Tuesday, 12 May 2020

TNR Gold GEM Royalty And Energy rEVolution: There Is Time To Sow And Time To Reap The Rewards - "Barrick Gold On The Hunt For Copper Deals."

There is time to buy and time to sell. Your entry point will always define the success of every investment decision you ever make. Buy low, sell high. It is simple. If you know the future or if you know how to do it. Nobody knows the future. So the best decision-makers in this world are always important to follow. And the big decision-makers of this world can bend the gravity and markets, and the money will follow. 

Chart by Nicholas Winton.

We have discussed with you Mark Bristow's - CEO of Barrick Gold - views on the internal drivers of the Gold Bull market and that the best Gold mining companies are "Self-funded Insurance Policies" in the world "gone mad" with MMT on steroids. 

Chart by Northstar.

Now it is time, at least judging from Nicholas Winton and Northstar brilliant charts, to dive into the Copper story again. FT reports: "Barrick Gold On The Hunt For Copper Deals." Barrick Gold's search for "Strategic Copper" was interrupted by Covid-19 pandemic, but now Mark Bristow is on his quest again. M&A deals we were talking about in January, are getting in the headlines. Below you can find the digest of our discussions which can help you with your own research on the value matrix among top world mining companies and world-class Copper mining assets. As you already know, TNR Gold has its own place among all these players and GEM Royalty is plugged into the Energy rEVolution with our Royalty Holdings on Los Azules Copper with McEwen Mining and Mariana Lithium with Ganfeng Lithium as JV Operator.

Chart by Nicholas Winton.

"TNR also holds a 0.36% NSR on the Los Azules Copper Project, located in San Juan Province of Argentina. The Los Azules Project is owned 100% by McEwen Mining Inc (NYSE:MUX) and is expected to be the 26th largest copper mine in the world once it reaches production. 
A PEA at the project completed in September 2017, demonstrated a post-tax NPV8 of US$2.2bn with a post-tax IRR of 20.1%. Based on the PEA figures the mine is expected to generate average revenue per annum of U$953mln, which could generate around US$3.5mln a year to TNR over 37 years."

Now investors can do their own research and start putting the different pieces into their own valuation puzzle. Rob McEwen has prepared Los Azules to the potential major JV deal in the copper space. Agreements between Argentina and Chile are signed in order to advance the Los Azules project and the new road is being under feasibility study. The new approach by Rob McEwen which he has articulated in order to jump-start the development is making a huge difference for any potential partners:

"McEwen Mining conference call, Robert McEwen -- Chairman and Chief Owner
Happy to. We had past discussions with a senior base metal producer. What we were looking for was recovering part of the cash we put in. We were looking for $100 million upfront that the partner would advance the project to feasibility and then into production and we would continue with an interest of 20% or 25% of the property going forward."

Needless to say that any potential deal will bring the new valuation drivers for all parties involved: McEwen Mining and TNR Goldas the project will be moving into the feasibility and construction stage. Development of Los Azules will provide enormous economic benefits for San Juan, which is ready to support this kind of responsible mining business for the benefit of proud people of Argentina. I have been calling Argentina the potential Energy Power House for many years, it can finally coming all together now."

Rob McEwen Is Ready For A Deal On His "Sleeping Giant" Los Azules Copper, Gold And Silver Project While Barrick Gold Is Flirting With Argentina Again.


Barrick Gold On The Hunt For Copper Deals.

"Barrick Gold is looking to take advantage of a downturn in copper prices to make an acquisition in the sector, its chief executive Mark Bristow said, as the Canadian miner reaps the benefits of a higher gold price. “The gold price is up and the copper price is down,” Mr Bristow told the Financial Times. “So there are bound to be opportunities.”  Shares in Barrick have risen by 56 per cent this year, giving the world’s second-largest gold miner a market capitalisation of C$68bn (US$49bn). Gold prices are up by 13 per cent year-to-date at $1,695.49 a troy ounce, helping Barrick pay down its debt. In contrast copper prices have fallen by 15 per cent, reviving speculation that Barrick might make a deal for US miner Freeport-McMoRan."

"Now we can talk about Copper for Tesla Energy rEVolution and EVs. TNR holds NSR Royalty on the entire giant Los Azules Copper with McEwen Mining. Legendary Rob McEwen is calling Los Azules - "Our sleeping giant". There is over 10.2 B lb of indicated and 19.3 B lb of inferred copper in all resource categories; plus 1.7 M Oz of indicated and 3.8 M Oz of inferred Gold resources; and 56 M Oz of indicated and 136 M Oz of inferred Silver resources. Please never mix in your investment analyses different resource categories."  

Please always read legal disclaimer. There is NO investment advice on any Kirill Klip feeds and blog. Always consult a qualified financial adviser before any investment decisions. 
Do Your Own Research.

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