Wednesday, 14 May 2014

Copper M&A, Mining In Argentina And TNR Gold's Los Azules Copper Back-In Right.


  Copper is staging a small rally last couple of weeks on the news from China and expectations that capital market reforms there will bring stability to the market. If you believe in the global economy's recovery - Copper is the right place to be. Dr Copper was hesitating lately and must have been reading the wrong websites, once it will start to subscribe to CNBC it should be moving steadily up. 
  But jokes aside. Copper is the very important indicator of the economic activity. Recent pick up in Copper prices confirms that China will continue its growth. "IMF now estimates it at 7.5%, but may revise it a little bit lower." Continued investment in the Power Grid and High Speed Rail Network in China should provide a further support to the copper market.
   The industry insiders' views are even more important and I take the recent pick up in Copper M&A activity as the very important indicator in the bottom for this mining cycle:

"China continues its buying spree of copper assets all over the Globe: last month the huge Las Bambas copper project in Peru was bought by Minmetals Group for $5.85 B and now Guandong is bidding for PanAust. Reuters reports on the deal and you can notice how the activity in M&A by Chinese companies is picking up during the "soft market". It is the very important indication of the major bottom in the mining cycle: it is cheaper "to dig" for Copper and Gold on the Stock Exchanges now, when valuations of assets in the ground of listed companies are discounted by the depressed mining markets." 
  Copper price is one the very important driver for TNR Gold's Los Azules Copper Back-In Right. Another one will be the perception of the political situation in Argentina. I am pleased to find more and more news confirming that this great mining country is coming back to business now. Nothing will change overnight, but government's efforts are making difference and mining companies are coming back with their investments in Argentina:

"Argentina was not the best place for mining for the last couple of years, but now I can see a lot of positive developments. After Repsoil compensation, Chevron has stricken major deal for Shale Gas  and Oil development. Yamana Gold, Gold Corp, Silver Standard - all have commented positively on Argentina mining climate recently and continue their investments in the country. Going forward it should improve the valuations and investment appetite for the projects like Los Azules."

  In March delegation from Argentina at PDAC in Toronto welcomed mining business back to the country: Promising report on Argentine mining sector and contribution to economy:

"The Argentine mining sector is expected to invest 3.85 billion dollars this year, including 800 million as imports' substitutes, announced Planning minister Julio de Vido, who also revealed that in the last ten years the sector has invested over 11bn dollars and generates an activity equivalent to 3.2% of GDP."

  Particularly important for Los Azules Copper Project are the efforts by the government of Argentina "to overturn Barrick Gold's Pascua Lama freeze in Chile." Both projects are located in the same San Juan province in Argentina which is considered to be one of the most mining friendly in the country.
  You can find more about our Los Azules Back-In Right in the presentation below and you can always contact us to discuss it.

"The sale of our Back-in Right will provide the necessary liquidity and catalyst to all of our group of companies. Rob McEwen has done a great job as Operator developing this project and now Los Azules is at the top of the list of the best copper projects in the world available for sale, according to PI FinancialI would recommend to contact Jim Mustard VP at PI Financial to get more information about Los Azules Copper project and our Back-In Right Asset."

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