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Money begins to flow towards the gold mining juniors in a big way, as a new round of corporate activity looms

As gold hit an intra-day high of over US$1,980 this week, a record in US dollar terms, gold mining companies reaped the benefits.

Among the better performers benefitting from golds recent run have been Anglogold (NYSE:AU), up by 75% over the past six months, Newmont Corporation (NYSE:NEM), up by more than 50%, Kinross Gold Corporation (NYSE:KGC), up by almost 80%, and of course Barrick, which has risen by slightly less than 50% over the past six months.

One reason for the relative underperformance of Barrick and Newmont is that both are still digesting recent hefty acquisitions – in Barricks case it acquired Londons gold champion Randgold last year, while Newmont is still absorbing the recent acquisition of Goldcorp, completed earlier in 2019.

Will there be more corporate action? – you can bet on it.

Certain participants in the gold mining industry, for example Artem Volynets of Chaarat Gold Holdings PLC (LON:CGH), have been predicting a round of consolidation in the gold space for..

As gold hit an intra-day high of over US$1,980 this week, a record in US dollar terms, gold mining companies reaped the benefits.

Among the better performers benefitting from golds recent run have been Anglogold (NYSE:AU), up by 75% over the past six months, Newmont Corporation (NYSE:NEM), up by more than 50%, Kinross Gold Corporation (NYSE:KGC), up by almost 80%, and of course Barrick, which has risen by slightly less than 50% over the past six months.

One reason for the relative underperformance of Barrick and Newmont is that both are still digesting recent hefty acquisitions – in Barricks case it acquired Londons gold champion Randgold last year, while Newmont is still absorbing the recent acquisition of Goldcorp, completed earlier in 2019.

Will there be more corporate action? – you can bet on it.

Certain participants in the gold mining industry, for example Artem Volynets of Chaarat Gold Holdings PLC (LON:CGH), have been predicting a round of consolidation in the gold space for some time. In Chaarats case, the talk has been turned into action, as it has acquired new projects and production in its geographical area of expertise, Central Asia.

But, whereas much of the action has to date been at a fairly high level, there are signs now that the activity spurred by US$1,900 gold might start to trickle down to the most junior end of the market. In recent days weve seen Anglo Asian Mining (LON:AAZ) tie up a deal with Conroy Gold and Natural Resources PLC (LON:CGNR) which is likely to result in rapid progress on potential targets amounting to 8.8mln ounces of gold in Ireland.

It's a simple enough equation, whichever way you come at it. The producing companies, which tend to have fixed costs overall, and which lately have also been enjoying the benefits of reduced fuel costs, are now enjoying much larger margin because of the higher gold price.

That in turn means greater cashflow, which means theres more money available for development pipelines, whether thats in existing projects or new dealflow.

None of this will be new to Australians, who have been enjoying record gold prices in Aussie dollar terms for some time now, and a local mining boom to boot. Companies have been swarming over the Paterson Range for example, in Western Australia, as well as to the east of the country in Victoria and New South Wales.

Here, junior companies like ECR Minerals (LON:ECR) and Greatland Gold (LON:GGP) are beginning to pick up traction as the majors cast their eyes our for the next big discovery. Greatland has been in business with Australias champion Newcrest for some time now, and the positive results from its Havieron project just keep on coming.

Last year Saracen (Read More – Source

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Australia

Lake Resources to present ‘clean’ lithium story at OTC virtual conference this week

Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) (FRA:LK1) managing director Steve Promnitz will present the company's 'clean' lithium story at OTCs virtual conference on VirtualInvestorConferences.com this week.

The virtual conference is on Thursday, August 7, at 6.30 am AEST, which is Wednesday, August 6, at 4.30pm ET in the US.

It will be a live interactive online event where investors are invited to ask the company questions in real-time.

An archived webcast will also be made available after the event for those unable to join the live event.

Investors are recommended to pre-register and run the online system, check to expedite participation and receive event updates.

The link for registrations is https://www.tinyurl.com/August6VICPR and details of the event can be found at www.virtualinvestorconferences.com.

Update on progress[hhmc]
Promnitz will provide an update on progress and discuss the looming crisis in the supply of high purity lithium and the need for a disr..

Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) (FRA:LK1) managing director Steve Promnitz will present the company's 'clean' lithium story at OTCs virtual conference on VirtualInvestorConferences.com this week.

The virtual conference is on Thursday, August 7, at 6.30 am AEST, which is Wednesday, August 6, at 4.30pm ET in the US.

It will be a live interactive online event where investors are invited to ask the company questions in real-time.

An archived webcast will also be made available after the event for those unable to join the live event.

Investors are recommended to pre-register and run the online system, check to expedite participation and receive event updates.

The link for registrations is https://www.tinyurl.com/August6VICPR and details of the event can be found at www.virtualinvestorconferences.com.

Update on progress


Promnitz will provide an update on progress and discuss the looming crisis in the supply of high purity lithium and the need for a disruptive tech solution to meet the demand.

The presentation will be available on the companys website before the conference timeslot at: https://lakeresources.com.au/investors/presentations/

Clean lithium technology


Lake Resources uses disruptive, clean, direct extraction technology to develop the production of sustainable, high purity lithium.

Its products are sourced from its flagship Kachi Lithium Brine Project in Argentina, within the prolific Lithium Triangle.

The direct lithium extraction process developed by technology partner Lilac Solutions Inc has the ability to produce a premium, battery-grade product sought by batterRead More – Source

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Australia

Red River Resources has solid final quarter, more copper and better earnings: Hartleys

Red River Resources Limited (ASX:RVR) achieved record copper production at its Thalanga Operation in Northern Queensland for the quarter ending June 30, 2020.

