Gold and Silver – Page 193 – Republic of Mining

Lake Shore Gold launches $80-million expansion – by Len Gillis (Timmins Daily Press – August 11, 2016)

August 11, 2016

http://www.timminspress.com/

TIMMINS – Tahoe Resources Inc., the parent company for Lake Shore Gold in Timmins, is financially doing better than expected. The company this week reported its second quarter and six-month year-to-date financial results.

There are record levels for silver and gold production along with record levels of cash flow and revenue. Part of that reporting also revealed that second-quarter production volumes for Lake Shore Gold (LSG) were below last year’s numbers, because of some “minor operational issues.”

Regardless, the company said Timmins is still destined to play a significant role in the future. Already, the $80-million shaft expansion project is underway at LSG’s Bell Creek Mine and new jobs are being created. Lake Shore was acquired by Tahoe in April.

Silver hunter digs into the Clay Belt – by Ian Ross (Northern Ontario Business – August 8, 2016)

August 10, 2016

http://www.northernontariobusiness.com/

Cobalt, famed for its 1903 silver rush, is regarded as the birthplace of Canadian hard rock mining. But it’s all new territory for Gary Thompson of Brixton Metals who’s hoping to rekindle some of that magic with an exploration program to the north of that historic mining camp.

The CEO of the Vancouver junior miner is on the hunt for high-grade silver around the former Langis underground mine, 15 kilometres north of Temiskaming Shores.

“We’ve been busy getting up to speed on what’s happening with the whole camp,” said Thompson. “I’m just amazed at the amount of history there.” Brixton finalized the acquisition of Langis Mine from Canagco Mining Corp in early February for $55,000 cash and 3.2 million in common shares.

Newmont’s Carlin team wins national mine rescue competition: Barrick’s Turquoise Ridge team won first in one of the technician portions (Elko Daily Free Press – August 8, 2016)

August 9, 2016

http://elkodaily.com/

RENO – Newmont Mining Corp.’s Carlin Team beat out 35 teams from 16 states nationwide to finish first at the 2016 National Metal and Nonmetal Mine Rescue Contest in Reno.

The Carlin team came in third in the field competition, first place for first aid and second for team tech (BG4) during the four-day event held July 25-28 in Reno. Barrick Gold’s “Turquoise Ridge Regulators” from Golconda, came in first in the bio technician team competition.

Co-hosted by the U.S. Department of Labor’s Mine Safety and Health Administration and the Nevada Mining Association, mine rescue competitions gauge the readiness of teams and their individual members – sharpening skills and testing their knowledge in a series of simulated emergency scenarios, such as a mine fire, explosion or roof collapse.

Gold Reserve reaches arbitration settlement with Venezuela, stock soars – by Peter Koven (Financial Post – August 9, 2016)

August 9, 2016

http://business.financialpost.com/

TORONTO — On the surface, Gold Reserve Inc.’s US$770-million arbitration settlement with the government of Venezuela appears to be a huge win for the Toronto-listed company. But there is an important caveat: Venezuela has to raise the money and pay it out, even as it deals with a massive economic and humanitarian crisis.

Gold Reserve unveiled a firm settlement agreement with the government on Monday, which follows a signing ceremony late last week. Under the terms of the deal, Venezuela agreed to pay US$600 million to the company by the end of October, and an additional US$170 million by the end of December.

The socialist government will also buy Gold Reserve’s technical mining data for US$240 million, and the two sides will form a joint venture to develop the Brisas-Cristinas gold project, which is expected to cost US$2.1 billion.

