Newsletter 10 /2020
This newsletter contains news on the following topics:
Precious Metals Report + Battery Metals Report + Uranium Report + Share of the week: Sibanye-Stillwater + Gold before further price push + MAG Silver + RNC Minerals + Gold Terra Resources + EnWave + Canada Nickel + Condor Gold + Caledonia Mining + Maple Gold Mines + Uranium Energy + Fiore Gold + Bluestone Resources + Skeena Resources + Cardinal Resources + Aurania Resources + Oceana Gold + Discovery Metals + IsoEnergy + Copper Mountain Mining + Endeavour Silver + GoldMining + Vizsla Resources
After more than half a year we can again recommend our well-known SRC commodity reports for reading. We have revised the two Precious Metals and Battery Metals Reports and added additional information and interesting companies. The Uranium Report has been completely revised after a year's break.
You will find all three reports in English-language under the following links:
Precious Metals Report: Precious Metal Report 2020 + Updates + Additional Stocks
Battery Metals Report: Battery Metals Report 2020 - Update
Uranium Report: Uranium Report 2020
Furthermore, we can again present you some interesting interviews and news on selected stocks:
Newsflash with MAG Silber, RNC Minerals, Gold Terra Resource, EnWave and Canada Nickel
Fiore Gold: Growth Oriented US Gold Producer
Newsflash with Bluestone Resources, Skeena Resources and Cardinal Resources
Aurania Resources: Supporting Indigenous Shuar with Food, LiDAR Results Show Possible Veins
Share of the week: Sibanye-Stillwater
Sibanye-Stillwater reports strong quarterly results
Sibanye-Stillwater recently reported strong quarterly results. The Group had a strong start to the year, with operational and financial performance in the first quarter of 2020 significantly better than in the same period in 2019. US PGM operations reported an 8% increase in mined 2E PGM production compared to the first quarter of 2019, reflecting a return to planned production rates at the East Boulder and Stillwater mines, despite difficult ground conditions that impacted the Blitz project into the first quarter of 2020. The solid performance of the PGM operations in SA continued, with production of 4E PGM increasing 59% year-on-year, reflecting the successful integration of the Marikana operations following the acquisition of Lonmin Plc in June 2019. Gold production from the gold operations in SA also increased by 66% as production normalised compared to the first quarter of 2019, which was affected by the five-month AMCU strike. The Group's Adjusted EBITDA for the first quarter of 2020 was significantly higher than the first quarter of 2019 and increased by Rand 10,324 million (US$666 million) to Rand 11,132 million (US$724 million), which, together with a reduction in net debt, resulted in a decrease in net debt to Adjusted EBITDA from 1.25x at the end of December 2019 to 0.75x at the end of the quarter.
The Group is thus in a sound financial position, with a debt-equity ratio now well below the 1-fold target and sufficient liquidity, despite the temporary suspension of production at SA's plants in April 2020 in accordance with the South African COVID 19 lock-up regulations.
News: Operating Update for the Quarter Ended 31 March 2020
Interview: Sibanye-Stillwater: Q1 2020 Operating Update - Record EBITDA
Gold before further price push
Gold broke out of a tight chart technical triangle on Thursday and is now also striving higher in US$. The jump above the $1,725 mark now enables a rapid rise to the short-term high at $1,747. Important chart marks are then $1,760 and $1,800, where significant resistance is waiting. In the course of several months, the $2,000 mark can even be targeted.
Silver should continue to follow gold in all directions and currently has a great catch-up potential anyway. A silver price of $20 remains within the realm of possibility for this year.
Further company news:
Aurania Resources identifies further potential gold transport route
Aurania Resources recently reported that LiDAR surveys in the central part of the Lost Cities - Cutucu project in southeastern Ecuador identified a possible road under deep jungle cover. The structure, which is interpreted as a very old road, must be reviewed and evaluated on site by a qualified archaeologist registered in Ecuador once the COVID restrictions in the project area are lifted.
Together with the 2.5 kilometre road segment discovered by the field teams at the end of last year and currently being evaluated by a registered archaeologist and the National Institute of Cultural Heritage of Ecuador, the Company believes that the structure identified in the LiDAR data represents the infrastructure associated with this mining activity.
Bluestone Resources completes oversubscribed financing
Bluestone Resources announced a few days ago that it has completed its previously announced share offering. A total of 52,578,000 ordinary shares were issued at a price of CA$ 1.75 per ordinary share for gross proceeds of CA$ 92,011,500, which includes the full exercise of the over-allotment option for an additional 6,858,000 ordinary shares. The Company currently intends to use the net proceeds of the Offering to advance the Cerro Blanco project and for working capital and general corporate purposes.
