilling completed since that date (total of 190,000m drilled to date).

The initial resource estimate is expected to focus on the Company’s F2 Gold System ’9X’ target area as well as outlining an estimate of exploration target potential within the area of the F2 Gold System.

Geoex has over 40 years experience in similar gold systems including a recent NI 43-101 resource report on the Rice Lake belt assets of San Gold Resources. Geoex also has relevant experience in Red Lake and was retained by Gold Eagle Mines Ltd. in 2008 to prepare an estimate of the geological potential of the Bruce Channel gold deposit. Gold Eagle Mines Ltd. was subsequently acquired by Goldcorp Inc. in late 2008.

“Since discovering the F2 Gold System in 2008, our approach has been to aggressively explore in order to test what we believe to be a large gold mineralizing system. This initial resource will allow us to evaluate the success of that program in areas where sufficient drilling has being carried out and also to assess further gold potential of other parts of the F2 Gold System. Our underground development is advancing on schedule, and our first cross cut is in progress, guided by ongoing delineation drilling.” stated David Adamson, President and CEO.

Rubicon Minerals Corporation (“Rubicon”) is a well-funded exploration and development company, focused on exploring and developing its high-grade gold discovery at its Phoenix Gold project in Red Lake, Ontario. Rubicon controls over 65,000 acres of prime exploration ground in the prolific Red Lake gold district of Ontario which hosts Goldcorp’s high-grade, world class Red Lake Gold Mine. In addition to its Red Lake holdings, Rubicon also controls over 380,000 acres surrounding the Pogo Mine in Alaska as well as 225,000 acres in northeast Nevada.

RUBICON MINERALS CORPORATION
“David W. Adamson”
President & CEO

Source: Company website

Sorry I haven’t posted anything for such a long time, I am very glad I am blogging again! After almost six months yet again another all-time high has been reached in the price of gold. Last week there was is slight pull-back, but today we see bargain hunting again.  I expect the gold price to remain in the $1160 – $1250 range for the coming months. This is not what happens in ‘normal’ years, than there always is a drop of the gold price in the summertime, so not this year!  The biggest development in the last moths has been the fact that the gold price now moves independently from the dollar index. I visit www.kitco.com on a daily basis. The Kitco Gold Index gives the investor a better view of the price development. We probably will have to wait till September before we will see a steady price of about $ 1300 However, there may also be upward as well as downward spikes these coming months. We still advise to buy gold whenever is falls below $1180 I myself don’t do trackers or Forex trading, but this volatile market is sure making them interesting tools for the more aggressive trader.

Some people say we are in a bubble

We’re not! When your taxi driver or shoe polisher advises you to buy gold, than we are in a bubble. You do see the financial media have picked up the marked trend, and are following it closely.  This merely was the first step towards bubble forming. This will end in a bubble, that’s for sure as well. But with ever diminishing gold and silver deposits on this earth make sure a firm bottom for prices has been formed now.  When you correct the 1980 prices of gold and silver for inflation, the all time gold price would be around $6000 and that of silver about $120 when we reach these ranges, and we will, we can talk about a bubble again.

What about the silver price?

The price explosion I discussed in the previous post has not happened, yet. For this event we probably have to wait for September as well. With rising gold prices the material becomes more and more ‘out of reach’ for some small investors and the general public.  This will result is a correction of the gold/silver ration to its historical value of about 15. If we apply this ratio to today’s gold price of $1200 silver should cost $80 per ounce. One reason for prices not to have exploded yet is the price manipulation of this market.  You can read some very interesting facts about this manipulation via this link. For information about manipulation of the gold price please visit www.gata.org

Buy gold and silver! Bullion, coins, nuggets, and Silver Wheaton (SLW)

The European dept crisis will continue at least for two  years. The so much discussed PIIGS countries will contribute to a further decline of the Euro. Now about them PIIGS, this surely must be the best marketing hoax since the Blair Witch Project.  The people who made up this term confidently left out Great Britain and the United States. Those two countries have issues with their money base and depts. far greater than the PIGGS counties. Therefore physical gold and silver will give the best ‘insurance’ for the longer term. We managed to pick up some more shares of Silver Wheaton (SLW) at a price of $14.95 We have put in another buy order at a price of $17.50 We will monitor the price of this stock closely. Established in 2004, Silver Wheaton has quickly positioned itself as the largest metals streaming company in the world. The company currently has thirteen silver purchase agreements and two precious metals agreements where, in exchange for an upfront payment, it has the right to purchase all or a portion of the silver production, at a low fixed cost, from high-quality mines located in politically stable regions.

Forecast 2010 production, based upon the company’s current agreements, is 22.2 million ounces of silver and 20,000 ounces of gold, for total production of 23.5 million silver equivalent ounces. By 2013, annual production is anticipated to increase significantly to approximately 38 million ounces of silver and 59,000 ounces of gold, for total production of over 40 million silver equivalent ounces. No ongoing capital expenditures are required to generate this growth and Silver Wheaton does not hedge its silver production.

Silver Wheaton’s industry-leading growth profile is driven by a portfolio of world-class assets, including silver streams on Goldcorp’s Peñasquito mine in Mexico and Barrick’s Pascua-Lama project straddling the border of Chile and Argentina. The company’s unique business model creates significant shareholder value by providing considerable leverage to increases in the silver price while reducing the downside risks faced by traditional mining companies. Silver Wheaton has an experienced management team with a strong track record of success and is well positioned for further growth.

For more information on silver streaming and Silver Wheaton’s silver stream agreements, please click here.

Own physical silver and gold? Visit BullionVault via our link. Note: CashInfo.org will earn commission if you use this link to sign on and trade. You can also visit your local stamps and coinage shop if you want to keep your gold and silver close to you, and store it safely at home.

Development of the Kitco Gold Index (KGX):