SharperDingaan Posted September 24, 2014 Share Posted September 24, 2014 Re accounting: Canada switched to IFRS from CGAAP on Jan 01, 2011, & the IFRS methodologies generally incorporate MTM valuation, including annual DCF means testing of all capitalized explicitly identified CF (goodwill, etc.). US GAAP doesn't have the requirement. If you have lots of JV's or investments using equity accounting, you get lots of NI volatility - especially if your base NI is not material relative to the JV's, etc. You should also be aware that statements prepared in IFRS do not require a reconciliation to US GAAP, if the issuer has publicly listed US securities. When they were prepared in CGAAP this was a requirement. SD Link to comment Share on other sites More sharing options...
BRK7 Posted September 25, 2014 Share Posted September 25, 2014 Annual Meeting began today at 11am Newfoundland time (about 3 hours ago). Anyone attend the meeting? Anything interesting or unexpected discussed? Was anyone else surprised that 5.5% of the director votes were withheld for John Baker? Any theories? Link to comment Share on other sites More sharing options...
EliG Posted September 27, 2014 Share Posted September 27, 2014 AGM presentation http://altiusminerals.com/uploads/AGM-2014.pdf Link to comment Share on other sites More sharing options...
gary17 Posted September 28, 2014 Share Posted September 28, 2014 Some news on the steel / banking industry in China for those who reads Chinese. http://www.chinatimes.com/newspapers/20140925001050-260303 Link to comment Share on other sites More sharing options...
investor-man Posted September 29, 2014 Share Posted September 29, 2014 AGM presentation http://altiusminerals.com/uploads/AGM-2014.pdf Anyone notice this at the end: M&A activity to increase in sector – potentially bringing liquidity events to some “available for sale” investment holdings Good to see this, but I hope this isn't what resulted from what Dazel was referring to as a "statement" from management. Link to comment Share on other sites More sharing options...
nostradamus Posted September 29, 2014 Share Posted September 29, 2014 I thought it was interesting that they chose to use the same picture as last year for the front cover of their AGM presentation. It is the Natashquan Ni-Cu-PGE project that they have with Anglo American. My guess is that this choice was not out of laziness. Their last set of MD&A notes that drilling has started and so could potentially get some news in the coming months. N. Link to comment Share on other sites More sharing options...
rohitc99 Posted September 29, 2014 Share Posted September 29, 2014 from the presentation 'Awarded exclusive right (following a competitive bidding process) to negotiate an agreement to acquire the central part of the Julienne Lake deposit (the EML) from the Province of Newfoundland and Labrador' Is this a new development that ALS has been given a go ahead to develop julienne lake ? Link to comment Share on other sites More sharing options...
tengen Posted September 29, 2014 Share Posted September 29, 2014 from the presentation 'Awarded exclusive right (following a competitive bidding process) to negotiate an agreement to acquire the central part of the Julienne Lake deposit (the EML) from the Province of Newfoundland and Labrador' Is this a new development that ALS has been given a go ahead to develop julienne lake ? No. There was plenty of discussion about JL prior to ALS gaining negotiating rights followed by a round of the usual back slapping when the rights were awarded. Link to comment Share on other sites More sharing options...
SharperDingaan Posted September 30, 2014 Share Posted September 30, 2014 Re JL. The JL Alliance started the EML negotiation in May & expected to be complete by end of summer. EML & a consolidated proposal that would probably include mining alongside the Iron Ore Company Carol Lake mine - as it is all one deposit. The JL alliance includes 2 steel makers, & if successful; ALS will receive a royalty + a % of the JL Alliance. We know who those steel makers are, but they would prefer to remain anonymous; they are not the folks involved in the Kami offtakes. Not new news, but it has been overshadowed by Kami for quite some time. With everything on the table, it would make a lot of sense to deal JL off to one of the big 3 - & almost immediately. With 2 different, & major, players controlling the 2 big company making deposits in the area; the risk that neither gets developed (& ALS gets no royalty), falls by roughly 50%. SD Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted September 30, 2014 Share Posted September 30, 2014 http://www.marketwired.com/press-release/alderon-announces-changes-to-the-board-of-directors-tsx-adv-1951786.htm The CEO of Liberty Mutual, Ms Diana Walters, has recently left Liberty Mutual. Liberty Mutual gives up seat on Alderon's board of directors. Maybe they will appoint somebody else to sit on the board. Link to comment Share on other sites More sharing options...