Caledonia Mining reports high quarterly profit
Caledonia Mining recently reported very good quarterly results. Gross revenues were $23.6 million, up 48 percent from $15.9 million in Q1 2019, and gross profit was $10.6 million, up 146 percent from $4.3 million in Q1 2019, with a gross margin of 50 percent (Q1 2019, 33 percent). Mining costs were $678 per ounce (Q1 2019, $794 per ounce). The AISC was $879 an ounce (Q1 2019, $1,039 an ounce). Adjusted basic earnings per share increased to 57.3 cents (Q1 2019, 44.2 cents). In total, 14,233 ounces of gold were produced in the quarter (Q1 2019, 11,948 ounces).
Production continued at around 93% of the target during the three-week shutdown that began in Zimbabwe on 30 March 2020, after which production returned to normal levels. The production forecast for 2020 remains unchanged at 53,000 to 56,000 ounces.
Copper Mountain Mining presents improved feasibility study for Little Eva
Copper Mountain Mining recently announced positive results from the 2020 Feasibility Study update on its 100% owned Eva copper project. The 2020 FS Feasibility Study demonstrates significantly improved economics and operational metrics compared to the previous 2018 Feasibility Study, including higher net present value after tax, increased production, lower cash costs and a longer mine life.
Discovery Metals reports strong drill results
Discovery Metals recently announced results from eight diamond drill holes completed at Cordero. The holes are part of a 30,000-35,000 metre Phase 1 drilling program that began in September 2019. Hole C20-319, the northeast-most hole drilled by Discovery and for which assay results are available, intersected 168.8 metres at 207 g/t AgEq (70 g/t Ag, 0.10 g/t Au, 1.5% Pb and 1.9% Zn). Hole C20-317, the Company's most southwest hole drilled to date, intersected 79.0 metres grading 159 AgEq1 g/t (90 g/t Ag, 0.22 g/t Au, 0.9% Pb and 0.5% Zn). A total of approximately 1,250 metres of strike length is located between these two holes.
Not only does this demonstrate the sheer size of the mineralized system, but the broad widths and excellent near surface grades underscore the high-margin potential that exists at Cordero.
Endeavour Silver announces quarterly results
Endeavour Silver recently released its financial results for the three months ended March 31, 2020, with operating performance in the first quarter showing a significant improvement over both the first quarter and the fourth quarter of 2019, in line with the forecast prior to the government ordered suspension of mining operations. It is noteworthy that consolidated cash costs decreased by 37% year on year, reflecting the success of the operational turnaround and the transition to higher grade ore bodies at Guanacevi. Total sustainable costs decreased by 5%, reflecting the high level of sustainable investment the company has made to achieve a similar turnaround at Bolanitos over the next three months.
Endeavour Silver before resuming production
Endeavour Silver also announced that the Mexican government has ordered an extension of the suspension of all non-systemic activities until 30 May 2020. However, as of May 18, 2020, the suspension of activities will no longer apply in communities where few or no cases or transmissions of the SARS CoV2 virus are known, subject to criteria yet to be established by the Ministry of Health. Mining was previously classified as a non-systemic activity by the Mexican health authorities, which is why Endeavour suspended the operation of its three mines on April 1, 2020. However, the company's three mines are located in communities with little or no transmission of the SARS CoV2 virus. Therefore, Endeavour now expects to reopen its mines in accordance with the government decree to reopen on May 18, 2020. The company has also applied for exemptions for earlier reopening should this be feasible and permissible.
News: Mexican Government Decrees Restart of Non-Essential Activities Such as Mining in Areas with No or Low SARS-CoV2 Virus Cases on May 18, 2020
Fiore Gold reports very good drilling results
Fiore Gold recently announced the results of the ongoing drill program at its Pan Mine in Nevada. This drill program is part of a long-term program aimed at expanding the resource and reserve base and extending the life of the mine. The drill program included 32.0 metres at 0.75 g/t gold, 30.5 metres at 0.76 g/t gold, 38.1 metres at 0.92 g/t gold, 74.7 metres at 0.74 g/t gold and 15.2 metres at 2.60 g/t gold.
This latest drill program shows that near-surface oxide gold mineralization extends significantly beyond the current reserve pits.
