PDAC Toronto:
From March the 5
th till March, the 8
th, the world’s most important and largest mining conference PDAC happened in Toronto. We were there and would like to inform you about the most important facts and interesting companies as follows.
At first, we were impressed from this year’s scenery. After a minus record last year, with only 22,000 participants, we now had the impression, that there must be over 30,000 people at PDAC 2017. Meanwhile, the organization announced some 24,200 visitors, what we cannot really believe.
There was also a world of difference from an atmosphere perspective. While in 2016 there was some kind of somber atmosphere, we recognized only smiling faces at PDAC 2017. Financing deals can be made much easier than one year before and the investor’s interest has also dramatically risen. Main tenor was, that capital is seeking for alternative investments in times of low interest rates.
Furthermore, many company representatives disclosed us that there are a couple of shortages within the commodity sector or that those are imminent. Especially the base metals zinc and copper and the silver sector, which faces a supply deficit of more than 180 million pounds in 2017. Furthermore exciting: the uranium sector, where big producers like Kazatomprom and Cameco already announced, that they will cut their production and where only two North American companies (Denison Mines and Fission Uranium) would be able to establish new mines within the next seven years. In addition to this, the number of worldwide nuclear reactors is rising.
In summary, a successful PDAC, which shows the future trend: Upwards!
All Videos from PDAC 2017:
All Videos from PDAC 2017
Video 1:
PDAC 2017: Biggest Mining Convention with over 24.000 Attendees in Toronto
Video 2:
Uranium Energy: "Uranium Supply Demand Imbalance Will Push Prices in 2017"
At the following, we want to give you some impressions and news from some of the most outstanding companies, present at PDAC:
Alabama Graphite
As CEO Don Baxter told us, the company recently had a meeting with US-senator Richard C. Shelby, who was impressed by the company’s progress. Furthermore, Alabama Graphite enjoys confidence by the U.S. Department of Defense, which is seeking for local sources for battery-grade graphite. So far, it comes nearly completely from China, which itself imports parts of this amount of battery-grade graphite from North Korea. A factum, which moves the US to support local projects. Baxter didn’t give any comment on Tesla Motors. Fact is, that a „green car“ can hardly be sold with ingredients from North Korea.
Video:
Alabama Graphite: Developing Pure Graphite Deposit for Li-ion Batteries in the US
Birimian Limited
We were able to meet the management and confronted it with the recently bounced acquisition deal. They made clear, that the Chinese bid was real, but had to be cancelled due to Chinese money transfer restrictions. However, we think, that this may have been not the last offer from interested parties.
At least for the fact, that Birimian recently announced additional high grade drill results from its Goulamina lithium deposit.
The most important results were as follows:
- 38m @ 1.81 % Li2O from 116m
- 31m @ 1.82 % Li2O from 156m
- 19m @ 1.76 % Li2O from 163m
- 14m @ 1.81%Li2O from 127m
- 33m @ 1.99% Li2O from 174m
- 30m @ 1.56 % Li2O from 125m
The Company expects to be able to provide an interim resource update before the end of March. It is expected this update will broadly capture resource extensions from West Zone and the new discovery at Sangar Zone. Given the relatively steady progress with drilling and the extended time required for assay to be returned, a further update to the resource model is now anticipated by the start of May. This estimate is expected to include all results from infill drilling to support significant resource category upgrades and facilitate ongoing Pre-Feasibility Studies.
Endeavour Silver
Endeavour Silver saw a massive crash on March, the 2nd, after publishing relatively bad quartile numbers. These mainly came off for the fact, that Endeavour Silver puts all its costs into the fourth quarter, instead of splitting them into several quarters, as many competitors do. The trading behavior on March, the 2nd strongly looked like algorithmic steered, automatic computer trading.
Independent from that, Endeavour will announce a couple of top-class news within the coming weeks, e.g. drill results from Terronera and PEA’s from, El Compas and Terronera.
Video:
Endeavour Silver: "The Only Way to Rebuild Confidence is to do a Good Job"
Energy Fuels
Energy Fuels is the 2nd-largest uranium producer in the US, after Cameco and owns production capacities of over 11 million pounds of U3O8 p.a. The company owns several low-cost mines and would be able to significantly increase its production at a uranium price of 40 US$. Therewith, Energy Fules offers a high leverage on the uranium spot-price.
