Archive | Gold and Silver

US economic, political factors to have a big impact on the gold price – by Donna Slater (MiningWeekly.com – August 6, 2020)

https://www.miningweekly.com/

Several political and Covid-19-induced factors have resulted in the current gold rally, with the gold price having surged 12% in July and reaching new record levels that have been carried into August with gold tearing above $2 000/oz, says Refinitiv precious metals research director Cameron Alexander.

He says the current trend in the gold price is being driven by its safe-haven appeal as a result of the worsening economic conditions brought about by the Covid-19 pandemic.

Further supporting the rally is the fact that central banks around the world continue to inject stimulus to resuscitate domestic economies, which has led, in some cases, to currency devaluation especially dollar and lower interest rates, says Alexander. Continue Reading →

Gold price nearing $2,100 as bulls keep foot on the gas – by Jim Wyckoff (Kitco News – August 6, 2020)

https://www.kitco.com/

(Kitco News) – Gold prices are again sharply higher and hit a record high of $2,064.90, basis October Comex futures, in early U.S. trading Thursday. Silver prices are also sharply higher and hit a more-than-seven-year high of $28.54, basis September Comex futures.

October gold futures were last up $25.00 an ounce at $2,062.10. September Comex silver prices were last up $1.45 at $28.34 an ounce.

Importantly, while there are no early chart clues to suggest the gold and silver markets are close to major tops, both are now getting short-term overbought, technically, and are due for downside corrections in the uptrends. Continue Reading →

Gold price pushes well above $2,000, much more upside possible – by Jim Wyckoff (Kitco News – August 5, 2020)

https://www.kitco.com/

(Kitco News) Gold prices are sharply higher and hit a record high of $2,048.00, basis October Comex futures, in early U.S. trading Wednesday.

Silver prices are also sharply higher and hit a seven-year high of $27.195, basis September Comex futures. October gold futures were last up $35.00 an ounce at $2,043.50. September Comex silver prices were last up $0.987 at $27.03 an ounce.

Gold and silver are continuing on a bullish rampage. Both metals continue to see support from safe-haven demand amid the worrisome rise in Covid-19 infections, geopolitical developments and concerns about problematic price inflation in the coming months. Continue Reading →

U.S.-based investor proposes $700-million rescue plan for TMAC, urges Ottawa to reject sale to China – by Niall McGee (Globe and Mail – August 5, 2020)

https://www.theglobeandmail.com/

A U.S.-based activist investor is urging the Canadian government to reject the proposed acquisition of Arctic miner TMAC Resources Inc. by a Chinese state-owned gold company and is proposing an alternative capital infusion plan that would see TMAC remain as a standalone.

James Rasteh, head of New York City hedge fund Coast Capital Management, said in an interview he can raise $700-million from his investors that would negate the need for TMAC to be acquired by Shandong Gold Mining Co. Ltd.

“We can absolutely raise the capital,” Mr. Rasteh said. In May, Shandong proposed an all-cash acquisition of TMAC worth $207.4-million, a small premium to its then market share price. Continue Reading →

Larder Lake junior miner using AI to find gold targets – by Staff (July 30, 2020)

https://www.northernontariobusiness.com/

Gatling Exploration contracts Windfall Geotek to dig through the data

Artificial intelligence (AI) will play a role in helping Gatling Exploration chase down some gold targets near the established mining camp of Kirkland Lake.

The Vancouver junior miner has engaged AI experts, Windfall Geotek, to use its advanced Computer Aided Resource Detection System (CARDS) to identify targets at the company’s Larder Gold project, 35 kilometres east of Kirkland Lake in McVittie and McGarry Townships.

Gatling said in a July 30 release that the targets will be evaluated and then explored using more traditional exploration techniques. Continue Reading →

Giant Alaska copper-gold mine gets final environment nod after 15-year fight – by Cecilia Jamasmie (Mining.com – July 24, 2020)

https://www.mining.com/

Northern Dynasty Minerals (TSX: NDM) has cleared the last environmental hurdle for its proposed Pebble copper-gold-molybdenum mine in Alaska, almost two decades after developers first started considering the project.

The US Army Corps of Engineers issued on Friday a final environmental impact statement (EIS), backing the controversial mine in the Bristol Bay region.

The decision opens the door for Northern Dynasty to obtain the federal go-ahead as soon as late August. Continue Reading →

World’s No. 3 Gold Miner Asked CEO to Leave After Fund Pressure – by Felix Njini, Loni Prinsloo and Thomas Biesheuvel (Bloomberg News – July 31 2020)

https://www.bloombergquint.com/

(Bloomberg) — AngloGold Ashanti Ltd.’s chief executive officer was pushed to leave after shareholders asked for further investigations into a bonus payment by his former employer that he didn’t initially disclose, according to people familiar with the matter.

The mining company announced on Thursday that Kelvin Dushnisky would step down after only two years.

That followed a demand from a major shareholder, South Africa’s Public Investment Corp., for an independent probe into a payment of $926,000 from Barrick Gold Corp., according to the people, who asked not to be identified as the details aren’t public. Continue Reading →

What record high gold prices mean for mining companies in Canada — podcast – by Gabriel Friedman (Financial Post – July 29, 2020)

https://financialpost.com/

Episode 65 of the Down to Business podcast from the Financial Post

The price of gold has entered new territory, passing the US$1,900 per ounce mark for the first time since 2011. Technical analysts say all signs suggest gold could continue to climb amidst a weak U.S. dollar, declining interest rates and a general sense of uncertainty about the economy.

