Weaknesses of Solar and Wind

By Rob Jeffrey – Re-Blogged From WUWT

It is claimed that wind and solar are the cheapest sources of electricity and these sources should dominate future electricity supply.  This paper focuses on known additional costs and subsidies which are not taken into account in the costs of wind and solar put forward by their advocates.

Advocates of wind and solar claim a cost of 0.62 rand (about 3.6 US cents) /kWh.  This is, however, the price at the gate of the supplier.  It does not include all the costs of supply necessary to convert this electricity from non-dispatchable electricity supply at the gate to dispatchable electricity supply at the point of supply to the customer.  These are in effect direct subsidies to solar and wind suppliers, whereas they should be added as a cost to the renewable energy suppliers.

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Gold Miners’ Q1’20 Fundamentals

By Adam Hamilton – Re-Blogged From Gold Eagle

The major gold miners’ stocks have rallied dramatically out of mid-March’s stock-panic lows, soaring to new bull-market highs. Their just-reported Q1’20 operational and financial results reveal whether today’s higher gold-stock prices are fundamentally justified. They also illuminate whether this gold-stock upleg is likely to continue powering higher, despite the catastrophic economic damage from governments’ lockdowns.

With officials around the world waging a scorched-earth war against this COVID-19 pandemic, the gold miners’ latest quarterly results are more important than ever. While this earnings season covered Q1’20, most gold companies didn’t release their quarterly reports until the last couple weeks. In them they had to disclose the ongoing impact of governments’ COVID-19 lockdowns current to those quarterlies’ release dates.

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Silver Miners’ Q4’19 Fundamentals

By Adam Hamilton – Re-Blogged From Silver Phoenix

The carnage in the silver miners’ stocks has been apocalyptic, fueled by the astounding COVID-19 stock panic.  As terrified traders frantically dumped everything and ran for the hills, silver and its miners’ stocks crashed.  That catastrophic anomaly has potentially created epic contrarian buying opportunities.  The silver miners’ recently-reported Q4’19 results reveal whether their fundamentals support a massive rebound.

As long-time silver-stock traders are painfully aware, this tiny sector is no stranger to adversity.  Only the most-hardened contrarians dare chasing the white metal’s occasional monster skyrocketings.  Back in late February, silver was rallying nicely as gold surged over $1600 on mushrooming COVID-19 fears.  But over the next 17 trading days silver collapsed 35.8%, with nearly 3/4ths of that loss in the final week alone!

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Gold-Miner Valuations

By Adam Hamilton – Re-Blogged From Gold Eagle

The gold miners’ stocks have spent the past half-year mired in a high consolidation.  They haven’t been able to break out, but aren’t breaking down either.  This technical purgatory is working to slowly bleed off overboughtness and rebalance sentiment.  This necessary process to eradicate greed from the last upleg peak is never exciting.  But today’s low gold-miner valuations reveal great upside potential in their next upleg.

The world’s leading and dominant gold-stock trading vehicle and benchmark is the GDX VanEck Vectors Gold Miners exchange-traded fund.  It commanded $13.2b in net assets in the middle of this week, 2.7x larger than its next-biggest competitor GDXJ.  The major gold miners’ stocks included in GDX soared this past summer, blasting higher after gold’s decisive breakout to its bull market’s first new highs in several years.

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Gold Mid-Tiers’ Q3’19 Fundamentals

By Adam Hamilton – Re-Blogged From Gold Eagle

The mid-tier gold miners just reported their results for a phenomenal gold quarter.  In Q3’19 this metal surged after its first bull-market breakout in years, driving much-higher prevailing prices.  That should’ve led to soaring profits for these mid-tiers in the sweet spot for stock-price upside potential.  Last quarter’s results are the most important this sector has seen in a long time, a key fundamental test for gold miners.

Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports.  Required by the US Securities and Exchange Commission, these 10-Qs and 10-Ks contain the best fundamental data available to traders.  They dispel all the sentiment distortions inevitably surrounding prevailing stock-price levels, revealing corporations’ underlying hard fundamental realities.

