This report from Cowen provides an update on senior gold producers and junior developers. It finds that senior producers have strengthened their balance sheets through cost cuts, capital reductions, and asset sales over the past two years. Their net debt ratios and costs are expected to improve further by 2015, while production increases. The report sees opportunities for seniors to acquire undervalued pre-production assets from junior developers at currently discounted prices. Several junior developers are highlighted that have made progress de-risking projects but whose share prices remain discounted relative to 2013 levels.
Apr 2007_SK Corp Earnings Forecast for FY 2007Alfred Park
This report provides a strong buy recommendation for SK Corporation shares based on an anticipated rise in earnings visibility and attractive valuation. SK shares are trading at book value with a 9% cash yield and are expected to appreciate 20%+ in the next 12 months. The report cites atypical opportunities for excess profits due to SK's role in Korea's energy-intensive economy and changes in global supply chains.
SilverCrest Mines | Corporate Presentation | September 2012Silvercrestmines
This document provides forward-looking production estimates and financial information for SilverCrest Mines Inc., a precious metals mining company. It summarizes the company's operating results for the second quarter of 2012, including silver and gold production and cash costs. It also outlines the company's mineral resource estimates across its properties and management's experience. However, readers are cautioned that the information presented is forward-looking and subject to various risks and uncertainties.
Financing and Investment: Value Propositions and RefinancingCapstone Headwaters
The following presentation was given by Joel Schneyer, Managing Director at Headwaters MB at the Industrial Minerals 3rd Frac Sand Conference in Minneapolis, MN.
World Fuel Services Corporation is a global leader in the downstream marketing and financing of aviation and marine fuel products and related services. For the nine-month period ended December 31, 2002, the company reported revenue of $1.55 billion, up 52.6% from the same period the previous year. Net income was $9.9 million, down 22.6% from the previous year. The company has a strong balance sheet with $312 million in total assets and $127.7 million in stockholders' equity.
SandRidge Energy has built a portfolio focused on oil production growth from three key project areas: the Mississippian limestone play, NW STACK area in Oklahoma, and North Park Niobrara oil project in Colorado. The company has $554 million in liquidity and no debt. In 2017, it will continue developing the NW STACK and North Park projects with two rigs total, while high-grading its Mississippian position for cash flow. Recent well results have met or exceeded expectations at both NW STACK and North Park.
This document provides an overview of TXU's first quarter 2006 earnings discussion. It highlights improved operational earnings compared to the first quarter of 2005, driven by record production levels at TXU Power's lignite and nuclear units. It also summarizes new electricity product offerings introduced by TXU Energy in North Texas to establish TXU as the leader among Texas incumbents. Additionally, it outlines six key drivers of attractive returns for TXU's clean coal investment program and how hedging protects a portion of the value while retaining upside potential from commodity price moves.
- BR Properties reported financial results for 2Q14 with net revenues decreasing 6% YoY due to property sales but average rent per sqm for remaining properties increasing 6.2% YoY.
- Net income increased 267% YoY to R$182.9 million in 2Q14. Adjusted EBITDA was R$205.6 million with a margin of 92%.
- The company signed new lease agreements, including with AIG Seguros Brasil and Indra Brasil, and continued improving vacancy rates in its office portfolio over the past four quarters.
This document provides a corporate update from Agnico-Eagle Mines Limited for February 2009. It summarizes the company's operating and financial results for Q4 and full year 2008, highlights its strong gold reserves which are larger than its peers, and outlines its global growth strategy with three operating mines and three new mines under construction. It also previews upcoming news in 2009 regarding expansion studies at several of its projects which could further increase production.
Apr 2007_SK Corp Earnings Forecast for FY 2007Alfred Park
This report provides a strong buy recommendation for SK Corporation shares based on an anticipated rise in earnings visibility and attractive valuation. SK shares are trading at book value with a 9% cash yield and are expected to appreciate 20%+ in the next 12 months. The report cites atypical opportunities for excess profits due to SK's role in Korea's energy-intensive economy and changes in global supply chains.
SilverCrest Mines | Corporate Presentation | September 2012Silvercrestmines
This document provides forward-looking production estimates and financial information for SilverCrest Mines Inc., a precious metals mining company. It summarizes the company's operating results for the second quarter of 2012, including silver and gold production and cash costs. It also outlines the company's mineral resource estimates across its properties and management's experience. However, readers are cautioned that the information presented is forward-looking and subject to various risks and uncertainties.
Financing and Investment: Value Propositions and RefinancingCapstone Headwaters
The following presentation was given by Joel Schneyer, Managing Director at Headwaters MB at the Industrial Minerals 3rd Frac Sand Conference in Minneapolis, MN.
World Fuel Services Corporation is a global leader in the downstream marketing and financing of aviation and marine fuel products and related services. For the nine-month period ended December 31, 2002, the company reported revenue of $1.55 billion, up 52.6% from the same period the previous year. Net income was $9.9 million, down 22.6% from the previous year. The company has a strong balance sheet with $312 million in total assets and $127.7 million in stockholders' equity.
SandRidge Energy has built a portfolio focused on oil production growth from three key project areas: the Mississippian limestone play, NW STACK area in Oklahoma, and North Park Niobrara oil project in Colorado. The company has $554 million in liquidity and no debt. In 2017, it will continue developing the NW STACK and North Park projects with two rigs total, while high-grading its Mississippian position for cash flow. Recent well results have met or exceeded expectations at both NW STACK and North Park.
This document provides an overview of TXU's first quarter 2006 earnings discussion. It highlights improved operational earnings compared to the first quarter of 2005, driven by record production levels at TXU Power's lignite and nuclear units. It also summarizes new electricity product offerings introduced by TXU Energy in North Texas to establish TXU as the leader among Texas incumbents. Additionally, it outlines six key drivers of attractive returns for TXU's clean coal investment program and how hedging protects a portion of the value while retaining upside potential from commodity price moves.
- BR Properties reported financial results for 2Q14 with net revenues decreasing 6% YoY due to property sales but average rent per sqm for remaining properties increasing 6.2% YoY.
- Net income increased 267% YoY to R$182.9 million in 2Q14. Adjusted EBITDA was R$205.6 million with a margin of 92%.
- The company signed new lease agreements, including with AIG Seguros Brasil and Indra Brasil, and continued improving vacancy rates in its office portfolio over the past four quarters.
This document provides a corporate update from Agnico-Eagle Mines Limited for February 2009. It summarizes the company's operating and financial results for Q4 and full year 2008, highlights its strong gold reserves which are larger than its peers, and outlines its global growth strategy with three operating mines and three new mines under construction. It also previews upcoming news in 2009 regarding expansion studies at several of its projects which could further increase production.
- Newmont Mining Corporation reported second quarter 2013 earnings, with revenues of $2.0 billion and cash flow from continuing operations of $293 million.
