Virtually every precious metals miner reported outstanding earnings for the 4th quarter (http://markostake.blogspot.com/2010/03/major-gold-producers-deliver-stellar.html).
As earnings season resumes, Newmont Mining Corp. (NEM) has given confirmation that exploding earnings are NO fluke. In fact, the precious metals mining sector, on a fundamental basis, is looking downright cheap!
Tuesday morning, NEM said net income attributable to shareholders nearly tripled in the first quarter to $546 million, against $189 million in the year ago period. On a per share basis, the company earned $1.11 in the period against 40 cents a year ago.
The company's adjusted profit was 83 cents per share. A survey of analysts at FactSet Research was estimating earnings of 79 cents a share in the quarter. The company said its average realized gold price rose 22%. The company is maintaing its previously announced 2010 outlook for equity gold production of 5.3 million to 5.5 million ounces and costs applicable to sales of between $450 and $480 an ounce.
The highlights of Newmont's first quarter report included gold production of 1.3 million ounces and copper production of 90 million pounds. Revenues increased to $2.2 billion, up 46% from the similar quarter last year.
According to the company's press release, "With a 22% increase in our average realized gold price, our net gold operating margin expanded by 32% to $626 per ounce, further demonstrating our ability to provide significant gold price leverage through expanding cash operating margins," said Richard O'Brien, President and Chief Executive Officer. "We also recently secured the mining lease for our Akyem project in Ghana and continue our dialogue with local communities and Ghanaian authorities. In addition, we are advancing our development plans at Conga in Peru following a successful public meeting with local stakeholders. The strength of our balance sheet coupled with the progress being made on our advanced development assets, Newmont is well positioned to invest in our project pipeline while maintaining our financial strength and flexibility."
A missing element in prior rallies in the precious metals sector has been earnings growth, despite the large increase in Gold prices. In large part this was the result of skyrocketing oil prices - a major cost element. With energy prices hovering in the $80 per barrel range, while GOLD tests its all time highs, costs of production are easier to keep under control while revenues are shooting up with higher realized commodity prices.
Another important factor has been the unwinding of hedge books - something that nearly every major producer has either completed or is in the process of completing. Poorly implemented hedges had reduced the major Gold Producer's benefit from rising metal prices and created significant derivative losses. Now that the hedges are no longer putting a drag on revenues realized, the sector is poised to continue rapid earnings growth.
The technicals for the sector also look fantastic. The dollar has been sputtering after a blistering rally early in the year. In addition, the Federal Reserve's desperate attempts to keep the economy liquid are showing up in increasing inflation (http://markostake.blogspot.com/2010/04/producer-prices-producing-signs-of.html).
All systems are go. The time for the hyperbolic growth phase is here. Recently, we have written up some suggestions for some excellent junior mining companies that ought to be considered for those wishing to build a portfolio of promising positions. Our reports on Aurizon Mines (AZK), Explor Resources (EXSFF), Vista Gold (VGZ), Tara Minerals (TARM), Samex Mining (SMXMF), Seabridge Gold (SA), Hecla Mining (HL) and ECU Silver Mining (ECUXF) can be accessed by clicking the links below:
http://markostake.blogspot.com/2010/04/risin-aurizon-mines.html
http://markostake.blogspot.com/2010/04/exploring-explor-resources.html
http://markostake.blogspot.com/2010/03/vista-gold-explorer-worth-exploring.html
http://markostake.blogspot.com/2010/03/tara-minerals-on-tear.html
http://markostake.blogspot.com/2010/03/samex-mining-grand-slam-ex.html
http://markostake.blogspot.com/2010/03/seabridge-gold-how-to-buy-gold-for.html
http://markostake.blogspot.com/2010/03/hecla-mining-at-119-years-old-producing.html
http://markostake.blogspot.com/2010/02/ecu-silver-mining-as-good-as-it-gets_7745.html
Marko's Take
Please visit our new You Tube channel at http://youtube.com/markostaketv. Our latest video on the Legality Of The Personal Income Tax can be accessed at (http://www.youtube.com/markostaketv#p/u/0/1TInKnCIikg). Our next video on Social Security, which will be a two part series, is in post production and will be posted shortly.
