@Newmont $NEM reports best quarter ever, raises dividend by 60%

Newmont has returned more than $2.5 billion to shareholders since 2019 through dividends & share buybacks.

Aim is to return between 40% and 60% of incremental attributable free cash flow that is generated above a US$1,200 per oz. gold price.

Every $100 above $1200/oz. represents $400 Million in FCF/year.

With the 60% increase in dividends, NEM currently yields 2.7%!

Guidance for the year remains unchanged at roughly 6 million oz. gold at an AISC of $1,015 per oz. (and 1 million gold-equivalent oz. from co-products).

#Mining the Sun: Mining sector on the verge of a #RenewableEnergy Boom -particularly #Solar.

BHP Nickel West has extended its PPA with Southern Cross Energy to 2038 as the mining giant looks to integrate renewable energy into its processes toward the goal of meeting its emissions reductions goals and producing 'sustainable nickel', a necessary requirement for potential client Tesla. The extended deal begins at Nickel West's Leinster and Mount Keith operations with the development of an 18.5 MW solar farm and battery storage system. 

Mining the sun

The mining sector is verging on a new boom, that of renewable (and particularly solar) integration. Mines tend to be remote and, certainly in Australia, sun-drenched. This combo means that solar is a very attractive option to mining operations that have so far relied on diesel. 

However, one of the main challenges to solar integration at many mine sites around the world is the tricky nature of mine life expectancy. This is to say, without a long-life expectancy, 10 plus years at least, it is difficult for a mine to commit to an on-site solar or wind farm. So far, the most popular route around this hurdle is PPAs, as in the case of BHP Nickel West and SCE. 

However, another option, demonstrated earlier this month at the Agnew Gold Mine in WA, is the installation of solar microgrids on site. The Agnew Gold Mine recently saw the completion of a 7.7 MWp hybrid microgrid and a 2 MW battery storage system by British energy firm Aggreko. 

The key to this latter project is that it is a modular and mobile solution. As Aggreko's Managing Director of Microgrids and Storage Solutions, Karim Wazi, told pv magazine Australia: "For MW-scale semi-permanent solar power plants, we enter into PPA contracts ranging from 5-15 years. This means that if a mine is only operational for five years, Aggreko can demobilise the assets and redeploy them to another customer, thereby assuming utilisation risks and providing flexibility for the customer. In 2021, we are launching a much more redeployable product in the 100kW range that we will be able to offer over rental periods as short as a few months." 

See the full Article here: https://www.pv-magazine-australia.com/2020/10/28/bhp-targets-sustainable-nickel-through-green-ppa-including-18-5-mw-solar-farm/

#Ghana’s #Agyapa #Gold Royalties Deal is Fraught with Risk and May Not Lead to the Rewards Expected

- Ghana government will allocate 75.6 percent of royalties from 16 areas under production or development

- The fund plans to then raise capital by selling 49% of these shares for an approximately USD 500 million on both the London and Ghana stock exchanges in an initial public offering (IPO).

- By offering as much as 49 percent in the IPO, the government also loses the potential benefit of selling additional shares later at a higher price while retaining majority ownership.

Risk and Reward in Ghana's Agyapa Gold Royalties Deal: Eight Points for Consideration

From the Natural Resource Governance Institute

1 October 2020

Key messages

• Under the plan, the government has created a royalty company and assigned a substantial portion of its future gold royalties to this company. It hopes to raise non-debt cash up front by floating almost half its shares in this company on the London and Ghana stock exchanges.
• Further consideration and public consultation might create the opportunity to strengthen the deal for the benefit of Ghana.

@Polyus Confirms #SukhoiLog As World's Biggest #Gold Deposit

Polyus has published the first ore reserves statement done under international JORC standards for #SukhoiLog.

The report states that the #SukhoiLog #Gold Deposit in Eastern Siberia—about 6000 km from Moscow—contains 540 Million Tonnes at an average grade of 2.3 grammes of gold per tonne (g/t), for a total of approximately 40 MILLION OUNCES OF GOLD, making it the largest gold deposit in the world among both Greenfield and developed mines.

The deposit, which accounts for about a quarter of Russia's entire unmined gold, makes Polyus the world's second-largest gold miner by proven reserves, the company said on Thursday. 

