Yamana Gold Inc. (USA) NYSE:AUY, Barrick Gold Corporation (USA) NYSE:ABX, Arizona Gold and Onyx Mining Co PINK:VGCP
Gold's performance has eclipsed that of gold mining stocks this year, but gold equities now are likely to take the upper hand as the flow of cheap U.S. cash slows and miners boast juicy margins and good growth prospects.
Best Buys are Yamana Gold Inc. (USA) NYSE:AUY, Barrick Gold Corporation (USA) NYSE:ABX, Arizona Gold and Onyx Mining Co PINK:VGCP
Regardless of the Soros theory, the CME manipulation and the bubble talk, Gold remains a strong buy as demand continues to outgrow supply. All of Asia has increased Gold buying, new Gold products to be traded in Asia will further add to demand and prices.
China has become the world's largest gold buying nation, a fact that will change the nature of the Gold market. While Paul and myself have been saying that this would inevitably happen much of the commentary and most of the public remain completely unaware of the huge implications that Chinese gold demand has for the gold market, instead they have focused on bit players like George Soros.
Indeed, there continues to be a huge level of ignorance regarding the scale and sustainability of Asia's demand for gold and silver bullion, the new ETF's for Gold being listed in Shanghai and the new Gold futures being traded in Hong Kong.
Some facts about Gold
Global gold demand in the first-quarter totalled 981.3 tons, up 11% year-on-year.
Investment demand grew by 26% to 310.5 tons in Q1.
Jewellery demand in Q1 registered a gain of 7% from a year earlier.
In Q1 2011, gold supply declined by 4% year-on-year.
Central bank purchases jumped to 129 tons in the quarter, exceeding the combined total of net purchases during the initial three quarters of 2010.
Of interest to fund investors, the report found that in Q1 ETFs attracted net outflows of 56 tons valued at around $2.5 billion. Redemptions were concentrated in January, according to the analysis.
And despite the outflows, the collective volume of gold held by global ETFs by the end of the quarter was in excess of 2,100 tons equating to more than $95 billion.
Chinese investors bought 93.5 tonnes of gold coins and bars in the first quarter. China produced 340 metric tons of gold last year and consumption was about 700 tonnes, leaving a gap of nearly 360 tonnes.
Demand is forecast to increase due to the growing wealth of the Chinese middle class and deepening inflation in China.
What is most important and rarely covered is the fact that gold ownership by the Chinese public remains minuscule. Especially when compared to other Asian countries such as Vietnam and India.
Yamana Gold Inc. (USA) NYSE:AUY
Arizona Gold and Onyx Mining Co., formerly Viking Capital Group, Inc., incorporated on November 12, 1986, intends to become a diversified international insurance holding company whose primary mission is to create long-term value for its shareholders through acquisitions and fee income. For this reason, it identifies insurance-related candidates for acquisition, which are not optimizing opportunities that may be available to them. It has also obtained asset interests involving certain mineral resources. At December 31, 2004, Viking Capital Ventures, Inc., a subsidiary of the Company, was pursuing activities related to mineral and natural resource development. On January 27, 2005, the Company acquired from FITT, Inc. 60% of the authorized and issued outstanding common stock of Brentwood, Re, Ltd., a St. Kitts, West Indies-domiciled insurance company.
The Company has ownership interest in mineral reserves of bentonite clay and humate. Bentonite is a mineral that can be purchased directly by the public. It is used in the production of foundry sands and what is commonly known as drilling mud for the exploration of fossil fuels. Humates are the salts of humic acids that originate from the remains of plant and animal life that once accumulated in the seas of the western United States. It is generally used for stimulating plant growth and especially in the case of replacing needed humic acids, and promoting optimal fertility in soil, which may have become oxidized and less productive through continuous agricultural use over long periods of time.