Williams406 Posted October 1, 2014 Share Posted October 1, 2014 http://www.marketwired.com/press-release/alderon-announces-changes-to-the-board-of-directors-tsx-adv-1951786.htm The CEO of Liberty Mutual, Ms Diana Walters, has recently left Liberty Mutual. Liberty Mutual gives up seat on Alderon's board of directors. Maybe they will appoint somebody else to sit on the board. As long as Liberty Mutual has capital invested via Liberty Metals and Mining, they will likely appoint another director. I'd be happy to share some names of good candidates. Perhaps this acts as a catalyst for major ownership changes if Liberty wants out. That may not be a valid inference at all from Ms. Walters' departure, just speculating. If--and I'm just speculating here again--Liberty was re-thinking Metals and Mining, that raises interesting questions about that party's ownership interest in the PMRL royalty portfolio. Enough speculating for one day--back to my day-trading... Link to comment Share on other sites More sharing options...
SharperDingaan Posted October 1, 2014 Share Posted October 1, 2014 Most would simply appoint another director; whether its an interim appointment or not is the unknown. Practical reality is don't sell into a bear market if you don't have to. Liberty could be conservative, mothball everything, & wait it out; or aggressive, use the time to develop the mine while its cheap, & deal from strength in a better market when the mine starts producing. Private Public partnerships are common arrangements, & they pay best when development takes place during adverse markets. Were this the oil patch, Liberty/Altius would probably share the private sector risk with a 2nd player, then use the adverse market to develop the mine under a PP agreement. Something they are probably well aware of. Net positive overall, but it will take a while to play out. SD Link to comment Share on other sites More sharing options...
sculpin Posted October 1, 2014 Share Posted October 1, 2014 Taking buy high sell low to the extreme... $1-billion Canadian coal mine was just sold for a buck amid plunging demand and prices by Bloomberg News Marubeni Corp., a Japanese trader that with a partner bought Canada’s Grande Cache Coal Corp. for about US$1 billion three years ago, said it would dispose of the asset for a nominal US$1 to a Hong Kong mining investor. Marubeni and Winsway Enterprises Holdings agreed to buy stakes in Calgary-based Grande Cache in 2011, the year that the price of coal peaked, paying a 70% premium over its market value on the Toronto Stock Exchange. The partners were banking on robust demand from Chinese steelmakers, which has since slowed. [related_links /] The subsequent plunge in the price of coal and other industrial commodities has hurt Japan’s traders, prompting a shift in focus to areas such as power generation, food, health and fashion. Earlier this week, Marubeni’s larger rival, Sumitomo Corp., revealed a 30 billion yen (US$273 million) writedown on coal assets in Australia, part of charges related to commodities and energy investments totaling US$2.2 billion. Up Energy Development Group has agreed to buy Marubeni’s 40% and Winsway’s 42.7% stakes in the Canadian miner, and will assume its obligations including a bank loan, the Hong Kong-listed company said in a statement Tuesday. “We’ve take many factors into consideration” and decided to sell, a Marubeni spokesman said Wednesday, declining to be named in line with company policy. A call outside normal business hours to the office of Winsway, which is also based in Hong Kong, wasn’t answered. Today is a public holiday in China. Buyback Right Marubeni retains the right to buy back 15.78% of Grand Cache, and Winsway 16.86%, over the next five years, according to Up Energy’s statement. Marubeni will also be able to sell some coal from the mine for the next 10 years. Grande Cache was a way for Marubeni to diversify its coal assets outside Australia. The Tokyo-based company in May wrote down part of the miner’s value due to the slump in coal prices. In a statement Wednesday, it said the disposal won’t affect its profit forecasts for this year. Robert Murray, the owner of the largest closely held U.S. coal miner, Murray Energy Corp., predicted last month that rivals would go bankrupt with “nothing on the horizon” to suggest a recovery in demand or prices. Bloomberg.com Bloomberg News | October 1, 2014 at 10:38 am | Tags: breaking, Coal Mining | Categories: Mining | URL: http://wp.me/pMyQt-20YX Comment See all comments Link to comment Share on other sites More sharing options...
