Tuesday, 17 July 2018

TNR Gold Los Azules Copper Royalty With McEwen Mining: The World's Biggest Miners Want More Copper But Nobody's Selling.



Thomas Biesheuvel reports from the boardrooms of major mining companies confirming my observations for TNR Gold from the ground in Argentina. There is a growing appetite for the copper assets and majors are hunting for the best projects to replenish the exhausted production pipelines. Nobody is ready to sell the operating mines and companies will have to look at the development opportunities left. 





We have discussed heating up mining M&A activities on the example of Pascua Lama with Barrick Gold and Los Azules with McEwen Mining in Argentina. The charts below are putting this situation into perspective. Copper head grades are going lower, existing copper supply is threatened by labor disputes interruptions and exploration for the new projects has been "increasingly unsuccessful" ...

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Please Note that TNR Gold Qualified Person - as it is defined by NI 43-101, was NOT able to Verify and Confirm Any Provided Information by The Third Parties in the Articles, News Releases or on the Links embedded in this post; you must NOT rely in any sense on any of this information in order to make any Resource or Value Calculation, or attribute any particular Value or Price Target to any Discussed Securities.





"On the Los Azules side, McEwen Mining has revamped its website putting a lot of new information about this "sleeping giant". The new road to the project is being under construction now and potential JV partners are being dated in order to move the project to the development stage. Mining Secretary Daniel Meilan was talking about Los Azules as the next huge international business opportunity for Argentina after Pascua Lama's development challenges with Chile. And he has delivered his part of the promise: last year the mutual protocol was signed between Argentina and Chile about the support for the development of Los Azules. Now Rob McEwen's Midas touch will be in play - what international mining house can he engage to unlock the value of his "sleeping giant"? Read more."




"TNR Gold holds NSR Royalty on Los Azules with McEwen Mining with a very impressive USD $127 million potential undiscounted cash flow presented by McEwen Mining in their PEA. I must mention that TNR Gold QP was not able to verify any data presented by McEwen Mining and no indication of values should be taken as an investment advice here, as usual. Read more."





"The winter is warming up in Argentina and we can have a very hot spring for the M&A deals in Southern Hemisphere following the heatwave all over the Globe. Trade Wars will come and go and the smart money will be moving forward. There is just one planet Earth and we have our investment supercycle in place with supercharged new market dynamics. On one hand, we have to protect our planet and build very fast the new infrastructure for the Tesla Energy rEVolution and on another hand, the secure supply of Green Energy Metals becomes crucial while new discoveries are getting harder and harder to find and even more challenging to put into production. Read more."




Bloomberg:

The World's Biggest Miners Want More Copper But Nobody's Selling.

July 17, 2018
·        
Copper demand forecast to grow as cities, electric cars expand
·        
Rio Tinto CEO says he’s keeping a watching brief on M&A

"It’s the mining world’s biggest dilemma: everyone’s hunting for copper deals, but even the richest producers just can’t pull the trigger.
The largest miners all say they’re bullish on copper and looking for growth in the metal that’s forecast to be in ever-greater demand as cities expand and electric vehicles gain traction. The industry has deep pockets for deals right now -- Rio Tinto Group may end the year having raised $8.5 billion from asset sales and rivals like BHP Billiton Ltd. and Glencore Plc are churning out massive profits.
So what’s the problem? For a start, nobody who owns a copper mine wants to give it up. Even when Glencore and Anglo American Plc were crippled by debt during the 2015 commodity slump, neither was willing to entertain an offer from Rio for their holdings in the giant Collahuasi deposit in Chile, according to people familiar with those talks, who asked not to be identified.
When it comes to listed companies, there aren’t that many options -- U.S.-based Freeport-McMoRan Inc. and Canada’s First Quantum Minerals Ltd. are among the only copper-focused producers of any real size.
“Any company with half a balance sheet is not going to be selling a copper asset at this point,” said Richard Knights, an analyst at Liberum Capital Markets. “The only place they can extract value is development assets, where they buy and develop themselves.”