Archive | Gold and Silver

Uganda gold refinery raises alarm over conflict minerals (Daily Mail – February 22, 2017)

http://www.dailymail.co.uk/

AFP – The inauguration of Uganda’s first gold refinery sparked concern Wednesday over the possibility of dirty minerals from regional conflict zones making their way into the country.

Transparency International’s Peter Wandera told AFP the country’s failure to regulate the mineral sector meant there were “high chances” the refinery could contribute to conflicts, such as that in eastern Democratic Republic of Congo where rebels are propped up by illegal mining.

“Uganda has continuously failed to implement the necessary components … to reduce the trade in conflict minerals from the DRC,” he said. Continue Reading →

ETF Investors Miss Out on the Best Commodity Trade of the Year – by Luzi-Ann Javier (Bloomberg News – February 22, 2017)

https://www.bloomberg.com/

Exchange-traded fund investors are missing the silver party. Instead of piling into the asset that’s offered the biggest gain among 22 raw materials on the Bloomberg Commodity Index this year, ETF investors are retreating. iShares Silver Trust, the biggest ETF backed by the metal, is poised for a fifth straight monthly outflow, a trend not seen since the fund listed in 2006.

Holdings in all silver-backed ETFs tracked by Bloomberg have shrank by 6.2 million ounces and are near the lowest in seven months.

Silver is surging amid demand for haven assets and bets that industrial use will rise at a time of tightening mine supply. While investors in commodity ETFs have shied away the metal in favor of gold, hedge funds are reaping the gains. Continue Reading →

Goldcorp unveils five-year growth plan – by Salma Tarikh (Northern Miner – February 21, 2017)

http://www.northernminer.com/

Goldcorp (TSX: G; NYSE: GG) has outlined an ambitious five-year growth plan, targeting a 20% increase in both gold reserves and annual production and a 20% reduction in all-in sustaining costs, after spending 2016 restructuring its business, strengthening its management team and selling non-core assets.

“It has been a very busy year as we transition to harvest mode. But we now have a structure and people in place to increase that net asset value (NAV) per share to drive long-term shareholder value,” David Garofalo, Goldcorp’s president and CEO, said on a recent conference call.

“For 2017, our production is projected to be approximately 2.5 million oz. at all-in sustaining cost of US$850 per oz. and expected to grow to 3 million oz. at all-in sustaining cost of US$700 per oz. within five years,” he added. Continue Reading →

Canada’s Hope Bay fits Gekko mission – Staff (Mining Journal – February 20, 2017)

http://www.mining-journal.com/

Gekko Systems Company Profile

As maiden gold pours go the one by TMAC Resources at its C$325 million Hope Bay project in Canada’s north was a momentous one. It not only marked the production start at a new generation mine in a standout emerging goldfield, but also realisation of a remarkable vision for the future of the industry conceived and developed by Australia’s Gekko Systems over the past 20 years.

“This is a project that fits with our reason for being, really,” says Gekko technical director and co-founder, Sandy Gray.

“We are focussed on step-change in the industry, through low-energy process flowsheet designs, low capital costs and small footprint and modular designs that are positive for the environment, deliver lower operating costs, and allow fast, low-risk, predictable project delivery and execution. Continue Reading →

Northern Dynasty hits back after scathing short-seller’s report – by Ian McGugan (Globe and Mail – February 1, 2017)

http://www.theglobeandmail.com/

Northern Dynasty Minerals Ltd., the Vancouver miner blindsided by a short-seller’s scathing report, fired back on Friday, saying the polemic is “unsupported speculation” from a “troubled organization” that doesn’t understand mining.

Kerrisdale Capital Management, a New York investment firm, hammered Northern Dynasty’s stock on Tuesday when it published a report arguing the miner is “worthless” because its undeveloped copper and gold resource in Alaska is not commercially viable.

In response, Northern Dynasty said Kerrisdale’s analysis contains numerous errors and misunderstandings. “Their report isn’t worth the paper it’s written on,” Northern Dynasty chief executive Ron Thiessen said in an interview. Continue Reading →

As growth plans return at gold miners, are investors being set up for disappointment? – by Ian McGugan (Globe and Mail – February 17, 2017)

http://www.theglobeandmail.com/

Canada’s leading gold companies are once again turning their attention to new projects, as resilient bullion prices and healthier balance sheets fuel guarded optimism.

