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The Hottest North American Shale Plays: Josh Young

Fri, 17 May 2013 03:07:40 EDT

Source: Alec Gimurtu of The Energy Report (5/16/13)

Not all the shale plays are created equal, and one in particular is bucking the trend with robust economics and company share prices that show it. But is it too late to buy in? Fund Manager Josh Young doesn't think so, and he sat down with The Energy Report to discuss the hottest (and coldest) North American shale plays. Read on to find out where he's finding bargains that could pay off handsomely. ...

Strong US Dollar Hurting Gold

Fri, 17 May 2013 02:45:26 EDT

The gold price was under intense selling pressure this week as the US dollar gained strength and global stock markets continued to surge, pulling investors' assets out of precious metals and into equities.

The yellow metal lost $49 between Monday and Thursday, hitting a fresh four-week low on Thursday at $1,388 per ounce after slipping under the technical support level of $1,400 on Wednesday as sell stop orders were triggered. ...

Japan And The Gold Price

Fri, 17 May 2013 02:40:36 EDT

Gold prices have been under pressure after falling out of bed in early April once it was clear that the Bank of Japan was intent on devaluing the yen by increasing their asset purchase program. Gold prices were badly hurt by the $200 dollar per ounce two-day decline on April 15-16, and bullish sentiment has not returned to the investor community. The technical outlook for gold is defensive, as a new trend has formed reflected by the 5- and 20-day moving averages. These two averages when used to determine a short term trend show a recent crossover near the 1,450 level, which reflects a declining gold price. The MACD has also shown negative sentiment with the index generating a sell signal in the past two trading sessions. The hedge fund community continues to exit from gold futures. According to the most recent report by the Commodity Futures Trading Commission, for the week ending May 7th, managed money reduced long positions by approximately 1,400 contracts, which is equivalent to 140,000 ounces. Hedge funds lined up on the short side, increasing positions by 4,000 contracts, or approximately 400,000 ounces. The US dollar has generated headwinds for gold bugs, and this scenario is likely to persist during the medium term. The US has shown the best economic situation of the major industrial countries, including most of Europe and Japan. One caveat to the dollar's recent rise is the better than expected Japanese GDP data which was released by the Japanese government on Thursday.

Japan, the world's third largest economy, reported a stronger than expected first quarter. The economy grew at an annualized rate of 3.5%, quicker than the 2.7% expected by economists. Quarter on quarter GDP growth increased by 0.9%, compared to the consensus estimate of 0.7%. Consumer spending drove growth, generating 2.3% of the annual increase. Although growth has showed robust results, inflation showed a decline. Year over year prices fell by 1.2% which is the highest level of deflation seen since the fourth quarter of 2011. This will likely spur on the Bank of Japan to increase stimulus.

The increase in the value of the US dollar continues to be driven by Japanese investors selling yen to purchase foreign bonds. The low level of 10-year interest rates in Japan is forcing investors out of Japanese bonds and into stocks and foreign bonds. ...

Silver's Thursday Rally Inspires Some Cautious Optimism

Fri, 17 May 2013 02:30:02 EDT

It was another rough week for silver, but some experts believe that better times lie not too far ahead.

The white metal began the week at $23.67, not far off from last week's low of $23.52, and continued to trade between $23.54 and $ 23.71 until early Tuesday morning. That's when pricing for the metal took a turn for the worse, falling to $23.25. ...

Copper Gets A Pick-Me-Up

Fri, 17 May 2013 02:15:33 EDT

Copper prices are up slightly in London, as the dollar— which has been showing some strength recently— stumbled. Three-month copper climbed 1.1 percent on Thursday to sit at $7,279 per tonne. Copper was seeing resistance at the $7.240 per tonne, but the day's climb seems to have broken that barrier. Over in New York, copper futures were behaving much the same. Copper for July was up 0.9 percent at $3.2945 a pound.

Also giving the red metal a pick-me-up was data from Japan showing an expansion of 3.5 percent for its economy, beating analyst's forecasts of 2.8 percent growth. With its economy expanding, Japan is also expected to boost its copper demand, the Wall Street Journal reported.

It seems that the Chinese yuan will have a limited near-term affect on China's copper imports, Platts reported. ...

Fission Uranium: High Grade Uranium In Athabasca Basin

Thu, 16 May 2013 14:30:41 EDT

If there is one company that is on the tip of speculative uranium investors' tongues, it's Fission Uranium (TSXV:FCU). The uranium junior has been the one to watch with impressive high-grade drill results and strong returns from its radon survey making headlines. The company, a spin-out of Fission Energy that was acquired by Denison Mines in January, is operating the Patterson Lake South (PLS) JV with Alpha Minerals (TSXV:AMW). Uranium Investing News had a chance to talk to CEO Dev Randhawa about the company and the uranium market. Uranium Investing News: Fission Uranium is a new name in the resource space. Can you tell our audience a little bit more about the company and your projects?