If you have any interest in how to receive 3D content on your mobile phone, please access our new website at (http://www.e3dlabs.com/). Contact me for further information.
Showing posts with label Tara Minerals Corp.. Show all posts
Showing posts with label Tara Minerals Corp.. Show all posts
Tuesday, April 27, 2010
Monday, April 5, 2010
Gold Market Pulls Double-Reverse: Time To Re-Enter
Not long ago, the Gold and precious metals market looked ready to surprise some of us Gold Bulls and do a face plant into the concrete. Just as things started to look dicey, we got faked-out and called for a move into cash (http://markostake.blogspot.com/2010/03/gold-market-update-time-to-go-to-cash.html).
Now it looks like Gold has pulled off a stunningly successful "double-reverse". For those not familiar with football parlance, a double-reverse is a manoeuver designed to switch directions twice in one play. First, the play has you looking right, then left, then right again. If you don't know its coming, you get faked out of your shoes.
And so it appears with Gold and Precious Metals stocks. Just as it looked like we would get a completely surprising market reversal to the downside, the market held, gathered strength and now all signs point to a renewal of the upside hyperbolic mania that we were looking for all along.
All the market did was what it was SUPPOSED to do. Like an illusionist, it diverted our attention while it pulled of its seemingly amazing trick.
The GOOD news is that re-entry here with Gold near the $1,125-$1,130 level leaves PLENTY of upside, especially if our longer-term projection of $5,000 is met. The important thing is not to fall in love with either a market outlook or individual postions and stay with the "weight of the evidence". That evidence now is screaming BUY again.
Especially telling was the sudden surge in the Gold Bugs index on Thursday, also known as the HUI. The HUI surged a whopping 5% indicating an investor stampede back into precious metals stocks. In additon, some key chart patterns were resolved in a bullish manner. Can't fight the tape!
So, now that the market has successfully faked us out, it's time to re-enter. We did a series, a couple of weeks back on a number of promising stocks and we would suggest a review of these if you're interested in selecting some appropriate candidates. The links are provided below.
The individual stock reviews of Vista Gold, Tara Minerals, Samex Mining, Seabridge Gold, Hecla Mining, and ECU Silver Mining can be accessed by clicking on the following links:
(http://markostake.blogspot.com/2010/03/vista-gold-explorer-worth-exploring.html)
(http://markostake.blogspot.com/2010/03/tara-minerals-on-tear.html)
(http://markostake.blogspot.com/2010/03/samex-mining-grand-slam-ex.html)
(http://markostake.blogspot.com/2010/03/seabridge-gold-how-to-buy-gold-for.html)
(http://markostake.blogspot.com/2010/03/hecla-mining-at-119-years-old-producing.html)
(http://markostake.blogspot.com/2010/02/ecu-silver-mining-as-good-as-it-gets_7745.html)
(http://markostake.blogspot.com/2010/03/major-gold-producers-deliver-stellar.html)
In the days ahead, we'll cover more individual stocks of interest.
For now, ignore last week's man behind the curtain, and listen to THIS WEEK'S man behind the curtain!
There's a great opportunity looming ahead of us and lot's of time to board the train and enjoy a great ride.
Marko's Take
Please visit our new YouTube channel at http://www.youtube.com/markostaketv.
Now it looks like Gold has pulled off a stunningly successful "double-reverse". For those not familiar with football parlance, a double-reverse is a manoeuver designed to switch directions twice in one play. First, the play has you looking right, then left, then right again. If you don't know its coming, you get faked out of your shoes.
