Yamana Gold Financials, Auryn Resources Exploration Update, Rising Gold
Gold is back on the rise while the Fed announced it is increasing its temporary overnight repo operations to $120 billion a day from the current $75 billion. This happening while producers are filing their Q3 financials with bull market results.
Welcome to Mining Stock Daily.
Today is Friday, October 25th.
This is Trevor Hall and I welcome you to today’s briefing.
The price of gold jumped decisively back over $1500 on Thursday, as it becomes increasingly apparent that the Fed has embarked on a large money printing operation. The collateral damage from money printing is currency devaluation. The inverse of currency devaluation is a rising price of gold. The Mining Stock Journal added that legal importation of kilo and dore bars were activated when the gold price fell in the $1480's earlier in the week. Silver jumped 27 cents on Thursday outperforming gold by a 2:1 ratio. Silver also closed just below its 50 day moving average, setting up the potential for an explosive move.
Today's episode of Mining Stock Daily brought to you by Pacific Empire Mineral.
Pacific Empire is a junior exploration company focused on the discovery of gold-rich copper deposits in British Columbia, Canada. Pacific Empire trades on the TSX Venture Exchange under the symbol PEMC and on the OTCQB markets under the symbol PEMSF. The Company currently has a very tight share structure. Pacific Empires’ unique approach to the prospect generator business model incorporates the Company’s own reverse circulation drill to advance projects beyond that of typical prospect generators. More information on Pacific Empire can be found at pemcorp.ca.
Here’s what you need to know today out of the junior resource sector.
The mining stocks on Thursday were boosted by both the jump in gold and silver and, just as significant, an unexpectedly big earnings estimate beat by Agnico Eagle Mines. The Amex Gold Bugs index rose nearly 3.5% on Wednesday, as the market begins to reprice the mining stocks to better reflect the rise in gold and silver since the end of May. The Mining Stock Journal said the price correction in the sector since early September was way overdone in the context of an asset class that was already significantly undervalued relative to the price of gold and silver before the six week correction began.
Recently included in those financials was Yamana Gold, which released their production numbers yesterday. The reports shows net earnings attributable to Yamana equity holders of $201.3 million or $0.21 per share basic and diluted compared to a net loss of $81.3 million or $(0.09) per share a year earlier. Adjusted net earnings more than doubled year over year to just under $50 million while net free cash flow reached just under $100 million. Yamana also paid down $800 million worth of debt. Yamana trades on the TSX with the symbol YRI and on the NYSE with AUY. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/763-tsx/yri/68799-yamana-gold-reports-third-quarter-cash-flows-from-operating-activities-of-157-4-million-increases-earnings-and-lowers-debt-cash-flows-significantly-exceed-the-average-of-the-three-preceding-quarters.html
Auryn Resources shared results from its seven-hole drill program at Committee Bay. The company says a new gold-bearing hydrothermal system was drilled called the Shamrock target, which returned .67 g/t gold over 30 meters. The company also stated this drill program gave them a chance to test their machine learning platform prior to a more expansive drill program. CEO, Ivan Bebek called the tool useful and believe with further refining, it could become increasingly helpful in the future. Auryn Resources trades on the NYSE American and the TSX with the symbol AUG. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/800-tsx/aug/68812-auryn-drills-gold-bearing-hydrothermal-system-at-committee-bay-2.html
Nexus Gold gave an update yesterday on its plan for the proposed November drill program at its Dakouli 2 gold concession in Burkina Faso. The exploration permits is a 98-sq km gold property located about 100 kilometers due north of the capital city. The drill program would consist of up to 2000 meters and is designed to test several of the ground gold anomalies identified to date. Rock samples collected from these new zones returned contained various concentratins of visible gold, including coarse nuggety samples. The company is currently determining crew and drill availability. Nexus Gold trades on the TSX Venture with NXS and on the OTC with NXXGF. https://www.juniorminingnetwork.com/junior-miner-news/press-releases/nexus-gold/68777-nexus-gold-plans-drill-program-at-dakouli-2-gold-concession-burkina-faso-west-africa.html
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