Silver Wheaton's Profile Boosted by Progress at Antamina Mine

Silver Wheaton Corp. and Franco-Nevada Corp. hosted a mine tour of the Antamina Mine in Peru on March 2, and the promise of substantial additions to the streaming company’s assets prompted positive comments from two industry analysts. “With Antamina representing a significant proportion of SLW’s production profile, the tour highlighted the opportunity for substantial mine life extension, including the potential to upgrade material and add additional ounces through exploration,” analyst Andrew Kaip noted in a March 7 report for BMO Capital Markets. “We see Antamina as representing a meaningful proportion of SLW’s production profile,” Kaip stated. Production from Antamina totaled 431kt of copper in 2016, Macquarie analyst Michael Siperco wrote in a March 6 report. In addition, guidance from Silver Wheaton and Franco-Nevada “implies total silver production averaging 14–16moz over the next 20 years.” Macquarie considers Antamina a “top ten global producer of copper, zinc and silver,” with the site encompassing “a polymetallic skarn deposit containing copper, zinc (together ~90% of mine value), silver, molybdenum, lead and bismuth.” Silver Wheaton Corp. (SLW:TSX; SLW:NYSE), like Franco-Nevada Corp. (FNV:TSX; FNV:NYSE), has “multiple multi-decade streams on high quality mines with high quality counterparties,” Siperco continued. “These are the type of assets that have set SLW and FNV apart from their competitors, and should support cash flow generation and dividend increases for decades to come.” According to Macquarie, “both FNV and SLW will continue to be core holdings for investors looking for low-risk exposure to precious metals in growing, dividend-paying vehicles.” Kaip noted “SLW … Continue reading

Trevali Proving Zinc Is Golden

Trevali Mining has added a portfolio of zinc assets to its already impressive resource list with the purchase of Glencore’s producing Rosh Pinah and Perkoa zinc mines. Trevali Mining Corp. (TV:TSX; TV:BVL; TREVF:OTCQX) announced on March 13th its agreement to purchase a portfolio of zinc assets from Glencore International Plc (GLEN:LSE), “which includes “80% interest in the Rosh Pinah mine in Namibia, a 90% interest in the Perkoa mine in Burkina Faso, an effective 39% interest in the Gergarub project in Namibia and an option to acquire 100% interest in the Heath Steele property in Canada.” Dr. Mark Cruise, president and Chief Executive Officer of Trevali stated, “The acquisition of Rosh Pinah and Perkoa is a historic event and unique opportunity for Trevali shareholders, and sets the stage for a multi-asset, low-cost global zinc producer.” Glencore will increase its stake in Trevali to 25% from 4% and will gain an additional seat on Trevali’s board, bringing Glencore’s seats to two. Glencore will also have the offtake from all four of Trevali’s mines. The acquisitions extend Trevali’s zinc reach globally, adding mines in Africa to its ongoing operations in Canada at Caribou and in Peru at Santander. In a Mar. 13 report, Paradigm Capital analyst Jeff Woolley stated that the Santander mine is “generating positive cash flow and its second mine, Caribou, now commercial,” is moving Trevali into a path for growth. Woolley’s 2017 forecast has Trevali’s “payable production of 178Mlb Zn (+19% y/y) and 216Mlb ZnEq (+10%y/y) at a cash … Continue reading

Great Panther Is on the Prowl for Acquisitions

Great Panther Silver’s modus operandi is to buy a past-producing mine, get it up and running as quickly as possible, and use the cash flow to fund more acquisitions, says CEO Bob Archer in this interview with The Gold Report. Having succeeded in Mexico with Guanajuato and Topia, the company is now taking on Coricancha in Peru. The Gold Report: Can you start off by telling us your perception of the silver market and how you think silver is going to perform in the Trump era? Bob Archer: I believe precious metals bottomed near the end of 2015. Through 2016 we saw quite a nice rebound both in metal prices and in market sentiment, so that’s been very positive for the industry. The price of silver rebounded a lot faster than the price of gold. That reversed the gold-silver ratio that had been going up until the end of 2015, when it peaked at about 83 or 84. Through 2016, on a percentage basis, silver outperformed gold, so the ratio has dropped back down. At one point it got down to around 65, but it’s back up around 70 right now. I think that trend will continue: The gold-silver ratio will continue to decrease. The longer-term average over the last 10 to 20 years has been around 60. But when metal prices peaked in 2011, that ratio went down to about 35. So there is a very good sense that silver will outperform gold quite significantly over the next few … Continue reading

