Top-News of the week:
Birimian Limited announces two potential top-deals!
A couple of days ago, Birimian Limited announced two potential top-deals!
The company advised, that it has entered into an agreement with Societe de Mines de Morila that could lead to the commercialization of several of its gold deposits within its Massigui Gold Project in Southern Mali. This agreement provides a potential low risk, low cost processing solution for these deposits, whilst the Company retains the significant upside potential for further gold discoveries on the broader project area. Under the terms of the agreement, Morila have been granted a six month option to acquire an Area of Interest within the Project. Upon exercise, Morila will make a payment of $1,000,000 and Birimian will retain a royalty of up to 4% of gold produced from the Area of Interest. The Massigui Gold Project surrounds the Morila mine lease on three sides and covers strike extensions of the highly prospective geological sequence that hosts the 7Moz Morila Gold Deposit. Birimian has made significant gold discoveries at three prospects, namely Ntiola, Viper and Koting. These prospects are situated in close proximity to the north-west of the underutilized 4 million tons per annum Morila Mine Treatment Plant. Over 35,000 meters of drilling has been completed on the project to date. The Morila Gold Mine is managed by Societe de Mines De Morila, a Joint Venture between operator Randgold Resources, Anglogold Ashanti, and the Republic of Mali. Commencing production in 2000, the mine has since produced in excess of 7Moz of gold. The project has now largely exhausted existing ore sources and therefore needs other possibilities to feed the mill. The Area of Interest comprises only 11km2 and covers the gold deposits at Ntiola and Viper. The balance of the project area (~740km2) is controlled 100% by Birimian. The early stage, high potential, Koting Prospect and other highly prospective areas are not included within the Area of Interest. The Company intends to undertake further low cost exploration and drilling activities at these locations.
Furthermore, the company announced the signing of a strategic Memorandum of Understanding with Tongdow Group, a multibillion dollar Chinese company with high tech logistics and commodity trading operations. The MoU provides scope for a range of mutually beneficial transactions including off-take, mine development and partnering with Tongdow to achieve spot market pricing of Birimian‘s lithium products.
The key terms of the MoU address:
- Leveraging Tongdow’s experience and broad resources to bring the Bougouni Lithium Project into production as soon as possible.
- An understanding that both companies will work to establish commercial terms for offtake of spodumene concentrate from the Bougouni Lithium Project.
Due to ongoing shortages of lithium carbonate in China and immediate demand for spodumene from Tongdow’s existing clients, Birimian’s interests in progressing the rapid development of the Bougouni Lithium Project are well aligned with Tongdow. Whilst understanding Tongdow’s needs, the Company reserves the right to secure additional agreements as conversations with additional partners in China progress.
Both deals are potential company makers for Birimian Limited.
News: BGS secures Tongdow MoU
News: BGS agreement with Randgold
Video: BGS interview with Winton Willeese
Market Watch:
Precious Metals Conference Munich: Positive performance, but not yet euphoric!
The International Precious Metals and Commodity Conference Munich 2016 is history. The hall of the MVG-museum in Munich-Giesing nearly burst at the seams, which was completely different to 2015. On the one hand, there were more exhibitors and on the other hand the crowd was also bigger and more professional than one year before. The speaker quality was excellent as always. Altogether the performance was much better than one year before, but it was not euphoric. The commodity sectors seem to have learned understatement. Especially Endeavor Silver, which announced very positive quarterly results, Treasury Metals, Millennial Lithium and Sulliden Mining convinced the audience with their individual concepts. With First Majestic Silver, Santacruz Silver and Great Panther Silver, three more of the best silver companies were also present. Altogether a successful conference with a lot of positive aspects.
Videos coming soon!
Company News:
Sierra Metals with very positive results in Q3!
Last week, Sierra Metals announced very positive financial results from its Peruvian subsidiary.
Highlights for the Three Months Ended September 30, 2016 as follows:
- Revenues of US$ 29.5 million vs US$17.1 million in Q3 2015
- Adjusted EBITDA of US$ 13.9 million vs US$2.8 million in Q3 2015
- Total tons processed of 237,429 vs 193,558 in Q3 2015
- All in sustaining cost per silver equivalent payable ounce lower by 19% to US$11.80
- Silver equivalent production of 2.1 million ounces vs 1.5 million ounces in Q3 2015
- Copper equivalent production of 14.2 million pounds vs 10.3 million pounds in Q3 2015
- $27.3 million of cash and cash equivalents as at September 30, 2016
- $14.6 million of working capital as at September 30, 2016
Caledonia Mining: 2016 Earnings Guidance
A couple of days ago, Caledonia Mining provided an update on its operating and financial performance for the current financial year ended 31 December 2016. Production at the Blanket mine continues as expected and at the current gold price the Company expects to meet market expectations for revenue. The average grade achieved in October was below management expectations, but this appears to be a temporary deterioration and production guidance of 50,000 ounces of gold for 2016 is expected to be achieved. Operating costs at Blanket mine are also close to expectations and accordingly, the underlying performance of the company remains in line with market expectations. Therefore, Caledonia’s underlying performance is expected to be in-line with expectations, although earnings will be still significantly higher than reported earnings for 2015.
News: CAL earnings guidance 2016
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