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Bullion Monarch Mining (BULM) |
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WIKI ANALYSIS
Bullion Monarch Mining (OTC:BULM) is a natural resource company focused primarily on gold but also has operation in oil-shale technology and other assets. BULM is active in North and South America and derives the majority of its revenues from activity in the Northeastern Nevada Carlin trend. [1] BULM has only recently engaged in oil-shale operations through its partial purchase of EnShale in 2005. The rising price of gold has helped expand operations and the continuing demand for liquid petroleum led to its investment in EnShale.
Business Growth
BULM has been expanding operations throughout the Americas with joint ventures occurring in Brazil with Dourave Mineracao E Exploracao Mineral Ltda. In addition to diamond explorations in Brazil, BULM has begun prospecting for gold in Chihuahua, Mexico. [2]
Trends & Forces
Rising Price of Gold
Since 2009 gold prices have risen from over $900 to near $1600 an ounce. [3] Gold is seen as a safe investment and concerns about the global economy have led to high investor interest in gold holdings. With continuing global financial unrest gold prices look to remain high and these prices have helped increase the profit margins for gold companies such as BULM.
Demand for Oil
Global oil demand has continued to increase and due to high prices for crude companies have turned to shale-oil to help meet demand. While extracting shale oil from oil-shale is more costly than the production of conventional crude oil both financially and in terms of its environmental impact, the high price of oil makes this method of extraction viable.
Competition
Within Nevada Bullion Monarch Mining competes against other gold companies such as:
- Newmont Mining Corporation (NYSE: NEM, TSX: NMC)
- Barrick Gold Corporation (TSX: ABX, NYSE: ABX)
- Bullion River Gold Corporation (PINK:BLRVQ)
In the oil-shale industry EnShale is active primarily in Utah. Other Utah oil-shale companies include:
- US Oil Sands Inc. (CVE:USO)
- Enefit (state owned Estonian company)
References
- ↑ [ http://www.bullionmm.com/company.html
- ↑ [http://www.bullionmm.com/images/10-K_Annual_Report_2010_.pdf pg 6
- ↑ [ http://www.ft.com/cms/s/0/043a7b74-aeff-11e0-bb89-00144feabdc0.html#axzz1SDNlLSyM
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