#RedditTraders #Silver Frenzy calmed on Friday as investors weigh whether push by r/wallstreetbets board posters to create a short squeeze has legs

#Silver frenzy calmed on Friday as investors in miners' shares to ETF's and even the physical metal weigh whether a push by Reddit posters to create a short squeeze has legs. Silver has emerged as one of the latest targets of the r/wallstreetbets board  

Posts encouraged people to pile into IShares Silver Trust, the largest silver exchange-traded fund, and one described it as "THE BIGGEST SHORT SQUEEZE IN THE WORLD".

"It is true that the combined efforts of those on the Reddit forums can dramatically influence the price of individual stocks, but if you compare the size of the entire silver market to the market cap of the individual companies that forums have recently targeted, we don't see this as having potential to significantly move silver into a short squeeze scenario," said John Feeney, business development manager at Guardian Vaults, a Sydney-based dealer.

"Silver's market cap is too large and those on the forums typically want to see quick gains, so I wouldn't read into it too much," he said.

More on the silver market's volatile Thursday
Spot silver jumped as much as 6.8%, the most since August Options volume in IShares Silver Trust climbed to a record First Majestic Silver Corp., cited on Reddit as a short-squeeze target, gained more than 20% Silver Options Market Volume Surges on Reddit-Fueled Swings Spot Silver Bounces Off Key Average in Day-Trader Surge: Chart

See the whole story on Bloomberg here: https://www.bloomberg.com/news/articles/2021-01-29/silver-seizes-the-spotlight-following-reddit-day-trader-frenzy?utm_campaign=socialflow-organic&cmpid%3D=socialflow-twitter-commodities&utm_source=twitter&utm_medium=social&utm_content=commodities&sref=VxHCy32x

#Pandemic Accelerates #MiningTech Investment

The pandemic is accelerating investment in automation and technology upgrades by mining companies to reduce the numbers of staff on site, according to the chief executive of the world’s largest mining drilling equipment manufacturer.

Miners were already updating equipment to cope with lower grade material and deeper mines, which often involve more water. They have also been responding to pressure from investors to reduce carbon emissions. More are using electric trucks, for example, and every big miner now has a net zero carbon target.

…

“Given the pandemic, that has really been identified as an area where automation and digitalisation can help. With connected machines, when you send a technician to site, you know what the problem is. If anything, the pandemic has increased the transition to new technology,” she told the Financial Times.

Ms Hedblom said the mining industry had “huge potential” to improve sustainability, safety and productivity. The average age of mining equipment is increasing, she added, offering opportunities both in new sales and in servicing older machinery.

Chief of machinery maker Epiroc says interest in automation and electrification is ‘coming from everywhere’

See the whole article on the FT here: 

Pandemic accelerates mining tech investment

MasterMetals

#TSXV #MiningStocks Financings announced increased to $281MM, a 23-week high, with 14 new brokered financings for $224.6MM, a 164-week high

@ORENINC INDEX above 100 as financings rocket

Jan 25 Posted by AdminCOL in Natural Resources

Last Week: 70.38

This week: 104.30

The Oreninc Index increased in the week ending January 22nd, 2021 to 104.30 from 70.38 a week ago as financings rocket.

On to the money: the aggregate financings announced increased to $281 million, a 23-week high, with 14 new brokered financings and 13 new bought-deal financings announced. The average offer size increased to $7 million, a 123-week  high, and the number of financings increased to 40.

Gold closed the week higher at $1,856/oz from $1,829/oz a week ago. The US dollar index closed lower at 90.24 from 90.88 a week ago. 

The widely followed junior mining index, the VanEck managed GDXJ, closed the week up at $50.34 from $49.35 a week ago. HUI Arca Gold BUGS Index, which follows the major gold miners, closed the week higher at 288.84 from 284.53 last week. The SPDR GLD ETF inventory closed the week down at 1,173.25 tonnes, or 37.72 million ounces, from 1,177.63 tonnes last week.

In other commodities, Silver closed the week higher at $25.55/oz from $24.98/oz a week ago. Copper closed the week at $3.62/lb from $3.673/lb a week ago. Oil went down as WTI closed down at $52.27 a barrel from $52.48 a barrel a week ago.

