Gold and Silver – Page 172 – Republic of Mining

Investors look for financial restraint as good times roll for gold miners – by Josh O’Kane (Globe and Mail – April 23, 2017)

April 24, 2017

http://www.theglobeandmail.com/

With Canada’s biggest gold miners back in the mode of making deals and striking partnerships, analysts will be watching the companies’ self-discipline as first-quarter financials start rolling in.

Last year was a period of recovery for gold producers: balance sheets got better, gold prices were healthy and rising and share prices climbed. The S&P/TSX global gold index went up 50 per cent in 2016, and it’s up another 12 per cent so far this year.

In the past, strong gold markets have led to a round of mergers, acquisitions and mine-building, followed by a painful reckoning. Investors haven’t forgotten, so free cash flow, cost savings and debt reduction remain in their sights as precious-metal miners mull new projects in their march out of the commodity slump.

South Africa’s Sibanye declares war on illegal gold miners – by Ed Stoddard (Reuters U.S. – April 21, 2017)

April 21, 2017

http://www.reuters.com/

WESTONARIA, South Africa, April 21 Illegal gold mining has plagued South Africa’s mining companies for decades, robbing the industry and state coffers of billions of rand through smalltime pilfering as well as networks run by organised crime.

Now, with unmined output dwindling and proving more diff cult to extract, one firm has had enough: diversified precious metals producer Sibanye Gold says that it will clear all illegal miners from its shafts by the end of January next year.

“We will have them out then,” Sibanye’s Chief Executive Neal Froneman told Reuters. His campaign slogan is “Zero Zama”, after the Zulu for illegal miners, “zama zamas” or “taking a chance”. A Gold Fields spin-off formed in 2013, Sibanye is the first company to set itself a deadline to stop the practice and has laid out 200 million rand ($15 million) to make it happen.

Tanzanian gold miner Acacia to review operations if export ban persists (Reuters Africa – April 20, 2017)

April 21, 2017

http://af.reuters.com/

LONDON (Reuters) – Tanzanian gold producer Acacia Mining will have to review its mining operations if the government’s ban on gold and copper ore exports remains in place, a senior executive said on Thursday.

Shares in Acacia, which is majority owned by Barrick Gold, briefly touched a six-week low, paring losses by 0900 GMT to trade down 3.7 percent after it said first-quarter core profits rose 25 percent to $82 million but cashflow was reduced by $36 million in part due to the ban.

The government halted the export of unprocessed ore on March 3, following President John Magufuli’s call for the construction of more gold smelters in the country, Africa’s fourth-largest gold producer.

Quebec govt approves Canadian Malartic openpit expansion – by Henry Lazenby (MiningWeekly.com – April 20, 2017)

April 20, 2017

http://www.miningweekly.com/

VAANCOUVER (miningweekly.com) – The Quebec provincial government, under the leadership of Quebec Liberal Party premier Philippe Couillard, has approved the proposed $200-million expansion of the Canadian Malartic mine, owned and operated in a 50:50 joint venture by Agnico Eagle Mines and Yamana Gold. The expansion will see the diversion of Highway 117 at a cost of $53-million.

Preliminary work will start in the coming weeks after obtaining the required authorisations, including the relocation of public services. Deforestation and the construction of a temporary bridge over Highway 117 are among the first steps.

The highway diversion will allow the mine to access the Barnat zone, which has softer ore and could allow for higher throughputs. The 203-million tonnes, on a 100% basis, of reported reserves as at December 31, include the Barnat zone and could allow the mine to continue production for a further six years to 2027.

Shandong No Longer Pursuing Barrick’s Super Pit Stake – by by Scott Deveau and Linly Lin (Bloomberg News – April 19, 2017)

April 20, 2017

https://www.bloomberg.com/

Shandong Tyan Home Co. said it has ended talks to acquire Barrick Gold Corp.’s stake in its Kalgoorlie Super Pit mine in Australia because of recent tightened controls in China on outbound investment.

Toronto-based Barrick began the process to sell its stake in the mine, a 50-50 joint venture with Newmont Mining Corp., last year. Talks between Barrick and Minjar Gold Pty, a Shandong Tyan subsidiary, stalled in February after the buyer faced delays securing financing for a $1.3 billion bid, people with knowledge of the matter said at the time.

“The company is no longer pursuing this project,” Shandong Tyan said in an exchange filing, citing both the tightened controls on outbound investment and foreign exchange.

