Could the Biden Administration Give US Mining a Boost?
Welcome to Mining Stock Daily. I’m Trevor Hall.
Today is Thursday, March 31st.
Yesterday gold followed-up Tuesday's spectacular price reversal with a rally that started at midnight and ran from $1908 to as high as $1936 late Wednesday morning before fading a bit to settle at $1933. Silver followed the same price pattern as gold, running higher from $24.70 to $25.30 and settling at $25.03. There was not any specific news that fueled Wednesday's price rally other than what appears to be a possible migration of capital into safe-haven assets. The Mining Stock Journal said that Tuesday's attention-grabbing price-reversal in both gold and silver in which gold was slammed down $1888 before rocketing up $1918 and silver, which has monkey-hammered to $24.04 back up to $25.13 appears to have been triggered by unusually large bid-side demand for gold during the p.m. London price fix Tuesday. The newsletter added that buying on the p.m. fix has become a frequent event recently. The mining stocks yesterday traded higher in correlation with the metals, though the Mining Stock Journal commented that the buying was concentrated in the large cap producers, with the Amex Gold Bugs Index up 1.4% and GDX up 1.13%. The newsletter added that Newmont closed Wednesday at its highest price since 2011. For those interested in the bizarre investment in Hycroft Mining by AMC Entertainment, the latest issue of the Mining Stock Journal, released this afternoon, will have an analysis of the deal. You can learn more at InvestmentResearchDynamics.com
We will get to the news from the miners and explorers in a moment, but first a word about today’s sponsor.
This episode of Mining Stock Daily is brought to you by… Rio2.
Rio2 is advancing the Fenix Gold Project in Chile, the largest undeveloped gold heap leach project in the Americas. Fenix consists of 5 million ounces in the measured and indicated resource category and 1.4 million ounces in the inferred resource category. With a robust PFS in place, Fenix is set up for fast-tracked construction and production. You can find a list of project and company information on their website, rio2.com.
And here’s what you need to know this morning….
Elemental Royalties issued its audited financial results for the fourth quarter and full year. Q4 revenue of $2.3 million represented a 22& increase to the prior quarter and contributed to the company’s 29% increase from the prior year of $6.6 million. Frederick Bell, CEO, commented, "2021 represents a fourth successive year of record revenue for Elemental and we continue to position the Company to create increasing and sustainable value for shareholders. In 2022 Elemental expects 5,700 to 6,700 attributable gold equivalent ounces ("GEOs")2 from its existing portfolio, a gain of between 55% and 82% from 2021. The GEOs are weighted towards the second half of the year, with approximately 95% of expected revenue derived from gold and silver. At a US$1,800 per ounce average received gold price, this guidance would achieve revenue of approximately US$10 million to US$12 million in 2022. Elemental Royalties trades on the TSX V with ELE and on the OTCQX with ELEMF. News Release
Dynacor Gold also released its audited annual consolidated financial statements. Dynacor is engaged in gold production through the processing of ore purchased from the artisanal and small-scale mining industry. Dynacor completed 2021 with both production and financial historical high performances on its way to its eleventh consecutive year of profit. The Corporation achieved production record of 106,862 AuEq ounces powering total sales to $196 million a significant 93% increase compared to 2020, and a net income of $11.8 million. Dynacore Gold trades on the TSX with DNG. News Release
Anaconda Mining provided exploration drill results from the Company's Point Rousse operation in the Baie Verte Mining District of Newfoundland. The diamond drill program included testing of six exploration targets consisting of 4,684.6 metres of drilling in 36 diamond drill holes. Highlights from this round of drilling included 2.09 g/t gold over 5.7 meters and 3.64 g/t gold over 2.8 meters. Drill holes at the Corkscrew and Big Bear targets identified two new mineralized systems within the Goldenville Trend and mineralization was also intersected in multiple holes within the Deer Cove Trend. Anaconda Mining trades on the TSX with ANX and on the OTCQX with ANXGF. News Release
Clean Air Metals announced new assay results from the 2022 drill campaign from the Escape PGE-Cu-Ni Deposit at the Company's Thunder Bay North Project near Thunder Bay, Ontario. Hole ELR22-115 which intersected 15.0m grading 1.73g/t Platinum (Pt), 1.92g/t Palladium (Pd), 0.70% Copper (Cu) and 0.30% Nickel (Ni) from 237.5m-252.5m downhole including 2.8m grading 2.86 g/t Platinum (Pt), 3.05g/t Palladium (Pd), 1.18% Copper (Cu) and 0.38% Nickel (Ni) from 246.40-249.18m downhole. The Escape Deposit also underwent an additional 37,000m of expansion drilling in 2021, which has established continuity between the Escape South High Grade Zone and the Steepledge Extension and may add materially to the Thunder Bay North Project Indicated mineral resource of 14,553,324 million tonnes grading 8.12 g/t platinum-equivalents. Clean Air Metals trades on the TSX Venture with AIR and on the OTCQB with CLRMF. News Release
And we’ll conclude with some news first reported yesterday afternoon. According to Reuters, U.S. President Joe Biden could invoke a Cold War-era defense law as soon as this week to encourage domestic production of minerals needed to make electric vehicle batteries. Such an order under the Defense Production Act is expected to help companies access government funding for feasibility studies for new projects that extract lithium, nickel and other EV metals, or to make existing facilities more productive.The funds would not be used to dig new mines or buy minerals for government stockpiles, nor would invoking DPA let the mining industry bypass regulatory or permitting standards. It was not immediately clear how much funding could be allocated.
That concludes today’s morning briefing.
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