Guest 50centdollars Posted October 1, 2014 Share Posted October 1, 2014 Taking buy high sell low to the extreme... $1-billion Canadian coal mine was just sold for a buck amid plunging demand and prices by Bloomberg News Marubeni Corp., a Japanese trader that with a partner bought Canadas Grande Cache Coal Corp. for about US$1 billion three years ago, said it would dispose of the asset for a nominal US$1 to a Hong Kong mining investor. Marubeni and Winsway Enterprises Holdings agreed to buy stakes in Calgary-based Grande Cache in 2011, the year that the price of coal peaked, paying a 70% premium over its market value on the Toronto Stock Exchange. The partners were banking on robust demand from Chinese steelmakers, which has since slowed. [related_links /] The subsequent plunge in the price of coal and other industrial commodities has hurt Japans traders, prompting a shift in focus to areas such as power generation, food, health and fashion. Earlier this week, Marubenis larger rival, Sumitomo Corp., revealed a 30 billion yen (US$273 million) writedown on coal assets in Australia, part of charges related to commodities and energy investments totaling US$2.2 billion. Up Energy Development Group has agreed to buy Marubenis 40% and Winsways 42.7% stakes in the Canadian miner, and will assume its obligations including a bank loan, the Hong Kong-listed company said in a statement Tuesday. Weve take many factors into consideration and decided to sell, a Marubeni spokesman said Wednesday, declining to be named in line with company policy. A call outside normal business hours to the office of Winsway, which is also based in Hong Kong, wasnt answered. Today is a public holiday in China. Buyback Right Marubeni retains the right to buy back 15.78% of Grand Cache, and Winsway 16.86%, over the next five years, according to Up Energys statement. Marubeni will also be able to sell some coal from the mine for the next 10 years. Grande Cache was a way for Marubeni to diversify its coal assets outside Australia. The Tokyo-based company in May wrote down part of the miners value due to the slump in coal prices. In a statement Wednesday, it said the disposal wont affect its profit forecasts for this year. Robert Murray, the owner of the largest closely held U.S. coal miner, Murray Energy Corp., predicted last month that rivals would go bankrupt with nothing on the horizon to suggest a recovery in demand or prices. Bloomberg.com Bloomberg News | October 1, 2014 at 10:38 am | Tags: breaking, Coal Mining | Categories: Mining | URL: http://wp.me/pMyQt-20YX Comment See all comments They got a bad deal. I would have paid $2 for it. Link to comment Share on other sites More sharing options...
peter1234 Posted October 1, 2014 Share Posted October 1, 2014 Wow, great find. ;D Link to comment Share on other sites More sharing options...
nostradamus Posted October 2, 2014 Share Posted October 2, 2014 http://www.alderonironore.com/_resources/news/ADVNR20141002.pdf "Nalcor have halted work on the transmission line becuase they want more money to continue and we don't have any money to give them". Not an acutal quote of course, but I think it sums up the press release. Link to comment Share on other sites More sharing options...
TwoCitiesCapital Posted October 2, 2014 Share Posted October 2, 2014 http://www.alderonironore.com/_resources/news/ADVNR20141002.pdf "Nalcor have halted work on the transmission line becuase they want more money to continue and we don't have any money to give them". Not an acutal quote of course, but I think it sums up the press release. Maybe with all the bad news going around we'll all be able to get our fill at sub $10 USD prices....that's about the only silver lining to all of this Link to comment Share on other sites More sharing options...
Guest Dazel Posted October 2, 2014 Share Posted October 2, 2014 Even though the world is ending......it's silver lining is the costs are dropping out of their ass....with CDN dollar and the cost of everything especially energy and labour in free fall...the cost of building Kami has come down substantially. China is cutting supply and lot of those mines will close down permanently now and in the coming winter months. Government incentives etc will now be in play as employment in the trough is also in free fall. "costs" are the key....The Chinese will not give the big four control of the iron price...if they do future prices will sky rocket when the big three decide to cut back production which they will be able to do at will....you will also see the big trading houses cherry picking assets...Glencore-Alderon's off take partner will likely start that process. Hopefully they decide to develop the trough with the Chinese majors.....it's less than half the price it was 8 months ago and Glencore-China partners do not need a big profit margin. Glencore will be trading it's product and the Chinese using it internally to blend with other product. You will remember ha cliffs signed all it's contracts at $190 iron ore. Kami has as significant bargaining power where we are now....the rail contract being the biggest to keeping costs down on production. Link to comment Share on other sites More sharing options...
nostradamus Posted October 2, 2014 Share Posted October 2, 2014 I am sure that you are right Dazel that construction costs have come down dramatically in Canada and that this offsets to an extent (maybe even to a large extent) the fall in the price of iron ore. However, isn't this only relevent if you have the financing to take advantage of these lower costs? Altius have been clear that they see delays in the Kami mine. So it seems, at least to me, that there is a real risk that the whole project get put on hold for a couple of years until iron ore prices improve. After iron ore prices improve and kami is able to attract financing, maybe the cost advantages that you mention will no longer be available. Link to comment Share on other sites More sharing options...
