GOLDVIEW: Germany’s Gold & Mining Industry Updates

GOLDVIEW is one of the publications of the European Gold Centre. The editor is Henk J. Krasenberg who has been following the precious metals and miners for a couple of decades. He is one of the veterans in the industry. In this article we summarize some highlights from the latest edition of GOLDVIEW.

Germany’s gold case: suspicious

The most recent edition was dedicated to the German central bank gold reserves. The whole story has captured quite some attention in the gold community in the past weeks. The aim is not to repeat what has been written about it extensively. As an insider, Henk Krasenberg’s view on this case is interesting to share. Basically, he is not convinced about a conspiracy theory although he became very suspicious lately. He says:

“I have seen too many signs of incomprehensible movements in the world of gold and gold trading to be completely comfortable and trusting. There are just too many secrets and unanswered questions. I would like to know whether the gold is there where we believe it is and I just refuse to understand why it is so difficult to give us convincing proof, if and when all the gold is there that is supposed to be there.”

He shared in GOLDVIEW the actuals of the gold reserves, from which the importance of Germany’s case appears. Germany has the second largest gold holding in the world. Their gold holdings cover some 72% of the country’s reserves.

Gold & Silver mining updates

Apart from macro gold trends and insights, GOLDVIEW contains news updates out of the mining industry. The editor does not republish mainstream news, but rather focuses on industry inside updates from a selection of companies. The latest edition featured two special companies: Explor Resources and Orvana Minerals.

Explor Resources is a pure exploration company and has no ambitions to become a producer. The company focuses on a prospective property and keeps on exploring until it is ready to become a producing mine for another miner. This is not the first realization of CEO Chris Dupont of this type. Explor’s flagship project is the “Timmins Porcupine West” property in Ontario. Explor expects their total resource to increase to 1.5 million ounces by the end of 2012 and to 3.0 million ounces by the end of 2013.

Henk Krasenberg writes: “In my view, Explor Resources is a perfect example of what we know as a pure exploration company. A company that has proven expertise and is very well managed. The TWP property bears a strong resemblance to the nearby Hollinger-McIntyre Mine which produced over 30 million ounces. It is in the right area and the achieved exploration results indicate the company has a high quality and very promising project on hand.”

Orvana Minerals is the other featured miner. The company operates with the baseline: “We don’t explore, we build, operate and expand mines.” Henk writes: “It has a ‘Multi Project Producer Strategy’ and aims to become a multi-mine gold and copper producer as objective. The project mix of the company has a significantly growing gold and copper production over the next few years, spread geographically over Spain, Bolivia and the USA. For FY2013, Orvana forecasts total production of 75,000 ounces of gold, 18 million pounds of copper and 850,000 ounces of silver.”

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