The global nature of the gold-mining industry complicates efforts to gather this important data.  Many mid-tier gold miners trade in Australia, Canada, Mexico, the United Kingdom, and other countries with quite-different reporting requirements.  These include half-year reporting rather than quarterly, long 90-day filing deadlines after fiscal year-ends, and very-dissimilar presentations of operating and financial results.

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Climate Socialism – or Eco-Fascism?

Green New Deal climate alarm socialism is really intolerant, totalitarian eco-fascism

By Paul Driessen – Re-Blogged From WUWT

Green New Dealers have convinced themselves that our planet faces an imminent, existential, manmade climate cataclysm – that can be prevented solely and simply by government edicts replacing fossil fuels with biofuel, wind, solar and battery energy. They achieve this state of absolute certainty largely by propagating constant scare stories, while ignoring and suppressing contradictory evidence and viewpoints.

They deliberately and deceptively talk about “carbon pollution.” Carbon is soot – what our cars, factories and power plants now emit in very small quantities. The honest, accurate term is carbon dioxide: the colorless, odorless, invisible gas that we exhale and plants need to grow, by using the tiny but growing 0.04% of Earth’s atmosphere that is CO2 to grow faster, better and with greater resistance to droughts.

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Past, Present and Future Progress Requires Mining

By John M. Clema – RE-Blogged From WUWT

Metal and mineral needs are constant, constantly evolving, requiring new mines

Civilization’s progress has always been heavily dependent on farming and mining. The Stone Age didn’t end because mankind ran out of stones.

Instead, the discovery, mining and processing of metals like copper, bronze and iron, followed by the development of steel, led to progressively sharper, more effective tools, improved construction techniques, and other engineering and technological achievements. Nonmetallic minerals have also been and remain vital to civilization and progress.

Minerals – or their scarcity – have precipitated wars, but more often have led to certain countries becoming dominant in manufacturing vital products such as computer chips.

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Modern Societies Require Minerals, and Mining

Paul Driessen and Ned Mamula – Re-Blogged Frm WUWT

When OPEC imposed its 1973 embargo, the United States was just over 40% dependent on foreign sources for its oil. But sudden price hikes and shortages severely disrupted families and businesses.

Today the USA relies on foreign sources for 100% of 14 minerals considered to be “critical” for modern technologies and societies, and 50-96% for 19 other “critical” minerals; only two are in the 14-25% dependency range, an updated report from the US Department of the Interior (DOI) cautions.

Congressional bills would end US mining and leave USA dependent on foreign critical materials

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A Declaration of Mineral Independence Against Eco Tyranny

By Paul Driessen & Ann Bridges – Re-Blogged From WUWT

It’s an essential first step in making the USA less dangerously dependent on foreign minerals.

Many of the colonists’ grievances against King George III resonate today, as tyrannical environmentalists continue to block domestic development of minerals that are critical for our businesses, security and living standards. To protect our freedoms, we have updated that revered 1776 statement, to highlight and upend the status quo.

A Declaration of Mineral Independence

of and for the People of the United States of America

from tyrannical environmentalist organizations,

with a goal of full mineral independence by the 250th Anniversary

of America’s first Declaration of Independence, July 4, 2026

WE still hold these truths to be self-evident, that all Men and Women are created equal, and that they are endowed by their Creator and protected by our Constitution with certain unalienable Rights, that among these are Life, Liberty, the Pursuit of Happiness, which require access to the minerals that make modern societies, defense and other technologies, health and living standards possible.

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Elvis Calls for “Space Wilderness” to Protect Solar System From Mining!

By David Middleton – Re-Blogged From WUWT

I had to take a break from writing the sequel to How Climate Change Buried a Desert 20,000 Feet Beneath the Gulf of Mexico Seafloor after running across this gem on Real Clear Science this morning…

Malthusians in Space!

From The Grauniad’s “You Couldn’t Make This Sort of Schist Up If You Were Trying Desk”….

