HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Message: mining CEOs are extremely optimistic about their future

http://business.financialpost.com/2011/06/07/global-mining-assets-to-surpass-us1-trillion-pwc/

Global mining assets to surpass US$1-trillion: PwC

By Financial Post · June 7, 2011 · 7:50 am · Leave a Comment

By Peter Koven

The raw numbers are astounding. The total assets of the 40 largest global mining companies could smash through the US$1-trillion level this year, according to an annual review of the industry released Tuesday by PricewaterhouseCoopers (PwC). The industry ended 2010 at US$943billion, a level that would have been inconceivable even five years ago.

PwC published some other 2010 figures for the mining industry’s top 40 public companies that are just as remarkable: Revenue increased 32% year over year to a record US$435billion, while operating cash flow leapt 65% to US$137-billion. Net profit was up 156% to US$110-billion.

“It’s just mind-boggling,” said John Gravelle, PwC’s national mining leader.

PwC’s report is titled The Game Has Changed, and the 2010 numbers back that up. The consultancy’s view is that continuing strong demand from emerging markets, combined with well-known supply constraints, have brought the mining industry into a new world that goes well beyond a basic bull market for commodities and into more of a structural shift.

As evidence of that, PwC stated that the cost base of the industry has “permanently changed” because of declining grades and labour shortages. That supports high prices.

Mr. Gravelle said mining CEOs are extremely optimistic about their future. It is a far cry from just a couple of years ago, when commodity prices were starting to recover from a se-vere downturn and a number of the world’s largest miners (including Rio Tinto Ltd. and Xstrata PLC) were struggling with too much debt.

The industry is riding high as the companies remain confident that China will continue to meet its growth targets and keep metal demand strong for the foreseeable future. The fact that there is so much optimism less than three years after a historic collapse speaks volumes about how well the sector is doing.

That’s not to say everything is positive, however. Mr. Gravelle noted that a rise in resource nationalism is a major concern for the industry, as is a push into more difficult jurisdictions and greater scrutiny from governments and other stakeholders.

While Canada is viewed as a global leader in mining, only nine of the top 40 largest global mining companies are Canadian, and only Barrick Gold Corp. and Potash Corp. of Saskatchewan Inc. ranked in the top 10 (in eighth and ninth place, respectively).

Among Canadian companies, gold miner Agnico-Eagle Mines Ltd. and silver royalty giant Silver Wheaton Corp. made the top 40 list for the first time

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