An increase in copper grade of ore milled to 1.0% and a record copper recovery to copper concentrate of 84.7% resulted in quarterly production of 2,697 tonnes of high-quality copper concentrate, compared to 2,310 tonnes in the previous quarter.

Hartleys has increased the price target for Red River to 20 cents per share from 19 cents (current price: 12 cents) following the release of June quarterly figures.

The following is an extract from Hartleys research update:

Red River Resources (RVR) reported stable production from its Thalanga Operations in Northern QLD in the JunQ, with production of 4,544t of zinc (+5% qoq), 1,133t of lead (+1% qoq) and 2,697t of copper (+17% qoq, record result) concentrates. The Thalanga Operations reported a positive site EBITDA of A$3.5M (up from negative A$2.6M MarQ), with increased revenue, lowe..

Red River Resources Limited (ASX:RVR) achieved record copper production at its Thalanga Operation in Northern Queensland for the quarter ending June 30, 2020.

An increase in copper grade of ore milled to 1.0% and a record copper recovery to copper concentrate of 84.7% resulted in quarterly production of 2,697 tonnes of high-quality copper concentrate, compared to 2,310 tonnes in the previous quarter.

Hartleys has increased the price target for Red River to 20 cents per share from 19 cents (current price: 12 cents) following the release of June quarterly figures.

The following is an extract from Hartleys research update:

Red River Resources (RVR) reported stable production from its Thalanga Operations in Northern QLD in the JunQ, with production of 4,544t of zinc (+5% qoq), 1,133t of lead (+1% qoq) and 2,697t of copper (+17% qoq, record result) concentrates. The Thalanga Operations reported a positive site EBITDA of A$3.5M (up from negative A$2.6M MarQ), with increased revenue, lower concentrate treatment charges and improved operating costs.

Cash at bank at JunQ end was A$8.1M (down 36% from A$12.7M), after payment of A$3.3M on Far West mine development, A$0.2M on exploration and A$1.5M (US$1M) debt repayment from a facility provided by metal trader Trafigura. Debt is now ~A$7.3m (US$5M) and due to be repaid by 30Sep20. Another US$5M (~A$7.3M) is available to draw for Thalanga, should it be required. RVR has a good working relationship with Trafigura (offtake partner for zinc and lead concentrates), and some flexibility could likely be afforded for the repayment schedule, though not guaranteed. Due to sales timing, a gold concentrate shipment provided another US$1.6M for estimated cash of A$10.4M and Net Cash position A$3.1M. We also note RVR ended the JunQ with higher concentrate inventories further improving the balance sheet.

JunQ result largely in-line


Processed throughput for the JunQ was 82Kt (-2% qoq) at a ~9.2% ZnEq grade (up 8% qoq), with improved zinc, lead and copper recoveries for 5% more zinc concentrate, 1% more lead concentrate and 17% higher copper concentrate production qoq. Payable zinc metal production was 4.6Mlb (up 5% qoq). Reported payable C1 cash costs of US$0.30/lb Zn (down 59%) and C3 costs of US$0.86/lb Zn (down 29%). We had previously forecast slightly higher throughput with zinc, lead grades in-line but lower copper grade. The historic gold tailings processed through Thalanga produced 475dmt of gold in concentrate grading over 62g/t Au for ~950oz and net revenues of US$1.6M.

FY20 delivered less zinc and lead, but more copper


In FY20, RVR delivered payable zinc metal production of 18.8Mlb (or 8.5kt) at a reported C3 cost of US$1.27/lb payable Zn, down from payable zinc metal production of 34.5Mlb (or 15.7kt) at C3 cost of US$0.87/lb payabRead More – Source

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Australia

Kalamazoo Resources adds two highly credentialed senior exploration geologists to team

Kalamazoo Resources Ltd (ASX:KZR) has secured two, highly credentialed senior exploration geologists to advance its newly acquired Ashburton Gold Project in Western Australia.

Matthew Rolfe joins Kalamazoo as a senior exploration geologist for the Ashburton project with extensive experience over Archean and Proterozoic terrains and comes from Northern Star Resources Ltd (ASX:NST), where he was senior exploration geologist for the Pilbara region.

His deep understanding of the Ashburton Gold Project will be particularly beneficial to Kalamazoo and will play an important part in expediting exploration at the project.

Dr Margaret Hawke has also been employed by the company as senior exploration geologist for the Ashburton Gold Project.

“Highly regarded individuals”[hhmc]
Non-executive director and project manager Paul Adams said: “Kalamazoo has been extremely fortunate in securing these two highly credentialed and highly regarded individuals.

“Matt and Margy are both extremely experie..

Kalamazoo Resources Ltd (ASX:KZR) has secured two, highly credentialed senior exploration geologists to advance its newly acquired Ashburton Gold Project in Western Australia.

Matthew Rolfe joins Kalamazoo as a senior exploration geologist for the Ashburton project with extensive experience over Archean and Proterozoic terrains and comes from Northern Star Resources Ltd (ASX:NST), where he was senior exploration geologist for the Pilbara region.

His deep understanding of the Ashburton Gold Project will be particularly beneficial to Kalamazoo and will play an important part in expediting exploration at the project.

Dr Margaret Hawke has also been employed by the company as senior exploration geologist for the Ashburton Gold Project.

"Highly regarded individuals"


Non-executive director and project manager Paul Adams said: “Kalamazoo has been extremely fortunate in securing these two highly credentialed and highly regarded individuals.

“Matt and Margy are both extremely experienced and will form the nucleus of our technical capacity at Ashburton, as we move quickly to generate value from this significant gold system.

“Both have come to Kalamazoo recognising the significant opportunity that the Ashburton Gold Project Read More – Source

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