Protect solar system from mining ‘gold rush’, say scientists
Proposal calls for wilderness protection as startup space miners look to the stars

Ian Sample Science editor
Sun 12 May 2019 13.24 EDT

Great swathes of the solar system should be preserved as official “space wilderness” to protect planets, moons and other heavenly bodies from rampant mining and other forms of industrial exploitation, scientists say.
The proposal calls for more than 85% of the solar system to be placed off-limits to human development, leaving little more than an eighth for space firms to mine for precious metals, minerals and other valuable materials.

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Silver Miners’ Q4’18 Fundamentals

By Adam Hamilton – Re-Blogged From Silver Phoenix

The major silver miners have rallied higher on balance in recent months, enjoying a young upleg. That’s a welcome change after they suffered a miserable 2018. Times are tough for silver miners, since silver’s prices have languished near extreme lows relative to gold. That has forced many traditional silver miners to increasingly diversify into gold. The major silver miners’ recently-released Q4’18 results illuminate their struggles.

Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports. Required by the US Securities and Exchange Commission, these 10-Qs and 10-Ks contain the best fundamental data available to traders. They dispel all the sentiment distortions inevitably surrounding prevailing stock-price levels, revealing corporations’ underlying hard fundamental realities.

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China’s Coal Output Hits Highest in Over 3 Years

By Meng Meng & Dominique Patton – Re-Blogged From Reuters

BEIJING (Reuters) – China’s December coal output climbed 2.1 percent from the year before, government data showed, hitting the highest level in over three years as major miners ramped up production amid robust winter demand and after the country started up new mines.

Miners produced 320.38 million tonnes of coal in December, according to data released on Monday by the National Bureau of Statistics. That is the largest volume since June, 2015.

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Gold Miners’ Q3’18 Fundamentals

By Adam Hamilton – Re-Blogged From Gold Eagle

The major gold miners’ stocks remain mired in universal bearishness, largely left for dead.  They are just wrapping up their third-quarter earnings season, which proved challenging.  Lower gold prices cut deeply into cash flows and profits, and production-growth struggles persisted.  But these elite companies did hold the line on costs, portending soaring earnings as gold recovers.  Their absurdly-cheap stock prices aren’t justified.

Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports.  Companies trading in the States are required to file 10-Qs with the US Securities and Exchange Commission by 40 calendar days after quarter-ends.  Canadian companies have similar requirements at 45 days.  In other countries with half-year reporting, many companies still partially report quarterly.

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The Congo Is Set to Butt Heads With Mining Firms Over Cobalt

Re-Blogged From Stratfor

Highlights

  • Battery producers will continue their rush to ensure continued supplies of raw materials like cobalt amid soaring demand.
  • New mining regulations in the Democratic Republic of the Congo remain in limbo, but any change to the code will result in a backlash by the many large mining operations in the country.
  • Despite the political uncertainty, Kinshasa’s role as a mineral exporter will not diminish and the government will continue to seek ways to benefit from resource wealth.

A worker at a copper and cobalt mine near Lubumbashi, Democratic Republic of the Congo, May 23, 2016.

(JUNIOR KANNAH/AFP/Getty Images)

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Luxembourg, Japan Team up to Explore and Mine Space Resources

By   Re-Blogged From Mining.com

Luxembourg seems to be in a rush to become Europe’s hub for space mining, as it announced Wednesday yet another deal aimed at boosting boost the exploration and the commercial utilization of resources from near earth objects, such as asteroids.

The fresh agreement, this time with Japan, is part of Luxembourg’s SpaceResources.lu initiative launched last year to promote the mining of celestial bodies for minerals.

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Gold-Stock Upside Huge

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The gold miners’ stocks have huge upside potential in 2018, likely the best among stock-market sectors. They really lagged gold last year, so a major mean-reversion catch-up rally is coming. The gold miners are universally ignored and deeply undervalued relative to the metal which drives their profits. And gold itself is likely to power dramatically higher this year as euphoric record-high stock markets inevitably start to falter.

Gold has always been the leading contrarian investment, tending to move counter to stock markets. So not surprisingly investment demand stalled last year as the extreme taxphoria-fueled stock surge blasted relentlessly higher. When stock markets apparently do nothing but rally indefinitely, investors feel no need to prudently diversify their portfolios with the anti-stock trade gold. So they ignored the yellow metal in 2017.

