Argentina mining landscape is changing for the better according to the report by BN Americas. Lumina Copper is trading above CAD 6.00, McEwen Mining is breaking out to the upside and TNR Gold has found some bids as well recently.
Los Azules Copper - McEwen Mining And TNR Gold: Yamana Gold to invest $450 million in Argentine mine MUX, TNR.v, LCC.v
"It looks like the shift in Argentina for the better is happening for real this time. Rob McEwen has discussed it in his recent presentation and that in his opinion "we have seen the low in Argentina after a lot of disappointment". Shevron special Shale Oil deal, repayment to Repsol and now Yamana Gold investment are certainly the things we would like to see now after elections. Lumina copper is holding above CAD5.00 these days and McEwen Mining and TNR Gold should benefit from Los Azules copper revised valuation now."
Argentina's government is reaching out to investors as it prepares for a "smoother transition" in the country's next presidential elections, according to silver miners including Pan American Silver (TSX: PAA).
Investors have drawn hope from President Cristina Fernández's cabinet changes after her party lost recent regional elections, Pan American CEO Geoff Burns said. New cabinet chief Jorge Capitanich is "doing all the things you'd hope Argentina needs" to attract investment, Burns said.
"We're starting to see a glimmer of hope that we haven't seen in two-and-a-half years," Burns said Wednesday at the Scotiabank mining conference in Toronto. "Things are changing right now in Argentina."
The governor of Argentina's Chubut province, where Pan American's Navidad deposit is located, last week requested a meeting with the company in a bid to restart the project, Burns said. Pan American, which also operates the Manantial Espejo silver-gold mine in the Santa Cruz province and has the Calcatreu gold deposit in Río Negro, took a US$100mn writedown for Navidad in the fourth quarter of 2012 after the province failed to overturn a ban on open-pit mining.
Chubut province now appears to be ready to ask the company what it needs to go ahead with Navidad, according to Burns. "I've been waiting for (them to ask me) that question for the past year-and-a-half," Burns said.
The Argentine government has also eased import restrictions for mining equipment, said Silver Standard Resources (Nasdaq: SSRI) CEO John Smith. Vancouver based Silver Standard operates the Pirquitas silver-zinc mine in the Jujuy province and is exploring the Diablillas gold-silver deposit in the Salta province.
Capitanich, who may be the ruling party's candidate in the next presidential elections, has shown himself to be more open to dialogue including holding weekly press conferences, Smith said.
"It's been a difficult place to work, there's no doubt about it. You never know what's going to happen day after day," Smith said. "But there's definitely a mood for change as they work towards a transition to the next presidency."
Fernández, who has nationalized industries and maintained currency and capital controls during her two consecutive terms, cannot run in the next elections under Argentine law."
Please Note our Legal Disclaimer on the Blog, including, but Not limited to:
There are NO Qualified Persons among the authors of this blog as it is defined by NI 43-101, we were NOT able to verify and check any provided information in the articles, news releases or on the links embedded on this blog; you must NOT rely in any sense on any of this information in order to make any resource or value calculation, or attribute any particular value or Price Target to any discussed securities.
We Do Not own any content in the third parties' articles, news releases, videos or on the links embedded on this blog; any opinions - including, but not limited to the resource estimations, valuations, target prices and particular recommendations on any securities expressed there - are subject to the disclosure provided by those third parties and are NOT verified, approved or endorsed by the authors of this blog in any way.
Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advice on this blog and there is no solicitation to buy or sell any particular company.