News: FIORE GOLD LTD. continues to Expand Oxide Gold Mineralization at Its Pan Mine, Including 74.7 metres of 0.74 g/t Gold and 15.2 metres Of 2.60 g/t Gold
Presentation: Fiore Gold: Growth Oriented US Gold Producer
GoldMining increases resource base to almost 30 million ounces
GoldMining recently announced an initial mineral resource estimate for its 100% owned Yarumalito gold-copper project in Antioquia, Colombia. The mineral resource estimate includes a pit-limited inferred resource of 66,271,000 tonnes grading 0.58 g/t gold (1,236,000 ounces) and 0.09% copper (129,262,000 pounds) or 0.70 g/t gold equivalent (1,502,000 ounces) using a 0.5 g/t gold equivalent cut-off grade.
This brings GoldMining's global mineral resource to 10.5 million ounces of gold (13.4 million ounces gold equivalent) in the measured and indicated categories and 13.7 million ounces of gold (16.4 million ounces gold equivalent) in the inferred category.
News: GoldMining Announces Resource Estimate for the Yarumalito Gold Project in Colombia
GoldTerra Resources expands gold mineralization
GoldTerra Resources recently announced the results of 10 drill holes from Sam Otto South. These holes intersected 1.03 g/t Au over 23 metres including 1.30 g/t Au over 12 metres, 1.60 g/t Au over 11.75 metres, 1.18 g/t Au over 11 metres including 1.94 g/t Au over 6 metres, 1.05 g/t Au over 9 metres and 1.09 g/t Au over 7 metres.
The results to date thus demonstrate continued success in expanding the footprint of the Sam Otto South gold mineralized system.
News: Gold Terra Continues to Expand Gold Mineralization at Sam Otto South
Newsflash: Newsflash with MAG Silber, RNC Minerals, Gold Terra Resource, EnWave and Canada Nickel
IsoEnergy acquires additional project areas
IsoEnergy recently announced the acquisition of over 46,000 hectares of new uranium exploration claims spread over four properties in Saskatchewan's productive eastern Athabasca Basin. The highlight is the 31,800-hectare Evergreen property on the southeastern edge of the Athabasca Basin, just 16 kilometres west of the Key Lake uranium mill. All new claims are 100% owned by IsoEnergy.
With the addition of the newly staked claims, the Company now has 15 properties in the eastern Athabasca Basin totaling 109,100 hectares. Historical work on all new claims, particularly airborne and ground geophysical surveys and core drilling, is currently being compiled and integrated with IsoEnergy's existing data sets.
News: IsoEnergy Stakes the Evergreen Property and Extensions to Three Other Uranium Exploration Properties
Newsflash: Newsflash with RNC Minerals, Discovery Metals, IsoEnergy and Aurania Resources
MAG Silver closes $60 million financing
MAG Silver was recently able to announce that it has completed the previously announced, non-brokered private placement offer of 4,528,302 common shares of MAG to Mr. Eric Sprott through 2176423 Ontario Ltd., a company under his economic control, at a price of CA$13.25 per common share for gross proceeds of CA$60,000,002. MAG intends to use the net proceeds of the Offering to fund exploration and development of the Juanicipio Project, working capital and general corporate purposes.
News: MAG Silver Announces Closing of $60 Million Private Placement
Newsflash: Newsflash with MAG Silber, RNC Minerals, Gold Terra Resource, EnWave and Canada Nickel
Teaser: MAG Silver: Corporate Teaser 2020
Oceana Gold announces quarterly figures
Oceana Gold reported quarterly results a few days ago. On a consolidated basis, the company produced 80,707 ounces of gold and 54,134 ounces of silver in the first quarter. As expected, gold production declined quarter-on-quarter due to lower average grades at both Haile and Macraes and the completion of mining at the Correnso deposit near Waihi. The Company reported consolidated AISC of US$1,218 per ounce and operating costs of US$802 per ounce on sales of 91,388 ounces of gold.
News: OCEANAGOLD reports first quarter 2020 operational results
Presentation: OceanaGold: Q1 2020 Operational Results and Corporate Update
RNC Minerals reports strong quarterly results
RNC Minerals recently announced its financial results and review of operations for the three months ended March 31, 2020. Despite the challenges posed by the Australian bushfires, the subsequent heavy rains and the current COVID-19 situation, RNC reported a strong start to 2020 with total first quarter gold production of 24,816 ounces. The AISC of $1,101 per ounce, represented an improvement of $30 per ounce over the fourth quarter of 2019.
As a result of the proactive approach the Company has taken over the past two quarters, the forecast for gold production in 2020 remains unchanged at 90,000 to 95,000 ounces and AISC at $1,050 to $1,200 per ounce sold.