- The company recorded a $1.8 billion impairment charge related to lower gold and copper pricing. Excluding this charge, production and costs were in line with expectations.
- Newmont is maintaining its 2013 production outlook but lowering its capital expenditure outlook by $200 million due to spending reductions. It is focusing on improving efficiency and developing only high-return projects to strengthen performance across commodity price cycles.
Noble Energy is positioned for strong growth over the next five years from its portfolio of assets. Production is expected to more than double by 2017 through development of its core areas including the DJ Basin, Marcellus Shale, and offshore projects. Noble will invest $3.9 billion in 2013 to accelerate unconventional programs and complete major projects. This high level of investment is expected to deliver double-digit production and cash flow growth through 2017 and position the company for strong performance over the next decade.
The document summarizes PA Resources' annual general meeting for 2012. It discusses where the company was in 2010 versus today, with new discoveries in Denmark and recovered investments in Equatorial Guinea. Production is significantly lower with a lower cost structure. The company is focusing on assets in Africa and the North Sea. It provides an operational and financial review for the first quarter of 2012, including updates on fields in the Republic of Congo, Equatorial Guinea, and Tunisia. Drilling plans for 2012-2013 are also summarized.
The document provides an earnings preview for gold and precious metals companies reporting 4th quarter 2011 earnings during the week of January 23rd. It is forecasted that sector earnings will decrease 10% from 3Q11 due to decreases in by-product revenues. A table provides target prices, estimates, and earnings dates for covered companies. Key quarterly themes discussed are expected increases in capital spending, risks to project financing, potential for industry consolidation, and rising operating costs.
Goldman Sachs hosted a conference call with Laurie Brlas, EVP and CFO of Newmont Mining Corporation. Newmont delivered strong third quarter performance across operations with cost reductions and new projects starting production. Newmont is focused on improving performance through efficiency gains and growing a lower cost portfolio. Newmont reported solid financial results in challenging market conditions and is maintaining its 2013 production outlook while lowering capital spending.
The document summarizes a proposed recapitalization plan by PA Resources to strengthen its balance sheet through a two-step transaction. The plan involves a set-off issue that converts convertible bonds into shares, and a fully underwritten rights issue to raise approximately SEK 700 million. The recapitalization aims to increase PA Resources' ability to develop assets, complete divestments, and repay debt. If approved, the strengthened balance sheet combined with operating cash flow and new debt financing would enable maintenance investments and planned debt amortization in 2013.
PA Resources reported lower production and revenue in Q2 2012 compared to Q1 due to lower oil prices and production. Net debt was reduced to SEK 3.5 billion. Capex remains on forecast at SEK 53 million for 1H 2012. Operations updates provided for Denmark, Tunisia, Congo and Egypt assets. An Azurite sidetrack in Congo is imminent to restore lost production.
PA Resources reported lower production and revenue in Q3 2012 compared to Q2. The company took significant impairment charges and write downs totaling SEK 1.495 billion related to relinquishing a license in the Republic of Congo and revising reserves estimates. The company is proposing a SEK 1.7 billion equity increase to strengthen its financial position and reduce net debt. Going forward, the business plan focuses on developing 30 million barrels of oil equivalents from existing assets at an estimated cost of $9 per barrel.
PA Resources Q1 2012 Presentation 25 April 2012PA Resources AB
PA Resources reported on its first quarter 2012 results. Production averaged 8,700 barrels of oil per day, higher than Q4 2011 due to a full quarter of production from the Aseng field in Equatorial Guinea. Revenue was 650 million SEK, up from 535 million SEK in Q4, driven by higher oil prices and production. EBITDA was 395 million SEK compared to 306 million SEK in Q4. Net debt was reduced by 580 million SEK since the end of 2011 to 3.4 billion SEK. Capex spending remained low as development focused on the Aseng and Alen fields in Equatorial Guinea.
The document provides an overview of Antero Resources Corporation. It states that Antero has significant reserves of 35 trillion cubic feet of gas equivalent in the Marcellus and Utica Shales. It also notes that Antero has grown its Appalachian production by 159% annually since 2010 through active drilling, with 20 rigs currently operating. Antero focuses on having low development costs of $1.03 per thousand cubic feet of gas equivalent and industry-leading growth-adjusted recycle ratios of 6.1 times. The document emphasizes Antero's infrastructure including firm transportation agreements and processing facilities to support its planned growth.
Pa resources q4 2011 presentation 15 feb 2012PA Resources AB
PA Resources reported financial and operational results for Q4 2011 and full year 2011. Key highlights included:
- Production of 8,400 bopd in Q4 2011 and 8,600 bopd for full year 2011.
- Significant contributions expected from the new Aseng oil field in Equatorial Guinea, which started production in November 2011.
- Reserves were impacted by downward revisions of the Azurite field in Congo and disposal of two small fields in Tunisia.
- Capex forecast for 2012 is significantly lower at 240-375 MSEK compared to 1,613 MSEK spent in 2011, with a reduced drilling program planned.
The corporate presentation provides an overview of Zargon Oil & Gas Ltd., including highlights such as its market capitalization, annualized dividend yield, reserve estimates, and production weighting. It summarizes Zargon's focused oil exploitation strategy, recent convertible debenture offering, and production guidance. Key aspects of Zargon's business plan involve increasing oil recovery through projects like waterfloods and ASP tertiary recovery, as well as executing on its identified oil exploitation opportunities.
SandRidge Energy Q1 2017 Earnings PresentationSandRidgeIR
The document is an earnings presentation for SandRidge Energy's first quarter of 2017. It summarizes the company's operational and financial results for Q1, including production of 4.0 MMBoe, adjusted EBITDA of $56 million, and capital expenditures of $41 million. It discusses the company's three project areas - NW STACK, North Park Niobrara, and Mississippian - and plans for continued delineation and development across the portfolio in 2017.
SandRidge Energy presented its corporate strategy and assets at an investor presentation in March 2017. The company has over $500 million in liquidity and is focused on high-grading its existing positions. SandRidge will continue developing its Mississippian, NW STACK, and North Park Niobrara assets, which have over 1,300 combined drilling locations. The company expects total oil production to increase starting in late 2017. SandRidge is also optimizing completions and lowering costs to maximize value from its key projects.
Ne base 10 june 2021 energy news issue 1437 by khaled al awadiKhaled Al Awadi
NeBase 10 June 2021 Energy News issue - 1437 by Khaled Al Awadi (2)
NeBase 10 June 2021 Energy News issue - 1437 by Khaled Al Awadi (2)
NeBase 10 June 2021 Energy News issue - 1437 by Khaled Al Awadi (2)
- The document is a presentation from Merrill Lynch's Global Metals, Mining and Steel Conference on May 14, 2008.
