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Metals News - The Incredible Collapse Of The Athens Stock Market

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Australian exploration spending hits record US$1.09bn - EXPLORATION - Mineweb.com

Australian exploration spending hits record US$1.09bn

the first time more than a billion dollars has been spent on exploration in a single quarter.

Despite the levying of carbon pollution and mineral resources rent taxes, Australian mineral exploration spending achieved a record in the quarter ending March.

Author: Dorothy Kosich
Posted:  Monday , 18 Jun 2012RENO (MINEWEB) - 
Spending on mineral exploration in Australia reached a record A$1.09 billion (US$1.09bn) in the March quarter-the first time more than a billion dollars has been spent on exploration in a single quarter.
In his weekly Treasurer's Economic Note issued Sunday, Australian Treasurer Wayne Swan observed "In fact, exploration expenditure has risen by about 35% since a price on carbon pollution was announced, and nearly 80% since the Minerals Resources Rent Tax was announced."
"It's yet another reality check for those who try to talk down the outlook for our resources sector or make ridiculous claims that important economic reforms are hurting investment," he stressed.
Beginning on July 1, Australia will levy a controversial carbon tax on 294 firms for the A$23/tonne (US$22.96/tonne), with mining companies, steel makers and electricity generators among the largest polluters.
Australia is one of the world's largest per-capita carbon emitters due to its reliance on coal for 85% of electricity generation.
"What's often not appreciated is that Asia's rise will create demand for a lot more than just our iron ore and coal," said Swan. "That means there will be opportunities for more than just our resources sector."
Australia's economy grew 1.3% in the March quarter, double what economists had anticipated. A major driver was a 19.7% increase in engineering construction, mainly in mining. Planned investment in the resources sector reached A$500 billion (US$500bn).
Earlier this month, Swan noted the strong growth was achieved in spite of a cyclone disrupting iron ore exports from Western Australia. The region's economy grew by 13.6% during the period from March 2011 to March 2012.The Australian government forecast in May that the mining boom will lift economic growth from 3% in the current fiscal ending June 30 to 3.25% next fiscal year.

Australian exploration spending hits record US$1.09bn - EXPLORATION - Mineweb.com Mineweb

Gold equities reversing a 10 month underperforming trend- BMO

From BMO Capital Markets, a buy signal for gold shares.

 

FIRST MESSAGE: Gold shares are reversing a 10 month downtrend against the S&P 500.

 

1-      STOCKS IN A CONSISTENT OUTPERFORMING TREND ARE: Franco-Nevada and Agnico-Eagle

2-      STOCKS REVERSING AN UNDERPERFORMING TREND ARE: Yamana, Randgold, Goldcorp, NewGold, Newmont and Iamgold ( see second last link below).

 

SECOND MESSAGE:  those looking for sources of funds to buy golds should consider energy. See figure 2 below.

Buy Golds, Sell S&P 500

Gold shares are reversing a 10-month downtrend against the S&P 500 – Figure 1.

·         Gold is now trending slightly higher in Aussie dollars, a currency whoseinterest rate advantage has slipped dramatically.  

·         Those looking for sources of funds to buy golds should consider energy –Figure 2.

 There are a few gold shares that are already consistent outperformers versus broad equity markets, like Goro Resources – Figure 3. 

·         We advise against bottom fishing amongst the laggards – Figure 4.

·         Price trends on gold shares are found at this link.

·         Relative strength trends of gold shares in the MSCI World index are found here.

·         Relative strength trends of gold shares in the S&P/TSX Composite Index are found here

Figure 1: Gold Miners vs S&P 500 ETF (Mind The Inflection Pt)

Figure 2: Gold vs Oil (Sell Oil or Energy Shares to Fund)

Figure 3: Goro Resource vs. ACWI (one of a few outperformers)

 Figure 4: Kinross vs. Gold Miners (Don't Dumpster Dive)

 

Source: BMO Capital Markets, Bloomberg, Thomson, Markit