Gold Rebounds After QE and Negative Rates are Mentioned
Welcome to Mining Stock Daily. This is your host, Trevor Hall
Today is Thursday, May 14th.
June gold closed the Globex day session at $1721, up $16 from yesterday. The Mining Stock Journal said that gold investors are responding to comments from Fed Chair Jerome Powell which implied that the Fed is willing to take QE to infinity in its efforts to revive the economy. Anyone who understands economics and money knows that more money printing will not stimulate real economic activity and that gold is the best hedge against catastrophic Central Bank policies. Silver experienced a sudden surge an hour before the NYSE closed. It outperformed gold on the day as July gold heads toward $16. The gold/silver ratio closed below its 50 day moving average for the 5th day in a row. The last time the gold/silver ratio closed below its 50 dma was back in January. The Mining Stock Journal is very bullish on silver right now.
We’ll get to the news out of the miners and explorers here in just a quick moment, but first a quick mention of today’s sponsor.
This episode of Mining Stock Daily is brought to you by... Corvus Gold.
Corvus Gold. Corvus is an advanced gold-silver exploration and development company focused on the North Bullfrog and Mother Lode Projects in Nevada. The company has been named a Top Five TSX gold equity performer Four of the last Seven years & a multi time top 50 OTCQX performer. Corvus Gold trades on the Toronto Stock Exchange with the symbol KOR and on the OTCQX with CORVF. Follow all the news form Corvus and its two-mine projects with fast-tracked potential via the company's website, corvusgold.com.
And here’s what you need to know this morning …
There was news out from Guyana Goldfields yesterday in regards to the bidding action between Silvercorp and Gran Colombia for the acquisition of the company. Guyana Goldfields has decided to reject the unsolicited proposal announced by Gran Colombia earlier this week. It reaffirmed its unanimous support for the transaction previously entered into with Silvercorp. The Board of Guyana acknowledgeed that, based on current trading prices, the Gran Colombia Proposal represents a premium to the agreed price under the Silvercorp Transaction; however, the Board is of the view that such premium does not sufficiently compensate the Company's shareholders for the increased risk associated with the Gran Colombia Proposal. Guyana Goldfields trades on the TSX with the symbol GUY. News Release
Troilus Gold reported additional results from its 6,000 meter drill program completed earlier this year in the Southwest Zone of its Troilus Property in Quebec. The company says all drill holes reported successfully intersected the targeted system and demonstrated geology similar to the main mineralized zone on the property, Z87, located less than 3.5 kilometres to the northeast of the SWZ. Highlights reported today included 13.28 g/t gold equivalent over 1 meter and 46.4 g/t gold equivalent over 1 meter. The company expects to publish a new mineral resource estimate using this drill data. The project currently has a resource estimate of over 6 million ounce estimated resource combined of Indicated and inferred gold equivalent ounces. Troilus Gold trades on the TSX with TLG and on the OTCQB with CHXMF. News Release
O3 Mining says it has signed an option agreement with QMX Gold to acquire the interest in the Aurbel Mill, which is located just 10 km from the O3 Mining’s Alpha property. The Mill Option grants O3 Mining the right to acquire the Aurbel Mill, the tailings and all associated permits and liabilities, for a purchase price of CDN $5 million at any time during a six-year term. The Corporation has paid a deposit of CDN $250,000 for the Mill Option and must contribute $87,500 per annum for maintenance costs associated with the Aurbel Mill in order to maintain the Mill Option during the six-year term of the Mill Option. O3 trades on the TSX Venture with OIII. News Release
First Majestic shared financials for the first quarter this year. The company reached revenues of just over $86 million which was lower compared to Q1 2019 and was, according to First Majestic, due to suspending sales in March in an attempt to maximize future pfotis due to metals market volatility. The company postponed the sale of 292,000 ounces of silver and 700 ounces of gold, worth approximately $5.3 million at the end of Q1 2020. As of today, the Company holds 1,045,342 ounces of silver and 1,459 ounces of gold in inventory. Despite the recent temporary suspension of three operating mines, total production in the quarter was consistent with the first quarter of 2019 and 9% above the previously withdrawn 2020 guidance. First Majestic trades on the NYSE with AG and on the TSX with FR. News Release
Teranga Gold also reported financial, operating and development results for Q1 this morning. The company reported a 27% increase in consolidated gold production to 91,312 ounces and a 46% increase in revenue to $134.1 million. Unsold bullion inventory increased to $38 million (using a period-end spot gold price) as at March 31, 2020, due to coronavirus-related delays in gold shipments in late March. Teranga trades on the TSX and the OTCQX with TGCDF. News Release
That’s it from me this morning. We’ll be back throughout the rest of the day today and tomorrow with more commentary. Be sure to hit that subscribe button if you have not done so already.
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