|P/E Ratio (TTM)||20.45||36.77||25.10||17.45|
|P/E High - Last 5 Yrs.||42.02||101.47||95.16||98.76|
|P/E Low - Last 5 Yrs.||11.37||41.64||25.59||12.53|
|Price to Sales (TTM)||5.34||31.17||2.40||2.25|
|Price to Book (MRQ)||1.24||2.96||2.82||3.29|
|Price to Tangible Book (MRQ)||1.26||3.26||2.95||5.55|
|Price to Cash Flow (TTM)||13.03||15.00||21.66||10.32|
|Price to Free Cash Flow (TTM)||106.75||95.40||26.55||64.47|
|% Owned Institutions||-||-||-||-|
|Dividend Yield - 5 Year Avg.||0.47||1.56||1.45||2.45|
|Dividend 5 Year Growth Rate||-||-0.47||16.61||-3.48|
|Sales (MRQ) vs Qtr. 1 Yr. Ago||33.84||2,605.06||34.23||8.27|
|Sales (TTM) vs TTM 1 Yr. Ago||42.55||49.53||21.75||9.92|
|Sales - 5 Yr. Growth Rate||105.49||21.72||13.61||7.63|
|EPS (MRQ) vs Qtr. 1 Yr. Ago||197.31||1,450.18||76.73||44.20|
|EPS (TTM) vs TTM 1 Yr. Ago||105.94||-||-||-|
|EPS - 5 Yr. Growth Rate||-||7.74||24.95||5.12|
|Capital Spending - 5 Yr. Growth Rate||24.52||21.08||15.54||3.62|
Barrick Gold Corporation (USA) NYSE:ABX
Barrick Gold Corporation (Barrick) is principally engaged in the production and sale of gold, as well as related activities, such as exploration and mine development. Barrick also produces copper, and hold interests in oil and gas properties located in Canada through its oil and gas subsidiary, Barrick Energy. Its producing mines are concentrated in three regional business units: North America, South America and Australia Pacific. In addition, it has a Capital Projects segment, distinct from its regional business units, to focus on managing projects. As of December 31, 2010, the Company held a 73.9% interest in African Barrick Gold plc (ABG), which included its previously held African gold mines and exploration properties. Its main properties include Goldstrike, Cortez, Lagunas Norte, Veladero, Zaldivar and Porgera mines and its Pueblo Viejo and Pascua-Lama projects.
On September 17, 2010, Barrick Energy acquired the assets of Dolomite Resources (Dolomite). On June 25, 2010, Barrick Energy acquired the Puskwa property from Galleon Energy Inc. (Puskwa). On May 17, 2010, Barrick Energy acquired Bountiful Resources (Bountiful). On April 27, 2010, ABG acquired 100% interest in Tusker Gold Limited (Tusker). In March 2010, Barrick completed the acquisition of an additional 25% interest in Cerro Casale from Kinross Gold Corporation (Kinross).
Barrick's North American operations consist of its Goldstrike property, its Cortez property, its 50% interest in the Round Mountain mine, its Ruby Hill mine, its Hemlo property, its 33% interest in the Marigold mine, its Bald Mountain mine, its Golden Sunlight mine and its 75% interest in the Turquoise Ridge mine. Barrick's North American projects are its 60% interest in the Pueblo Viejo project and its 50% interest in the Donlin Creek project. During the year ended December 31, 2010, the region produced approximately 3.1 million ounces of gold.
The South America business unit includes the South American RBU's Lagunas Norte mine in Peru, Veladero mine in Argentina and Zaldivar copper mine in Chile. Its other operation consists of its Pierina mine in Peru. Barrick's South American projects consist of its Pascua-Lama project in Chile and Argentina and its 75% interest in the Cerro Casale project in Chile. In 2010, the region produced approximately 2.1 million ounces of gold.