The shift in emphasis was clear as senior executives discussed earnings reports with analysts on Thursday. A year ago the talk was all about cutting costs, selling assets and expanding free cash flow, but miners are now stressing growth opportunities too.

Agnico Eagle Mines Ltd. said it was planning to invest more than $1.2-billion (U.S.) in two mines in Canada’s North. Goldcorp Inc. reiterated its commitment to expanding its production by 20 per cent over the next five years. Continue Reading →

Agnico Eagle presses the start button on two new Nunavut mines – by Jim Bell (Nunatsiaq News – February 16, 2017)

http://www.nunatsiaqonline.ca/

Company will invest US $1.2 billion on construction at Meliadine, Amaruq

After 10 years in Nunavut, Agnico Eagle Mines Ltd. will invest more than $1.2 billion to construct two new Kivalliq region gold mines that will likely produce local jobs and contract opportunities for many more years to come.

The company pressed the start button Feb. 15 on its long-awaited Meliadine mine near Rankin Inlet and its proposed satellite mine at Amaruq near the company’s existing operation at Meadowbank, which is nearing the end of its life.

To do that, they’ll invest US$900 million between now and 2019 to construct Meliadine and about US$330 million to bring the Amaruq deposit into commercial production, with the expectation that they can start shipping gold from each project by the third quarter of 2019. Continue Reading →

Freeport Indonesia mine grinds to complete halt: union – by Fergus Jensen and Wilda Asmarini (Reuters U.K. – February 16, 2017)

http://uk.reuters.com/

JAKARTA – All work has stopped at Freeport-McMoRan Inc’s giant copper mine in Indonesia and its workers are planning a demonstration against the government’s move last month that halted exports of copper concentrate to boost domestic industries, a union said.

A prolonged stoppage at the world’s second-biggest copper mine would support copper prices, near 21-month highs this week, but would also deny the Indonesian government desperately needed revenue from one of its biggest taxpayers.

Freeport had said the Grasberg mine would have to slash output by 60 percent to approximately 70 million pounds of metal per month if it did not get an export permit by mid-February, due to limited storage. Continue Reading →

Barrick Gold Corp earnings beat expectations on lower production costs, boosts quarterly dividend – by Sunny Freeman (Financial Post – February 16, 2017)

http://business.financialpost.com/

TORONTO — Barrick Gold Corp. raised its dividend Wednesday after fourth-quarter earnings beat analysts’ expectations as it lowered its cost of producing gold closer to its US$700 target. The Toronto-based mining giant, which reports in U.S. dollars, reported net income of $425 million, or 36 cents per share.

After adjustments, net income for the quarter was $255 million, or 22 cents a share — a 180 per cent jump from the $91 million, or eight cents per share it earned in the fourth quarter of 2015. Analysts were expecting earnings of $227 million, or 20 cents per share.

The company credited increases in realized gold and copper prices and lower costs of sale for the improvements. “Barrick’s operations delivered progressively-stronger performance over the course of 2016, with three consecutive quarters of improved all-in sustaining cost guidance and gold production at the high end of our annual production forecast,” the company said in a statement. Continue Reading →

Agnico to Invest $1.2 Billion in Gold Projects in Canada’s North – by Danielle Bochove (Bloomberg News – February 15, 2017)

https://www.bloomberg.com/

Agnico Eagle Mines Ltd. plans to invest more than $1.2 billion in Canada’s subarctic in the next three years as it builds one new mine and expands another.

North America’s fourth-largest gold miner by market value is moving ahead with plans to develop its Meliadine project and a deposit near its Meadowbank mine in Nunavut, the company said Wednesday in its fourth-quarter earnings statement. The decision will boost Agnico’s gold production to 2 million ounces a year by 2020, about 20 percent more than last year’s output of 1.66 million ounces.

“This is very much low-risk, high-quality growth because it’s an extension of what we’ve been doing for the last many, many years,” Chief Executive Officer Sean Boyd said in an interview at the company’s Toronto offices. Continue Reading →

Nunavut’s Hope Bay mine pours its first gold bar (CBC News North – February 14, 2017)

http://www.cbc.ca/news/

Commercial production at Kitikmeot gold mine expected to begin soon

TMAC Resources’ Hope Bay gold mine poured its first gold bar late last Thursday evening, on its way to commercial production. The mine is located 125 kilometres southwest of Cambridge Bay and about 700 kilometres northeast of Yellowknife.

