Private Equity Fund Of Funds by Freddie Mooche - Senior Financial ColumnistGold mining companies are having a banner year. Should prices remain high investors assume the underlying shares will too. Guess again, there's a gap in gold production looming.
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Capital Casebook Equity March 12, 2004 (AXcess News) Reno NV - With gold trading at decent levels, most precious metals mining companies that concentrate in gold production are having a banner year. Should gold prices remain high investors assume the underlying shares of these companies will too. Guess again, there's a gap in gold production looming.Over the last several years gold mining companies were turning up production levels which in turn helped improve their earnings. Reno-based Meridian Gold (NYSE: MDG, TSX: MNG) reported record operating cash flows of $24 million for the quarter. Due in large part to record throughput at the El Penon mine, averaging 2,050 dry tons per operating day, which is an increase of 17% year-over-year.
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Private Investment In Public But El Penon reserves are petering out and while Meridian has been replacing reserves for four consecutive years through 2003, those properties' production will take several more years to develop, leaving investors with a gap in returns.
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Equity Mutual Funds Denver-based Apollo Gold Corporation (AMEX: AGT, TSX: APG), like Meridian, has also been building reserves. Apollo announced on February 26 that its Black Fox project, located near Timmins, Ontario, Canada, had proven reserves of 457,100 ounces and that its total proven gold reserves were 1,928,093 ounces verses 940,800 ounces in 2003, an increase of 987,293 ounces, or 104.94%.
Birmingham Contact Equity According to Apollo the Black Fox Project is going into production. The design mining rate for the proposed open pit mine would be 1,500 tons per day for more than 5 years. Annual gold production is estimated to average approximately 81,000 ounces over the life of the open pit mine.
Private Equity Investment Firm Amongst the junior mining companies, Reno-based Golden Phoenix Minerals, Inc. (OTCBB: GPXM) is producing 12,000 ounces on an annualized basis from its mineral ridge mine. According to the company, there are 54 patented and 130 unpatented claims and when acquired, the acquisition included $18 million in office and process and ancillary facilities. The reserves came in at 209,000 ounces.
Complying Deal Equity Funds February 25th Golden Phoenix announced the completion of drilling 20 exploration holes at its Mineral Ridge mine. Blast holes in the property's Brodie pit, which returned significant gold values, have been shot and mined with the ore being placed onto the leach pad.
Equity Msn Private Wyoming "Numerous drill targets remain to be tested on the Mineral Ridge property," said Steven Craig, Vice President of Golden Phoenix. "It is our intention to develop a much larger reserve over time on the property."Golden Phoenix began its first phase of gold recovery on the Mineral Ridge claims in July 2003.
American Equity Investment In other news, GPXM announced February 10, 2004 that it signed a joint venture agreement with Win-Eldrich Mines, Ltd., Toronto, Canada (CDNX: WEX) for its Ashdown gold molybdenum property in Humboldt County, Nevada.The terms of the agreement gives 60% to Golden Phoenix, as the managing operator of the project and 40% to Win-Eldrich Mines as owner of the property.Past evaluations identified 1.18 million tons of gold ore at 0.125 ounces per ton and, in a separate deposit, 146,000 tons of molybdenum ore averaging about 2.9% molybdenum.
Equity Index Funds For a junior mining company, Golden Phoenix is exceeding its larger peers in production and growth if operation size and capital expenditures are compared in proportion to those gold mining businesses.
Equity Private Team Wyoming Another junior mining company finding substantial results in Nevada is Metallic Ventures Gold Inc. (TSX: MVG). The Company is focused on major past-producing mining districts in Nevada and controls three advanced projects with considerable near-term production potential: Esmeralda, Goldfield and Converse. The Esmeralda property (formerly known as Aurora) is located approximately 100 miles southeast of Reno; the Goldfield property is located approximately 270 miles southeast of Reno; and the Converse property is located in Humboldt County adjacent to Newmont's Lone Tree mine.With many of the major producers properties playing out companies like Apollo and Golden Phoenix will be growing in production over the next two years while others, like Meridian, will be declining.
Equity Group Investment This gap in production is industry wide, with companies increasing production in 2004 and 2005 facing the highest earnings growth in a high-priced market cycle. Gold is trading in a $400 range with no decline in short term spot prices on the horizon. While some traders believe gold will continue to climb, prices remained stable.
Capital Development Equity On Monday the European central banks signed an agreement to limit their sales of gold to 500 tons per year for the next five years with the price of gold holding up even on that news.
Article Between Difference The pact is an extension of the Washington Agreement, but the amount of gold the European banks can sell is up from 400 tons in the current agreement expiring later this year.
Contact Equity Private Wyoming According to a story that appeared in the Elko, Nevada Daily Free Press Thursday, Mr. John Dobra, who is director of the National Resources Industry Institute at the University of Nevada, Reno, and an associate economics professor, said the value of the dollar against the euro tracks with the gold price.In that story Dobra was quoted as saying, "Gold ounces are sold in U.S. dollars, and the lower value of the dollar means mines in this country have lower costs."Gold closed Thursday at $400.20 bid, up $0.50, or 0.13%, in New York.
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