Kaiser's a Gold Bull, not a Gold BugWe do know thatNewmont is drilling the bejesus since June at Sundance and untilwinter. They also recently added another rig to the program where theyhope to fine a Cripple Creek look alike in northeastern Wyoming. ThatColorado mine has produced some 23 MM ounces of gold and is stillchurning.
We'vealso heard that Newmont informally thought they had 5 MM ounces beforethis year's drilling program got underway.
Could some of that $2billion be earmarked for Sundance?
Also note in the John's Kaiser's Sept 21st interview in Pescod's "Late Edition" -- where he talks much more about gold than REEs, he notes:
"I’m not of the view that the U.S. dollar is going to collapse and the mighty Euro is going to dominate. I see gold rising against all currencies and possibly in the long run we will see a global, but I do see a real rise in gold prices. I see gold going to $1200 to $1500 in the next six to 12 months without a corresponding decline in the U.S. dollar."
That last bit is crucial it's a decidedly different view that what the typical "gold bug" is espousing. The usual rant is that the dollar is going to completely collapse given its huge debt.
Take China. As major holders of US dollars, are they going to shoot themselves in the foot by divesting out of US Dollars per se and lower devaluing a major portion of hte overseas portfolio?
Yet what we've been seeing is a shift from "paper dollars" into "hard asset dollars" as China is looking to buy dollar dominated commodities and resource companies to secure their future supplier of resources.
And the news today is that the Chinese sovereign wealth fund CIC bought a 14.5 percent stake in Noble Trading for $850 million, giving China more exposure to global commodities markets.
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Withgold trading around $1,000 and the Denver Gold Forum as the backdrop,Newmont Mining Corporation, the world's second largest gold miner,couldn't have chosen a better time to announce it is to raise around $2billionthrough the sale of Senior Notes.
Author: Lawrence Williams
16 Sep 2009
DENVER -
Speculation wasrife at the Denver Gold Forum as to the reasons for NewmontMining Corporation's (NYSE: NEM) announcement it is to make a publicofferingof $2.0 billion of Senior Notes. Newmont reckons the netproceeds willamount to around $1,966 million, after deducting estimateddiscounts and expenses. With the gold price at around the $1,000 levelthis is aparticularly opportune time to make the offering given thestrong investor interest in gold.
Newmont said that it intends touse the net proceeds of this offering for working capital and forgeneral corporate purposes, including costs of exploration, developmentof its project pipeline and acquisition initiatives that may become available,although no specific acquisitions were identified. Pending those uses,Newmont says it intends to use the money raised to repay a portion ofits senior revolving credit facility and place the remaining proceedsin short-term liquid investments.
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