Registered Members Login:
   
Forgotten Your Details? Click Here To Recover +
Welcome To The ShareCafe Community - Talk Shares And Take Stock With Smart Investors - New Here? Click To Register >

3 Pages (Click to Jump) V   1 2 3 >   
 
  
Reply to this topic

African Gold Stocks, producers and explorers
mullokintyre
post Posted: Nov 27 2020, 09:46 AM
  Quote Post


Posts: 3,119
Thanks: 1122


The Chairman/CEO of Evolution Mining, Jake Klein has warned that the ground is shifting for OZ exploration companies looking to expand in other countries (including in Africa).
From Todays OZ
QUOTE
The global gold sector may have to rethink its production strategy as Chinas influence in Africa grows and as the cost of complying with environmental, social and governance standards demanded by major investors increases, according to Evolution Mining executive chairman Jake Klein.

Speaking at Evolutions annual shareholder meeting on Thursday, Mr Klein warned that the coronavirus crisis was exacerbating the rise of resources nationalism across the developing world, and forcing greater competition for access to gold deposits in Africa and Asia as China flexed its muscles.

The past playbook of gold companies looking to expand their business has been to seek this growth in developing countries, places where the geology is considered prospective and underexplored, and where labour costs are cheap. This was often a successful strategy in an orderly world, Mr Klein said.

Today, an investor must consider not only the discontent and instability that has been exacerbated by the COVID-19 pandemic in many developing countries, but also the growing influence of China, both at a government level and as a competitor at a corporate level, particularly in Africa.

Mr Kleins comments come against the backdrop of trade tensions between Australia and China that has led to a standstill on coal exports, and as China looks to take the lead in developing the so-called Pilbara killer Simandou iron ore deposit in Guinea.

Chinese gold producers have also taken a keen interest in African gold deposits developed by ASX-listed companies, with a takeover battle over ASX-listed Cardinal Resources and its gold projects in Ghana playing out between Chinas Shandong Gold and Russias Nordgold.And in that same time it has been developing its own champions of the mining industry, Chinese companies that are now competitive with their peers from other countries Australia, the US and Canada.

Chinas lending to African nations worth about $US150bn in 2018, according to researchers at Johns Hopkins University, or just over 20 per cent of Africas total government borrowings had helped strengthen those ties, Mr Klein said, with Chinese companies now in a far stronger position to compete with the legion of Australian companies looking to develop the continents mineral deposits.

They have good access to government influence, theyre competitive on the ground, and they have good access to capital, Mr Klein said.

So to me, one of the implications for a gold investor is you need to start thinking about country risk much more than you may have in the past, because you either have to apply a bigger premium to safer jurisdictions like Australia and Canada or a larger discount to developing countries where there may be unforeseen interference.

Combined with the difficulty in finding new gold deposits in more stable jurisdictions, and increased pressure from major shareholders to respect the rights of traditional owners and on environmental issues, rising global instability could force gold majors to rethink their long-term production strategy, Mr Klein said.

The focus on ESG issues is rapidly increasing and I think the industrys response is pivotal to its long-term future, he said.

If you overlay this onto the reality that making major new gold discoveries is becoming increasingly challenging, and gold mines are becoming more expensive to build and operate, in our view the solution should be a sector that is accepting that its future may be best served by producing fewer ounces with a focus on quality rather than quantity.

Avoiding these risks is at the core of Evolutions decision to exclusively focus on the tier-one jurisdictions of Australia and Canada, where the rule of law can be relied on.

Mr Klein told The Australian he had no doubt stable jurisdictions such as Canada and Australia would become steadily more expensive to operate in, partly as a result of the demands of institutional investors for sustainable production.

I will start looking at my gold portfolio and reduce some of the co's that are relying on overseas mines. particularly Africa.

Mick





--------------------
sent from my Olivetti Typewriter.
 
Nopoo
post Posted: Oct 6 2017, 01:44 AM
  Quote Post


Posts: 160
Thanks: 6


NEWS: $NXS.V $NXXGF Nexus Gold Successfully Drills Gold

Highlights:

• Nine of 10 holes from maiden drill program at Bouboulou intersected gold
• 4.41 g/t Au over 8.15m, including 23 g/t Au over 1m at Bouboulou
• 5.21 g/t Au over 3.05m, including 15.5 g/t Au over 1m at Bouboulou
• 1.04 g/t Au over 23m, including 4.1 g/t over 1m at Bouboulou
• 1.23 g/t Au over 9m, 1.1 g/t Au over 4m at Niangouela
• Sampling as high as 17.3 g/t Au at newly acquired Rakounga concession

For the complete news release visit the company’s website www.nexusgoldcorp.com





--------------------
Nopoo
 
nipper
post Posted: Sep 4 2017, 08:03 PM
  Quote Post


Posts: 7,933
Thanks: 2649


wasn't the "land of upright people (warriors?)" a hot spot for gold, with AU companies seeking Au, there?
QUOTE
The Peace Corps evacuated all of its volunteers from Burkina Faso because of security concerns, according to a statement on its website. The organization had 124 volunteers in the West African nation, who were involved in economic development, education and health projects, it said in the Sept. 3 statement. While the Peace Corps didn't specify what the security concerns were, there's been an increase in militant attacks this year.