The Dow Jones Industrial Average closed up at 30,996 from 30,814 a week ago. Canada’s S&P/TSX Composite Index closed down at 17,845 from 17,909 the previous week. 

The S&P/TSX Venture Composite Index closed up at 947.43 from 908.00 a week ago.

Summary:

• Number of financings increased to 40.

• Fourteen brokered financings were announced this week for $224.6m, a 164-week high.

• Thirteen bought-deal financings were announced this week for $220.6m, a 239-week high.

• Total dollars increased to $281m, a 23-week high.

• Average offer heightened to $7m, a 123 week high.

See the whole post on Oreninc here: 

http://www.oreninc.com/orenthink/entry/oreninc-index-above-100-as-financings-rocket

____________________________________________________

MasterMetals

@MasterMetals

#Hybrid #Solar Expansion at #B2Gold’s #Fekola Mine $BTO

Optimising energy management at B2Gold's Fekola mine - International Mining 

A recent site expansion has just been completed at B2Gold's Fekola Mine in Mali and while the existing power units provide enough power to support the increase in production, the company sought to reduce its energy costs, cut greenhouse gas emissions, and increase power reliability.

The addition of a 35 MWp solar photovoltaic (PV) plant and 17 MW/15 MWh of energy storage to the existing 64 MW thermal engine plant was decided. This new energy mix is anticipated to save over 13 million litres of fuel, reduce carbon emissions by 39,000 t/y, and generate a payback in just over four years.

…

Integrated hybrid energy solution

In the context of the Fekola mine, which is an off-grid electrical island, the battery is performing a lot of different services simultaneously, including frequency response, voltage support, shifting solar energy, and providing spinning reserves. The energy load is very flat, with a steady consumption rate around 40 MW as the mining equipment is operating consistently, 24/7. However, if an engine trips offline and fails, the battery serves as an emergency backstop. The controls reserve enough battery energy capacity to fill the power gap for the time it takes to get another engine started, and the software inside each inverter enables the battery to respond instantaneously to any frequency deviation.

The reciprocating engines operate most efficiently at 85-90% of their capacity: this is their 'sweet spot'. But if there is a sudden spike in demand, if a little more power is needed, or if mining equipment is coming online, then another engine needs to be run to meet the extra load.

With the battery providing spinning reserves, the engines can be kept running at their sweet spot, reducing the overall cost per kilowatt hour. Moreover, with the solar plant providing power during the day, three to four engines can be shut down over this period, providing a quiet time to carry out preventive maintenance. This really helps the maintenance cycle, ensuring that the engines operate in a more efficient manner.

See the whole article on International Mining here: https://im-mining.com/2021/01/18/optimising-energy-management-b2golds-fekola-mine/

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bit.ly/MasterMetals

#MiningStocks have cheapest trading multiples in #Europe & “market-leading capital returns” $GLEN $AAL $SOLG $BHP $ANTO $RIO

#Mining & #Steel Stocks represent default exposure to a "global growth, rebound and reflation"

"[The sector] has the cheapest trading multiples in Europe and market-leading capital returns"

"Parallels with previous economic crises suggest the sector has yet to peak as momentum, rotation to value, US dollar weakness and deep liquidity are expected to be dominant themes in the first half of 2021." 

Goldman, JP Morgan Cazenove, Liberum and others' top sector picks were Taseko Mines $TKO and Glencore $GLEN. It was also a 'buyer' of Anglo American $AAL, SolGold $SOLG; a 'holder' of $BHP, Antofagasta $ANTO.L) and Kaz Minerals $KAZ.L.  Liberum says 'sell' Rio Tinto $RIO

https://www.proactiveinvestors.co.uk/companies/news/938473/are-mining-stocks-on-a-new-bull-run-one-influential-investment-bank-thinks-so-938473.html

#Gold Ends the Week Holding by a Thread $GLD

#Gold got taken out, settling at $1827, down $23.70 (-1.3%).

The 10 Year Bond's precipitous rise above 1% was enough to prompt the #PPT into action! 

https://mastermetalsblog.blogspot.com/p/blog-page_11.html

Click here for More Metals Charts

The Nuts & Bolts Of #Gold Feasibility Studies

The Nuts & Bolts Of  Gold Feasibility Studies

Geology Corner from The Northern Miner

Great Bear Resources employees study a drill map. Credit: Great Bear Resources.