News: RNC Delivers Strong First Quarter Financial and Operating Performance, Continuing to Reduce Costs and Bolster the Balance Sheet, Reiterates 2020 Guidance
Newsflash 1: Newsflash with MAG Silber, RNC Minerals, Gold Terra Resource, EnWave and Canada Nickel
Newsflash 2: Newsflash with RNC Minerals, Discovery Metals, IsoEnergy and Aurania Resources
RNC Minerals acquires surface gold project and plans name change
In addition, RNC Minerals announced that it has entered into a purchase agreement to acquire the Spargos Reward Gold Project, which contains a historical mineral resource estimate of 112,000 ounces (785,800 tonnes at 4.4 g/t) as an Indicated resource and 19,000 ounces (151,000 tonnes at 4.0 g/t) as an Inferred resource.
Spargo's Reward has the potential to be quickly absorbed into the growing production pipeline and generate significant cash flow with low risk to RNC and its shareholders.
In addition, a proposed name change to Karora Resources Inc. was announced, which shareholders will vote on at their virtual Annual General and Special Meeting on June 11, 2020.
News: RNC Signs Purchase Agreement for Spargos Reward High-Grade Open Pit Gold Project in Western Australia; Proposes Name Change to Karora Resources to Align with its Strategy as a Growing Gold-focused Producer
RNC Minerals buys back royalties
In addition, RNC Minerals announced that it has entered into an agreement with Morgan Stanley Capital Group Inc. to terminate the remaining NSR royalty interests held by Morgan Stanley on a number of licenses at RNC's Higginsville gold operation in Western Australia for a purchase price of $9 million in cash. This transaction, when completed, will eliminate all remaining NSR royalty obligations in respect of the properties concerned, with the exception of the mandatory Western Australian State royalty of 2.5%.
News: RNC Eliminates NSR Royalties at Higginsville Gold Operations, further unlocking Significant Production Potential and Lowering Operating Costs
Skeena Resources with world class drill result
Skeena Resources recently announced final gold-silver drill results for the 4,327 metres completed so far this year as part of the Company's 2020 Phase I surface drill program on the Eskay Creek project in British Columbia's Golden Triangle. The Company's results include a sensational 32.21 g/t Au, 121 g/t Ag (33.82 g/t AuEq) over 22.50 metres including 753.00 g/t Au, 445 g/t Ag (758.93 g/t AuEq) over 0.83 metres.
The Phase I infill drilling program at Eskay Creek continues to predictably confirm the grades and spatial limits of the resource model, which was largely derived from the historical drill database.
News: Skeena Intersects 33.82 g/t AuEq over 22.50 metres at Eskay Creek
Newsflash: Newsflash with Bluestone Resources, Skeena Resources and Cardinal Resources
Video: SKE Presentation 7th German Resource Night virtual
Skeena Resources completes sale of a non-core asset
Skeena Resources also announced a few days ago the closing of the purchase agreement announced on February 4, 2020 for the sale of 100% of the Company's interest in the GJ copper-gold property to Newcrest Red Chris Mining Limited for CA$7.5 million in cash.
News: Skeena Completes Sale of GJ to Newcrest for C$7.5M
Vizsla Resources strikes up to 3,131g/t silver
Vizsla Resources recently announced the latest results from the Company's exploration program in the Panuco Silver-Gold District of Mexico. Seven drill holes were completed and high-grade intercepts were obtained on the Honduras vein. Infill surface and underground sampling of the Animas, Cordon del Oro and Napoleon veins has also been reported. The Company encountered silver grades of up to 3,131.8g/t, some very high.
News: Vizsla Provides Drilling Update and Discovers High Grades in Outcrop Samples
Swiss Resource Capital AG and the authors of Swiss Resource Capital AG currently hold or intend to hold shares in the following companies mentioned in this issue: Sibanye-Stillwater + MAG Silver + RNC Minerals + Gold Terra Resources + EnWave + Canada Nickel + Condor Gold + Caledonia Mining + Maple Gold Mines + Uranium Energy + Fiore Gold + Bluestone Resources + Skeena Resources + Cardinal Resources + Aurania Resources + Oceana Gold + Discovery Metals + IsoEnergy + Copper Mountain Mining + Endeavour Silver + GoldMining + Vizsla Resources.
Swiss Resource Capital AG has entered into IR advisory agreements with the following companies mentioned in this issue: Sibanye-Stillwater + MAG Silver + RNC Minerals + Gold Terra Resources + Canada Nickel + Caledonia Mining + Maple Gold Mines + Uranium Energy + Fiore Gold + Bluestone Resources + Skeena Resources + Aurania Resources + Oceana Gold + Discovery Metals + IsoEnergy + Copper Mountain Mining + Endeavour Silver + GoldMining + Vizsla Resources.
This publication is based on the detailed risk information, limitations of liability and disclaimers of Swiss Resource Capital AG, which can be viewed here: risk information and disclaimer