FinancialNewsMedia.com News Commentary
PALM BEACH, Fla., April 14, 2021 /PRNewswire/ -- Gold has again risen to all-time highs because investors have again rushed to its traditional 'safe haven'. It rises not despite the pandemic… but because of the global crisis. The trading price is predicted by many to continue to soar and miners are also looking to increase production. A report from Singapore Bullion Market Association, spoke about the Metals Report issued in London which said: "Turning to 2021, Metals Focus remains bullish towards gold. We are confident that as policy rates remain low and fiscal spending persists, inflows of institutional money into the yellow metal will continue. Low rates and yields are typically positive for gold, as they minimize the opportunity cost of holding the zero-yielding metal. Moreover, given exceptionally low yields (or, in other words, high bond prices), the effectiveness of bonds as a hedge against market turmoil, and in particular equity market corrections, is hampered as it becomes harder to see yields fall much more. This forces investors towards other portfolio diversifiers, something that should continue to benefit gold. Related to this point, policy accommodation has resulted in exceptionally strong equity market performance. While this has been a boon for investors, it also amplifies their need to diversify portfolios and gold will remain an instrument to do so." Active stocks in the mining markets this week include Calibre Mining Corp. (OTCQX: CXBMF) (TSX: CXB), Franco-Nevada Corporation (NYSE: FNV) (TSX: FNV), Lundin Mining Corporation (TSX: LUN) (OTCPK: LUNMF), Endeavour Mining Corporation (TSX: EDV) (OTCQX: EDVMF), First Majestic Silver Corp. (NYSE: AG) (TSX: FR).
Singapore Bullion continued: "Loose fiscal and monetary policy also creates future inflation risks. It is worth remembering here that this argument was instrumental in fueling the gold price rally that followed the 2008 global financial crisis, only to be proven wrong later. In spite of this precedent, many investors feel that given the far more extensive stimulus provided during the Covid-19 crisis, the likelihood of inflationary pressures is much higher. As such, even though Metals Focus' house view is that high inflation seems unlikely, we believe that the fear of it will continue to benefit gold over the next 12 months or so. Last but not least, we believe that the dollar will likely remain weak for some time, adding further price support. We therefore see gold once again breaking the $2,000 mark in the next few months and reaching new all-time highs later in the year."
Calibre Mining Corp. (OTCQX: CXBMF) (TSX: CXB) BREAKING NEWS: CALIBRE MINING REPORTS FIRST QUARTER GOLD PRODUCTION; STRONG START TO 2021 WITH 45,452 OUNCES - Calibre Mining Corp. ("Calibre" or the "Company") is pleased to announce operating results for the three months ended March 31, 2021 (all amounts in United States dollars).
Q1 2021 Highlights:
- Gold production: 45,452 ounces, highest quarterly production since Q3 2016;
- Production includes the first ore delivery from the Pavon Norte mine to the Libertad mill
- Demonstrating Calibre's ability to advance new satellite deposits: 'permit to plant' in less than 18 months;
- Gold sales of 45,882 ounces;
- Cash on hand of $58.2 million, a $5.1 million increase from December 31, 2020;
- 2021 production and cost guidance remain on track;
- Growth and exploration capital are currently expected to be H1 weighted;
- More than 200% increase in Mineral Reserves to 864,000 ounces since year-end 2019;
- Largest Mineral Reserve since 2010 with the highest grade on record, 4.49 g/t Au1;
- High-grade drill results reported at Limon, including:
- 7.98 g/t Au over 6.8 metres at Atravesada underground;
- 8.92 g/t Au over 9.8 metres at Atravesada underground;
- 251.90 g/t Au over 1.0 metres at Limon Norte open pit; and
- 6.97 g/t Au over 6.1 metres at Panteon underground;
- 60,000 metre exploration and resource growth drilling program underway.
Darren Hall, President & Chief Executive Officer of Calibre, stated: "Another solid quarter of production demonstrating the reliability of our assets underpinned by the revitalization of the Libertad Complex. I am particularly pleased with our progress expanding our 'Hub-and-Spoke' operation to incorporate the high-grade 'Mining Spoke' at Pavon Norte. I would like to acknowledge the teams' efforts in safely and responsibly progressing Pavon Norte from 'permit to plant' in less than 18 months, a great result that clearly demonstrates the in-country expansion opportunity and supportive regulatory environment."