- It discusses Newmont Mining Corporation's record first quarter results in 2008, including record gold sales and cash flow. It also provides an update on Newmont's major projects and production guidance for 2008.
- The presentation emphasizes Newmont's leverage to rising gold prices through focus on costs and an unhedged production strategy.
The study found that development of the Utica Shale in Ohio will lead to major investment and job growth. It projects that by 2014, annual oil and gas production from the Utica Shale will be worth $9.6 billion and support 65,680 jobs. This will generate $4.9 billion in total value added to the state economy and $3.3 billion in labor income. The development will also significantly increase tax revenues for state and local governments.
This document provides financial and operational information for Royal Dutch Shell for 2007. It summarizes that Shell had record income of $31.9 billion for 2007, a 21.3% increase over 2006. Revenue also increased 11.6% over 2006 to $355.8 billion. Exploration & Production earnings were $14.7 billion, up slightly from 2006. Gas & Power earnings increased 6% to $2.8 billion. Earnings from Oil Sands, Oil Products and Chemicals combined were $13.1 billion, significantly higher than 2006. The document outlines Shell's strategy and progress on major projects in areas such as liquefied natural gas, oil sands, and biofuels.
China Gold International Resources provided a presentation on its sustainable growth and reasons for investing. It highlighted its solid strategic investor backing from state-owned China National Gold Group, 11 years of increased production, and investment grade credit rating allowing low cost financing. It summarized its assets including the large Jiama polymetallic mine and CSH gold mine, and recent operational performance and financial results.
China Gold International Resources reported record breaking financial results in Q3 2020. Revenues increased 29% year-over-year to $240.5 million, net income soared to $47.6 million, and EBITDA reached $103 million. Production also rose, with gold output up 12% and copper production increasing 31% compared to the same period last year. The company has benefited from strong operational performance as well as financial and technical support from its major shareholder, China National Gold Group, one of China's largest gold producers. China Gold International maintains an investment grade credit rating of BBB- from S&P.
Newmont Mining Corporation reported first quarter 2013 earnings. Adjusted net income was $354 million, down from $578 million in the first quarter of 2012 due to lower gold production and prices. Gold production of 1.3 million ounces was on track to meet full-year guidance of 4.8-5.1 million ounces. Capital spending was down 31% from the prior year to $96 million, reflecting Newmont's focus on capital discipline. The company had $2.8 billion in cash and an unused $2.5 billion credit facility, maintaining a strong balance sheet.
- Newmont Mining Corporation reported second quarter 2013 earnings, with revenues of $2.0 billion and cash flow from continuing operations of $293 million.
- The company recorded a $1.8 billion impairment charge related to lower gold and copper pricing. Excluding this charge, production and costs were in line with expectations.
- Newmont is maintaining its 2013 production outlook but lowering its capital expenditure outlook by $200 million due to spending reductions. It is focusing on improving efficiency and developing only high-return projects to strengthen performance across commodity price cycles.
Noble Energy is positioned for strong growth over the next five years from its portfolio of assets. Production is expected to more than double by 2017 through development of its core areas including the DJ Basin, Marcellus Shale, and offshore projects. Noble will invest $3.9 billion in 2013 to accelerate unconventional programs and complete major projects. This high level of investment is expected to deliver double-digit production and cash flow growth through 2017 and position the company for strong performance over the next decade.
The document summarizes PA Resources' annual general meeting for 2012. It discusses where the company was in 2010 versus today, with new discoveries in Denmark and recovered investments in Equatorial Guinea. Production is significantly lower with a lower cost structure. The company is focusing on assets in Africa and the North Sea. It provides an operational and financial review for the first quarter of 2012, including updates on fields in the Republic of Congo, Equatorial Guinea, and Tunisia. Drilling plans for 2012-2013 are also summarized.
The document provides an earnings preview for gold and precious metals companies reporting 4th quarter 2011 earnings during the week of January 23rd. It is forecasted that sector earnings will decrease 10% from 3Q11 due to decreases in by-product revenues. A table provides target prices, estimates, and earnings dates for covered companies. Key quarterly themes discussed are expected increases in capital spending, risks to project financing, potential for industry consolidation, and rising operating costs.
Goldman Sachs hosted a conference call with Laurie Brlas, EVP and CFO of Newmont Mining Corporation. Newmont delivered strong third quarter performance across operations with cost reductions and new projects starting production. Newmont is focused on improving performance through efficiency gains and growing a lower cost portfolio. Newmont reported solid financial results in challenging market conditions and is maintaining its 2013 production outlook while lowering capital spending.
The document summarizes a proposed recapitalization plan by PA Resources to strengthen its balance sheet through a two-step transaction. The plan involves a set-off issue that converts convertible bonds into shares, and a fully underwritten rights issue to raise approximately SEK 700 million. The recapitalization aims to increase PA Resources' ability to develop assets, complete divestments, and repay debt. If approved, the strengthened balance sheet combined with operating cash flow and new debt financing would enable maintenance investments and planned debt amortization in 2013.
PA Resources reported lower production and revenue in Q2 2012 compared to Q1 due to lower oil prices and production. Net debt was reduced to SEK 3.5 billion. Capex remains on forecast at SEK 53 million for 1H 2012. Operations updates provided for Denmark, Tunisia, Congo and Egypt assets. An Azurite sidetrack in Congo is imminent to restore lost production.
PA Resources reported lower production and revenue in Q3 2012 compared to Q2. The company took significant impairment charges and write downs totaling SEK 1.495 billion related to relinquishing a license in the Republic of Congo and revising reserves estimates. The company is proposing a SEK 1.7 billion equity increase to strengthen its financial position and reduce net debt. Going forward, the business plan focuses on developing 30 million barrels of oil equivalents from existing assets at an estimated cost of $9 per barrel.
PA Resources Q1 2012 Presentation 25 April 2012PA Resources AB
PA Resources reported on its first quarter 2012 results. Production averaged 8,700 barrels of oil per day, higher than Q4 2011 due to a full quarter of production from the Aseng field in Equatorial Guinea. Revenue was 650 million SEK, up from 535 million SEK in Q4, driven by higher oil prices and production. EBITDA was 395 million SEK compared to 306 million SEK in Q4. Net debt was reduced by 580 million SEK since the end of 2011 to 3.4 billion SEK. Capex spending remained low as development focused on the Aseng and Alen fields in Equatorial Guinea.
The document provides an overview of Antero Resources Corporation. It states that Antero has significant reserves of 35 trillion cubic feet of gas equivalent in the Marcellus and Utica Shales. It also notes that Antero has grown its Appalachian production by 159% annually since 2010 through active drilling, with 20 rigs currently operating. Antero focuses on having low development costs of $1.03 per thousand cubic feet of gas equivalent and industry-leading growth-adjusted recycle ratios of 6.1 times. The document emphasizes Antero's infrastructure including firm transportation agreements and processing facilities to support its planned growth.