--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
Nopoo
post Posted: Mar 24 2017, 01:47 AM
  Quote Post


Posts: 160
Thanks: 6


In Reply To: triage's post @ Aug 4 2014, 08:18 AM

$NXS.V $NXXGF Nexus Gold Corp. - Announces Increasing Diamond Drilling in Africa



http://web.tmxmoney.com/article.php?newsid...p;qm_symbol=NXS





--------------------
Nopoo
 
triage
post Posted: Aug 4 2014, 08:18 AM
  Quote Post


Posts: 3,879
Thanks: 1564


Testing times in west Africa...

Ghana looks to be trying to fight off a severe financial bug by calling in the IMF.

http://www.reuters.com/article/2014/08/02/...N0Q80KL20140802

As some of its neighbours do battle with their own version of the Hendra virus.

http://www.theguardian.com/society/2014/au...anisation-chief

Meanwhile Barack Obama has invited all but 5 African nations to Washington for a chinwag in the next couple of days. The leaders of the three countries directly affected by the current ebola outbreak will not be there but it seems that most others are up for it. Obviously Mr Obama has a natural advantage in impressing his guests, and the Chinese often offend by their ingrained attitude towards third world countries, but the Americans have a long way to make up to match it with China in Africa in terms of economic influence (I'm not sure whether this meeting is more about economics or security though (?)).

http://www.theguardian.com/world/2014/aug/...inese-influence



--------------------
"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog

Said 'Thanks' for this post: arty  
 
flower
post Posted: Nov 18 2011, 10:38 AM
  Quote Post


Posts: 12,991
Thanks: 1105


In Reply To: kosmos's post @ Nov 18 2011, 09:59 AM

Thanks for that, literally hundreds of explorers, some will be good--- some flogging moose grass country, personally only interested in those I have reasearched thoroughly, St Georges Terrace heavy hitters certainly well represented which doesnt always represent much bar money and clout--will have a look though as those blokes usually dont waste their time and money.



--------------------
Combining Fundamental comments with Fundamental charts.
 


kosmos
post Posted: Nov 18 2011, 09:59 AM
  Quote Post


Posts: 26
Thanks: 1


In Reply To: flower's post @ Apr 3 2011, 10:14 PM

You have forgooten to include Miles Kennedy's latest company, MOD Resources. I note that on this occasion, Miles has a number of heavy hitters backing him viz (according to "Resources Rising Stars" magazine circulated by Read Corporate)...Packer, Twiggy, Tim Roberts and John Poynton.

 
flower
post Posted: Nov 18 2011, 09:43 AM
  Quote Post


Posts: 12,991
Thanks: 1105


In Reply To: triage's post @ Nov 18 2011, 08:59 AM

Hi triage, because there is now only $4 difference between the gold price in USD's and AUD's the accent on which stock to trade has swung back to the ASX australian domiciled gold producers, where there are no Sovereign Risk problems.

RRL, NST, AZH for example as producers, PVM, SXG, DRM as explorers for example.



--------------------
Combining Fundamental comments with Fundamental charts.
 
triage
post Posted: Nov 18 2011, 08:59 AM
  Quote Post


Posts: 3,879
Thanks: 1564


Ghana gives notice that it will increase the corporate tax rate on miners from 25% to 35% and introduce a 10% windfall profits tax.

http://af.reuters.com/article/investingNew...E7AF06Z20111116

This decision will affect the price modelling on locally listed stocks such as Perseus (PRU) and Noble (NMG) that should be making profits from mining operations there. Will likely also affect the sentiment of some investors (who seem to think that they are the only ones entitled to profit from mining operations) who will scream about the end of the civilised world. But if not Ghana then where? I still think that Ghana is likely to remain a more temperate place to be a miner than just about any other african country so will continue to hang around.

(h/t Glutten on hc)



--------------------
"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 
triage
post Posted: Apr 30 2011, 11:10 AM
  Quote Post


Posts: 3,879
Thanks: 1564


Here is a helpful image that highlights one reason why "Africa" probably needs to be in the thinking of all major resource companies: it is so bloody big.

If the dimensions are about right - and they seem to be, though clearly the bit labelled USA actually is only the lower 48 states of the USA - it sort of puts things into persepctive.

http://infobeautiful2.s3.amazonaws.com/tru...e_of_africa.png

Newcrest (NCM) was supposed to have conducted a major strategic review in April, and surely two of the issues that would have been front and centre is whether they need to have a continued and even larger presence in Africa and whether they are too exposed to PNG. I would think the answers are "yes" to the first question and "probably yes" to the second. Either way they have to do something about their lazy balance sheet. The new boss comes in on 1 July, and I guess it is a matter of whether any acquisition they make is better done by the current boss or left for the new guy.



--------------------
"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 
 


3 Pages (Click to Jump) V   1 2 3 >

Back To Top Of Page
Reply to this topic


You agree through the use of ShareCafe, that you understand and accept the TERMS OF USE.


TERMS OF USE  -  CONTACT ADMIN  -  ADVERTISING