Gold’s top forecaster says prices may hit $1 350 by year-end – by Eddie van der Walt and Ranjeetha Pakiam (Bloomberg News – April 19, 2017)

April 19, 2017

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

Gold will end the year higher, spurred by faster inflation and political tensions in Russia, Syria and North Korea, according to Intesa Sanpaolo, the best forecaster for the metal last quarter.

Prices could take a v-shaped path this year, with a swoon coming mid-year as the Federal Reserve raises US interest rates, said Daniela Corsini, an analyst at the bank. Gold will likely bounce back by year-end, reaching a high of $1 350 an ounce in the fourth quarter, she predicted.

That would leave bullion at the highest level since September. Prices have risen 12% this year, supported by inflation concerns and a mix of geopolitical worries, including North Korea’s nuclear ambitions and U.S. airstrikes in Syria and Afghanistan.

China’s Shandong Tyan says talks over on bid for Barrick’s Kalgoorlie – by Susan Taylor (Reuters U.S. – April 19, 2017)

April 19, 2017

http://www.reuters.com/

TORONTO – Shanghai-listed Shandong Tyan Home (600807.SS) said on Wednesday its negotiations with Barrick Gold Corp (ABX.TO) to buy the Canadian operator’s 50-percent stake in Kalgoorlie mine have ended without a deal, citing new capital and acquisition rules in China.

Toronto-based Barrick had been reviewing the financial backing behind an approximate $1.3 billion bid for its stake in Kalgoorlie mine by Minjar Gold, a unit of Shandong Tyan, Reuters reported in November. Barrick, the world’s largest gold producer, declined to comment on the matter. It reports first-quarter financial results on April 24.

In February, Barrick President Kelvin Dushnisky said “advanced negotiations with a proposed buyer,” were under way and Barrick would be “happy sellers” at the right price. “We’re also very happy to continue to own that asset,” he said.

Gold rush fever among poor Zimbabweans leaves trail of destruction – by Andrew Mambondiyani (Reuters U.S. – April 18, 2017)

April 18, 2017

http://www.reuters.com/

TARKA FOREST, Zimbabwe (Thomson Reuters Foundation) – Thousands of unemployed Zimbabweans have turned to illegal gold panning in a bid to survive the country’s deteriorating economy, leaving a trail of destruction that has alarmed farmers, timber plantation owners and the country’s environmental authorities.

Peasant miners have set up makeshift mines on farmland and timber plantations in the country’s eastern provinces, which border Mozambique where gold fetches a higher price. Deep tunnels have been dug beneath roads, railways and buildings in the Kwekwe area of the Midlands province. In some parts of Manicaland province, waterways have been diverted and roads destroyed.

With more illegal miners likely to exploit the area as the economy continues to slump, and the state placing responsibility to act on landowners, farmers are fearful of irreversible damage to their land, and the risk of losing their livelihoods.

Gold glisters as investors seek a safe haven from the world’s woes Chris Kohler (The Australian – April 18, 2017)

April 18, 2017

http://www.theaustralian.com.au/

The price of gold has struck a five-month high as investors take a risk-off approach amid escalating geopolitical tensions, a weaker US dollar and a Wall Street slide.

And economists predict the metal’s price could continue to be carried higher as the market awaits further Federal Reserve interest rate hikes. So far this month the precious metal has gained almost 4 per cent to hover just below $US1300 an ounce — its strongest point since Donald Trump’s election sent the commodity higher in early November.

Australian gold miners have been the best performers of the month on the S&P/ASX 200, with Northern Star Resources shooting up 19.7 per cent, St Barbara gaining 18.9 per cent, Evolution Mining jumping 16.7 per cent and Newcrest Mining up 12.8 per cent.

In one of coldest spots on earth, Russia bets on boosting gold output – by Diana Asonova (Reuters U.S. – April 13, 2017)

April 18, 2017

http://www.reuters.com/

UST-NERA, YAKUTIA, RUSSIA – In winter it gets so cold that metal snaps. When the weather is warmer people make a living sifting the earth for fragments of gold in the Oymyakon district of Russia’s far eastern Yakutia region.

But the unusually rich deposits of the alluvial gold near the surface are running out and producers have had to switch to the more expensive process of digging mines to extract gold ore.

Production at the first two mines to be opened in the area since the fall of the Soviet Union will start soon. One is being launched by GV Gold, with U.S. fund BlackRock and the European Bank for Reconstruction and Development among its shareholders, and another by the locally-owned Yantar group.