BNN Reporter Catherine Murray Interviews Goldcorp CEO David Garofalo (Business Network News – July 28, 2016)

August 9, 2016

http://www.bnn.ca/ Goldcorp’s shares are under pressure following the latest quarterly results. We discuss the latest production challenges that led to the Q2 loss, and how they are adapting their turnaround strategy. Year-to-date, the stock is lagging its peers in the gold rebound, and has fallen to third place by market cap since the start of …

BNN Reporter Catherine Murray Interviews Barrick Gold President Kelvin Dushnisky (Business Network News – July 28, 2016)

August 9, 2016

http://www.bnn.ca/ Last time he was on BNN, Barrick Gold President Kelvin Dushnisky talked about the company’s focus on debt reduction and growing free cash flow. He joins BNN again for an update on the turnaround plans. He also talks about the gold producer’s plans to sell its 50-percent stake in a Western Australian mine.

Little appetite for Barrick Gold’s Super Pit stake – by Bridget Carter and Gretchen Friemann (The Australian – August 4, 2016)

August 3, 2016

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

It’s the billion-dollar goldmine that no one seems to want.

The announcement last week from Canada’s Barrick Gold that it intended to sell its 50 per cent stake in Kalgoorlie’s giant Super Pit, arguably Australia’s most famous goldmine, has created plenty of buzz in and around this week’s big Diggers & Dealers mining forum.

Unfortunately for Barrick and its hopes of securing anywhere near the $900 million price tag mooted for its stake, that buzz had been overwhelmingly negative.

While almost every gold play at the conference has been talking up their appetite for deals, those same gold plays have all but unanimously ruled out any interest in the Super Pit stake.

Silver Wheaton’s US$800 million deal shows streaming firms still have buying opportunities – by Peter Koven (Financial Post – August 3, 2016)

August 3, 2016

http://business.financialpost.com/

Silver Wheaton Corp.’s US$800-million gold acquisition from Vale SA shows that metal streaming firms still have good buying opportunities despite improving market conditions.

The Vale deal is only the second major streaming transaction of the year and the first since February, when Franco-Nevada Corp. bought a US$550-million stream from Glencore PLC. By comparison, there were 11 streaming deals in 2015 worth about US$4.2 billion, according to Financial Post data.

In a streaming transaction, a royalty firm such as Silver Wheaton makes an upfront cash payment to a mining company. In exchange, it can acquire a fixed amount of precious metals from the miner at extremely low prices, which it sells for a profit.

Vale Sells $800 Million of Future Gold Output to Ease Debt Load – by Danielle Bochove (Bloomberg News – August 2, 2016)

August 2, 2016

http://www.bloomberg.com/

Vale SA sold more of its future gold output to Silver Wheaton Corp. as the Brazilian miner strives to lighten a $27 billion-plus net debt load, the industry’s biggest after Glencore Plc’s.

The Rio de Janeiro-based company will sell the rights to 25 percent of the Salobo mine’s gold production to Vancouver-based Silver Wheaton, expanding a 2013 streaming deal for 50 percent of output, the companies said in separate statements Tuesday. Vale will get $800 million upfront.

Chief Executive Murilo Ferreira flagged the new arrangement with Silver Wheaton on Thursday when he said the company had one transaction to announce this week and another two by year-end.

Gold rally’s Achilles heel may be soft China, India demand – by Clyde Russell (Daily Mail/Reuters – August 2, 2016)

August 2, 2016

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

LAUNCESTON, Australia, Aug 2 (Reuters) – There is little doubt that gold has had a stellar year so far, surging almost 28 percent, but there may be some areas of concern emerging that could act as a brake on further gains.

The rally in spot gold to Monday’s close of $1,352.85 an ounce has largely been driven by what may generally be termed the fear trade, as investors sought the safety of the precious metal amid mounting economic worries, predominantly in the Western world.

The price spike in the wake of the surprise vote by Britain to abandon the European Union is a case in point, with gold jumping as much as 8.2 percent on June 24 as the results came in.

The Golden Fleece – by Doug Shadel and Joe Eaton (AARP The Magazine – August/September 2016)

August 2, 2016

http://www.aarp.org/

Older Americans lose millions through coin scams. What’s behind the allure of gold?