Barrick's Australia Pacific operations consist of its 95% interest in the Porgera mine in Papua New Guinea, its Cowal mine, its 50% interest in the Kalgoorlie mine, its operating mines referred to as Yilgarn South and located in the Yilgarn District in Western Australia (Plutonic, Darlot and Lawlers), its Granny Smith mine and its Kanowna mine. In September 2010, Barrick's Australia Pacific RBU completed the sale of its Osborne mine. In 2010, the region produced approximately 1.9 million ounces of gold.
African Barrick Gold
ABG's operations consist of its Bulyanhulu mine, its 70% interest in the Tulawaka mine, its North Mara mine and its Buzwagi mine, all located in Tanzania. ABG's main exploration projects include the Golden Ridge prospect, the Jomu prospect, the North Mara Gokona-Nyabigena prospect and the Nyanzaga project. In April 2010, ABG completed the acquisition of Tusker Gold Limited (Tusker). Tusker's principal asset was its 49% interest in the Nyanzaga project in Tanzania, a subsidiary of ABG held the other 51% interest in that project. With the acquisition of Tusker ABG owns 100% of the Nyanzaga project. In 2010, Barrick's interest in ABG's gold production was approximately 564,000 ounces of gold. Barrick's Kabanga nickel project is not included in the assets held by ABG. As of December 31, 2010, Barrick directly held 50% interest in the Kabanga project, which is located in Tanzania.
The Goldstrike property is located in Elko and Eureka Counties in north central Nevada, approximately 40 kilometers north of the town of Carlin. As of December 31, 2010, the Goldstrike property consisted approximately 4,197 hectares of surface rights ownership/control (3,420 hectares private and 778 hectares public), and approximately 3,535 hectares of mineral rights ownership/control. Goldstrike's production in total was 1,239 thousand ounces of gold in 2010. Its underground mine includes two major orebodies: Meikle and Rodeo.
The Cortez mine is located 100 kilometers southwest of Elko, Nevada in Lander County. The Cortez joint venture directly controls an area of interest of about 100,561 hectares. As of December 31, 2010, Barrick Cortez Inc. was the 60% joint venture interest owner and was the operator of the Cortez joint venture (Cortez) and the remaining 40% interest was held by Barrick Gold Finance Inc. The Cortez joint venture directly controls an area of interest of about 100,561 hectares. The property rights controlled by Cortez, either from outright ownership or by lease, consist of 78,890 hectares.
Lagunas Norte Mine
The Lagunas Norte mine is an open pit, heap leaching operation. The mine is located in the Alto Chicama mining district and is 140 kilometers east of the coastal city of Trujillo, Peru, and 175 kilometers north of Barrick's Pierina mine. The property is located on the western flank of the Peruvian Andes. In 2010, mining activity at the Lagunas Norte mine focused on Phase II (located at the north area of the orebody), Phase III (located at the southern part of the orebody) and Phase IV (located at the eastern part of the orebody).
The Veladero mine is an open pit mine using heap leaching. The Veladero mine includes the mining of gold and silver from two original open pits: the Filo Federico pit and the Amable pit. Waste stripping at a third open pit, called Argenta, commenced in 2010. The Argenta pit is located in the south east sector of the leach field in the mining operation. The Veladero deposit comprises four orebodies: Amable in the south; Cuatro Esquinas in the center; Filo Federico in the north, and Argenta.
Zaldivar is an open pit heap leach copper mine located in northern Chile. The mine is located in the Andean Precordillera in Region II of northern Chile, approximately 1,400 kilometers north of Santiago and 175 kilometers southeast of the port city of Antofagasta. The Zaldivar orebody contains both sulphide and oxide copper mineralization. In 2010, 129 reverse circulation holes were drilled for 34,442 meters.
Barrick (Niugini) Limited is the Manager of and holds a 95% participating interest in the Porgera Joint Venture (PJV), which owns and operates the Porgera Gold Mine at Porgera in the Enga Province of Papua New Guinea. The Porgera mine is located in Enga Province in the highlands of Papua New Guinea (PNG), about 130 kilometers west of the town of Mount Hagen and 600 kilometers northwest of Port Moresby.