"With the improved confidence in our multi-year outlook afforded by the more than 200% increase in Mineral Reserves, our exploration programs have been expanded to include growing resources at our emerging districts and generative drilling. Given Nicaragua's prolific history of gold production, it's somewhat surprising how much of the country remains relatively under-explored much beyond the known producing and historic gold mines. During 2020 we took steps to more than double our portfolio of 100% owned mineral properties and concession applications, bringing our total land position to over 2,000 km2, exclusive of our Rio Tinto joint venture properties. Currently Calibre has 15 drill rigs in operation and our exploration teams continue to see positive results and excellent opportunities for delineation of new resources and growth." CONTINUED…. Read this entire release for the Calibre Mining Corp. news at: https://www.calibremining.com/news/2021
FOR ADDITIONAL INFORMATION, PLEASE ALSO VISIT: https://www.equedia.com/calibre-mining-price-target-shows-170-upside/
Other recent developments in the mining markets include:
Franco-Nevada Corporation (NYSE:FNV) (TSX: FNV) recently announced that its Board of Directors has declared a quarterly dividend of US$0.26per share. The dividend will be paid on March 25, 2021 to shareholders of record on March 11, 2021 (the "Record Date"). The Canadian dollar equivalent is to be determined based on the daily average rate posted by the Bank of Canada on the Record Date. Under Canadian tax legislation, Canadian resident individuals who receive "eligible dividends" are entitled to an enhanced gross-up and dividend tax credit on such dividends. The Company has a Dividend Reinvestment Plan (the "DRIP"). Participation in the DRIP is optional.
The Company will issue additional common shares through treasury at a 3% discount to the Average Market Price, as defined in the DRIP. However, the Company may, from time to time, in its discretion, change or eliminate the discount applicable to treasury acquisitions or direct that such common shares be purchased in market acquisitions at the prevailing market price, any of which would be publicly announced.
Lundin Mining Corporation (TSX: LUN) (OTCPK: LUNMF) recently announced that its Annual Meeting will be held on Friday, May 7, 2021 (the "Meeting") at 10:00 a.m. ET via live audio webcast.
Given the ongoing impact of the COVID-19 pandemic and the current and anticipated public health guidelines and restrictions respecting large group gatherings, it is unclear as to whether it will be safe or permissible for the Meeting to be held in person this year. To ensure the health and safety of employees, shareholders and representatives of the Corporation, Lundin Mining has made arrangements that enable shareholders and proxyholders to attend and vote virtually at this year's Meeting. Shareholders will not be able to attend this year's Meeting in person.
The record date for the Annual Meeting is March 19, 2021. Meeting materials were mailed to shareholders on or about April 1, 2021. Eligible Shareholders are encouraged to vote online, by telephone or by proxy. Detailed information on how shareholders can participate in the Meeting and vote is available in the Circular. The Circular provides additional information relating to the below items for consideration at the Meeting.
Endeavour Mining Corporation (TSX: EDV) (OTCQX: EDVMF) recently announced the successful completion of the previously announced La Mancha Holding S.à.r.l. ("La Mancha") investment. Endeavour issued a total of 8,910,592 ordinary shares ("Shares") to La Mancha for aggregate net proceeds of US$200 million at a price of approximately US$22.45 (C$29.36) per Share (the "Investment"). The investment, which was announced as part of the acquisition of Teranga Gold Corporation on November 16, 2020, is being made by La Mancha under its pre-existing anti-dilution right. As previously disclosed, upon completion of the investment, La Mancha's future anti-dilution rights have now been extinguished. Following completion of the investment, Endeavour now has 252,519,830 shares outstanding with La Mancha holding an interest of approximately 19%.
The investment is considered to be a "related party transaction" for purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Endeavour is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, respectively, in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the fair market value of the investment is not more than 25% of Endeavour's market capitalization. In accordance with TSX policies, the investment was subject to Endeavour shareholder approval, which was obtained on January 21, 2021. Endeavour intends to use the proceeds of the investment for debt reduction and general corporate purposes.
First Majestic Silver Corp. (TSX:FR) (NYSE:AG) and Sprott Mining Inc. ("Sprott Mining") recently announced that they have entered into a definitive agreement (the "Share Purchase Agreement") whereby First Majestic will acquire all of the issued and outstanding common shares of Jerritt Canyon Canada Ltd. ("Jerritt Canyon") from Sprott Mining (the "Acquisition") for $470 million in shares of First Majestic plus 5 million First Majestic share purchase warrants. Concurrent with the Acquisition, Eric Sprott, President of Sprott Mining, will complete a $30 million private placement investment in First Majestic.
Jerritt Canyon owns and operates the Jerritt Canyon Gold Mine located in Elko County, Nevada. Jerritt Canyon was discovered in 1972 and has been in production since 1981 having produced over 9.5 million ounces of gold over its 40-year production history. The mine currently operates as an underground mine and has one of three permitted gold processing plants in Nevada that uses roasting in its treatment of ore. This processing plant has a capacity of 4,500 tonnes per day ("tpd") and is currently operating at an average rate of approximately 2,200 tpd due to limited ore production from two underground mines. The property consists of a large, underexplored land package consisting of 30,821 hectares (119 square miles). In 2020, Jerritt Canyon produced 112,749 ounces of gold at a cash cost of US$1,289 per ounce. First Majestic has identified several opportunities to enhance both the cost and production profile of Jerritt Canyon as well as near-term brownfield potential between the SSX and Smith mines and long-term property wide exploration potential.
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