They were heavy—a single coin weighed about as much as a half-dozen quarters. But a stack of 14 didn’t look much grander than the spare change on a dresser. It was hard to believe that this little pile of metal was worth $32,000. Or was it?

Daphne Clark* bought the gold coins in December 2012. They were U.S. Saint-Gaudens Double Eagles, named after their designer, the sculptor Augustus Saint-Gaudens. Coin aficionados — numismatists, they’re called — prize these $20 pieces, minted from 1907 to 1933, as the most beautiful American currency ever made.

Clark was no numismatist. A 50-year-old Denver-area small-business owner who considers herself a small-government-minded libertarian, she bought gold for its value, not its beauty: She was uneasy about the state of the U.S. financial system.

Canadian gold miners aim to reduce debt by keeping lid on costs – by Ian McGugan (Globe and Mail – July 28, 2016)

August 2, 2016

http://www.theglobeandmail.com/

Euphoria? What euphoria? The soaring price of gold has failed to ignite expansion frenzy at Canada’s largest gold miners. Instead, the latest round of earnings reports show an industry intent on reducing debt and rebuilding confidence.

Goldcorp Inc., which came up far short of analysts’ expectations , told a conference call on Thursday that it was installing a rigorous new accounting system, cutting staff at head and regional offices by a third and selling mines as it seeks to reassure investors that it is on the right track.

Barrick Gold Corp. announced plans to sell its half stake in the Kalgoorlie mine in western Australia as it continues to make progress toward meeting its target of reducing debt by at least $2-billion (U.S.) this year.

Losses persist at Kinross – by Frik Els (Mining.com – July 28, 2016)

August 2, 2016

http://www.mining.com/

Shares of Toronto’s Kinross Gold Corporation (TSE:K) pulled back slightly in after hours trade on Wednesday after its second quarter results showed earnings coming in below estimates.

By the close of regular trading in New York Kinross was up 3.5% on a stronger gold price affording the company a market value of $6.4 billion. The stock is up 175% year to date.

But the counter ticked lower after hours after the company reporting an adjusted net loss of $0.01 per share or $9.8 million against forecasts of a modest profit.

Sunny economic outlook for Timmins – by Alan S. Hale (Timmins Daily Press – July 30, 2016)

August 2, 2016

http://www.timminspress.com/

TIMMINS – Economic news for Timmins has been quite positive over the past few weeks, with a new manufacturing facility being built, the Dome Mine cancelling its plans to close, and the possibility of a Chinese basalt company considering opening a rock-insulation plant in the city.

The news has been so good, in fact, that national economists are beginning to notice. The Conference Board of Canada, an economic think tank, released a report on Thursday outlining the economic outlook for seven mid-sized cities in Canada: Timmins, Sault Ste. Marie, Rimouski, Lethbridge, Brandon, Red Deer, and Medicine Hat.

The report suggests the outlook for Timmins is very favourable. According to the think tank’s projections, the Timmins overall gross domestic product (GDP) is expected to grow by 1.9%. On top of that, job growth is expected to increase by 7.3% — almost completely offsetting a 7.4% drop in 2015.

Timmins economy remains strong – by Thomas Perry (Timmins Daily Press – July 30, 2016)

August 2, 2016

http://www.timminspress.com/

TIMMINS – Local residents can take some comfort in the Conference Board of Canada’s Mid-Sized Cities Outlook for 2016. That document, released this week, suggests Timmins’ economy will remain healthy this year, expanding by 1.9%, thanks to continued goods sector strength.

Timmins is one of two Ontario cities examined in the annual document that also looks at key indicators for Sault Ste. Marie, Brandon, Lethbridge, Red Deer, Medicine Hat and Prince George.

In an interview with our Alan S. Hale, Conference Board of Canada associate director Alan Arcand added job growth in Timmins is expected to increase by 7.3% — almost completely offsetting a 7.4% decline experienced in 2015.