Pa resources q4 2011 presentation 15 feb 2012PA Resources AB
PA Resources reported financial and operational results for Q4 2011 and full year 2011. Key highlights included:
- Production of 8,400 bopd in Q4 2011 and 8,600 bopd for full year 2011.
- Significant contributions expected from the new Aseng oil field in Equatorial Guinea, which started production in November 2011.
- Reserves were impacted by downward revisions of the Azurite field in Congo and disposal of two small fields in Tunisia.
- Capex forecast for 2012 is significantly lower at 240-375 MSEK compared to 1,613 MSEK spent in 2011, with a reduced drilling program planned.
The corporate presentation provides an overview of Zargon Oil & Gas Ltd., including highlights such as its market capitalization, annualized dividend yield, reserve estimates, and production weighting. It summarizes Zargon's focused oil exploitation strategy, recent convertible debenture offering, and production guidance. Key aspects of Zargon's business plan involve increasing oil recovery through projects like waterfloods and ASP tertiary recovery, as well as executing on its identified oil exploitation opportunities.
SandRidge Energy Q1 2017 Earnings PresentationSandRidgeIR
The document is an earnings presentation for SandRidge Energy's first quarter of 2017. It summarizes the company's operational and financial results for Q1, including production of 4.0 MMBoe, adjusted EBITDA of $56 million, and capital expenditures of $41 million. It discusses the company's three project areas - NW STACK, North Park Niobrara, and Mississippian - and plans for continued delineation and development across the portfolio in 2017.
SandRidge Energy presented its corporate strategy and assets at an investor presentation in March 2017. The company has over $500 million in liquidity and is focused on high-grading its existing positions. SandRidge will continue developing its Mississippian, NW STACK, and North Park Niobrara assets, which have over 1,300 combined drilling locations. The company expects total oil production to increase starting in late 2017. SandRidge is also optimizing completions and lowering costs to maximize value from its key projects.
Ne base 10 june 2021 energy news issue 1437 by khaled al awadiKhaled Al Awadi
NeBase 10 June 2021 Energy News issue - 1437 by Khaled Al Awadi (2)
NeBase 10 June 2021 Energy News issue - 1437 by Khaled Al Awadi (2)
NeBase 10 June 2021 Energy News issue - 1437 by Khaled Al Awadi (2)
- The document is a presentation from Merrill Lynch's Global Metals, Mining and Steel Conference on May 14, 2008.
- It discusses Newmont Mining Corporation's record first quarter results in 2008, including record gold sales and cash flow. It also provides an update on Newmont's major projects and production guidance for 2008.
- The presentation emphasizes Newmont's leverage to rising gold prices through focus on costs and an unhedged production strategy.
The study found that development of the Utica Shale in Ohio will lead to major investment and job growth. It projects that by 2014, annual oil and gas production from the Utica Shale will be worth $9.6 billion and support 65,680 jobs. This will generate $4.9 billion in total value added to the state economy and $3.3 billion in labor income. The development will also significantly increase tax revenues for state and local governments.
This document provides financial and operational information for Royal Dutch Shell for 2007. It summarizes that Shell had record income of $31.9 billion for 2007, a 21.3% increase over 2006. Revenue also increased 11.6% over 2006 to $355.8 billion. Exploration & Production earnings were $14.7 billion, up slightly from 2006. Gas & Power earnings increased 6% to $2.8 billion. Earnings from Oil Sands, Oil Products and Chemicals combined were $13.1 billion, significantly higher than 2006. The document outlines Shell's strategy and progress on major projects in areas such as liquefied natural gas, oil sands, and biofuels.
China Gold International Resources provided a presentation on its sustainable growth and reasons for investing. It highlighted its solid strategic investor backing from state-owned China National Gold Group, 11 years of increased production, and investment grade credit rating allowing low cost financing. It summarized its assets including the large Jiama polymetallic mine and CSH gold mine, and recent operational performance and financial results.
China Gold International Resources reported record breaking financial results in Q3 2020. Revenues increased 29% year-over-year to $240.5 million, net income soared to $47.6 million, and EBITDA reached $103 million. Production also rose, with gold output up 12% and copper production increasing 31% compared to the same period last year. The company has benefited from strong operational performance as well as financial and technical support from its major shareholder, China National Gold Group, one of China's largest gold producers. China Gold International maintains an investment grade credit rating of BBB- from S&P.
Newmont Mining Corporation reported first quarter 2013 earnings. Adjusted net income was $354 million, down from $578 million in the first quarter of 2012 due to lower gold production and prices. Gold production of 1.3 million ounces was on track to meet full-year guidance of 4.8-5.1 million ounces. Capital spending was down 31% from the prior year to $96 million, reflecting Newmont's focus on capital discipline. The company had $2.8 billion in cash and an unused $2.5 billion credit facility, maintaining a strong balance sheet.
Newmont Mining Corporation reported first quarter 2013 earnings. Production and financial results were impacted by lower gold and copper production and prices. Adjusted net income was $354 million, down from $578 million in Q1 2012. Capital spending was reduced by 31% to $96 million due to cost control measures. Newmont remains on track to meet full-year production guidance and is focused on profitable production growth through projects in Nevada, Peru, Ghana, and Indonesia.
Newmont provided a cautionary statement regarding forward-looking statements in its Q2 2015 earnings presentation. The statement outlined various assumptions that could cause actual results to differ from expectations, including assumptions about geotechnical and metallurgical conditions, permitting and development of operations, political and operational risks, exchange rates, commodity prices, and the accuracy of mineral reserve and resource estimates. The statement also noted risks including commodity price volatility, currency fluctuations, production cost variances, political and community relations issues, and changes to governmental regulations.
- Claude Resources reported record annual gold production of 62,984 ounces in 2014, a 44% increase over 2013. The mill head grade was 7.32 g/t, a 43% increase over 2013.
- Net profit was $4.6 million in 2014 compared to a net loss of $73.4 million in 2013. Cash flow from operations before changes in non-cash working capital was $26.5 million in 2014.
- Production is expected to be between 60,000 to 65,000 ounces in 2015 with unit cash costs of $785 to $850 per ounce and all-in sustaining costs of $1,175 to $1,275 per ounce.
This document summarizes Newmont Mining Corporation's second quarter 2014 earnings call. It reports that the company increased attributable gold production by 5% compared to the second quarter of 2013 while decreasing gold AISC by 17%. Capital expenditures were down 58% from the previous year's second quarter. The company also approved development of the Merian project in Suriname with anticipated first production in late 2016.