Pueblo Viejo Project
The Pueblo Viejo project is located in the central part of the Dominican Republic on the Caribbean island of Hispaniola in the province of Sanchez Ramirez. The project is 15 kilometers west of the provincial capital of Cotui and approximately 100 kilometers northwest of the national capital of Santo Domingo. The Pueblo Viejo project is situated on the Montenegro Fiscal Reserve, which covers an area of 4,880 hectares. The Pueblo Viejo deposits are located in two areas, the Monte Negro pit and the Moore pit. The Pueblo Viejo project site has been a non-operating gold mine since June 1999.
The Pascua-Lama property is located in the Frontera District in Chile's Region III and Argentina's San Juan Province. The total project area consists of approximately 45,500 hectares in Chile and Argentina. The Chilean part of the deposit was acquired by Barrick through its acquisition of Lac Minerals Ltd. (Lac Minerals). In both Chile and Argentina, Barrick, through its wholly owned Argentinean subsidiary, Barrick Exploraciones S.A., and its wholly owned Chilean subsidiary, Compania Minera Nevada SpA, owns the mining property in the project area.
|P/E Ratio (TTM)||13.52||36.77||25.10||17.45|
|P/E High - Last 5 Yrs.||36.48||101.47||95.16||98.76|
|P/E Low - Last 5 Yrs.||16.82||41.64||25.59||12.53|
|Price to Sales (TTM)||4.01||31.17||2.40||2.25|
|Price to Book (MRQ)||2.22||2.96||2.82||3.29|
|Price to Tangible Book (MRQ)||3.30||3.26||2.95||5.55|
|Price to Cash Flow (TTM)||9.88||15.00||21.66||10.32|
|Price to Free Cash Flow (TTM)||240.04||95.40||26.55||64.47|
|% Owned Institutions||-||-||-||-|
|Dividend Yield - 5 Year Avg.||0.87||1.56||1.45||2.45|
|Dividend 5 Year Growth Rate||14.87||-0.47||16.61||-3.48|
|Sales (MRQ) vs Qtr. 1 Yr. Ago||19.72||2,605.06||34.23||8.27|
|Sales (TTM) vs TTM 1 Yr. Ago||27.86||49.53||21.75||9.92|
|Sales - 5 Yr. Growth Rate||36.00||21.72||13.61||7.63|
|EPS (MRQ) vs Qtr. 1 Yr. Ago||26.72||1,450.18||76.73||44.20|
|EPS (TTM) vs TTM 1 Yr. Ago||173.26||-||-||-|
|EPS - 5 Yr. Growth Rate||33.92||7.74||24.95||5.12|
|Capital Spending - 5 Yr. Growth Rate||24.66||21.08||15.54||3.62|
Arizona Gold and Onyx Mining Co PINK:VGCP
Arizona Gold and Onyx Mining Co., AGO was established in June, 2010 to maximize the polymetallic potential of its property claim (The Mayer Prospect) located in the mineral rich State of Arizona. The Company is a new venture, junior public company with its shares trading on the Pink Sheets in the United States under the symbol VGCP.PK. A stock quote and further information can be accessed on the Investors page.
AGO's business is the identification and advancement of high-potential mineral exploration & development opportunities in preferred jurisdictions such as the United States and, more particularly, in Arizona which is the nation's leading state for mineral production.
The Company's Mayer Project
With rising global demand and prices for high quality onyx, as well as for precious and base metals, Arizona Gold and Onyx is enthusiastic that its Mayer mining project in Arizona represents excellent potential and a compelling opportunity for profitable minerals production during the new global paradigm of the 20th Century in which mineral commodities are the foundation for economic growth. AGO has signed a contract with PMT Mining & Milling - Custom Mine Management & Operational Outsourcing outlining a comprehensive, 2-stage work program planned for the Company's Mayer Project.
