15.11.2016
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Topics:
Sibanye Gold + The “Trump-factor” rules the commodity sector – Coal and uranium facing a heavy comeback?! + Endeavour Silver + Klondex Mines
Lithium Report Update 1: Download Lithium Report Update 1
Top-News of the week:
Sibanye takes ownership of the Rustenburg Platinum Mines and implements management changes
A couple of days ago, Sibanye Gold  announced that the acquisition by a wholly owned subsidiary company, Sibanye Rustenburg Platinum Mines Proprietary Limited, from Rustenburg Platinum Mines Limited, of the Bathopele, Siphumelele (incl. Khomanani), and Thembelani (incl. Khuseleka) mining operations, two concentrating plants, an on-site chrome recovery plant, the Western Limb Tailings Retreatment Plant, associated surface infrastructure and related assets and liabilities on a going concern basis, including normalized levels of working capital has become effective at, November 1st 2016. The Transaction has now been fully implemented, following settlement of the Initial Upfront Purchase Price of R1.5 billion in cash, from Sibanye’s existing cash resources and debt facilities. Sibanye also announced that the broad based black economic empowerment ownership of SRPM has been agreed and implemented from 1st November 2016 such that Sibanye holds 74% of SRPM, with the remaining 26% held through Newshelf 1335 Proprietary Limited.
Following the successful integration of the platinum assets previously owned by Aquarius Platinum Limited into Sibanye, Jean Nel has resigned as CEO of the Platinum Division, effective 1st November 2016. Robert van Niekerk, previously EVP: Organizational Effectiveness at Sibanye, has been appointed as CEO of the Platinum Division. Robert has significant operating and integration experience across the mining industry, including 5 years in senior operational roles at Anglo American Platinum’s Rustenburg operations.
Dawie van Aswegen has also been appointed SVP: Technical Services for the Platinum Division. Dawie has 20 years’ experience working for AAP in the Rustenburg Operations in various roles. Between January 2012 and September 2015, he was the General Manager of the Bathopele mine (mechanized section) and from September 2016, the GM of RPM’s East Mine, which consisted of the Bathopele and Siphumelele mechanized sections and the Siphumelele conventional sections.
Therewith, Sibanye Gold not only acquired the Rustenburg Platinum Mines including all plants, cash and liabilities, but also got the creative head of the Rustenburg operation into the boat. Therewith, the company should enter the squad of the worldwide top 5 platinum producers by 2017.
News: Sibanye Gold - Rustenberg Platinum
Video: Sibanye Gold Company presentation
 

Market Watch:
The “Trump-factor” rules the commodity sector – Coal and uranium facing a heavy comeback?!
There were many commodity experts who forecasted this at the Munich Conference: Donald Trump will become the 45th president of the US! The more surprised the mainstream dominated markets reacted as it happened. Altogether nearly all commodities could gain some wins. Trump’s planned infrastructure program led to a good performance at base metals, especially copper. But also, precious metals, especially silver, were able to gain some wins in the first days after the election. Crude prices instead fell to multi-month-lows. Trump seems to favor coal and nuclear-power, which helped and will help coal and uranium stocks to gain first wins. Especially nuclear power and the uranium industry shall profit from this development in the next year(s). We will keep you informed about these facts in the next issues.
 

Company News:
Endeavour Silver announces very positive quarterly results and completes Parral acquisition
A few days ago, Endeavour Silver reported its financial results for the third quarter ended September 30, 2016.
The financial highlights of Third Quarter 2016 (Compared to Third Quarter, 2015) are as follows:
  • Net earnings of $5.6 million ($0.04 per share) compared to a net loss of $14.1 million (loss of $0.14 per share)
  • EBITDA increased 703% to $10.8 million
  • Cash flow from operations before working capital changes increased 72% to $8.2 million
  • Mine operating cash flow before taxes increased 48% to $17.8 million
  • Revenue decreased 1% to $42.1 million
  • Realized silver price increased 31% to $19.16 per ounce (oz) sold
  • Realized gold price increased 25% to $1,340 per oz sold
  • Cash costs decreased 35% to $5.27 per oz silver payable (net of gold credits)
  • All-in sustaining costs (AISC) decreased 24% to $11.47 per oz silver payable (net of gold credits)
  • Raised net proceeds of $13.9 million in Q3, 2016 to complete second ATM equity financing
  • Cash increased 308% to $83.2 million and working capital increased 433% to $91.9 million from year end
The most important cognition out of these results: It seems that Terronera could be realized with this amount of cash, without any credit or new equity financing. However, the company should have a look on keeping some amount of buffer.
Furthermore, Endeavour Silver announced the closing of the acquisition of a 100% interest in the Parral properties from Silver Standard Resources Inc. Under the terms of the agreement, Endeavour has issued 1,198,083 common shares to Silver Standard, and has agreed to spend US$2 million on exploration over the two-year period following the closing date. On completing this exploration expenditure, Endeavour will have one year to deliver a National Instrument 43-101 technical report, including a resource estimate, and issue an additional US$200,000 in common shares to Silver Standard for each one million ounces of silver delineated in measured and indicated resources on the San Patricio and La Palmilla properties.
With its current amount of cash and the completion of the Parral acquisition, Endeavour Silver should be able to fulfill its plan to bring three new mines into production within the next three years.
News: Endeavour Silver Q3-2016
Video: Newsflash #42
 