Second Quarter 2014 Results PresentationNewmontMining
This document summarizes Newmont Mining Corporation's second quarter 2014 earnings call. It reports that the company increased attributable gold production by 5% compared to the second quarter of 2013 while decreasing gold AISC by 17%. Capital expenditures were down 58% from the previous year's second quarter. For 2014, the company has improved guidance with reduced gold CAS and increased attributable gold production while decreasing regional gold AISC guidance at four regions.
This corporate presentation from Claude Resources provides an overview of their U.S. marketing strategies and operations for November 2015. It notes that the presentation contains forward-looking statements and information which are subject to risks and uncertainties. It also contains cautionary notes regarding the use of terms like "measured, indicated, and inferred" resource estimates. The presentation highlights Claude's Seabee gold operation in Canada which has produced over 1 million ounces of gold, their low-cost production, strong financial position with $27 million in cash and bullion, and growth plans at Seabee including from the higher grade Santoy Gap area.
- The presentation provides an overview of Great Panther Silver, a primary silver producer with two operating mines in Mexico and a potential third mine in Peru.
- Great Panther has a strong balance sheet with $53.2 million in cash and no debt, and is maintaining low costs at its Mexican operations while pursuing organic growth opportunities and acquisitions.
- The company plans to acquire the former producing Coricancha mine in Peru, which could provide approximately 3 million silver equivalent ounces per year at full capacity. Great Panther will update resource estimates and conduct a prefeasibility study for Coricancha.
This corporate presentation from February 2018 contains forward-looking statements and outlines SEMAFO's production and cost targets from 2018-2023. Key highlights include consolidated production of 413,000 ounces at an average all-in sustaining cost of $696 per ounce over the 5-year period. Boungou mine is scheduled to begin commissioning in Q3 2018, with exploration continuing near the mine and regionally. Mana mine targets average production of 209,000 ounces at $871 per ounce cost over 5 years. Underground development at Siou is slated to begin in Q3 2018.
The corporate presentation provides an overview of Claude Resources and its operations. It highlights the company's record of producing over 1 million ounces of gold from its Seabee Gold Operation. It also summarizes the company's strong operating and financial results in 2014, which included record gold production and lower costs. Looking ahead, the company expects continued production growth and margin improvement in 2015.
- Almaden Minerals produced a positive preliminary economic assessment for its Ixtaca gold-silver project in Mexico, outlining it as a sizable producer with attractive economics.
- The PEA shows strong economics even at lower metal price forecasts, with an after-tax IRR of 17% at $1,200/oz gold and $20/oz silver.
- Higher capital costs were outlined due to choosing to produce doré bars rather than concentrate, but this eliminates smelting charges and provides financing flexibility through royalty sales.
- The analyst maintains a "Buy" rating and increases the target price to C$2.80 per share based on the reduced risk from the completed PEA.
The corporate presentation provides an overview of Great Panther Silver Limited, including:
1) Great Panther operates two silver and gold mining operations in Mexico and is acquiring the Coricancha mine complex in Peru, which has the potential to produce approximately 3 million silver equivalent ounces per year at full capacity.
2) In the first quarter of 2017, Great Panther produced over 727,000 silver equivalent ounces at a total cash cost of $3.54 per ounce.
3) The company has a pipeline of projects at various stages that can provide growth over the next 10 years, including near-term production potential at Coricancha within 18 months of acquisition.
Mandalay Resources' Costerfield mine in Australia has demonstrated a history of replacing mined ounces through exploration and maintaining a 3-4 year mine life. In 2021, Costerfield produced 68,729 ounces of gold equivalent at high grades of 11.84 g/t gold and 3.96% antimony. Exploration at Costerfield focuses on near-mine vein extensions, deeper targets below existing workings, and testing satellite deposit targets within the district-scale land package. Recent drilling success at Shepherd, located near existing Youle workings, demonstrates the potential for new high-grade discoveries at Costerfield.
This corporate presentation provides an overview of Claude Resources and its operations. It highlights record earnings in the first half of 2015, growing production and higher grades at its Seabee Gold Operation. It also outlines its focus on increasing higher margin ore to the mill from Santoy Gap and utilizing the Alimak mining method at Seabee Mine to improve efficiency. The presentation emphasizes Claude's peer leading cost performance and strong balance sheet. It provides an outlook for increased gold production and lowered unit costs guidance for 2015.
This document discusses Mandalay Resources' Costerfield gold-antimony mine in Victoria, Australia. Key points:
- Costerfield is one of the highest-grade gold mines in the world, with mill head grades averaging over 11 g/t gold.
- Production has been reinvigorated by the high-grade Youle vein, which provides sustainable organic growth.
- Costerfield has a demonstrated history of replacing mined ounces through exploration and maintaining a 3-4 year mine life.
- The property has significant exploration upside through near-mine extensions and testing of satellite deposit targets across the district-scale land package.
The corporate presentation provides an overview of Great Panther Silver Limited, including:
1) Great Panther operates two silver and gold mining operations in Mexico and is acquiring the Coricancha mine complex in Peru, which has the potential to produce approximately 3 million silver equivalent ounces per year at full capacity.
2) In the first quarter of 2017, Great Panther produced over 727,000 silver equivalent ounces at a total cash cost of $3.54 per ounce.
3) The company has a pipeline of projects at various stages that can provide growth over the next 10 years, including near-term production potential at Coricancha within 18 months of acquisition.
China Gold International Resources Corp. Ltd. is a gold and base metals mining company with two major assets: the Jiama copper-gold-polymetallic mine in Tibet and the CSH gold mine in Inner Mongolia. The company has an excellent operational track record of increasing production over 11 years. It aims to continue growing through increasing production at its existing mines and pursuing accretive acquisitions. It has strong financial backing from major shareholder China National Gold Group and an investment grade credit rating, allowing it to raise sizable low-cost financing.
The document discusses exploration opportunities at Mandalay Resources' Costerfield gold-antimony mine in Victoria, Australia. Costerfield has a high-grade production profile from the Youle vein, with consistent replacement of mined ounces through exploration. The exploration program focuses on near mine vein extensions, deeper portions of the central corridor, and testing satellite deposit targets across the district-scale land package. Recent drilling has extended high grades north of the Youle zone at depth. Costerfield represents an opportunity for continued organic production growth through exploration success.
Similar to Senior_Producer_Balance_Sheet_Update_-_Improving_Despite_Headwinds_-_Cowen_and_Company (20)
1. Equity Research Industry Update
www.cowen.com Please see addendum of this report for important disclosures.
October 28, 2014
■ Metals & Mining: Precious Metals
■ Metals & Mining: Emerging Miners Senior Producer Balance Sheet Update -
Improving Despite Headwinds
Adam P. Graf, CFA
646.562.1344
adam.graf@cowen.com
Misha Levental
646.562.1410
misha.levental@cowen.com
The Cowen Insight
Senior producers continue to improve balance sheets through operating cost
improvements, capital cost cutting, and asset sales. Developers' market values remain
heavily discounted despite continued asset de-risking. We continue to see opportunity
for miners to transition from purely defense, to some offensive, and take advantage of
pre-producer valuations to refill longer-term pipelines.