Of the 123 global gold projects with completed feasibility studies or ones being worked on, 50 projects are orogenic deposits; 24 are epithermal deposit types, and eight are porphyry deposits, according to Glacier Resource Innovation Group's Mining Intelligence database.

The other deposit types are volcanogenic massive sulphide (VMS) deposit projects at 16; iron oxide copper gold at six; skarn at four; and intrusion-related deposits at one.

"The orogenic and epithermal deposits make up about 59% of the defined gold in the ground at the feasibility stage, and 41% are orogenic deposit types," says Katja Freitag, the manager of Mining Intelligence, a research and database owned by Glacier Resource Innovation Group. "Epithermal deposits generally have double the amount of gold in them than orogenic deposits and while porphyries are copper deposits, they are very significant when it comes to gold."

When analyzing the amount of gold resources in the measured and indicated categories of the 123 projects with feasibility studies, she added, orogenic deposits account for the lion's share (31%); followed by epithermal (28%); porphyries (22%); VMS deposits (6%); IOCG deposits (2%) and skarns (1%). In total the gold projects with feasibility studies contain about 186.8 million gold ounces.

Eight of the 24 epithermal deposits outlined in her study were in Chile and Mexico, and 27 of the orogenic deposits were in Canada and Australia, however "on average those in Canada seem to have significantly larger resources," she noted. Most of the porphyry deposits with feasibility studies were in the province of British Columbia.

Breaking it down by country, Freitag says, Canada comes out on top of the list of countries with the most gold contained in the measured and indicated resource category (66.2 million oz. gold), followed by Papua New Guinea (15.5 million oz. gold); Australia (13.4 million oz. gold); South Africa (12.3 million oz. gold) and Indonesia (12.0 million oz. gold).

The remaining countries in the top ten feature: Argentina (8.8 million oz. gold); Chile (7.1 million oz. gold); Senegal (5.2 million oz. gold); Sudan (4.8 million oz. gold); and Peru (4.7 million oz. gold).

https://www.northernminer.com/analysis/geology-corner-the-nuts-and-bolts-of-feasibility-studies-on-gold/1003826967/?ctname=Geology+Corner:+The+nuts+and+bolts+of+feasibility+studies+on+gold

______________________________

MasterMetals

@MasterMetals

Share of #Gold in #Russian #CentralBank’s reserves beats US #Dollar holdings for first time ever

© Global Look Press

The gold share of Russia's foreign exchange holdings rose to 22.9 percent over the year to June 30, 2020, according to data revealed by the country's central bank.

At the same time, the share of US dollar shrank to 22.2 percent from 24.2 percent, while the share of the euro dropped to 29.5 percent from 30.6 percent. The regulator also decreased its holdings of Chinese yuan to 12.2 percent from 13.2 percent.

See the whole story online here: https://www.rt.com/business/512219-gold-dollar-russian-reserves/

________________________

MasterMetals

Roxgold Produces 133,940 Ounces Exceeding 2020 Guidance $ROXG

Roxgold Produces 133,940 Ounces Exceeding 2020 Guidance, Provides Outlook For 2021

2020 Highlights:

Operations

• Preliminary 2020 gold production of 133,940 ounces exceeded the Company’s annual consolidated production guidance of between 120,000 and 130,000 ounces
• Achieved record annual plant throughput of 512,276 tonnes, exceeding nameplate capacity by 27%
• Reported preliminary gold production of 35,191 ounces in Q4 2020
• Mined a record 149,347 tonnes in Q4 2020
• Continued management and mitigation of COVID-19 to minimize impacts on operations with reduced personnel due to travel restrictions and protection protocols

Financial

• Sold 135,310 ounces of gold for annual gold revenues totalling approximately $240 million
• Generated strong free cashflow (before growth spend)¹ of over $47 million increasing our cash balance from $41.8 million to approximately $61.7 million² as of December 31, 2020
• Strong balance sheet with a net cash position of over $26 million as of December 31, 2020 (cash balance of approximately $61.7 million² and long-term debt face value balance of $35.6 million²)

