Archive | Gold and Silver

Use this gold price weakness as ‘aggressive buying opportunity’, says Goehring & Rozencwajg – by Anna Golubova (Kitco News – September 23, 2020)

https://www.kitco.com/

(Kitco News) Even though the first leg of the gold bull market is over, investors should use these temporary lower prices as an “aggressive buying opportunity” before the second leg of the rally kicks in and takes the precious metal above $10,000 later this decade, said Goehring & Rozencwajg Associates managing partner Leigh Goehring.

After falling to 2-month lows this week, gold prices have more room to decline before resuming the second leg of its rally, Goehring told Kitco News on Tuesday.

“We believe gold could pull back as we progress through the fall. Gold looks to have peaked in the first leg of this gold bull market at $2,070, and it looks now to have rolled over. We wouldn’t be surprised if gold pulls back in the next three months to its 200-day moving average, which today sits at about $1,720,” he described. Continue Reading →

Gold investors take new aim at miners with returns falling short – by Steven Frank (Bloomberg News – September 20, 2020)

https://www.bnnbloomberg.ca/

A coalition of gold investors, including firms backed by billionaires John Paulson and Naguib Sawiris, is urging changes at miners as performance “continues to fall short” in some areas even as prices rise.

In an open letter to the mining industry, prominent gold investors including money managers at Franklin Templeton, VanEck Funds and members of the Shareholders’ Gold Council are targeting issues including executive compensation and directors who don’t have enough skin in the game because they don’t hold a meaningful amount of shares in the firms they represent.

The signatories offered 16 suggestions to better align the interest of managers, boards and shareholders. Gold has been on a record-setting tear as the pandemic threatens to derail global economic growth, sending investors on a flight to safe havens. Continue Reading →

To attract more investors, shareholders urge gold miners to change compensation practices – by Niall McGee (Globe and Mail – September 22, 2020)

https://www.theglobeandmail.com/

A coalition of heavyweight investors is calling on the global gold industry to improve its performance in several key metrics, even as the share prices of many gold companies hit multiyear highs amid a soaring commodity price.

This year, the TSX Global Gold Index, which includes many of the biggest gold companies in the world, is up 41 per cent, driven in large part by outperformance of the price of gold bullion.

Historically sought out as a safe-haven investment in times of great upheaval, gold prices recently hit new record highs, driven by extraordinary uncertainty in financial markets owing to the COVID-19 pandemic. Continue Reading →

Gatling makes the connection with Larder Lake deposits: Exploration drilling proves three deposits are part of one gold system – by Staff (Northern Ontario Business – September 22, 2020)

https://www.northernontariobusiness.com/

Gatling Resources has connected three high-grade deposits at its Larder Gold Project in northeastern Ontario, and can prove it’s all part of one large mineralized system.

The Vancouver junior miner claims it has successfully drilled gold mineralization between its Fernland and Cheminis deposits.

The company’s Larder Project hosts three high-grade gold deposits – Bear, Cheminis and Fernland – along the Cadillac-Larder Lake Break, 35 kilometres east of Kirkland Lake. Continue Reading →

Canada’s Wheaton Precious Metals plans London listing amid surge in gold prices – by Kumutha Ramanathan (Yahoo Finance UK – September 21, 2020)

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Canada’s Wheaton Precious Metals (WPM) has announced plans to list on the London Stock Exchange (LSE.L) as demand for precious metals from investors has been surging amid turbulence in equity markets of late.

Wheaton, one of the world’s largest companies involved in buying gold and silver, has a market capitalisation of about $23bn (£17.6bn), and is listed in Toronto and New York. On those indices, its shares have risen more than 70% this year.

Gold prices have risen this year by roughly 28% and hit a record high of above $2,000 an ounce in August. Silver has also been gaining, up 50% to $27 an ounce. Continue Reading →

Monday mining massacre as gold, copper, iron ore prices tank – by Frik Els (Mining.com – September 21, 2020)

https://www.mining.com/

The gold price fell to its lowest in nearly two months on Monday as the US dollar strengthened and a drop on global stock markets failed to translate into safe-haven demand for the precious metal.

US gold futures fell by as much as $77.50 an ounce, or 3.9% from Friday’s settlement, hitting a low of $1,885.40 on the Comex market in New York before recovering some of those losses to trade above $1,900 by early afternoon. Trade was heavy with nearly 36m ounces exchanging hands by 2 pm.

Copper prices dropped by more than 3% from fresh 2-year highs reached on Friday but managed to stay above the pivotal $3.00 a pound level. Continue Reading →

An Alaska Mine Project Might Be Bigger Than Acknowledged – by Henry Fountain (New York Times – September 21, 2020)

https://www.nytimes.com/

Executives overseeing the development of a long-disputed copper and gold mine in Alaska were recorded saying they expected the project to become much bigger, and operate for much longer, than outlined in the proposal that is awaiting final approval by the Army Corps of Engineers.

The executives, who were recorded in remote meetings by members of an environmental advocacy group posing as potential investors, said the project, Pebble Mine, could potentially operate for 160 years or more beyond the current proposal of 20 years. And it could quickly double its output after the initial two decades, they said.

“Once you have something like this in production why would you want to stop?” Ronald W. Thiessen, chief executive of Northern Dynasty Minerals, the parent company of Pebble Limited Partnership, said in one of the recordings. Continue Reading →

Northern Ont. mining company uses new device to keep COVID-19 off the mine property – by Len Gillis (Sudbury.com – September 19, 2020)

https://www.sudbury.com/

A Northern Ontario mining company has stepped up with a new process to fight the pandemic. New Gold Inc. mine employees near Rainy River are being tested for COVID-19 and are getting their results within a couple of hours of their test thanks to the use of a Precision Biomonitoring testing system.

