Top-News of the week:
Sierra Metals sets another production record + New price target!
Last week, Sierra Metals announced another production record! According to this, the company’s Yauricocha Mine achieved historic production for a second sequential month in September, 2016. The Mine produced 83,661 Dry Metric Tons (“DMT”) or 2,789 tons per day on average for the month. This is the most tonnage ever produced in one calendar month in the history of the Mine and exceeded the previous best month achieved in August 2016 of 82,149 DMT.
Background: Sierra Metals Inc. is a Canadian mining company focused on production of precious and base metals from its Yauricocha Mine in Peru, and its Bolivar Mine and Cusi Mine in Mexico. In addition, Sierra Metals is exploring several precious and base metals targets in Peru and Mexico. Projects in Peru include Adrico (gold), Victoria (copper-silver) and Ipillo (polymetallic) at the Yauricocha Property in the province of Yauyos and the San Miguelito gold properties in Northern Peru. Projects in Mexico include Bacerac (silver) in the state of Sonora and La Verde (gold) at the Batopilas Property in the state of Chihuahua.
At the moment, the company is working on an improvement program at the Yauricocha Project.
That is one of reasons why Cormark Securities recently raised its course aim for the Sierra Metals stock from 1.95 to 2.50 CA$.
News: Sierra Metals with next monthly production record
Research: Cormark Research: 2.50CAD price target SMT
Video: Mark Brennan, CEO, interview at PDAC 2016
Market Watch:
OPEC nations with an agreement on an oil production limit – Good for (the) alternatives and for lithium companies!
At the end of September, the oil ministers of the OPEC reached an agreement on a limitation of the oil production. In future there shall not be produced more than 32.5 million barrels per day. Currently they produce around 33 million barrels. This limitation seems not to be very heavy, but it is an important sign of the OPEC for all other oil market actors. OPEC tries to set a bottom for the oil price. This bottom could lie at around 50 USD per barrel.
The fact that there will be another increase in oil demand in the coming years and the production from the non-OPEC nations seems to be stable or even to decrease, the oil price could lie above this 50 USD mark. A higher oil price will inevitably force the search for cheap(er) alternatives. Within the energy sector, these alternatives consist of possible ways to produce energy from solar, wind and water.
To temporarily store this energy, you need powerful accumulators. These accumulators – as well as batteries for electric vehicles, which will also show a boom at high fuel prices – are based on the lithium-ion-technology. No wonder, that the lithium price increased for the last two years. Should the price for this important commodity for accumulators stay at its current high level – which can be assumed – the stock of companies like Birimian Limited or Advantage Lithium, which have good lithium projects, will boom furthermore.
Lithium Report 2016: Lithium Report 2016 Download
Video 1: Birimian company presentation Commodity-TV
Video 2: Advantage Lihtium company presentation Commodity-TV
Company News:
Altona Mining: Extending of closing date for Cloncurry Joint Venture
A couple of days ago, Altona Mining has reached agreement with Sichuan Railway Investment Group to extend the last date for closing their proposed JV. Altona announced on 2 June 2016 the terms of the JV and that all conditions precedent were to be satisfied on or before 31 October 2016. While Altona and SRIG have made excellent progress with satisfying conditions precedent, SRIG has advised that due to internal procedures within the group, the approval processes within China and the structuring of SRIG's investment in the JV in an appropriate manner, they wish to extend the closing date to 31 March 2017. The parties will make every effort to close the transaction before this date.
Furthermore, the company announced, that drilling has commenced at the Company’s 100% owned Roseby South Project near Mt Isa in Queensland. The planned reverse circulation drilling program consists of approximately 15 to 25 holes and 2,500 meters of drilling at Harvest, Hobby and Reaper. No previous drilling has been undertaken at Hobby and Reaper, whereas reconnaissance drilling at Harvest by past explorers returned significant mineralized intersections. Drilling is expected to be completed by early November 2016.
Until this time, investors may see continuous drilling results. The extending of the closing date for the Cloncurry joint venture is consequent, in cause of the fact that there would be no forward steps between Christmas and the Chinese New Year’s Eve.
News: Altona and SRIG extend closing date for JV
Video: Dr Alistair Cowden interview at Commodtiy-TV
Uranium Energy: Final Dismissal of Previously Disclosed Lawsuit
Last week, Uranium Energy reported that the United States District Court for the Southern District of Texas has entered a final judgment in favor of UEC, dismissing the previously disclosed securities class action lawsuit against the Company. The Court dismissed the action in its entirety with prejudice to the plaintiffs. The Company further announces that on September 26, 2016, the United States Court of Appeals dismissed the plaintiffs’ appeal of the decision following the plaintiffs’ request for voluntary dismissal. As a result, the judgment in favor of the Company is now final. No settlement payments or any other consideration was paid by the Company to the plaintiffs in connection with the lawsuit’s dismissal.
News: UEC wins law suit
Video: Uranium Energy - production ahead?
Caledonia Mining: Heavy production increase and dividend!
A few days ago, Caledonia Mining announced the numbers from the third quarter. According to this, the company was able to produce approximately 13,430 ounces of gold during the quarter, representing a 23 per cent year on year increase on the gold produced in Q3 2015 (10,927 ounces) and a 7.4 per cent quarter on quarter increase on the gold produced in Q2 2016 (12,509 ounces). Caledonia also announced, that in terms of the ongoing investment program at Blanket Mine, a new ball mill has been installed and the commissioning process is proceeding as anticipated. The new mill will increase daily throughput at the Blanket plant by 20 per cent, from 1,500 t/day to 1,800t/d, and will allow Blanket to meet its plan to double 2015 production to 80,000 ounces by 2021.
Furthermore, the company declared dividend number 14 of one and three-eighths United States cents (US$0.01375) on each of the Company's common shares. The dividend represents an annualized dividend of 5.5 cents per share. In July 2016, Caledonia increased its quarterly dividend by 22 per cent from one and one-eighth cents per share to one and three-eighths cents per share.
News: Caledonia Q3-2016 production well underway, dividend!
Video: Interview with Mark Learmonth, CFO of Caledonia - Commodity-TV
Klondex Mines with completion of acquisition of the Hollister and Esmeralda Mines! - Successful conversion of subscription receipts
A couple of days ago, Klondex Mines announced the closing of its previously announced acquisition of all of the membership interests of Carlin Resources, LLC, the entity that owns, among other assets, the Hollister mine and the Esmeralda mine and ore milling complex located in Nevada.
The Acquisition was financed through the net proceeds of the bought deal private placement completed on August 18, 2016, pursuant to which 25,900,000 subscription receipts of the Company were issued at a price of C$5.00 per Subscription Receipt for aggregate gross proceeds of C$129.5 million, which net proceeds were released from escrow in connection with the closing of the Acquisition.
News: Klondex buys finally Hollister and Esmeralda
Video: Klondex company presentation
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