Growth

• Received Exploitation (mining) permit and Environmental approvals from the government of Côte d’Ivoire to develop and operate the Séguéla Gold Project (“Séguéla”)
• Expanded Séguéla Project with discovery of the Koula deposit and an updated Mineral Resource estimate outlining total indicated mineral resources of 1,044,000 ounces of gold at 2.5 grams per tonne (“g/t”) and inferred mineral resources of 370,000 ounces at 4.8 g/t
• Initiated early works at Séguéla to enable a rapid ramp up to full construction later this year following completion of the Feasibility Study which is anticipated for completion in the second quarter of this year

2020 Preliminary Fourth Quarter and Fiscal Year Key Metrics

		Q1 2020		Q2 2020		Q3 2020		Q4 2020		2020
Ore mined		134,472		112,523		109,767		149,347		506,109
Ore processed (tonnes)		125,879		127,309		131,029		128,059		512,276
Ore processed (tpd)		1,383		1,399		1,424		1,392		1,400
Head grade (g/t)		8.7		8.2		7.7		9.3		8.5
Recovery (%)		97.9		98.0		98.2		98.2		98.1
Gold ounces produced		32,380		32,812		33,557		35,191		133,940
Gold ounces sold		30,126		36,279		30,401		38,504		135,310
Gold sales ($000s)		$48,045		$62,107		$57,379		$72,158		$239,689
Average realized selling price (per ounce)		$1,595		$1,712		$1,887		$1,874		$1,771

“Looking ahead, the pace of progress at Roxgold continues to accelerate, as we announced last month that we broke ground at the Séguéla Gold Project in Côte d’Ivoire, following receipt of the Environmental and Social Impact Assessment and Exploitation permits. The goal of pouring first gold from Séguéla next year is within our reach with early works at Séguéla already initiated to enable a rapid ramp up to full construction following completion of the Feasibility Study in the second quarter of this year. We currently have four drills turning at Séguéla and are eager to share with the market the results of the program which has been focusing on extension and infill drilling at Koula and the continued scout testing of the extensive portfolio of targets within our land package.”

2021 Operating Outlook

	2021
Production (oz)	120,000 – 130,000
Cash operating cost ($/oz produced)3	$580 – $640
All-in sustaining cost ($/oz sold)3	$895 – $975
Sustaining capital spend (included in AISC)	$25 - $30 million
Non-sustaining capital spend	$5 - $10 million
Growth spend (includes exploration and Séguéla study spend)	$15 - $20 million

Roxgold anticipates the Yaramoko Mine Complex will produce between 120,000 and 130,000 ounces in 2021 with cash operating costs3 of $580–640/oz and all-in sustaining costs (“AISC”)4 of $895–975/oz. 

Sustaining capital is expected to decline this year compared to 2020 due to the completion of decline development at Bagassi South, allowing the operation to focus on stoping operations. 

The higher gold price increased the impact of royalties by approximately $30/oz.

See the whole news release here and here on Stockwatch

Appian Capital Raises $775 Million for New #Mining #PrivateEquity Fund

London-based private equity group Appian Capital Advisory has raised $775m for its second mining fund, as it taps into a wave of investor interest in hard assets and efforts to combat climate change. 

“We’ve been able to attract a lot of investors that didn’t have metals or mining exposure previously,” including Endowments, SWF, Family Offices and other Institutional Investors, adding it had benefited from cash exiting oil & gas funds. 

Appian already lined up five investments for 40% of the capital committed. These include equity investments in Mineração Vale Verde’s copper-gold asset in Brazil and the Fingerboards mineral sands project in Australia.

It plans to target additional investments in countries including Brazil, Australia, Mexico, Peru, Chile and Canada, and where Appian has existing operations. The second fund will run for 10 years.

See the whole article on the Financial Times here: 

https://www.ft.com/content/3a31eec3-4603-453b-9daf-6e4e0d7036d2

#Gold Gets Dumped $GLD

#Gold takes a beating to start 2021.

Down more than $85 (4%) at its lowest, closing just under $1850/oz. 

https://bit.ly/MasterMetalsETF

#Gold is Crashing Hard! Down $50!

#Gold getting Slammed! Last @ $1864 after hitting $1860/oz.

#MasterMetals https://bit.ly/MasterMetalsCharts