Senior Producer Balance Sheet And Operating Dashboard - See Figure 1
Throughout 2014, senior producers have worked on strengthening their balance
sheets, in efforts to improve margins, and reduce financial leverage, primarily through
1) asset sales (Figure 1), and 2) capital reductions (Figure 3). For the group, balance
sheet efforts over the last 2 years should pay off entering 2015: by year-end 2015, we
see average net-debt-to-cap ratios decreasing by ~17%, while production increases
~10%, all-in costs decrease ~15%, and capital spending decreases ~30%. On an
individual company basis, GG continues to exhibit the strongest balance sheet going
into 2015, with net-debt-to-cap below 3%, rising production, and the completion of
major capital projects. Heading into 2015, we believe the most under appreciated
seniors are 1) AUY, with increased production at all-in costs of ~$800/oz, and modest
$450MM capex, and 2) NEM, expected to see production growth coupled with lower
all-in costs and net-debt-to-cap reductions of 15%, and 27%, respectively. ABX
continues to appear to have the weakest balance sheet versus peers. However, we see
the potential for ABX to monetize a further ~$2.3Bn in non-core assets (Figure 5).
Developers De-Risking, But Shares Continue To Lag - See Figure 3
We believe adjustments made by senior producers over the past two years now
allow for the acquisition of undervalued pre-producers. These assets will be needed
by seniors to maintain future production levels and returns. Since our July report,
Gold Miners: The M&A Wave, Part II - The Tide Is Rolling In, junior developers have
continued to advance projects along the development curve. Since July alone, we
have seen some fairly significant de-risking events, including: 1) PVG - advancing
permitting for 1Q15 approval, 2) SA - receiving KSM construction permits, and 3)
GSV - establishing an initial resource at Pinion. Still, despite de-risking events, market
values for developers remain at lower levels YtD, versus year-end 2013. As a result,
this disconnect provides a unique opportunity for seniors to purchase less risky, pre-
construction assets at multi-year lows.
We Maintain Our "Buy Now, Act Later" Recommendation For Seniors
We continue to believe seniors have the opportunity to buy assets now at heavily
discounted prices to NAV; assets can then be developed according to growth needs
and balance sheet health. We see GG, NEM, AEM, and AUY in the best position to buy
assets. We believe the most undervalued developers to be SA, PVG, GSV, and GCU.
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3. Figure 3 : Average Cost Comparisons Across Six Senior Producers Under Coverage - ABX, GG, NEM, KGC, AUY, AEM
Source: Cowen and Company, Annual financial statements
Figure 4 : Select Junior Miner Equity Performance and Development Progress (4Q13 – present)
Source: Cowen and Company
0
1,000
2,000
3,000
4,000
5,000
6,000
2009 2010 2011 2012 2013 2014E 2015E
AverageAnnualSpendingPerSenior($MM)
Annual Average Cost Trend
Gross Operating Costs Gross Operating Costs Gross Capital Spending
Company Ticker
Dec. 2013 YtD 2014 Dec. 2013 YtD 2014 Date Completed Since Dec. 2013 Date Upcoming Near-Term Catalysts
Gold Price ($/oz) $1,202 $1,232
Gold Canyon GCU $47.5 $29.0 0.05x 0.03x May-14
EA Filing Confirmation for Construction of
Access Corridor
N/A Springpole PFS/FS
Jan-14 Acquisition/Consolidation of Pinion
Sep-14 Pinion Initial Resource
Guyana Goldfields GUY $376.3 $425.4 0.29x 0.36x Oct-14 First $185MM Loan Drawdown mid-2015 Aurora Commercial Production
Northern Dynasty NAK $78.9 $40.3 0.02x 0.00x Dec-13 Acquires 100% Ownership of Project 1Q15 EPA CWA Process Completion
NOVAGOLD NG $1,193.0 $910.6 0.34x 0.23x Oct-14 Permitting Process Halfway Complete 4Q14 Donlin Draft EIS
Paramount PZG $148.3 $125.5 0.33x 0.25x Aug-14 San Miguel Updated PEA 4Q14 San Miguel Drilling Results
Dec-13 Positive Bulk Sample Results
Jun-14 Updated Feasibility Study
Jul-14 Permit Application Submitted
Feb-14 Initial Deep Kerr Resource (KSM)
Apr-14
Initial Walsh Lake Resource (Courageous
Lake)
Sep-14 KSM Construction Permits Received
Vista Gold VGZ $37.7 $29.5 0.13x 0.08x Sep-14 Mt Todd EIS Approval Received 2015 EPBC & Operating Permits
1Q15
Brucejack Permits Expected,
Construction To Begin (Pending
Financing) 1H15
Seabridge SA $388.3 0.18x 4Q14
KSM Federal Permits Expected;
Provincial Permits Were Received In
August
Pretium Resources PVG $804.9 0.42x
Material Project De-Risking Initiatives
Gold Standard Ventures GSV $73.6 0.37x 1Q15 Pinion Initial PEA$68.6
Market Cap P/NAV
$619.2
$368.2
0.16x
0.19x
0.07x
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4. Figure 5 : ABX Valuation Chart of Non-Core Assets
Source: Cowen and Company
Intrinsic Value Est. Market Value
(NAV) (0.67x NAV)
Round Mountain (50% w/ KGC) 115 77
East Archimedes/Ruby Hill 47 31
Hemlo (100%) (Ontario) 276 185
Bald Mountain (100%) 258 173
Golden Sunlight (100%) (Montana) 29 19
Cowal 530 355
Kalgoorlie (50% w/ NEM) 172 115
Porgera (95%) 398 267
Bulyanhulu (63.9% interest in ABG) 509 341
Buzwagi (63.9% interest in ABG) 189 127
North Mara (63.9% interest in ABG) 511 342
Sedbelo (Platinum) 33 22
Kabanga (Nickel) 215 144
Nyanzaga Project (ABG) 115 77
$3,397 $2,276
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5. Ticker Rating Price* Price Target
AEM Market Perform $28.66 $21.29
ANV Market Perform $2.27 $2.22
CKG.CN Outperform C$2.33 C$13.37
AG Market Perform $6.40 $7.37
GBU.CN Outperform $0.72 $1.56
GG Market Perform $21.98 $20.95
GSV Outperform $0.59 $1.85
HL Market Perform $2.29 $1.68
MUX Outperform $1.52 $4.46
MLX.AU Outperform AUD0.22 AUD0.34
NAK Outperform $0.41 $9.56
PAAS Market Perform $10.40 $9.08
PVG.CN Outperform C$5.64 C$19.00
SAND Outperform $3.72 $5.75
SA Outperform $7.50 $60.21
SLW Market Perform $19.35 $18.69
TMM.CN Market Perform C$1.39 C$1.72
VGZ Outperform $0.34 $2.99
Ticker Rating Price* Price Target
AGI Outperform C$8.05 C$11.75
ABX Market Perform $13.30 $10.90
CDE Market Perform $4.19 $4.88
FNV Market Perform $52.05 $40.86
GCU.CN Outperform C$0.20 C$1.68
GGA.CN Outperform C$0.16 C$0.83
GUY.CN Outperform C$2.68 C$5.77
KGC Market Perform $2.69 $3.93
MAY.CN Outperform C$0.13 C$0.30
NEM Outperform $21.63 $25.20
NG Market Perform $2.72 $3.34
PZG Outperform $0.73 $0.97
RGLD Outperform $64.42 $75.76
SGR.CN Market Perform C$0.07 C$0.09
SSRI Outperform $5.26 $11.11
TGB Outperform $1.41 $5.86
TRQ Outperform $3.10 $9.34
AUY Outperform $5.50 $7.36
*As of 10/27/2014
Valuation Methodology And Risks
Valuation Methodology
Precious Metals:
In the Precious Metals and Emerging Miners space, we utilize NAV methodology
(income approach) to value developing and operational mining plays as this method
encompasses key variables such as: price, operating costs, up-front capital, mine life,
time-value of money, and the corporate balance sheet. This method allows for these
variables to change over time.