The announcement (conveniently) comes a month after Polyus agreed to pay $128.2m to accelerate the buyout of its partner in Sukhoi Log, Russian State defense group Rostec, and take control of the 22 per cent stake in the deposit that it did not already own. 

Read the whole story on the @FT here: https://www.ft.com/content/8d60ed78-4bba-46fc-bdb0-f880428e7be1

______________________________

MasterMetals

@MasterMetals

The Case for #Gold. It’s Simply Math, says John Hathaway of Sprott

Great piece from John Hathaway of Sprott 

Gold, The Simple Math

The current pullback in the precious metals sector is a buying opportunity. Since trading at a closing high of $2,064 an ounce on August 6, gold bullion has declined 8.34% as of this writing.¹ Gold mining shares have followed suit, declining 9.26% since the August high.² It is possible that gold and related mining shares could continue to chop sideways to lower until the U.S. presidential election results are known and even into yearend as the implications are sorted out. Whatever the electoral outcome, the path towards monetary debasement is bipartisan. It is crucial for investors to focus on the long-term trend and to avoid the distractions of short-term timing considerations.

The very strong investment fundamentals for gold and gold mining shares are based on what has been a slow irreversible drift towards significant U.S. dollar (USD) devaluation. Paper assets, including equities, bonds and currencies, have underperformed the dollar gold-price since 2000, the dawn of radical monetary experimentation by central bankers. Until recently, gold's strength has attracted little notice from mainstream investors. Widespread disinterest can perhaps be ascribed to the stealthy, long-term character of gold's outperformance. In addition, the absolute performance of equities and bonds has been positive over the past two decades, so there has been little incentive to look elsewhere.

Figure 1. Gold vs. Stocks, Bonds and USD
Relative Returns for Period from 12/31/1999-9/30/2020

Source: Bloomberg. Period from 12/31/1999-9/30/2020. Gold is measured by GOLDS Comdty Index; S&P 500 TR is measured by the SPX; US Agg Bond Index is measured by the Bloomberg Barclays US Agg Total Return Value Unhedged USD (LBUSTRUU Index); and the U.S. Dollar is measured by DXY Curncy. Past performance is no guarantee of future results. You cannot invest directly in an index.

Lack of Crowd Recognition Provides Opportunity

ORENINC #MiningStocks Financings Index Falls to 26-week Low as deals fall off

.@ORENINC #MiningStocks Financings Index down as deals fall off

Posted by Semeion Wong

Tuesday, 13 October 2020

ORENINC INDEX - Monday, October 12th 2020

North America's leading junior mining finance data provider

Last Week: 57.95

This week: 35.85

The Oreninc Index fell in the week ending October 9th, 2020 to 35.85 from 57.95 a week ago as the number of deals fell away.

On to the money: the aggregate financings announced decreased to $49.69 million, a 26-week low, which included one brokered financing for $13.1 million, an eight-week low, and one bought deal financing for $13.1 million, a one-week high. The average offer size fell to $2.26 million, a six-week low, while the number of financings fell to 22.

Summary

• Number of financings decreased to 22.
• One brokered financing was announced this week for $13.1 million, an eight-week low.
• One bought-deal financing was announced this week for $13.1 million, a one-week high.
• Total dollars fell to $49.69 million, a 26-week low.
• Average offer fell to $2.26 million, a six-week low.

Financing Highlights

Denison Mines (TSX:DML) opened a bought deal private placement to raise US$10 million.

• Subsequently raised to US$17.4 million
• 47 million shares @ US$0.37.
• Cantor Fitzgerald Canada and Haywood Securities as co-lead underwriters and joint book-runners.
• Proceeds to be used to fund evaluation and environmental assessment activities on its Wheeler River uranium project in Saskatchewan, Canada.

Major Financing Openings

• Denison Mines (TSX:DML) opened a $13.12 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada on a bought deal basis. The deal is expected to close on or about October 14th.
• Maple Gold Mines (TSXV:MGM) opened a $6.2 million offering on a best efforts basis. Each unit includes a warrant that expires in three years. 
• Sassy Resources (CSE:SASY) opened a $5 million offering on a best efforts basis. Each unit includes half a warrant that expires in two years. 
• Labrador Gold (TSXV:LAB) opened a $4.05 million offering on a best efforts basis. Each unit includes a warrant that expires in two years.

