Friday, October 04, 2013

McEwen Mining & TNR Gold: Las Bambas Copper Bidding From China Heats Up TNR.v, MUX, LCC.v, GDX, CU


“It is a good choice to invest in mining assets, which is a much better choice than investing in one government’s bonds – especially when this country cannot guarantee to pay even its own employees”

  The quote above can be the one of the year and you can spot the trend now. It is getting more interesting by the day: Mining.com reports that now third Chinese company has entered the bidding "Art of War" for "Glencore Xstrata's (LON:GLEN) much-coveted Las Bambas copper mine."
  Situation is getting more and more industry attention now and Lumina Copper closed yesterday at 4 month's high of CAD5.72. We are waiting when the market and analysts will pick up this story and translate Los Azules Copper project value for McEwen Mining and TNR Gold.

Update: Lumina Copper has printed CAD6.55 today - we hope to hear some good news from the company soon.




McEwen Mining & TNR Gold: Chinese Miners Compete for Glencore's Copper Project in Peru MUX, TNR.v


"With all doom and gloom surrounding commodities this summer it is easy to miss the big picture. China is still on track of the state level long term plan to secure strategic commodities for its growth. Now we are receiving more confirmation with the news from different fronts in this modern "Art of War": engagement in building of lithium supply, seeking for investments in Gold and Silver with Eric Sprott and now these bidding war for the copper assets in South America. Interesting to note the report from Financial Times that Newmont Mining is looking at the same copper asset as well.







  McEwen Mining and TNR Gold will receive more attention now to Los Azules copper project in Argentina. Rob McEwen has just released the new PEA on Los Azules with improved economics in last week of September and we are expecting research notes to be released with new valuations of this project.
  Lumina Copper with its Taca Taca copper deposit has received a better market treatment recently and was moving steadily higher with the last print of CAD5.42 on the tape. With elections to be held in Argentina later this month the country risk perception can change dramatically.

Ganfeng Lithium Co. Ltd. Exercises Option On International Lithium Corp.'s Blackstairs Lithium Project, Ireland ILC.v, TNR.v


McEwen Mining & TNR Gold: CIBC Reiterates “Outperform” Rating for Lumina Copper MUX, TNR.v, LCC.v

"Rob McEwen is taking Taca Taca Copper deposit as the proxy for valuation of Los Azules Copper deposit. After recently released by McEwen Mining updated PEA on Los Azules we found it interesting that CIBC has reaffirmed its stock rating for Lumina Copper with CAD15.00 target price. Lumina Copper is trading now at CAD5.00 and this target price will put the valuation of Taca Taca Copper deposit at $650 million. Now you can slice it and dice it with the Mr Market mood.
  Any analyst valuation will be the the pie in the sky until Mr Market will confirm it, that is why for us is very important when Insiders are voting with their own money on the valuations. Ross Beaty bought 1 million worth of stock in Lumina Copper this summer.
  We are expecting now that analysts will start to put valuations in their research notes on Los Azules Copper after the updated PEA."

Mining.com:


Another Chinese company has put in a bid for Glencore Xstrata's (LON:GLEN) much-coveted Las Bambas copper mine, Reuters reports.
With Thurdsay's offer from Minmetlas, a state-owned metals and mining company, the $5.9 billion mine now has three Chinese wooers.
The managing director of Minmetals told Reuters his firm is being "very realistic" and will not be "too aggressive" in its pursuit of Las Bambas.
"We will be very cautious about our decision. It's unnecessary for Minmetals to buy assets at a crazy price or a price that we believe is not worth it."
Earlier this week China's Jiangxi Copper and Hong Kong-listed MMG submitted spearate bids for the Peruvian project. 
With three state-owned companies now bidding for the site, China has strayed from its usual custom of designating a single bidder for overseas assets.
As part of its takeover deal for picking up Xstrata, Glencore promised Chinese antitrust authorities that it would sell the Las Bambas project.
Aside from Chinese bidders, US miner Newmont (NYSE:NEM), the world's second-largest gold producer, is also rumoured to be eyeing the Peruvian mine. The company has not confirmed whether it will bid.
Las Bambas is expected to produce more than 400,000 tonnes of copper per year once in production, as well as significant amounts of silver and gold."

Reuters:


China's Minmetals submits first-round bid for Las Bambas mine


LONDON | Thu Oct 3, 2013 5:29pm EDT

(Reuters) - China's Minmetals has submitted a first-round bid for Glencore-Xstrata's (GLEN.L) $5.9 billion Las Bambas copper mine in Peru, Gu Liangmin, managing director of the state-ownedmetals and mining company, said on Thursday.
"We have come to the first round of bids for Las Bambas. I can assure that Minmetals is very realistic and all our actions should be rational and not too aggressive," Gu said at the Metal Bulletin copper concentrates conference in London.
"We will be very cautious about our decision. It's unnecessary for Minmetals to buy assets at a crazy price or a price that we believe is not worth it."
Glencore-Xstrata agreed to sell Las Bambas this year to meet demands from China's antitrust authorities after Glencore's takeover of mining group Xstrata. The regulator feared the tie-up handed the newly formed commodities powerhouse too much clout in copper.
Glencore has long reported strong Chinese interest in Las Bambas, but there have been questions among industry analysts and observers over whether Chinese authorities will allow competition between Chinese industrial groups, or pick a horse to back.
The mining company said last month Chinese suitors might be allowed to compete against each other in the race for the mine, given strong interest.
Chinalco Mining Corp (3668.HK) and Jiangxi Copper (600362.SS) are among the Chinese groups also interested in the project, sources familiar with the bid have said. One of the sources said Jiangxi, China's largest copper producer, had paired up with Chinalco.
Peru's Mines Minister Jorge Merino said on Thursday that firms from several different countries have expressed interest in buying Las Bambas.
"I cannot give names of companies," Merino told reporters. "But what I can say is that there are companies from many countries - from Australia, from China, Canadian companies, there are also American companies interested in the project."
(Reporting by Harpreet Bhal; editing by David Evans and David Gregorio)"
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