Angela Merkel and Nicolas Sarkozy issued a joint statement following their meeting today in which they announced a slew of proposals aimed at stemming the tide of the European sovereign debt crisis.
Unfortunately, their proposals largely involve changes in governmental organizations and other window-dressing measures that do not address the fundamental problems of excessive government debt levels and rapidly slowing economies.
The following items were included in the proposal:
- Election of a Eurozone president for two and a half years
- Van Rompuy Proposed as Head of Euro Council
- Proposals would ask 17 Euro zone countries to put deficit limit rule in constitutions by summer 2012
- France, German to aim to harmonize corporate taxes from 2013
- Euro bonds not part of proposal now, but could be considered in the future
Markets initially showed a muted reaction to the announcement, with equities remaining in negative territory, the euro/dollar currency cross remaining near 1.44, and gold futures holding onto the majority of their gains near $1,780 per ounce.
Platinum Group Metals Secures $260 Million Loan
An Updated Feasibility Study published for the WBJV Project 1 Platinum Mine in October 2009 planned for a steady state production rate of 275,000 4E ounces (platinum, palladium, rhodium and gold) per year at a capital cost of $443 million. Of the required capital cost, a fully funded Phase 1 $100 million surface establishment and underground decline development program is already in progress. Full Platinum Group Metals News Release.
- The $260 million senior loan includes a term of nine years, an additional working capital facility up to $25 million, and a standby subordinate loan facility for cost overruns, if any.
- The proposal includes a hedging strategy that maximizes the hedging of byproducts such as palladium, gold and nickel - thereby minimizing the ounces of platinum hedged over the loan life.
- The lending group of banks has a global presence, direct platinum industry experience and includes two of South Africa's major banks. Each bank has a defined role in order to assist with efficiency and a timely closing, currently expected by November 30, 2011.