This week on Down to Business, Sean Boyd, chief executive of Agnico Eagle Mines Ltd., Canada’s largest gold producer, discussed what it’s been like to run a gold company amidst a pandemic, but also record high prices. Continue Reading →

Agnico Eagle CEO sees more M&A among world’s biggest gold miners amid record-high bullion prices – by Niall McGee (Globe and Mail – July 31, 2020)

https://www.theglobeandmail.com/

Sean Boyd, the head of Agnico Eagle Mines Ltd., predicts there will be more deal-making among the world’s biggest gold companies over the next few years, given the recent rapid-fire increase in the price of bullion.

The price of gold recently hit new all-time highs of more than US$1,960 an ounce after the COVID-19 pandemic caused extraordinary dislocation in financial markets. Historically, investors have sought out gold as a safe haven investment during times of extreme uncertainty.

During the last great bull run in gold that ran from the early 2000s to late 2011, some of the world’s biggest gold miners, including Canada’s Barrick Gold Corp. Goldcorp Inc. and Kinross Gold Corp., struck blockbuster acquisitions – many of which ended up destroying billions in shareholder value. Continue Reading →

GOLD: Auryn to acquire Eastmain, create Canadian-focused Fury Gold (Canadian Mining Journal – July 30, 2020)

http://www.canadianminingjournal.com/

TORONTO – Auryn Resources is acquiring Eastmain Resources in an all-share deal valued at $121 million to create Fury Gold Mines. By mid-day on Thursday, Eastmain shares were up by 57% or 10¢, rising to 27.5¢.

“Fury Gold will combine the high-grade gold projects: Committee Bay in Nunavut, Homestake Ridge in B.C. and Eau Claire in Quebec, to offer investors a robust, Canadian, gold-focused exploration and development company,” Ivan Bebek, Auryn’s executive chairman and director, said in a release.

“Fury Gold will have the capability and access to capital to develop and finance Eau Claire,” added Laurie Curtis, Eastmain’s chairman. Continue Reading →

With deep pockets and long time horizons, China targets struggling Canadian gold companies – by Niall McGee (Globe and Mail – July 30, 2020)

https://www.theglobeandmail.com/

Chinese state-owned gold companies are going after some of the most troubled gold companies in Canada, betting that their deep pockets, cheaper access to capital and long time horizons will pay off.

In the past few months, Zijin Mining Group Co. Ltd. proposed a $323-million acquisition of Guyana Goldfields Inc., and Shandong Gold Mining Co. Ltd. offered to buy TMAC Resources Inc. for $207.4-million.

Both Toronto-based companies are among the most beaten-down assets in the Canadian gold sector, with Guyana long grappling with grade problems at its Aurora mine and TMAC struggling for years with an underperforming mill at its Doris mine in the Arctic. Continue Reading →

Harte Gold back mining with a vengeance – by Staff (Northern Ontario Business – July 29, 2020)

https://www.northernontariobusiness.com/

White River miner undertakes expansion feasibility study

Harte Gold is backing mining and stockpiling gold ore at its Sugar Zone Mine, north of White River, in preparation to restart the mill next week.

The once-furloughed workforce appears to have picked up the pace as the Toronto-based miner said in a July 29 operations update that activities are “ahead on all key mining metrics” with backfill, waste and ore development either “meeting or exceeding expectations.”

The pandemic put a halt to all mining, milling and exploration operations at the end of March. The Sugar Zone Mine, 25 kilometres north of White River. The phased restart of operations began July 17. Continue Reading →

Gold rally, Chinese demand a boon to Canadian miners – by Cecilia Jamasmie (Mining.com – July 30, 2020)

https://www.mining.com/

Canada could see a wave of new gold deals and mines built in the coming months and years, thanks to strong bullion prices and improved demand for metals from China, EY analysts believe.

According to the consultancy’s Canadian Mining Eye index — which tracks the performance of 100 Toronto Stock Exchange and TSX Venture Exchange mid-tier and junior mining companies with market capitalizations of between $240 million and $3.6 billion— local miners are likely to continue benefitting from gold’s upward trajectory.

Prices for the yellow metal increased by 11% in the March-June period this year after a 6% gain in the previous quarter. Continue Reading →

Gold miners get a shot at redemption – by Clara Ferreira Marques (Bloomberg/Moneyweb – July 29, 2020)

https://www.moneyweb.co.za/

Gold’s record run to almost $2 000 an ounce has burnished cash flows and driven a surge in shares of bullion producers. The rally provides a renewed test of discipline for Barrick Gold and peers after a similar climb a decade ago prompted a spate of inflated deals and overly optimistic investments that wasted billions.

The 2020 redux isn’t being fuelled by traditional demand: The China Gold Association says consumption in the world’s biggest buyer plunged by more than a third in the first half. Instead, it’s a combination of low bond yields, pandemic worries and institutional investor appetite.

Silver has also rallied, breaking through $24 an ounce this week to its highest since 2013. Precious metals aren’t always predictable, but Covid’s stubborn resistance means the general picture is unlikely to change soon. Continue Reading →

Kelvin Dushnisky resigns from AngloGold, Ramon appointed interim CEO – by David McKay (MiningMX.com – July 30, 2020)

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KELVIN Dushnisky, CEO of AngloGold Ashanti, has resigned from the South African gold producer in a shock development barely two years into the job.

No reason was given for his departure. Christine Ramon, CFO of AngloGold, has been appointed interim CEO from September, the month Dushnisky’s resignation is effective.

AngloGold said Dushnisky would remain in Toronto “… to spend time with his family”, but would be available to assist the group with a smooth handover until February 28. Continue Reading →