Morning Briefing: Newmont and Newcrest Officially Set to Merge

Welcome to Mining Stock Daily. I’m Trevor Hall. And I’m Paul Harris.

Today is Monday May 15th. 

After trading as high as $2,085 per ounce two weeks ago, last week gold was punished and brutalized by the paper gold price management team. Most of the damage was done on Friday, May 5th, with gold cliff-diving from $2,060 to as low as $2,006. Over half of the move occurred in one freefall shot as the Comex opened for trading that day. The newsletter noted that the catalyst for the price hit, a weaker than expected employment report, sent the stock market roaring higher in a big move that should have been accompanied by a big move higher in gold and silver. Silver has been throttled $2.40 per ounce lower since that day. Last week gold rallied back up to $2,056 before getting pushed back down its closing price Friday at $2,015. Similarly, silver was hammered down to as low as $23.90 before rebounding to close out the week at $24.13. 

The Mining Stock Journal noted that, away from the overt price control exerted by the usual suspects, this is likely the nasty price correction it has been looking for to set up the next big move higher, though it noted that the technical momentum indicators are not yet showing an oversold reading, which could mean more downside or at least a sideways move for a while. The mining stocks have held up better than the metals thus far. The GDX closed at the $33.60 support area Friday after tagging $36 for the second time two weeks ago. The newsletter added that GDX could fall to its 50 dma which was at $32.46 on Friday before resuming a bull move.

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…Arizona Sonoran Copper. 

ASCU is an early-stage copper developer and explorer of the Cactus Mine and its satellite project, Parks/Salyer, both situated on a 4km mine trend on private land in Arizona’s porphyry copper district. Opportunity for significant growth and scale exist along the mine trend, while future capex requirements outlined in the Cactus PEA benefit from significant onsite and nearby access to infrastructure. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America. For more information, please visit www.arizonasonoran.com.

And here’s what you need to know this morning….

Newmont (NYSE: NEM, TSX: NGT) entered into a binding agreement to acquire Newcrest Mining for US$17.8 billion to become the world’s largest gold producer with annual production of about 8Moz, with 5Moz coming from 10 large, long-life, low cost, tier one assets. It will also increase Newmont’s copper production. Newcrest shareholders will receive 0.4 Newmont shares for each Newcrest share and a special dividend of up to $1.10 per share paid from Newcrest, representing a 30.4% percent premium. Newmont estimates annual pre-tax synergies of $500 million within tfirst 24 months. The deal was unanimously recommended by the Newcrest Board. Newmont NYSE NEM News release

Arizona Sonoran Copper Company said Pinal County Air Quality Department approved and issued the company its Industrial Air Permit for the Cactus Mine Project in Arizona. The permit is a key milestone, as it is the final major permit needed, ahead of developing and mining the Project. The Industrial Air Permit issued to Cactus governs air quality compliance in accordance with federal, state, and county standards. Arizona Sonoran is advancing work programs to complete the Cactus and Parks/Salyer Pre-Feasibility Study with some parts of the project shovel ready. The company aims to become a mid-tier copper producer. Arizona Sonoran Copper Company (TSX:ASCU | OTCQX:ASCUF) News release

Alamos Gold reported  results from ongoing surface exploration drilling within the Mulatos District. This included further extending high-grade gold mineralization outside of Mineral Reserves and Resources at Puerto Del Aire (“PDA”), a higher-grade underground deposit adjacent to the Mulatos pit. Additionally, gold mineralization was intersected over a wide interval at the Capulin target 2km from the former San Carlos open pit. Highlights at PDA included 14.15m grading 20.95 g/t Au. The company said PDA has already surpassed La Yaqui Grande in terms of resource size, with a development plan for PDA to be completed in the December quarter. For 2023, $21 million has been budgeted for exploration, triple the 2022 budget. This includes 35,000m of surface drilling. Alamos Gold (TSX:AGI; NYSE:AGI) New release

Ascot Resources provided an update on construction of its Premier Gold Project in the Golden Triangle of British Columbia. At the end of the March quarter, detailed engineering was at 99% completion. Major procurement was more than 95% complete. Key orders remaining in the plant relate mostly to piping, instrumentation and bulk consumables. Overall construction excluding mine development was at 35.3% completion. Mine development will progress throughout 2023 and delivery of ore is expected to commence late in the December quarter, enabling the start of mill commissioning and first gold pour in early 2024. Ascot Resources trades on the TSX with AOT and on the OTCQX with AOTVF. News Release

On Friday, Vizsla Copper announced it will acquire RG Copper, which has the right to acquire up to a 70% interest in the Redgold Copper-Gold Project in British Columbia. Redgold is contiguous with the Company's Woodjam Copper-Gold Project and Imperial Metals' Mount Polley project. Five zones of copper-gold porphyry-related mineralization have been identified to date; East, Quarry, Northeast, North and Redgold. The project was most recently explored by Gold Fields in 2014 and the Project has been largely dormant since. Vizsla Copper trades on the TSXV with VCU and on the OTCQB with VCUFF. News Release

Ivanhoe Electric announced a Definitive Agreement with Saudi Arabian Mining Company Ma’aden. At closing, Ma'aden and Ivanhoe Electric will form a 50/50 exploration joint venture in Saudi Arabia to explore for copper, nickel, gold, silver and other electric metals. Ivanhoe Electric is the operator of the JV during the exploration phase, and Ma'aden will become the operator for the development of any economically viable deposits found. At closing, Ivanhoe Electric expects to issue approximately 10.2 million shares to Ma'aden, representing 9.9% of its shares outstanding, at $12.38 per share for proceeds of US$126.5 million. US$66 million will go to the JV to fund exploration activities, including the purchase of three new-generation Typhoon machines. The remaining US$60 million will be retained by Ivanhoe Electric to advance its portfolio of US mineral projects, and for working capital and general corporate purposes. Ivanhoe Electric trades on the NYSE American and the TSX with IE. News Release

Minto Metals said it ceased operations at the Minto Mine in Yukon, Canada and that Yukon Government has now assumed care and control of the site. The Yukon government will prioritise those activities required to ensure environmental protection. Minto is working closely and cooperatively with the Yukon government to ensure a smooth transition. Minto did not state why it is ceasing operations, but a month ago the company received notification from the Minister of Energy Mines and Resources of the Government of Yukon that water has been and is being used in contravention of the conditions of Minto’s water licence. Minto Metals (TSX-V: MNTO) News release

The Mining Stock Daily morning briefing is produced by Clear Commodity Network and Investment Research Dynamic’s Mining Stock Journal. It is distributed throughout the world through your podcast network of choice, and by our friends at the Junior Mining Network. 

The information presented should not be considered investment advice. Mining stock daily and its affiliates are not responsible for any loss arising from any investment decision in connection with the material presented herein. Please do your own research or speak with a licensed financial representative before making any investment decisions.