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Gold Miners’ Q3’17 Preview

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

With the third quarter’s earnings season now underway, the gold miners will soon join in and report their latest results. No data is more highly anticipated by investors, for good reason. Quarterly reports dispel the dense fogs of herd sentiment that usually obscure gold stocks, revealing their operations’ underlying fundamental realities. Q3’17’s upcoming results are likely to prove quite bullish for this neglected sector.

Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports. Companies trading in the States are required to file 10-Qs with the US Securities and Exchange Commission by 45 calendar days after quarter-ends. The gold miners generally release their quarterly reports in the latter half of this span. So Q3’17’s will arrive between late October and mid-November.

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Copper Hits Fresh 2-Year High on Possible China Scrap Ban

By Anjli Raval, David Sheppard, & Tom Hancock – Re-Blogged From Financial Times

The Red metal is a key source of income for some of the world’s biggest mining companies. Copper jumped to its highest level in two years on reports that China could ban imports of scrap metal by the end of next year — a move that would probably boost demand for refined metals in the world’s top importer.

Copper for delivery in three months on the London Metal Exchange rose as high as $6,400 a tonne on Wednesday, a level not seen since May 2015, having risen by about 5 per cent over the past two sessions. In afternoon trading, it moderated its gains to $6,316 a tonne.

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Gold Miners’ Q2’17 Fundamentals

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The gold miners’ stocks have spent months adrift, cast off in the long shadow of the Trumphoria stock-market rally. This vexing consolidation has left a wasteland of popular bearishness. But once a quarter earnings season arrives, bright fundamental sunlight dispelling the obscuring sentiment fogs. The major gold miners’ just-reported Q2’17 results prove this sector remains strong fundamentally, and super-undervalued.

Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports. Companies trading in the States are required to file 10-Qs with the US Securities and Exchange Commission by 45 calendar days after quarter-ends. Canadian companies have similar requirements. In other countries with half-year reporting, some companies still partially report quarterly.

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Green Energy Insurrection: Aussie Miners, Heavy Industry Threaten Investment Walkout over Energy Prices

By Eric Worrall – Re-Blogged From http://www.WattsUpWithThat.com

EAPI represents the average commodity price of retail electricity paid by Australian businesses based on a Standard Retail Contract (commences in 6-months and operates for 2½ years). Source Energy Action

EAPI represents the average commodity price of retail electricity paid by Australian businesses based on a Standard Retail Contract (commences in 6-months and operates for 2½ years).

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Volatility of the Copper Markets Combined with the ‘Trump’ Effect

By Stuart Edwards – Re-Blogged From http://www.Gold-Eagle.com

Much like other commodities, traders have always devoted a certain level of attention towards copper. There are two key reasons for this observation. First, this red metal is highly indicative of industrial demand and therefore, the health of domestic economies. Secondly, political policy shifts and fiscal plans can have a knock-on effect in regards to its pricing. We have witnessed a great deal of volatility during the past few months and while the medium-term outlook remains positive, many are wondering if a support level will soon be reached. Let us take a look at the root causes of this volatility as well as what to expect in the coming months.

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Gold Miners’ Q3’16 Fundamentals

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The gold miners just finished reporting their third-quarter results, which proved very impressive.  While this small contrarian sector is now languishing in the doghouse following a brutal post-election selloff, the gold miners’ fundamentals are strengthening.  Lower costs and higher gold prices led to surging operating cash flows and profits.  The major gold miners are great fundamental bargains for contrarians today.

Gold-stock bulls are among the largest ever seen in all the markets.  The flagship HUI gold-stock index skyrocketed 1664% higher over 10.8 years ending in September 2011, trouncing general-stock-market losses of 14% per the S&P 500.  Even this year between mid-January and early August, the HUI soared 182% in just 6.5 months!  Radical wealth-multiplying upside like that is well worth any psychological price.