Video:
Energy Fuels: 2nd Largest Uranium Producer in the US
MAG Silver
MAG Silver organized an analyst presentation with over 50 experts from well-known analyst houses around PDAC. Thereby, the company was able to convince mainly with the upcoming resource expansion potential. Especially the newly discovered Anticipada vein shows further high-grade expansion potential to depth and along strike. MAG Silver currently works on an extended resource estimate, which shall be published in the second quarter. Furthermore, the company is in ongoing discussions with its partner Fresnillo to sink an internal shaft besides the already existing ramp, to access the deeper zone sooner. Considerations include increasing the processing plant nameplate capacity from 2,650 tons per day to 4,000 tons per day, which could slide the anticipated project start-up from the second half of 2018 to the first half of 2019. A formal project approval is being expected in the next 3 to 4 months.
Video: Lunchpräsentation in Toronto!
MAG Silver: Upside Potential Presentation at PDAC 2017
Video: Interview mit Dr. Peter Megaw aus Toronto:
MAG Silver: Considering Huge Scaling of Developing Silver Mine
Metallic Minerals
Metallic Minerals is one of the most interesting companies, that we met at PDAC. The company owns the Keno-Lightning project in the Yukon Territory and recently announced top-class exploration results with up to 8,800g/t silver right from the surface! Awesome results, considering the fact, that Alexco Resource is successfully producing nearby. Furthermore, the Keno District historically produced silver more worth than there has been minded gold at the Klondike, which the Yukon is most famous for. In addition, Metallic Minerals has a management team which already discovered more than 40 million ounces of gold, 150 million ounces of silver and 12 billion pounds of copper.
Video:
Metallic Minerals: Further Silver Exploration in 2017 Next to Alexco Silver
Montan Mining
Montan Mining currently works on a combination of own production and toll-milling in Peru. In contrary to its competitors, one of Peru’s richest families, which also operates the country’s largest private toll-milling company is backing up the company. Montan was able to acquire two producing facilities very quickly, which will generate cashflow and earnings from the beginning on. Even though several toll-miller had to already give up, Montan Mining has much more quality.
Video:
Montan Mining: Growing Mineral Processing Company in Peru
Osisko Gold Royalties
Osisko Gold Royalties made an excellent impression, not only at its Toronto evening-event! Quite on time for PDAC, the company was able to announce the completion of a silver stream with reference to silver produced at the Gibraltar copper mine. The acquisition is expected to increase Osisko's production by approximately 200,000 ounces of silver for the next 14 years, increasing to an average of 350,000 ounces of silver for the remainder of the 23-year reserve life of Gibraltar. The transaction effective date is January 1, 2017.
Video:
Osisko Gold Royalties: Over 50 Royalty Companies Signed - More to Come in 2017
Silvercorp Metals
Silvercorp Metals gave notice at PDAC, that it is seeking for high-grade projects outside of China, which can be brought into production fast. A little bit surprising, although some kind of geographical diversification should not be amiss. The company’s focus lies on Latin- and South-America.
Video:
Silvercorp Metals: Looking for an Acquisition in the Americas
Treasury Metals
Treasury Metals recently announced the results from an updated Preliminary Economic Assessment (PEA) from its Goliath Gold Project.
Highlights are as follows:
- The PEA benefits from a 37% increase in the Life of Mine gold production profile, while taking a conservative approach with respect to operating and capital costs compared with the 2012 PEA.
- Average annual production of 87,850 oz Au over a 13-year combined open pit and underground mine life; peak production exceeding 100,000 oz per year Au from years three to six.
- LOM head grade of 3.8 g/ton (Au), an increase of 33% from the 2012 PEA.
- Total cash cost is estimated at US$518 per equivalent gold ounce and an all-in sustaining cost, estimated at US$566 per AuEq.
German Resource Night still to come!
The next big event, the German commodity night (Deutsche Rohstoffnacht), organized by ourselves, will happen on April, the 7
th 2017 around the Invest in Stuttgart. Guest speakers will be Dr. Torsten Dennin, Head portfolio management Tiberius Asset Management, Zug, Hannes Huster, chief-editor and owner of the stock newsletter DER GOLDREPORT and Ronald Stöferle, fund manager Incrementum AG, Liechtenstein & gold analyst – author of „In Gold we trust“. In addition to this, two leading silver-/gold-producer, namely Endeavour Silver and Sierra Metals will present themselves. Please secure your ticket ASAP, as places are strictly limited.
http://www.deutsche-rohstoffnacht.de/