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Message: EMN Highlights from 2008 NYSSA Conference
EMN Highlights from 2008 NYSSA Conference
Photo Caption - International Minerals CEO Steven Kay, after his speech at the NYSSA, in an exclusive exchange with EMN
By Silvia Santacruz
Ecuador Mining News
Washington D.C. July 1, 2008 -- Mining executives around the world not only have to cross their fingers for deposits to become feasible. They must also deal with countries’ political risk. One after another, a dozen mining company CEOs gathered at the Eighth Metals & Mining Conference at the New York Stock Securities Analysts (NYSSA), last June 5th and 6th. Each spoke about their projects, their resources or reserves, financial statements, and the stability or uncertainty where their projects are located. And, all sought to convince the 100 or so analysts to qualify their stocks as a strong “buy.”
The trend among most of the featured companies was similar. Projects with the richest deposits were in risky countries, and low-grade projects were in the friendliest jurisdictions. Some firms enjoyed a combination of a rich deposit and stable host nation, but the rule in the NYSSA conference appeared to confirm the resource curse theory.
For example, Ivanhoe Mines Mongolia, one of the NYSSA conference participants, has the largest underdeveloped copper-gold porphyry deposit in the world. But Ivanhoe’s Oyu Rolgoi project awaits the incoming parliament’s approval of a new minerals law, which would introduce a production-sharing agreement on strategic deposits instead of the current arrangement whereby the state has 51 percent ownership of the project.
On the other hand, Osisko Exploration is proud to have its developments in Quebec province, the number-one preferred mining jurisdiction in the world, according to a 2007 Fraser Institute Survey. Read the survey. Osisko’s Malartic project is also considered the seventh most important undeveloped gold project worldwide with over 5 million ounces (see the chart, below). The study also ranks Aurelian Resources Fruta del Norte project in Ecuador as third best, after two Venezuelan projects, and International Minerals’s Gaby project in Ecuador as the 15th best.
| Company |
Mkt Cap M $ |
MI& I Res
M oz |
Project Locations |
Political Risk |
| Crystallex | 283 | 22.2 | Venezuela | high |
| Gold Reserve | 113 | 14.9 | Venezuela | high |
| Aurelian Resources | 588 | 13.7 | Ecuador | med |
| Greystar Resources | 225 | 11.6 | Colombia | high |
| Moto Gold Mines | 334 | 11.1 | Congo | high |
| Banro | 338 | 10.8 | Congo | high |
| Osiski Exploration | 765 | 8.4 | Canada | low |
| Great Basin Gold | 735 | 8.2 | South Africa |
med-low |
| Detour Gold | 855 | 7.9 | Canada | low |
| Centamin Egypt | 1,184 | 7.7 | Egypt | med |
| Andina Minerals | 254 | 7.1 | Chile | low |
| Nevsun | 198 | 6.9 | Eritrea | high |
| Terrane Metals | 150 | 6.5 | Canada | low |
| Anatolia Minerals | 301 | 5.4 | Turkey | med |
| International Minerals | 497 | 5.0 | Ecuador | med |
International Minerals (TSX:IMZ) was the only mining firm with operations in Ecuador that participated in the NYSSA conference. Part of IMZ CEO Stephen Kay’s speech was on Ecuador’s April 18th mining mandate, which halted all exploration and mining for up to six months until a new mining law is passed and limited the number of concessions to three. Kay showed optimism that the current situation will end soon with the new, yet-to-be-approved mining law, and mentioned President Rafael Correa’s mining-friendly position. Read Kay’s NYSSA presentation
In an exclusive exchange with EMN, Kay said that after the mandate was issued, an informal alliance called the Council of Canadian Mining Companies (CONMIN) was created and is principally supported by IAMGOLD (TSX:IMG, NYSE:IAG), Corriente Resources (TSX:CTQ), Aurelian Resources (TSX:ARU), and International Minerals (TSX:IMZ, SWX:IMZ). CONMIN has undertaken a high-profile PR campaign on television, radio and in newspapers to highlight the economic benefits of environmentally and socially responsible mining.
CONMIN’s television advertisement “La Voz del Minero” may be having results in swaying public opinion in favor of mining in Ecuador’s two main cities, Quito and Guayaquil, with approval rates of up to 84 and 86 percent respectively, according to Informe Confidencial poll conducted last May 10th. See YouTube videos. See the pro-mining march on May 6th
Drafted by the Ministry of Mines and Petroleum, Ecuador’s new mining law was delivered to President Correa as of last Friday, June 27th. The timing of the approval of the new law is not yet clear but the law is expected to be favorable to the development of mining in Ecuador. “I think the market is going to feel pleasantly surprised,” Kay said, while prodding investors to consider IMZ, which is trading at near its lowest price in a year. In Ecuador, International Minerals owns the Rio Blanco gold-silver project, currently in the permitting process, and the Gaby gold project, which is in the preliminary feasibility stage of development. IMZ also owns 40 percent of the Pallancata silver and gold producing mine in Peru, operated by 60 percent by a partner, Hochschild Mining, and employs 400 Ecuadorians.
Furthermore, Kay mentioned that the MMP is consulting with a Chilean advisor and has been holding dialogues with various stakeholders, including CONMIN, in drafting the new law submitted to the President. IMZ is the oldest international mining company investing and exploring in Ecuador. The firm has 15 years of operations, followed by IAMGOLD that started one year after IMZ, while Corriente and Aurelian initiated operations in 2000 and 2001.
Other companies that participated at the NYSSA were Jinshan in China, Hecla in North America, Mexico and Venezuela, NovaGold in Alaska, and North American Palladium in Canada and Finland, to name a few.
CONMIN’s television advertisement “La Voz del Minero” may be having results in swaying public opinion in favor of mining in Ecuador’s two main cities, Quito and Guayaquil, with approval rates of up to 84 and 86 percent respectively, according to Informe Confidencial poll conducted last May 10th. See YouTube videos. See the pro-mining march on May 6th
Drafted by the Ministry of Mines and Petroleum, Ecuador’s new mining law was delivered to President Correa as of last Friday, June 27th. The timing of the approval of the new law is not yet clear but the law is expected to be favorable to the development of mining in Ecuador. “I think the market is going to feel pleasantly surprised,” Kay said, while prodding investors to consider IMZ, which is trading at near its lowest price in a year. In Ecuador, International Minerals owns the Rio Blanco gold-silver project, currently in the permitting process, and the Gaby gold project, which is in the preliminary feasibility stage of development. IMZ also owns 40 percent of the Pallancata silver and gold producing mine in Peru, operated by 60 percent by a partner, Hochschild Mining, and employs 400 Ecuadorians.
Furthermore, Kay mentioned that the MMP is consulting with a Chilean advisor and has been holding dialogues with various stakeholders, including CONMIN, in drafting the new law submitted to the President. IMZ is the oldest international mining company investing and exploring in Ecuador. The firm has 15 years of operations, followed by IAMGOLD that started one year after IMZ, while Corriente and Aurelian initiated operations in 2000 and 2001.
Other companies that participated at the NYSSA were Jinshan in China, Hecla in North America, Mexico and Venezuela, NovaGold in Alaska, and North American Palladium in Canada and Finland, to name a few.
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