Dev Randhawa: Fission Uranium is a spin-out from Fission Energy. We've got a very motivated management team. And we certainly have an outstanding project to work with. This Patterson Lake joint venture we have, we have 50 percent of it. [Dundee Securities' analyst] Dave Talbot said it was the most successful winter program he had ever seen. In about two months — we started in the end of January and we finished early April — we were able to find three zones and put out some of the best holes that the Athabasca Basin's ever seen, which means the best holes that anybody's ever seen in the history of uranium because the Athabasca is the king of grade. Grades in the Athabasca are 10 to 20 to 50 times higher than the world average. The world average is 0.08 percent, so we're off to a fantastic start. We have a fantastic asset and [President] Ross McElroy is leading a great technical team. We are well financed; we have $17 million in the bank. As you know right now, the biggest difficulty people are having is raising money to advance their projects. If you can't advance projects, you can't put up news which is the lifeblood of the junior explorers, therefore stocks drift down. So it's a vicious cycle right now a lot of companies are facing. Thankfully we're not. We're well funded, well managed and have just a fantastic project.

UIN: Fission is working in the Athabasca Basin at Patterson Lake which is returning high grade uranium results. How does Patterson Lake compare to the rest of the Athabasca Basin? ...

Can The Anticipated 2013 Nickel Surplus Be Reduced?

Thu, 16 May 2013 14:15:48 EDT

Nickel had a rough 2012, and so far it looks like 2013 will not be much better — that is, unless the market sees some key changes. ...

Vanadium-nitrogen Alloy Prices Gaining Strength

Thu, 16 May 2013 14:00:04 EDT

As ferrovanadium prices continue to stagnate, one sector of the vanadium market is bucking the trend.

Metal-Pages reported that Chinese vanadium-nitrogen alloy prices have "soared" in the last few days on "tight spot availability and high production costs." ...

Vanadium Market Update (May 16, 2013)

Thu, 16 May 2013 13:55:30 EDT

The price of ferrovanadium has risen in China and Europe and slipped in the United States, according to Metal-Pages data.

In China, a supply shortage of vanadium pentoxide — the raw material used to make ferrovanadium — has buoyed the price of 50-percent ferrovanadium to between RMB 79,000 (US$12,833) and 81,000 ($13,158) a tonne. The previous range was RMB 78,000 ($12,670) to 80,000 ($12,995) per tonne. ...

Gold And Bitcoin: The Currencies Of The Future Â¿¿ James Turk

Thu, 16 May 2013 05:22:28 EDT

Source: JT Long of The Gold Report (5/15/13)

Europe, says James Turk, founder and chairman of GoldMoney, is in the midst of two crises—one in the banking sector, the other related to economic activity, and capital is needed to solve both. As to the allegedly strong dollar, Turk, in this interview with The Gold Report, suggests comparing it to the price of gold rather than other fiat currencies for a better picture. And the world's newest currency—Bitcoin—has a lot in common with one of the oldest—gold. ...

Fortune Smiles On Fortuna Silver Mines

Wed, 15 May 2013 14:15:23 EDT

When silver was dragged down by gold's mid-April nosedive, many companies mining and exploring for the white metal also suffered losses. Now, investors are faced with the task of identifying which companies remain promising despite having seen share price declines. ...

Endeavour Silver Explains How Solar Panels Are Made

Wed, 15 May 2013 14:10:30 EDT

Though solar panels are often discussed in the context of the tellurium market, a new video released by Endeavour Silver (TSX:EDR,NYSE:EXK) shows that silver and silicon are commonly used to produce these panels.

The video covers how solar panels work and how silver and silicon are used in making such panels, pointing out that it is the combination of silicon, which is used to make solar cells, and silver, which is an efficient conductor, that creates electricity. ...

South Boulder Mines Signs Joint Venture Agreement With Eritrean Government

Wed, 15 May 2013 14:00:29 EDT

On May 14, Australia's South Boulder Mines (ASX:STB) announced a 50/50 joint venture agreement with the Eritrean National Mining Corporation (ENAMCO) for its Colluli potash project in Eritrea. As part of the terms of the agreement, both parties will hold a 50-percent stake in the project via a newly formed company, Colluli Mining Share Company (CMSC). CMSC will undertake further exploration, development and operation of the potash project.

The agreement with the government is no small win for the company. The joint venture will provide South Boulder with a fair amount of certainty as to the economic and fiscal basis for the development of the project; not to mention facilitating attracting potential strategic investors for the project. ...

Daren Oddenino: How To Spot Oil And Gas Takeout Targets

Wed, 15 May 2013 02:25:13 EDT

Source: Tom Armistead of The Energy Report (5/14/13)

Let's make one thing clear: There is no magic formula to determine which company will be the next big buyout story. But if there were a formula, it would include variables like asset value, management skill level, risk profile and location, location, location. Today, C. K. Cooper & Co. Analyst Daren Oddenino joins The Energy Report to discuss M&A trends and help us solve for X. One caveat—a company that tempts an international player might leave domestic majors cold. ...

Tips For Diversifying Beyond Gold From Brent Cook

Wed, 15 May 2013 02:19:46 EDT

Source: JT Long of The Metals Report (5/14/13)

Last month's landslide at Utah's Bingham Canyon, one of the world's largest copper mines, triggered significant discussion on possible copper shortages. Brent Cook, veteran geologist and publisher of Exploration Insights, puts the landslide into perspective in this interview with The Metals Report. And for investors who want to dig out profit potential beyond the yellow metal, Cook gives us a byproduct primer and suggests base metals are a great way to diversify. ...