Our individual asset values use Reserves and Resources to determine project
life. Where possible, forward commodity and exchange rate price strips are used
to generate revenues and modify costs. Costs are built from historic results,
modifications of existing studies, or from independent studies of like deposits. Full
costing (on-site & off-site), stripping ratios, oil price, and currency rates are used
to determine costs per ton. Relatively recent contract smelting and refining terms,
payable rates, and shipping rates are used. Estimates of capital expenditures for new
projects or brownfield expansions rely on recent detailed costing studies and various
rules of thumb regarding both upfront and sustaining capital costs. Due to the nature
of exploration assets, where key variables have greater uncertainty, the market or
cost approaches are generally preferred to the income approach. However, these
approaches themselves contain a great deal of uncertainty, where value determination
is indirect -- as no two assets are directly comparable, due to intrinsic differences
in geology, land ownership, legal/tax regime, mineralogical potential, and extraction
economics. In addition, as market conditions and commodity prices change, previous
market transactions quickly become stale and no longer representative of current
fair-market value. As assets develop and more information is gathered, the cost and
market approach advantages give way to the income approach which is our primary
valuation choice.
For the market approach, we prefer to use more than one comparable transaction,
adjusting transactions to take into account non-comparable factors, and then using
a per-area-unit approach (such as dollars/claim). For the cost approach, we favor the
geoscience matrix approach (Kilburn, 1990) -- where five major criteria (broken into
19 parts) are considered to reach a value per claim based on a multiple to- cost per
claim. However, this approach reaches a maximum value per claim, which, at a point,
ceases to be representative of successful advances in exploration and development.
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6. Early-stage exploration properties may be accounted for using 3% of current in-situ
value. For precious metal dominated development projects, we derive an average
“precious metal discount rate” from the market price of the largest precious metal
equities we have modeled. Currently, we calculate a discount rate near 10%. Similarly,
we determine a “base metal discount rate” by utilizing the 3 large copper producers
we have modeled. Our calculated base metal discount rate is approximately 14%. Gold
companies usually trade at higher financial multiples and lower discount rates due
to the expected low beta to market of the underlying commodity, which frequently
leads to the aggressive practice of evaluating gold projects on a zero discount rate.
Back calculation of discount rates for large, multi-asset miners supports our view of
discount rates, however. Most importantly, 1) we remain agnostic to price forecasting,
2) utilize consistent discount rates between projects and companies and 3) present
investors with an asset by asset breakdown of NAV. By following this methodology
we avoid personal biases regarding commodity price expectations and relative risk
perceptions, thus providing a framework for the investor to apply their own commodity
price views and risk handicaps. Our ratings and price targets are based upon a
combination of value and leverage relative to a company’s peer group.
Emerging Miners:
In the Precious Metals and Emerging Miners space, we utilize NAV methodology
(income approach) to value developing and operational mining plays as this method
encompasses key variables such as: price, operating costs, up-front capital, mine life,
time-value of money, and the corporate balance sheet. This method allows for these
variables to change over time.
Our individual asset values use Reserves and Resources to determine project
life. Where possible, forward commodity and exchange rate price strips are used
to generate revenues and modify costs. Costs are built from historic results,
modifications of existing studies, or from independent studies of like deposits. Full
costing (on-site & off-site), stripping ratios, oil price, and currency rates are used
to determine costs per ton. Relatively recent contract smelting and refining terms,
payable rates, and shipping rates are used. Estimates of capital expenditures for new
projects or brownfield expansions rely on recent detailed costing studies and various
rules of thumb regarding both upfront and sustaining capital costs. Due to the nature
of exploration assets, where key variables have greater uncertainty, the market or
cost approaches are generally preferred to the income approach. However, these
approaches themselves contain a great deal of uncertainty, where value determination
is indirect -- as no two assets are directly comparable, due to intrinsic differences
in geology, land ownership, legal/tax regime, mineralogical potential, and extraction
economics. In addition, as market conditions and commodity prices change, previous
market transactions quickly become stale and no longer representative of current
fair-market value. As assets develop and more information is gathered, the cost and
market approach advantages give way to the income approach which is our primary
valuation choice.
For the market approach, we prefer to use more than one comparable transaction,
adjusting transactions to take into account non-comparable factors, and then using
a per-area-unit approach (such as dollars/claim). For the cost approach, we favor the
geoscience matrix approach (Kilburn, 1990) -- where five major criteria (broken into
19 parts) are considered to reach a value per claim based on a multiple to- cost per
claim. However, this approach reaches a maximum value per claim, which, at a point,
ceases to be representative of successful advances in exploration and development.
Early-stage exploration properties may be accounted for using 3% of current in-situ
value. For precious metal dominated development projects, we derive an average
“precious metal discount rate” from the market price of the largest precious metal
equities we have modeled. Currently, we calculate a discount rate near 10%. Similarly,
we determine a “base metal discount rate” by utilizing the 3 large copper producers
we have modeled. Our calculated base metal discount rate is approximately 14%. Gold
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7. companies usually trade at higher financial multiples and lower discount rates due
to the expected low beta to market of the underlying commodity, which frequently
leads to the aggressive practice of evaluating gold projects on a zero discount rate.