Major Financing Closings

• Wallbridge Mining Company (TSX:WM) closed a $63.83 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis.
• Trillium Gold Mines (TSXV:TGM) closed a $12.95 million offering underwritten by a syndicate led by Eight Capital on a best efforts basis. Each unit included half a warrant that expires in two years.
• Kodiak Copper (TSXV:KDK) closed a $12.68 million offering on a best efforts basis.

Desert Mountain Energy (TSXV:DME) closed a $9.12 million offering on a best efforts basis.

Read the full report on Oreninc here: http://oreninc.com/orenthink/entry/oreninc-index-down-as-deals-fall-off

________________________

bit.ly/MasterMetals 

#Gold down from its overnight highs, but still holding above $1900/oz, last @ $1925.50 $GLD

#Pucara #Gold $TORO.v New Listing On @TSX_TSXV Venture Exchange

New Peruvian Explorer Pucara Gold Ltd. Lists On TSX-Venture Exchange. 

It’s been down everyday, along with a pretty “brutal” down gold market as well, after Trump’s comment of no more stimulus u til after the US Election.

The last financing before listing was done at 40 cents, vs the +/-$1.00 where it came out.  

Company Stock Issues - PUCARA GOLD LTD

Symbol	Name
TORO	PUCARA GOLD LTD

Fundamental Data - TORO

Security Type	Equity
Shares Issued	61,894,460
Market Cap	47,659,000
Year High	1.50
Year Low	0.20
Sector	15104020 - Diversified Metals & Mining

Source: Stockwatch 

https://www.stockwatch.com/News/Item?bid=Z-C:TORO-2970922&symbol=TORO®ion=C

bit.ly/MasterMetals

The Long High Grade Hits Continue! @RupertResources $RUP Drills 4.2g/t #Gold Over 167m & 3.6g/t Gold Over 65.3m at #Ikkari Discovery Finland

 

Rupert Resources Ltd (TSX-V: RUP) is the 100% owner of the Pahtavaara project in Northern Finland.

The latest set of fantastic results stem from four further holes from the Ikkari discovery in Area 1 (please see figure 1 in the news release), including two new holes from the eastern end of the currently identified 550m of strike.  They include headline intercepts of 4.2g/t gold over 167m (including 8.9g/t over 22m) and 3.6g/t over 65m.  These are the best exploration results from Area 1 so far, even better than those issued on 14^th September 2020. 

Importantly, these results demonstrate the significant grade potential of Ikkari, with higher grade zones developing within a broad mineralised envelope.  And a higher average grade would of course increase any resource estimate, that the company intends to issue next year.  

Currently, if one makes assumptions on strike (550m), width (100m), and depth (300m), one would get to approx. 48Mt of ore.  At an estimated average grade of between 2.0g/t to 2.5g/t, this would imply a possible resource of between 3.1 Moz. and 3.8 Moz.  However, these sort of assumptions are really only as good as the last hole drilled.  Ultimately, the key statement in all of Rupert's news releases thus far is that the Ikkari mineralisation remains open in all directions and that three diamond rigs continue an aggressive drill programme.  There is therefore plenty of upside with regards to resource potential.  

The company is spending CAD 1.5 million per month, most of that on drilling, and has over CAD 30 million in the treasury.  Also, a large part of the outstanding warrants and options are in-the-money and therefore represent a further source of funding over the next 18 months.  In other words, if you want shares, you'll have to go into the open market...

Three rigs are now turning at Ikkari with assays from 17 holes pending.

Please also see the second attachment.  This is slide number 5 from the company's updated investor presentation.  It shows the top 30 gold drilling intercepts in Europe since 2019.  It is interesting to note, that over 75% of these top 30 intercepts come from projects in Finland, and that the majority of the top 10 intercepts were produced by Rupert Resources.  Today's fantastic results from Ikkari rank at the No. 2 position of the chart.  

For the full presentation, please consult: https://rupertresources.com/presentations/

The news release is below.