Guest Dazel Posted October 2, 2014 Share Posted October 2, 2014 Nostradamus, That is why the transmission line delay...why spend the $22m on deposit now? Kami will get developed by a large international Chinese consortium company Hebei. They paid enormous prices years back...they decided to wait this time. Any project requiring infrastructure will now be shelved globally....when this happened in 2012 to price shot back up to $130 by Jan....this will not happen this time because the big 3 won't let it.....they want permanent closures for all high cost mines...mostly china the worlds largest producer of iron ore. 125 million tonnes this year will come off this year....massive projects requiring infrastructure be canceled and supply will be balanced. The price "will" go back up to around $110 and china's response will be to "secure" iron ore at a good price (kami) long term will be in Kami's range of a $100U.S. Kami "does not require infrastructure" and they will be able to produce at a lower cost because rail, labour and build out will be much cheaper than those started building at higher prices. The chinese are waiting patiently for a better price to secure inventory....Very smart on their part.... but for he long term they do not want the big three to control the price at higher rates....lower they are happy. Not fun to watch but the deflationary costs will allow Kami and JL to operate at "good" margins...that is all the Chinese-Glencore are looking for. Link to comment Share on other sites More sharing options...
ItsAValueTrap Posted October 2, 2014 Share Posted October 2, 2014 http://www.marketwired.com/press-release/alderon-announces-changes-to-the-board-of-directors-tsx-adv-1951786.htm The CEO of Liberty Mutual, Ms Diana Walters, has recently left Liberty Mutual. Liberty Mutual gives up seat on Alderon's board of directors. Maybe they will appoint somebody else to sit on the board. As long as Liberty Mutual has capital invested via Liberty Metals and Mining, they will likely appoint another director. I'd be happy to share some names of good candidates. Perhaps this acts as a catalyst for major ownership changes if Liberty wants out. That may not be a valid inference at all from Ms. Walters' departure, just speculating. If--and I'm just speculating here again--Liberty was re-thinking Metals and Mining, that raises interesting questions about that party's ownership interest in the PMRL royalty portfolio. Enough speculating for one day--back to my day-trading... Personally I don't think that Liberty will appoint another director if they are trying to sell down their stake. Having a director on their board would expose them to litigation from insider trading. EDIT: I also think that they are selling down their stake. We'll see what happens. I have no position in Alderon or Altius. Link to comment Share on other sites More sharing options...
Williams406 Posted October 2, 2014 Share Posted October 2, 2014 First pour at Eleonore...commercial production 1Q 2015. http://minesvirginia.com/en/index.php/press-en/virginia-mines-inc-first-gold-pour-at-eleonore2014-10-02/ Link to comment Share on other sites More sharing options...
SharperDingaan Posted October 2, 2014 Share Posted October 2, 2014 Keep in mind that Kami is a strategic asset for just about everybody, & that China will be arbitraging across time & space. The off-takes have zero value if there is no mine - so buyers have to contribute to keep the option alive. The province & the fed also have little choice if development is to be encouraged. And costs ..... are not going to get much lower than they are at present. It is in the big 4 interest to do whatever they can to kill this baby in the crib ... hence the negativism is not accidental. State sponsored mines do not have to answer to temporary commercial pressures. The 4 would also rather not remind anybody that shorting a basket of them, & going long the baby they are trying to kill, is something they cannot defend against. The big-4 also sell to China, & its no big deal to selectively pull 4m tpa from a specific major, reject deliveries, & redirect all incremental purchases to just one trader. All those cargoes are FOB destination, the big-4 will have to carry the costs, & China has lots of inventory to run down. And 8m tpa of new production coming on-stream in 2 yrs to replace their stock. Cooked skippy. Eleonore has just poured ... it could really screw up their day if a sale were to seemingly suddenly appear out of nowhere ;) SD Link to comment Share on other sites More sharing options...
Williams406 Posted October 6, 2014 Share Posted October 6, 2014 Glencore sniffing around a merger with Rio. http://www.bloomberg.com/news/2014-10-06/glencore-said-to-lay-groundwork-for-potential-rio-merger.html Link to comment Share on other sites More sharing options...
Guest Dazel Posted October 7, 2014 Share Posted October 7, 2014 http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/lundin-mining-set-to-buy-freeport-mcmoran-mine/article20946476/ Altius owns land around the Candelaria mine (see below) in Chile...Franco paid $680m for a streaming deal with Lundin in this purchase. http://altiusminerals.com/projects/morsas Link to comment Share on other sites More sharing options...
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