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Top-News of the week:
Timmins Gold: Surprisingly increase in quarter production! More to come?
Timmins Gold had some difficult times within the last months. As the company announced to set the San Francisco Mine into care and maintenance by midyear, the stock seemed to be as dead as a doornail. But since that time the gold price raised and now it seems that this issue in combination with higher grades and a lower strip ratio may cause into an extension of the production for several years. One could have this impression by having a look on Timmins Gold’s numbers of the first quarter of 2016. According to this, the company produced 25,120 ounces of gold within the first three months of this year, an increase of 4% compared to Q1/2015 and at the same time the best production quote since more than one year. Even if the revenues decreased a little bit in cause of a lower gold price, it seems that the wisdom that there's life in the old dog yet is a perfect match in this case. To add to this matter, the market cap is that low at the moment, so that Timmins Gold may be a perfect target for a takeover, especially for Goldcorp which is one of the company’s largest creditors. Such a scenario would be a sensation and could lead to a complete revalidation of the Timmins shares.
Market Watch:
Precious Metals still strong! Silver begins with its pursuit race! Precious Metals near the beginning of a bull market!
Precious Metals performed still strong in the last week. A weaker US$ enabled gold to jump in midweek. Thereby it became apparent that silver began its pursuit race compared to gold, as we propagandized the weeks before. Therefore the gold-silver-ratio decreased from 82:1 to under 78:1 in the meantime. Especially the physical demand on coins and bars and institutional buying of silver derivates should let the silver price outperform in comparison to gold in the next weeks. At the chart front, silver had been able to jump over the mark of 16.04 US$ and even more climbed to 16.35 US$ in the meantime. The next resistances lie at 16.65 and 17.30 US$.
The gold price also gained some cents. One reason for that may have been the ending of the strike of Indian gold dealers. Those recently protested against a new VAT which the Indian government will keep meanwhile, but which may hardly stop the next boost of India’s gold demand.
By the way: Should gold and silver also perform positive in the 2nd quarter of 2016, this would – by definition - indicate a sustainable recovery of prices and therefore the beginning of a new bull market!
Company News:
Endeavour Silver announces quarter numbers
A few days ago Endeavour Silver announces some numbers for the first quarter of 2016. According to this the company produced 1,510,065 ounces (oz) of silver and 15,960 oz of gold from the three operating silver mines in Mexico: the Guanaceví mine in Durango State and the Bolañitos and El Cubo mines in Guanajuato State. Thereby the silver production decreased 17% while the gold production increased 1% compared to Q1/2015. This resulted in a silver equivalent production of 2.7 million oz using a 75:1 silver gold ratio. In the current year, the company is strictly focused on producing less metal at a profit than more metal at a loss. According to this the production numbers will noticeable decrease within the next months. The main focus will lie on drilling of the existing resource area at Terronera, to be able to procure a production decision as soon as possible.
News: Endeavour Q1-2016
Cyprium Mining gets new cash
A couple of days ago Cyprium Mining announced the closing of the first tranche of its previously announced private placement of up to 8,000,000 units at a price of 0.065 CA$ per Unit for gross proceeds of up to 520,000 CA$. Under this first tranche, Cyprium issued 5,890,000 Units for gross proceeds of 382,850 CA$. The net proceeds of the First Tranche and the Offering will be used by the Corporation to pay for the continued development of the Potosi mining project in Mexico, the costs of the First Tranche and the Offering, for working capital and general corporate purposes. This gives the company the opportunity to advance the development of the Potosi silver mine in Mexico.
News: Cyprium Financing
Rumors Corner:
Endeavour Silver: Will a diamond scanner save El Cubo?
Endeavour Silver once again! There is a brand-new rumor that we heard at the Invest says, that Endeavour Silver is currently testing a process from the diamond sector which may save El Cubo. Therefore Endeavour seems to test an optical scanner which is able to identify silver grades in ore stones bigger than one inch in size. If such a stone shows appearance of silver it will attain the plant. If not, it will automatically be blew out via air pressure. Endeavour seems to have this process in the testing phase. Should it be successful tested, it may increases the overall feed grade and improve the capacity, which may cause into much lower All-In-Costs. At this time it is only a rumor, but we will keep a closer look on it.
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