The Company's mineral claim is ideally situated in the heart of the country's leading mining state of Arizona, in Yavapai County. The Property lies in close proximity to highways, power lines, and other infrastructure conducive to economic mining operations. Ample skilled mining and labor personnel live in the town of Mayer and in other nearby communities. The following two maps illustrate the property's location in the heart of one of Arizona's primary mining regions.
MICHAEL MITSUNAGA - President, CEO and Director
Mr. Mitsunaga brings over thirty years of successful entrepreneurial experience and business leadership to Arizona Gold and Onyx Mining Co. He majored in business administration at CSULA but left to establish a successful recycling company.
In addition to outstanding technical and entrepreneurial strengths, Mr. Mitsunaga has demonstrated excellent business and finance acumen at the most senior levels by achieving notable successes in managing and guiding corporate growth.
Mr. Mitsunaga served as the CEO and President of TSM Recovery and Recycling for twenty years, where he developed and patented his own process for recovering silver from photographic solution, which propelled his company to become the largest processor of photographic solution during the 1980s. Mr. Mitsunaga also invented a machine capable of bypassing then-existing limits on quantitative refinement, which resulted in greatly reduced production costs and enhanced recovery of silver, all of which bolstered his company's bottom line. He has provided expert consulting services within this industry for over nine years.
Mr. Mitsunaga served as President of North American operations for Union Pacific Foods, where he was instrumental in increasing annual corporate profits from $1 million to over $30 million in just five years. He simultaneously founded his own successful international trading company in the Far East, which has been in operation for over 25 years. Additionally, Mr. Mitsunaga has eight years of experience financing and funding real estate projects for private and public companies.
EDUARDO STALLINGS - Vice President and Director
Eduardo Stallings is the Director of Operations for Arizona Gold & Onyx Mining Company. Mr. Stallings utilizes his substantial leadership, management, and communication skills to drive the company's operations while improving efficiencies and employee productivity.
Mr. Stallings earned his Bachelor of Science degree in Biomedicine in 1983. He received certification by the NYS Department of Health Aid Institute in 1995, and became a certified Phlebotomy Technician in 1997.
Subsequently, Mr. Stallings pursued a career in the insurance industry. In 1998, he earned his Life, Accident, Health and Agents Insurance Licenses from the Pohs Institute. Since then, he has provided comprehensive insurance policies to individuals and families.
PHILLIP MARTIN - Treasurer
Phillip Martin serves as Treasurer for Arizona Gold & Onyx Mining Co. He brings over 20 years of extensive information technology experience to the company. His areas of expertise include building and managing sophisticated networks, overseeing relational database management systems, website development, and computer hardware administration.
Mr. Martin served in the United States Army for twelve years, where he has held key leadership positions. During his military tenure, Mr. Martin earned numerous medals and achievements, including two Meritorious Service Medals, and also earned his Bachelor of Science degree.
RICHARD A. JOHNSON - Chief Financial Officer
To the position of Chief Financial Officer at Arizona Gold and Onyx Mining Co., Richard Johnson brings a wealth of experience at the senior executive levels in the areas of Corporate Finance, Business Planning & Operations, R&D and Administration. His considerable strengths in the areas of Finance and Corporate Administration will greatly assist the Company as it advances towards production at Mayer.
Mr. Johnson's enviable record of achievements at the executive level includes, latterly, CFO at Early Detect Inc. where he supervised the financial activities of the Company and its subsidiaries over a span of 4.5 years. Previously, he held positions of Chief Financial Officer, General Manager and Director in industry and also was a Senior Management and Finance Consultant to the manufacturing, retail, agriculture and service industries for fifteen years as well as Program Control Director and Management Consultant with a major international Engineering and Construction Corporation. Early in his career, Mr. Johnson spent eleven years with the U.S. Department of Energy, Las Vegas, where he had the responsibilities of financial analysis, budgeting and Safety analysis in the areas of nuclear explosives internationally.
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.