Brazil suspends Belo Sun’s gold mine licence, stock collapses – by Cecilia Jamasmie (Mining.com – April 12, 2017)

April 13, 2017

http://www.mining.com/

A Brazilian court has once again suspended a construction licence for Canada’s Belo Sun Mining’s (TSX:BSX) Volta Grande project, expected to become the South American country’s largest gold mine.

The decision, the second of its kind since 2013, represents a significant new obstacle in the way of the Toronto-based miner’s plans to develop the vast gold mine, in the Brazilian Amazonic state of Pará, local newspaper O’ Globo reported (in Portuguese).

According to the ruling, construction of the project is to remain suspended until indigenous study has been approved by Funai (Indigenous Affairs Agency of Brazil), Belo Sun said in a statement.

Mining investments herald ‘a new day’ for Yukon economy: analyst (CBC News North – April 12, 2017)

April 13, 2017

http://www.cbc.ca/

John Ing says major mining companies with money to invest are looking to replenish their mineral reserves

A mining analyst says money pouring into Yukon mineral exploration projects bodes well for the territory’s economy. “It’s a new day from the standpoint of exploration. It’s healthy,” said John Ing, chief executive officer of Maison Placements Canada Inc., an investment office in Toronto.

Barrick Gold announced earlier this week that it wants to initially invest more than $8 million in ATAC Resources’s Orion project, 55 kilometres east of Keno City. The multi-phased deal could reach a total investment of more than $63 million for exploration.

That follows recent announcements from Goldcorp Inc., Newmont Mining and Agnico Eagle Mines about plans to invest in the territory. Ing says major mining companies have reduced their costs and now have money to invest. He said they’re also looking to replenish their reserves.

Northern Dynasty shares surge 32 per cent after crucial Alaska permit approval – by Sunny Freeman (Financial Post – April 13, 2017)

April 13, 2017

http://business.financialpost.com/

Northern Dynasty Mineral Ltd. stock jumped as much as 32 per cent Wednesday after it received a crucial permit from the Alaska government that could see its Pebble project clear a 10-year-long development hurdle.

The Vancouver-based company, which has also recently been the target of a short-seller campaign, said late Tuesday its U.S. subsidiary Pebble Limited Partnership has received notice of approval for a miscellaneous land use permit from the Alaska Department of Natural Resources.

Its stock was trading up 31.7 per cent at $2.41 apiece in midday trading on the Toronto Stock Exchange. Shares had been on a tear, rising nearly 300 per cent since the November election of U.S. President Donald Trump on speculation that his administration would loosen environmental regulations that have held back its Pebble copper-gold project.

Political Risks Push Gold to Five-Month High on Haven Demand – by Eddie Van Der Walt and Ranjeetha Pakiam (Bloomberg News – April 12, 2017)

April 13, 2017

https://www.bloomberg.com/

Concerns about rising global tensions surrounding Syria and North Korea are revitalizing demand for gold as a haven, with the metal trading near the highest since Donald Trump was elected U.S. president.

Bullion touched a five-month high Wednesday. A standoff between the U.S. and Russia after an American missile strike on Syria and Trump’s pledge to solve the North Korean “problem” with or without China have deepened concerns about political stability. There are also signs that Russia and the U.S. are increasingly at odds over Afghanistan.

The metal slumped after Trump’s election on his promises of tax cuts and more infrastructure spending, but rebounded since mid-December amid worries about the unpredictability of his presidency. While gold may extend gains in the next few weeks, better U.S. data and higher real interest rates will then push prices lower, Goldman Sachs Group Inc. said.

Gold is the new economic driver for Ontario mining – by Len Gillis (Timmins Daily Press – April 12, 2017)

April 13, 2017

http://www.timminspress.com/

Ontario’s mining industry is making all the right moves to be more sustainable, more efficient and more profitable. But more can still be done, according to Chris Hodgson, president of the Ontario Mining Association.

Hodgson was guest speaker Wednesday at a Timmins Chamber of Commerce luncheon where he talked about the efforts the mining industry is taking to stay current with energy needs, environmental demands and workplace safety.

He said mining continues to be one the engines that still drives the Ontario economy and contributes to Ontario’s economic growth. “What has changed in Ontario in the last 10 years is that gold is now a larger contributor than nickel and copper. That’s new and it is a combination of the price of the commodities and the number of new discoveries of gold and the new investments around gold,” said Hodgson.