Klondex Mines with an incredible third quarter!
Last week, Klondex Mines published its third quarter results.
The highlights of the third quarter were as follows:
  • Health, Safety, and Environmental - No lost-time injuries or environmental citations at Fire Creek, Midas or True North.
  • True North - Positive production decision and first gold sold, now have three producing mines.
  • Cash Flows and Liquidity - Strengthened financial position and liquidity. Following a CA$129.5 million equity offering, cash balance of US$131.1 million, working capital of US$119.9 million (ratio of 4.1:1), and total liquidity of US$144.9 million when including the Revolver availability. On October 3, 2016, remitted US$80.0 million payment to complete Hollister Acquisition.
  • Ounces Sold and Financial Results - Sold 41,553 gold equivalent ounces, consisting of 36,648 gold ounces and 362,500 silver ounces. Revenue of US$53.0 million from average selling prices per gold and silver ounce of US$1,276 and US$17.26, respectively. Net income of US$7.2 million (or US$0.05 per share - basic).
Therewith, the company once more continued to deliver on its commitments as the third quarter operating and financial results were in line with its plans. Due to the planned development activities conducted throughout the year, Klondex is well positioned to achieve its full year production and cost guidance.
News: Klondex Q3-2016
 
 
 
 
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Hinweis gemäß §34 WpHG (Deutschland) und gemäß § 48f Abs. 5 BörseG (Österreich) sowie Art. 620 bis 771 Obligatorenrecht (Schweiz) zu bestehenden Interessenskonflikten der Swiss Resource Capital AG und der Autoren der Swiss Resource Capital AG:
Sowohl die Swiss Resource Capital AG, als auch die Autoren der Swiss Resource Capital AG halten aktuell Aktien von Unternehmen, die in dieser Publikation erwähnt wurden. Es besteht somit ein Interessenskonflikt nach oben genannten Paragraphen. Ferner beabsichtigen sowohl die Swiss Resource Capital AG, als auch die Autoren der Swiss Resource Capital AG in naher Zukunft, sich von Aktienbeständen zu trennen und damit von steigenden Kursen und/oder erhöhter Liquidität der jeweiligen Aktie zu profitieren. Zudem behalten sich sowohl die Swiss Resource Capital AG, als auch die Autoren der Swiss Resource Capital AG vor, jederzeit Aktien von Unternehmen, die in dieser Publikation erwähnt wurden zu kaufen oder zu verkaufen, auch unabhängig von einer Berichterstattung in Publikationen der Swiss Resource Capital AG. Auch hieraus ergibt sich ein entsprechender Interessenskonflikt nach §34 WpHG (Deutschland) und gemäß § 48f Abs. 5 BörseG (Österreich) sowie gemäß Art. 620 bis 771 Obligatorenrecht (Schweiz).
Ferner machen wir darauf aufmerksam, dass die Swiss Resource Capital AG IR-Beratungsverträge (Übersetzungen, Organisieren von Roadshows, Unterstützung bei der Suche nach Investoren bei Kapitalerhöhungen etc.) mit, in dieser Ausgabe erwähnten Unternehmen geschlossen hat und daraus ebenfalls Interessenskonflikte nach §34 WpHG (Deutschland) und gemäß § 48f Abs. 5 BörseG (Österreich) sowie gemäß Art. 620 bis 771 Obligatorenrecht (Schweiz) bestehen.
 
Die Swiss Resource Capital AG sowie die Autoren der Swiss Resource Capital AG halten aktuell Aktien an folgenden, in dieser Ausgabe erwähnten Werten: Sibanye Gold + Endeavour Silver + Klondex Mines.
Die Swiss Resource Capital AG hat mit folgenden, in dieser Ausgabe erwähnten Unternehmen IR-Beratungsverträge geschlossen: Sibanye Gold + Endeavour Silver + Klondex Mines.

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