Details of the system were outlined Thursday during a webinar hosted by the Sudbury branch of CIM (Canadian Institute of Mining, Metallurgy and Petroleum). For New Gold, a company with a remote open pit mining operation north of Rainy River.

It has meant the company can continue working with confidence that their employees and contractors are working in a safe COVID-free environment. Continue Reading →

Barrick accepts Chilean court ruling on Pascua-Lama project closure (Mining Technology – September 21, 2020)

https://www.mining-technology.com/

Barrick Gold has announced that it would not appeal a Chilean court’s ruling to uphold the closure order on the Chilean part of its Pascua-Lama mining project, which was imposed by the country’s environmental regulator Superintendence for the Environment (SMA).

The Pascua-Lama mine is a suspended open-pit mining project located in the Andes Mountains, on the Chilean-Argentine border.

In October 2013, Barrick Gold temporarily suspended construction activities at the Pascua-Lama citing environmental issues, political opposition, labour unrest and development costs. Continue Reading →

Special report: Pebble Mine, the people’s story spanning more than two decades – by Sandy Szwarc (Must Read Alaska – September 19, 2020)

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Pebble Mine is just weeks away from clearing the last hurdle to a federal permit − after nearly two decades of scientific, engineering and environmental studies, and wading through the permitting process.

It reached this point despite well-organized and massively-funded opposition from Outside special interests that have done everything in their power to block the permit. Across the country, many believe that those behind the opposition are grassroots environmentalists, unbiased experts, local fishermen, and Native American Indians.

But virtually none of them are who they appear to be. Attempting to mislead the public with huge media campaigns repeating the same scary sounding claims and misinformation, and efforts to stop the mine permit with an army of lawyers, their goals have nothing to do with the mine itself or saving the environment. Continue Reading →

With Gold Rallying, Mining CEOs Say ESG Scrutiny Is Intensifying – by Steven Frank, Yvonne Yue Li and Felix Njini (Bloomberg News – September 20, 2020)

https://www.bnnbloomberg.ca/

(Bloomberg) — Skyrocketing gold is providing a welcome windfall to the mining industry, but it’s also attracting a broader base of investors who are demanding greater attention to environmental, social and governance topics.

Interest in ESG issues has moved to the forefront in conversations with stakeholders in the past year, top executives said in the run-up to the Denver Gold Group’s Americas conference, a key annual event in the precious-metals world. Such talks come as investors snap up billions of dollars in stock offerings from once-shunned gold miners.

Generalists are looking at bullion because of the high prices and “the strong argument that the gold price can go higher,” according to Sean Boyd, chief executive officer of Agnico Eagle Mines Ltd., a top-10 gold producer. Continue Reading →

Argonaut takes a shine to high-grade gold at Dubreuilville: Open-pit developer looks to expand gold resource base – by Staff (Northern Ontario Business – September 18, 2020)

https://www.northernontariobusiness.com/

Argonaut Gold continues to find high-grade gold beside and below where it wants to carve out an open-pit mine near Dubreuilville.

The Toronto mine developer released results on Sept.16 from an exploration drill program specifically targeting high-grade mineralization near the planned pit in northeastern Ontario.

Since July 2019, the company has discovered a number of high-grade gold bearing structures trending westward from Alamos Gold’s Island Gold Mine, their neighbour to the east. Continue Reading →

Newmont CEO Sees Gold ‘Elevated,’ But Will Keep Plans Grounded – by Steven Frank (Bloomberg News – September 16, 2020)

https://www.bnnbloomberg.ca/

(Bloomberg) — The world’s biggest gold producer sees the price of the precious metal remaining “elevated” as governments continue pandemic stimulus spending, but don’t expect that to change Newmont Corp.’s focus on fiscal “discipline” any time soon.

Gold skyrocketed to record heights above $2,000 an ounce in August, helping lift miners’ cash flow, stock prices and likely the hopes of shareholders expecting higher returns. Spot gold has since dipped a bit, but the haven metal is still trading in record territory above $1,900.

“There are a lot of signals that point to gold staying at these elevated levels — with I think a lot of volatility around it — for some time to come,” Newmont Chief Executive Officer Tom Palmer said by phone. Continue Reading →

Missed the gold bounce? Some observers believe the rally has legs – by David Berman (Globe and Mail – September 17, 2020)

https://www.theglobeandmail.com/

Gold producers have been among the biggest winners during the pandemic, as investors bet that ultralow interest rates, massive government debt loads and an uncertain global economic recovery will keep the price of gold buoyant.

Missed the rally? Some observers expect that precious metals producers will continue to perform well in the year ahead. Continue Reading →

Chile Court Shuts Gold Mine Over Environmental Fears – by Miguel Sanchez (Barron’s/AFP News – September 17, 2020)

https://www.barrons.com/

Chile’s environmental court confirmed Thursday a final order to close Canadian company Barrick Gold’s huge Pascua Lama mining project, on hold since 2013 over environmental concerns.

The court dismissed a legal challenge from the company and confirmed a 2018 environmental authority ruling, ordering the “total and definitive closure” of the mine project. It also imposed a $9 million fine on the Canadian miner.

“The magnitude of the danger to people’s health makes it necessary to close the Pascua Lama mining project, as other alternatives for safe operation for the environment and population health do not appear to be viable,” the court said. Continue Reading →