Back calculation of discount rates for large, multi-asset miners supports our view of
discount rates, however. Most importantly, 1) we remain agnostic to price forecasting,
2) utilize consistent discount rates between projects and companies and 3) present
investors with an asset by asset breakdown of NAV. By following this methodology
we avoid personal biases regarding commodity price expectations and relative risk
perceptions, thus providing a framework for the investor to apply their own commodity
price views and risk handicaps. Our ratings and price targets are based upon a
combination of value and leverage relative to a company’s peer group.
Investment Risks
Precious Metals:
Political Risk: With worldwide assets, miners are subject to significant political
risk. Despite compliance with national laws, provincial or local opposition (legal
or otherwise) may impact operations. Changing federal laws and regulations may
negatively impact project economics, regardless of prior agreements. Environmental
groups and other non-governmental organizations may actively pursue tactics (legal
or otherwise) that can negatively impact miners.
Operational and Technical Risk: The mining industry contends with risks associated
with large-scale equipment, earth moving operations, and heavily strained processing
equipment. These operations are subject to uncertainties that must be recognized
and managed to avoid major, and often catastrophic, negative events. All mines
are fundamentally unique, and thus dangers must constantly be investigated and
managed. Similarly, new projects are subject to technical risks, and design flaws may
result from applying an existing process to a new ore body.
Commodity Price Risk: Nearly all commodity-related equities are exposed to changes
in the underlying commodity. Investors may seek this exposure for the upside
potential, but must recognize that leverage cuts both ways. Lower commodity prices
could undoubtedly make attractive projects less economically viable.
Market Risk: While the market sentiment toward the group is often tied closely with
commodity prices (and risk), it may also be impacted by business cycle expectations
and general opinion as to the legitimacy of the sector.
Financing and Dilution Risk: The cost of financing changes beyond the control of any
company, and the availability of capital can appear or disappear rapidly. If a miner
does not access the capital markets when conditions are favorable (either when the
stock price is strong or debt is inexpensive), then management might find themselves
short of capital and forced to take very expensive debt financing or issue equity at
very low prices or risk going bankrupt altogether, both to the detriment of existing
shareholders.
Royalty Risk in the US and Abroad: Mining companies in the US and abroad may be
subject to a changing royalty regime which can negatively impact profitability and/or
the economic viability of developing projects. Currently in the U.S. Congress there are
two bills. One would impose gross revenue royalties while the other would impose a
net revenue royalty. Passage of either bill would prove detrimental to exploration and
mining investment in the US.
Emerging Miners:
Political Risk: With worldwide assets, miners are subject to significant political
risk. Despite compliance with national laws, provincial or local opposition (legal
or otherwise) may impact operations. Changing federal laws and regulations may
negatively impact project economics, regardless of prior agreements. Environmental
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8. groups and other non-governmental organizations may actively pursue tactics (legal
or otherwise) that can negatively impact miners.
Operational and Technical Risk: The mining industry contends with risks associated
with large-scale equipment, earth moving operations, and heavily strained processing
equipment. These operations are subject to uncertainties that must be recognized
and managed to avoid major, and often catastrophic, negative events. All mines
are fundamentally unique, and thus dangers must constantly be investigated and
managed. Similarly, new projects are subject to technical risks, and design flaws may
result from applying an existing process to a new ore body.
Commodity Price Risk: Nearly all commodity-related equities are exposed to changes
in the underlying commodity. Investors may seek this exposure for the upside
potential, but must recognize that leverage cuts both ways. Lower commodity prices
could undoubtedly make attractive projects less economically viable.
Market Risk: While the market sentiment toward the group is often tied closely with
commodity prices (and risk), it may also be impacted by business cycle expectations
and general opinion as to the legitimacy of the sector.
Financing and Dilution Risk: The cost of financing changes beyond the control of any
company, and the availability of capital can appear or disappear rapidly. If a miner
does not access the capital markets when conditions are favorable (either when the
stock price is strong or debt is inexpensive), then management might find themselves
short of capital and forced to take very expensive debt financing or issue equity at
very low prices or risk going bankrupt altogether, both to the detriment of existing
shareholders.
Royalty Risk in the US and Abroad: Mining companies in the US and abroad may be
subject to a changing royalty regime which can negatively impact profitability and/or
the economic viability of developing projects. Currently in the U.S. Congress there are
two bills. One would impose gross revenue royalties while the other would impose a
net revenue royalty. Passage of either bill would prove detrimental to exploration and
mining investment in the US.
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10. Cowen And Company Rating Definitions
Distribution of Ratings/Investment Banking Services (IB) as of 09/30/14
Rating Count Ratings Distribution Count IB Services/Past 12 Months
Buy (a) 440 59.95% 105 23.86%
Hold (b) 278 37.87% 10 3.60%
Sell (c) 16 2.18% 0 0.00%
(a) Corresponds to "Outperform" rated stocks as defined in Cowen and Company, LLC's rating definitions. (b) Corresponds to "Market Perform" as defined in Cowen and Company,
LLC's ratings definitions. (c) Corresponds to "Underperform" as defined in Cowen and Company, LLC's ratings definitions.
Note: "Buy", "Hold" and "Sell" are not terms that Cowen and Company, LLC uses in its ratings system and should not be construed as investment options. Rather, these ratings
terms are used illustratively to comply with FINRA and NYSE regulations.
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11. Points Of Contact
Analyst Profiles
Adam P. Graf, CFA
New York
646.562.1344
adam.graf@cowen.com
Adam Graf is a senior research analyst
covering precious metals & emerging
miners. He is a geologist and holds the
CFA designation.
Misha Levental
New York
646.562.1410
misha.levental@cowen.com
Misha Levental is an associate covering
precious metals & emerging miners.
He joined Cowen in 2013 through the
merger with Dahlman Rose.
Reaching Cowen
Main U.S. Locations
New York
599 Lexington Avenue
New York, NY 10022
646.562.1000
800.221.5616
Atlanta
3399 Peachtree Road NE
Suite 417
Atlanta, GA 30326
866.544.7009
Boston
Two International Place
Boston, MA 02110
617.946.3700
800.343.7068
Chicago
181 West Madison Street
Suite 1925
Chicago, IL 60602
312.577.2240
Cleveland
20006 Detroit Road
Suite 100
Rocky River, OH 44116
440.331.3531
San Francisco
555 California Street, 5th Floor
San Francisco, CA 94104
415.646.7200
800.858.9316
International Locations
Cowen International
Limited
Cowen and Company (Asia)
Limited
London
1 Snowden Street - 11th Floor
London EC2A 2DQ
United Kingdom
44.20.7071.7500
Hong Kong
Suite 1401 Henley Building
No. 5 Queens Road Central
Central, Hong Kong
852 3752 2333
@CowenResearch Cowen and Company
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