Time to Get Back into Gold Stocks

Money manager Adrian Day updates developments and guidance from three major gold companies. Gold stocks have been on their not-untypical first-quarter ride, rallying 33% from the mid-December lows before giving back most of that move. The decline in mining circles is known as the “PDAC curse,” since it occurs right before the world’s largest mining conference in Toronto. This year’s show, which attracted over 24,000 attendees, up a little from last year though still down some 20% from 2012’s record, had an air of growing optimism, among both companies and attendees, though far from mania. One good sign: many exploration companies noted that the senior companies seemed more interested in doing deals than they had been the last few years. Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE, 10.64) remains the most undervalued and prospective of the royalty companies on our list. Of course, the valuation gap to its large royalty peers is partly justified, since Osisko is the newest of the “Big Four,” with fewer assets and less diversification. Its assets, however, particularly its cash-flowing assets, are high-quality in a safe jurisdiction (Canada), and it is working hard to add more royalties and close the gap. New silver revenue At the end of February, Osisko acquired a cash-flowing stream, on the long-life Gibraltar mine. A copper mine in British Columbia, Gibraltar has a 23-year plus life. With a US$33 million upfront payment, Osisko has the right to buy 75%-owner Taseko’s share of silver production, for future payments of $2.75 per ounce. … Continue reading

Gold Standard Ventures Offers District-Scale and Takeout Potential

Gold Standard Ventures’ aggressive 2017 drill program has the potential to substantially increase resources at its Nevada project, and with Goldcorp and OceanaGold owning substantial percentages of the company, Gold Standard has already caught the eye of producers. Gold Standard Ventures Corp. (GSV:TSX.V; GSV:NYSE) announced last month an exploration program for 2017 at its 100%-owned Railroad-Pinion project in the Carlin Trend in Nevada. The program includes up to 48,000 meters of reverse-circulation drilling and core drilling in 117 holes. According to the company, the program will aggressively drill the North Dark Star gold discovery, drill to expand known resources at Dark Star and Pinion, and drill to test high-value targets. Jonathan Awde, CEO of Gold Standard stated: “Railroad-Pinion has now become a truly district-scale play with multiple deposits of different types. Each year, we set out to find the limits of the gold systems we have discovered and each year we end up with new opportunities that exceed our expectations. We think 2017 will be no different. We believe we have found the right balance between expanding and advancing resources at known deposits and continuing to evaluate the many new targets that have emerged over the past year. This should be a very exciting next few months.” Gold Standard’s 2016 successful drill program connected North Dark Star gold deposit and the main Dark Star deposit, discovered a western extension of the high-grade Dark Star mineralization, and found a northern extension of the high-grade North Bullion Deposit. These discoveries offer the … Continue reading

Integra Gold's Lamaque Looking Better Than Ever After Updated PEA Announcement

Integra Gold’s updated 2017 PEA on the Lamaque South Gold Project doubled the life of mine estimate, increased total ounces 156% and reduced total mine costs to CA$86/tonne. In a Feb. 27 press release, Integra Gold Corp.’s (ICG:TSX.V; ICGQF:OTCQX) announced an updated PEA for its 100% owned Lamaque South Gold Project located in Quebec. A few positives from the PEA included an increase in mine life from 4.5 years to 10.5 years, average gold production projected at 123,000 ounces annually and a reduction in total mining costs to C$86/tonne. Integra President and CEO Stephen de Jong added that “this study further demonstrates Lamaque’s extremely rare positioning as a project in a safe jurisdiction with high grades and high margins, with the potential to be up and running in less than two years.” Supporting de Jong’s optimistic statements was Tara Hassan, an analyst for Raymond James. In the Raymond James Mar. 2 report, Hassan stated that “the most significant positive changes over the previous study were increases to throughput, annual production, and mineable resources.” Hassan highlighted that “Lamaque ranks well against Canadian producers. . .and now, with the updated PEA, this is even truer. Comparing producing projects with an average resource grade of greater than 2 g/t Au, Lamaque’s new production profile moves it up one spot to rank 9th, and its top rank on costs is maintained. Integra’s current valuation (0.66x NAV and US$55/oz) also ranks it favorably against a group of developer peers (0.68x NAV and US$61/oz).” George Topping, … Continue reading