Construction of the processing plant building at the Doris North deposit — the first of several deposits at Hope Bay expected to be mined — finished in September. A modular style of ore processor made by Australian company Gekko Systems called a “python” was shipped to the site and installed.

Ann Wilkinson, vice-president of investor relations for TMAC Resources, says the company is pleased with its performance. “A lot of the people who witnessed the first pour said that they’d never seen a first bar of gold look that clean,” she said. Continue Reading →

Old Kolar Gold Fields mines can never be reopened – by Gayatri Chandrashekar (Times of India – February 13, 2017)

http://timesofindia.indiatimes.com/

The pioneering gold mining town in India, Kolar Gold Fields (KGF), has a fascinating history. Over two decades bridging the 19th and 20th centuries, a remote corner of the Old Mysore state’s people were transformed by a British company into a close-knit industrial community with special skills in mining at great depths.

By sheer doggedness, professionalism, perseverance and a bit of luck, John Taylor & Sons established a profitable and pioneering industry at KGF and the labour force ran to tens of thousands right up to the 1930s. For the poverty-stricken neighbourhood, jobs in the pits ensured regular meals and a place to stay.

The mines were nationalised in 1956 but closed 15 years ago, after losses due to inept management, wrong pricing policy and lack of investment in new exploration. The mines were allowed to be inundated by water. Continue Reading →

Watch for gold’s renaissance as anti-currency – by Scott Barlow (Globe and Mail – February 10, 2017)

http://www.theglobeandmail.com/

For investors, it’s not easy to value gold in a modern context. The most famous economist of all time, John Maynard Keynes, described it as a “barbarous relic,” best left to history classes. But there remains a small but vocal minority who believe the largely useless shiny metal should be reinstituted as the basis of all monetary policy.

There is no confusion about the recent strength in precious-metals prices, as bullion prices have jumped 10 per cent since Dec. 21, 2016. There is also little confusion as to why the rally occurred – the gold price is moving in exactly the opposite direction as U.S. real bond yields.

In addition, a hedge fund manager owning one of the strongest long-term performance track records ever, Stanley Druckenmiller, has again taken a significant position in bullion. Continue Reading →

Barrick Sale of Super Pit Stake to China Buyer Stalls – by Brett Foley, Scott Deveau and Danielle Bochove (Bloomberg News – February 8, 2017)

https://www.bloomberg.com/

Barrick Gold Corp.’s plan to sell its stake in the Kalgoorlie Super Pit mine to a Chinese bidder has stalled, as the buyer faces delays securing financing for the $1.3 billion deal, people with knowledge of the matter said.

Minjar Gold Pty, a unit of property developer Shandong Tyan Home Co., is also still seeking Chinese regulatory clearance for the purchase, according to the people. Barrick is awaiting an outcome and remains interested in selling to Minjar, which outbid other suitors by a large margin, the people said, asking not to be identified because the information is private.

Barrick may still decide to re-enter talks with other buyers or keep its 50 percent stake in the Western Australia asset, which is the country’s largest open-pit gold mine, the people said. Continue Reading →

Timmins Primero Black Fox Mine GM talks upcoming projects – by Alan S. Hale (Timmins Daily Press – February 9, 2017)

http://www.timminspress.com/

Primero Mining Corporation is hard at work exploring its options when it comes to finding new gold deposits that will expand the life of their Black Fox Mine located outside of Timmins.

This year, the company will be pumping millions of dollars into surface and underground exploratory drilling, and has begun the permitting and First Nations consultation process on a new open pit mine called the “Froome Zone” which could double amount of ore the company extracts every day.

At the same time, another promising new project dubbed “the Grey Fox Mine” has been shelved for the foreseeable future. “There is a lot of potential to find a lot more gold in that area,” said Dan Gagnon, general manager of the Black Fox Mine. “We are a producer of 60,000 to 70,000 ounces (of gold) per year for the next couple year, and we have projects to bring us up to 100,000 ounces.” Continue Reading →