Archive | Gold and Silver

COVID-19 cases at Nunavut’s Hope Bay mine cast shadow on proposed sale to Shandong Gold – by Jane George (Nunatsiaq News – September 29, 2020)

https://nunatsiaq.com/

New coronavirus cases scuttle plans for joint site visit

Travel in and out of the Hope Bay gold mine in western Nunavut has halted, following nine new confirmed cases of COVID-19 at the site, says Jason Neal, president and CEO of TMAC Resources Inc.

Today there was to be a crew rotation of 130 workers out of the mine site to Yellowknife and Edmonton, and the arrival of 130 new workers to take their place.

The freeze on travel to the site has also prevented a visit by executives from TMAC and Shandong Gold Mining Co. Ltd., which is seeking to buy TMAC and its Hope Bay mine. Continue Reading →

Gold-Buying by Central Banks Seen Climbing From Near Decade Low – by Ranjeetha Pakiam and Elena Mazneva (Bloomberg News – September 29, 2020)

https://www.bnnbloomberg.ca/

(Bloomberg) — Gold buying by central banks, an important driver of bullion’s advance in recent years, is forecast to pick up in 2021 after a slowdown this year.

Citigroup Inc. sees demand from the official sector rising to about 450 tons after a drop to 375 tons this year, which would be the lowest in a decade. HSBC Securities (USA) Inc. expects a slight up-tick to 400 tons from an estimated 390 tons in 2020, potentially the second-lowest amount in 10 years.

While the forecasts are far from the near-record purchases of more than 600 tons a year seen in both 2018 and 2019, increased central bank activity will help bolster bullion. Continue Reading →

ROB MAGAZINE: Why RBC’s Chris Beer is betting on gold – by Shirley Won (Globe and Mail – September 28, 2020)

https://www.theglobeandmail.com/

Over his career, Chris Beer has watched the price of gold soar—albeit in fits and starts. When he worked as a field geologist searching for gold in Newfoundland in the late 1980s, bullion fluctuated around US$400 an ounce.

In 2003, he became portfolio manager of the RBC Global Precious Metals Fund, which he now co-runs with Brahm Spilfogel and Jeffrey Schok, and has $1.16 billion in assets. Gold took off and peaked near US$1,920 an ounce in 2011, but then plunged and only surpassed that record this past August.

The equity fund has outpaced the S&P 500 Total Return Index in Canadian dollars over the past 15 years. We asked Beer, 55, if investors should consider gold stocks for dividend income and why he likes Barrick Gold Corp. Continue Reading →

Geraldton mine project offers ‘generational’ opportunities for First Nations – by Ian Ross (Northern Ontario Business – September 25, 2020)

https://www.northernontariobusiness.com/

Indigenous development group views Hardrock Project as stepping stone to create homegrown workforce, mine service hub

Hopes have been raised – and dashed – over the years in training Indigenous people to take part in mine development in the often-delayed Ring of Fire.

The lack of government, community, and industry coordination has consistently moved back the project completion goal posts, leaving many First Nations trainees with no jobs in the pipeline to graduate into.

Three northwestern Ontario First Nation communities appear to have hitched their collective wagons to more of a sure thing surrounding a shovel-ready, open-pit gold mine project south of Geraldton. Continue Reading →

Pebble Partnership CEO resigns over leaked tape – by Editor (Mining.com – September 23, 2020)

https://www.mining.com/

Northern Dynasty Minerals (TSX: NDM, NYSE: NAK) announced Wednesday that Tom Collier, CEO of its US-based subsidiary Pebble Limited Partnership, has submitted his resignation in light of comments made about elected and regulatory officials in Alaska in private conversations videotaped by an environmental activist group.

The announcement comes as doubts about the proposed Pebble copper-gold-molybdenum mine have steadily risen over recent months.

In September, short seller J Capital Research accused Northern Dynasty management of “gaslighting investors” and said the mine plan “is on its face absurd.” Continue Reading →

Nunavut government may support TMAC-SD Gold sale, but with conditions – by Jane George (Nunatsiaq News – September 23, 2020)

https://nunatsiaq.com/

Nunavut wants to see commitment to respect previous agreements with Inuit

The Nunavut government has made a submission to federal reviewers now looking at the proposed sale of TMAC Resources Inc. to the Chinese-owned Shandong Gold Mining Co. Ltd.

But, speaking on Tuesday in the Nunavut legislature, Economic Development Minister David Akeeagok would not say whether the Government of Nunavut supported the proposed sale in its submission to the federal reviewers.

In response to questions from Gjoa Haven MLA Tony Akoak, he said he did not want to comment more because the federal government is still in the middle of its review process. Continue Reading →

Gold’s fall likely to renew doubts about haven status – by Ian McGugan (Globe and Mail – September 24, 2020)

https://www.theglobeandmail.com/

Gold’s price tumbled Wednesday and there may be more to come. The decline, which saw gold’s spot price slide 2.2 per cent to US$1,866.60 an ounce, was part of a broad retreat across markets. The S&P 500 index of big U.S. stocks declined by 2.4 per cent while, in Toronto, the S&P/TSX Composite slipped 2 per cent.

Investors are growing worried about the lack of progress on more fiscal stimulus from Washington as well as the growing threat of a new wave of coronavirus cases in many developed economies. All those factors are likely to weigh on global growth in the months ahead.

Gold’s fall is likely to renew doubts about whether it is the best haven for anxious investors, given the current state of the economy. Continue Reading →

How much gold is there left to mine in the world? – by Justin Harper (BBC.com – September 23, 2020)

https://www.bbc.com/

Last month the price of gold hit a record high, pushing above $2,000 (£1,575) an ounce. While this price rise was driven by gold traders, it begs the question about the supply of the precious metal, and when it will eventually run out.

Gold is in hot demand as an investment, a status symbol, and a key component in many electronic products. But it’s also a finite resource, and there will eventually come a stage when there is none left to be mined.

Peak gold

Experts talk about the concept of peak gold – when we have mined the most we ever can in any one year. Some believe we may have already reached that point. Continue Reading →

Indonesians turn to illegal gold mining as coronavirus pandemic hits economy (Agence France-Presse – September 24, 2020)

https://www.scmp.com/

With the coronavirus devastating jobs across the country, desperate Indonesians are flocking to illegal gold mines as the soaring price of the precious metal overrides the risk to their lives and the environment.

Spooked by the economic destruction wrought by the pandemic, consumers and investors around the world have been snapping up gold, which is seen as a hedge against volatility, sending its price to a record above US$2,000 an ounce last month.

The surge in demand has fuelled a boom in mineral-rich Indonesia’s illegal mining industry, with workers ignoring the threat of arrest, mercury poisoning or being caught in the middle of gun battles. Continue Reading →

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)

https://sports.yahoo.com/

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 →