And so it appears with Gold and Precious Metals stocks. Just as it looked like we would get a completely surprising market reversal to the downside, the market held, gathered strength and now all signs point to a renewal of the upside hyperbolic mania that we were looking for all along.
All the market did was what it was SUPPOSED to do. Like an illusionist, it diverted our attention while it pulled of its seemingly amazing trick.
The GOOD news is that re-entry here with Gold near the $1,125-$1,130 level leaves PLENTY of upside, especially if our longer-term projection of $5,000 is met. The important thing is not to fall in love with either a market outlook or individual postions and stay with the "weight of the evidence". That evidence now is screaming BUY again.
Especially telling was the sudden surge in the Gold Bugs index on Thursday, also known as the HUI. The HUI surged a whopping 5% indicating an investor stampede back into precious metals stocks. In additon, some key chart patterns were resolved in a bullish manner. Can't fight the tape!
So, now that the market has successfully faked us out, it's time to re-enter. We did a series, a couple of weeks back on a number of promising stocks and we would suggest a review of these if you're interested in selecting some appropriate candidates. The links are provided below.
The individual stock reviews of Vista Gold, Tara Minerals, Samex Mining, Seabridge Gold, Hecla Mining, and ECU Silver Mining can be accessed by clicking on the following links:
(http://markostake.blogspot.com/2010/03/vista-gold-explorer-worth-exploring.html)
(http://markostake.blogspot.com/2010/03/tara-minerals-on-tear.html)
(http://markostake.blogspot.com/2010/03/samex-mining-grand-slam-ex.html)
(http://markostake.blogspot.com/2010/03/seabridge-gold-how-to-buy-gold-for.html)
(http://markostake.blogspot.com/2010/03/hecla-mining-at-119-years-old-producing.html)
(http://markostake.blogspot.com/2010/02/ecu-silver-mining-as-good-as-it-gets_7745.html)
(http://markostake.blogspot.com/2010/03/major-gold-producers-deliver-stellar.html)
In the days ahead, we'll cover more individual stocks of interest.
For now, ignore last week's man behind the curtain, and listen to THIS WEEK'S man behind the curtain!
There's a great opportunity looming ahead of us and lot's of time to board the train and enjoy a great ride.
Marko's Take
Please visit our new YouTube channel at http://www.youtube.com/markostaketv.
Thursday, March 18, 2010
Tara Minerals: On A Tear-A
In keeping with this week's theme of pointing out some interesting ideas in the junior precious metals space, we introduce a very unknown company called Tara Minerals Corp. (TARM).
Lately Tara has been quietly vaulting higher. The stock closed yesterday at $2.50 despite having sold for about $.50 as recently as September 2009. Tara is, as far as I can tell, completely unknown to most precious metals afficionados, but seems destined to hit the radar screens of the invesment community in short order.
The Company was organized May 12, 2006 and is engaged in the acquisition, exploration and development of mineral resource properties in Mexico. The Company owns 100% (minus one share) of common stock of American Metal Mining, S.A. de C.V., which was established in December 2006 and operates in México. All of Tara Minerals’ operations in Mexico are conducted through American Metals Mining, since Mexican law provides that only Mexican corporations are allowed to own mining properties.
Tara Minerals has an interest in several gold/zinc/lead/silver mining properties. The properties are located in the northern part of the La Reforma Mining District of northeastern Sinaloa State, Mexico, which has been mined for more than 300 years. The Company believes that this area may potentially host base metals that were never discovered, or exploited, as the result of market conditions, lack of technology, and lack of funding.
Tara Minerals is fully funded and focused on generating revenue from its 100% owned high-grade Gold, Zinc, Lead and Silver Don Roman project. Production began in the third quarter of 2009 and is expected to generate significant revenue - allowing the financing of all near-term exploration and production goals.
In 2010, the Company is expecting to produce approximately 900,000 ounces of Silver and 24 million pounds of Lead and Zinc concentrate. The value per tonne of mined rock is currently approximately $350 versus a cost of $80. Tara has also discovered a rich vein of Gold in its San Felipe property.