And that is extreme volatility in gold stocks, which alternatively soar then collapse.  After the election as futures speculators dumped gold hedges, the gold stocks suffered an incredible second mass-stopping event in less than 6 weeks.  That took the HUI’s total massive correction to a colossal 36.6% in just 3.3 months!  Provocatively mid-bull corrections of this magnitude have been suffered before in gold stocks.

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Gold Juniors’ Q1’16 Fundamentals

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The smaller gold-mining and exploration stocks have enjoyed an amazing year, soaring with gold’s new bull market.  Many have more than doubled since mid-January, and some have more than tripled at best in that short span.  Are such spectacular gains fundamentally-justified, or merely the result of ephemeral sentiment that could vanish anytime?  The gold juniors’ recently-reported Q1’16 results offer great insights.

The junior gold miners and explorers play a critical role in the world gold market.  They bear the major costs and risks associated with discovering and sometimes developing new economically-viable gold deposits.  They painstakingly find the new gold reserves to offset the constant depletion of the world’s existing gold mines, acting as the headwaters feeding the global mined-gold-supply pipeline vital to this industry.

The larger gold miners rely extensively on the juniors’ crucial exploration and early-development work to maintain and replenish their own operations.  While the majors certainly do their own exploration, it is far from sufficient to offset existing gold mines exhausting.  So gold juniors are constantly targeted by the larger miners, which acquire these companies outright, buy their projects, or partner with them for development.

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Hard Money Benefits

cropped-bob-shapiro.jpg   By Bob Shapiro

If and when the Dollar returns to being a Hard Currency – one backed by or actually containing Gold or Silver – there will be numerous changes which will occur.

One will be the elimination of constant and continuous growth of the money supply. A stable money supply is likely to result in a stable price level (CPI) – or even a continuous decline as the US saw during the 1800s.

But, there will be other, sometimes much less obvious benefits, and I’d like to consider one possibility today – the effect on the Price of Copper.

Copper is one of the most widely used base metals worldwide, mostly in electrical components like wire and motors. It has an active futures market, where because its ups and downs in price coincide with the ups and downs of the Economy, it has acquired the nickname of Dr. Copper.

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US Mint Reports Astounding Gold And Silver Demand

By Frank Holmes – Re-Blogged From http://www.Gold-Eagle.com

Strengths

  • In a down week for most markets, silver fared the best, falling only 0.11 percent.  There was no particular story supporting the move, but note that silver really didn’t fully participate in the precious metal rally last week and perhaps had less to lose.
  • Over the past five days investors bought 26.8 metric tonnes of bullion through exchange-traded products backed by the metal, according to Bloomberg, the most since January 2015 as seen in the chart below. In addition, Reuters says gold and silver demand is off the charts; the U.S. Mint sold nearly as much gold on the first day of 2016 as in all of January 2015, with silver sales equally as astounding.

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China’s Security Of Supply

By Rick Mills – Re-Blogged From http://www.Silver-Phoenix500.com

Consider:

  • There is a slowing of production and dwindling of reserves at many of the world’s largest mines.
  • All the oz’s or pounds are never recovered from a mine – they simply becomes too expensive to recover.
  • The pace of new elephant-sized discoveries has decreased in the mining industry.
  • Discoveries are smaller and in less accessible regions.
  • Mineralogy & metallurgy is more complicated making extraction of metals from the mined ore increasingly more complex and expensive.
  • Mining is cyclical which makes mining companies reluctant to spend on exploration and development.
  • A looming skills shortage
  • There is no substitute for many metals except other metals – plastic piping is one exception.
  • Metal markets are small so speculation is a larger factor.
  • There hasn’t been a new technology shift in mining for decades – heap leach and open pit mining come to mind but they are both decades old innovation.
  • Country risk – resource extraction companies, because the number of discoveries was falling and existing deposits were being quickly depleted, have had to diversify away from the traditional geo-politically safe producing countries. The move out of these “safe haven” countries has exposed investors to a lot of additional risk.
  • Lack of recognition for population growth, growing middle class w/disposable incomes and urbanization as on-going demand growth factors.
  • Climate change.

Increasingly we will see falling average grades being mined, mines becoming deeper, more remote and come with increased political risk.

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