Darnley Bay Resources: Bringing an Old Zinc District Back to Life

Several zinc mines have shut down in the past few years due to depletion, and the warehouse inventory levels of the base metal have been steadily declining. The market is finally waking up and starting to look at zinc companies again. Thibaut Lepouttre of Caesars Report profiles Darnley Bay Resources, one of the companies hoping to fill the supply gap. Darnley Bay Resources Ltd. (DBL:TSX.B) acquired a past-producing zinc asset in receivership and will publish a new PEA within the next few months. Pine Point produced almost 10 billion pounds of zinc, and it hasn’t been mined out In October of last year, Darnley Bay entered into an agreement with the court-appointed receiver of Tamerlane Ventures to take possession of the Pine Point zinc project, located less than 50 kilometers east of the Hay River in the Northwest Territories. The project isn’t just one big zinc zone, but actually consists of in excess of 40 zinc-lead deposits over a total strike length of almost 70 kilometers. Of these deposits, ten have been the subject of an NI-43-101 report, compiled for Tamerlane Ventures, which owned the asset before going into receivership. The acquisition terms are actually very straightforward—the receiver probably really wanted to get it off its books and recoup a part of the losses. Using a valuation of CA$0.20 per share, which is where Darnley Bay priced its most recent hard dollar private placement, Darnley Bay paid a total consideration of approximately CA$8M to acquire 100% of the asset in … Continue reading

No Surprise in Recent Moves in Gold and Silver Markets

Precious metals expert Michael Ballanger reflects on the cause of this week’s decline in precious metals markets, and contemplates the factors that will help him determine a bottom. Given the big down move this week in the precious metals, it would certainly follow that the activities of the Commercials would be no surprise. They matched all of the demand brought to bear on the Crimex gold pit by selling over 40,000 contracts representing over 4,000,000 ounces of synthetic gold, and then nudged the gold market off the ledge. They did it with much-revered aplomb, but nowhere more daunting than in the nearly $1.00 collapse in silver that had the blogosphere buzzing last week. After several decades of this maddening collusion, nothing surprises me anymore. To have an order executed with such virulence and total disregard to “Best Price Possible” is a clear signal from the ruling elite that removing fiat currency from the system in favor of real money will not be tolerated. To deplete your bank balance at your local Fed-member bank is considered to be blasphemy in the religious order of fiat worship, because every dollar you deposit of your own fiat allows the bankers to play around with ten to fifteen times that in discretionary deal flow and trading. The more fiat you remove in favor of real money, such as gold and or silver, the less room (leverage) the banks have to “play.” The Indian central bank has been battling this for decades because Indian citizens … Continue reading

MAG Silver's World-Class Property Just Keeps Getting Better

MAG Silver appears to have the Midas touch: Everything it drills turns up silver—with a gold byproduct and lots of zinc, lead and copper thrown in for good measure. MAG’s first drill hole discovered the Juanicipio vein and hole #16 discovered the Valdecañas vein, both world-class deposits. In this interview with The Gold Report, MAG CEO George Paspalas discusses the company’s JV in the Fresnillo Trend, the latest off-the-chart deep discoveries and where MAG goes from here. The Gold Report: What is your view of the silver market, and how do you think silver is going to perform under the Trump administration? George Paspalas: The fundamentals for silver have been strong for quite a while. A lot of the new technologies, things like electronics and nanotechnology, have big silver demand. I think both precious metals, silver and gold, will do well in the Trump era. The honeymoon’s probably coming to an end, and we’re going to start to see some real traction on both gold and silver. But fundamentally silver has a bigger component of commodity consumption than gold has. As gold gets stronger, people turn to silver as a more affordable store of wealth and risk protection. I think the silver market is strong, and in the biotech as well as the technology sectors consumption in silver will increase. A lot of silver is produced from byproducts, particularly from zinc mines. Some of the big zinc mines that have produced a lot of silver have been shut down. The … Continue reading

Investors Are Becoming Bullish on Commodities

Investors are increasingly turning to commodities as prices rally. Dow Jones reported that the S&P GSCI Index, a measure of commodity futures, was up 28% last year: “many commodities have continued to rally this year. Oil and natural-gas prices have soared more than 50% over the past 12 months. Precious metals like silver and materials like lumber have scored big gains in recent weeks.” Citigroup noted, according to Dow Jones, that “commodity assets under management globally rose 7% in January from the previous month to $391 billion, up more than 50% compared with the previous year.” “The Materials Price Index, which tracks oil, metals, lumber and other commodities, closed higher for a record 17 straight weeks before finally falling in the last week of February,” Dow Jones reported. Investors are becoming more bullish on economic growth, hoping that President Donald Trump’s $1 trillion infrastructure pledge will come to fruition. Bloomberg reported that deal-making is starting to pick up in the metals arena: “Transactions announced in the first two months of the year climbed 41 percent to $7.6 billion from a year earlier, according to data compiled by Bloomberg. That’s the best start to a year since 2013, before gold and copper entered bear markets. Premiums for the deals announced in February averaged 33 percent, the highest since August, data show.” “Investors poured about $4.9 billion into exchange-traded funds that track materials companies in the three months through March 3, beating funds linked to technology firms, according to data compiled by … Continue reading