Tara's CEO and President is Robert Wheatley, former Director of North and Central American Exploration for Yamana Gold (AUY).
The Company has approximately 50 million shares outstanding, however, 80% is owned by parent company Tara Gold, leaving a fairly small float of approximately 8 million shares. Tara Mineral expects to seek listing on the American Stock Exchange, which requires a period of greater than 10 consecutive days with a $2 or better share price. If this listing is realized, the Company will obtain greater access to capital markets and investor accessibility.
For full disclosures purposes, I am currently a shareholder of TARM.
While most investors in precious metals companies will be rewarded, the upcoming environment will prove especially conducive to those who find and select the "sleepers". Tara Minerals appears to be one of them.
Happy investing!
Marko's Take
For new readers, we are expanding our partners in the investment community. One of them is StockMavrick, (http://www.stockmavrick.com/), a site specializing in under-followed penny stocks in all industries. For those more interested in political and world events, we will be continuing with our YouTube series which can be accessed at http://www.youtube.com/markostaketv. Finally, we're grateful for the excellent site LeMetropole, which can be accessed here http://www.lemetropolecafe.com/.
Lately Tara has been quietly vaulting higher. The stock closed yesterday at $2.50 despite having sold for about $.50 as recently as September 2009. Tara is, as far as I can tell, completely unknown to most precious metals afficionados, but seems destined to hit the radar screens of the invesment community in short order.
The Company was organized May 12, 2006 and is engaged in the acquisition, exploration and development of mineral resource properties in Mexico. The Company owns 100% (minus one share) of common stock of American Metal Mining, S.A. de C.V., which was established in December 2006 and operates in México. All of Tara Minerals’ operations in Mexico are conducted through American Metals Mining, since Mexican law provides that only Mexican corporations are allowed to own mining properties.
Tara Minerals has an interest in several gold/zinc/lead/silver mining properties. The properties are located in the northern part of the La Reforma Mining District of northeastern Sinaloa State, Mexico, which has been mined for more than 300 years. The Company believes that this area may potentially host base metals that were never discovered, or exploited, as the result of market conditions, lack of technology, and lack of funding.
Tara Minerals is fully funded and focused on generating revenue from its 100% owned high-grade Gold, Zinc, Lead and Silver Don Roman project. Production began in the third quarter of 2009 and is expected to generate significant revenue - allowing the financing of all near-term exploration and production goals.
In 2010, the Company is expecting to produce approximately 900,000 ounces of Silver and 24 million pounds of Lead and Zinc concentrate. The value per tonne of mined rock is currently approximately $350 versus a cost of $80. Tara has also discovered a rich vein of Gold in its San Felipe property.
Tara's CEO and President is Robert Wheatley, former Director of North and Central American Exploration for Yamana Gold (AUY).
The Company has approximately 50 million shares outstanding, however, 80% is owned by parent company Tara Gold, leaving a fairly small float of approximately 8 million shares. Tara Mineral expects to seek listing on the American Stock Exchange, which requires a period of greater than 10 consecutive days with a $2 or better share price. If this listing is realized, the Company will obtain greater access to capital markets and investor accessibility.
For full disclosures purposes, I am currently a shareholder of TARM.
While most investors in precious metals companies will be rewarded, the upcoming environment will prove especially conducive to those who find and select the "sleepers". Tara Minerals appears to be one of them.
Happy investing!
Marko's Take
For new readers, we are expanding our partners in the investment community. One of them is StockMavrick, (http://www.stockmavrick.com/), a site specializing in under-followed penny stocks in all industries. For those more interested in political and world events, we will be continuing with our YouTube series which can be accessed at http://www.youtube.com/markostaketv. Finally, we're grateful for the excellent site LeMetropole, which can be accessed here http://www.lemetropolecafe.com/.
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