?? - The Sideways Grind Continues
CEO.CA Presents the Chairman's Briefing - June 20th, 2024
"In commodities, when prices go up, demand goes down. In stocks, when prices go up, demand goes up."
–Rakesh Jhunjhunwala
Metals/Crypto Price
In Partnership With
Yukon Metals represents a property portfolio built on over 30 years of prospecting by the Berdahl family, the prospecting team behind Snowline Gold’s (SGD) portfolio of primary gold assets.
The Yukon Metals portfolio consists primarily of copper-gold and silver-lead-zinc assets, with a substantial gold and silver component. The Company is led by an experienced Board of Directors and Management Team across technical, exploration and finance disciplines.?
In Today's Briefing
Gold
The sideways grind continues as gold attempts to claw back steep losses from earlier this month.
While the market searches for a catalyst, the metal continues its stubborn hold above the $2300 level. Renewed central bank buying out of China might present such a catalyst.
Ruth Crowell, CEO of the London Bullion Market Association: "There are lots of reasons driving gold right now..., but one of the major factors is China. Usually China and Japan have been budget shoppers, but given the state of the economy, real estate challenges and equity markets, gold is a safe choice... I think gold is going to be of interest for some time."
According to one US bank, the metal may continue to consolidate until the market has a better sense of what the Fed has up its sleeve concerning rate cuts - Gold price to churn for the next six months and then rally back to record highs - Wells Fargo.
According to the bank’s updated mid-year price forecasts, gold prices are expected to trade between $2,300 and $2,400 an ounce. The range is expected to increase to $2,400 and $2,500 an ounce by the end of 2025.
The International Energy Agency has forecast that the supply of lithium will reach 420,000 metric tons by 2030 (702,000 metric tons is what's needed to achieve net zero). News that Serbian President Aleksandar Vu?i? is preparing to give mining colossus Rio Tinto the green light to develop Europe's largest lithium mine will go a long way towards meeting these high tension demand dynamics - Serbia to give green light for Rio Tinto lithium mine, FT reports.
Rio Tinto's Jadar Project, ranked the second largest in Europe, holds reserves of approximately 118 million tonnes grading 1.8% lithium oxide, enough to meet a good chunk of European demand.
In a statement emailed to Reuters, Rio Tinto said: "We believe the Jadar Project has the potential to be a world-class asset that could act as a catalyst for developing an EV (electric vehicle) value chain in Serbia".
President Vu?i?: "If we deliver on everything, [the mine] might be open in 2028." And with production pegged at 58,000 tons of lithium per year, that'll satisfy "17% of EV production in Europe – approximately 1.1 million cars".
The Jadar project has generated its fair share of opposition. In January 2022, the Serbian government revoked Rio Tinto’s permits after environmental protestors blocked highways and bridges across the country. H2O pollution and mine reclamation were among the concerns.
Bluestone Faces Permit Challenge, Stock Tanks
Shortly after Guatemala President Bernardo Arévalo took office at the beginning of the year, Bluestone Resources (BSR.V) and its 3.1 million oz (open pit) Cerro Blanco Project were put on notice that all mining licenses were to be reviewed. The Guatemalan Ministry of Energy and Mines went on to add that it intends to revise ALL decisions made in the recent past concerning mining exploration, exploitation, and export licenses. This, in response to widespread allegations of bribes, corruption, and other nefarious dealings within the mining industry (President Bernardo Arévalo hailed as an "anticorruption crusader").
Flash forward four months (earlier this week), Bluestar received notice that the Guatemalan government intends to challenge its open-pit permit in the country - Bluestone Receives Notice from the Guatemalan Ministry of Environment and Natural Resources.
According to a 2022 feasibility study, the Cerro Blanco deposit, acquired from Goldcorp in 2017, will produce 2.7 million ozs of gold and 10.2 million ozs of silver over its 14-year mine life. The study demonstrates an after-tax NPV (5%) of $1.1 billion and an IRR of 30%.
Though local support for Cerro Blanco's (open pit) development exists, environmentalists contend the project will pollute the Güija lagoon and Lempa River, the primary source of H2O for San Salvador, the Salvadoran capital. To mitigate these concerns, the company's open-pit configuration incorporated dry stack tailings and an independently monitored water treatment plant.
Some investors dumped the stock upon receipt of the Guatemalan government's notification.
The Company is currently evaluating the legal aspects of this action.
领英推荐
Orano Stands to Lose a Significant U3O8 Asset in Niger
Orano's plans to develop the Imouraren deposit in Niger "doesn't meet the authorities' expectations," the country's mining ministry said in a letter dated June 11 - Orano at Risk of Losing Niger Uranium Mine Sought by Russia.
This is a blow to the French nuclear company. It stands to lose control of a U3O8 deposit ranked 2nd largest in the world (largest on the African continent).
“The second and final notice will end on June 19, after which date the company’s operating permit will be revoked,” the letter said. A Niger mining ministry official couldn’t be reached for comment. An Orano spokesperson didn’t respond to a request for comment.
Though it received its mining permit in 2009, the project was sidelined awaiting higher U3O8 prices.
The move comes as Russia’s seeks to take over mining assets in the West African country controlled by the French company, Bloomberg reported on June 3. Niger’s Paris-allied president was overthrown in a coup last July, the latest in a string of military takeovers in the region that has seen strongmen spurn ex-colonial power France and forge closer ties with Moscow.
Snowline Drops a 7.31 Million Oz 43-101
Snowline Gold (SGD.V), a familiar name and one of the better stories to emerge from the junior exploration arena over the past two years, has just delivered a maiden MRE for its Valley Gold Deposit, located on its wholly owned Rogue Project in Canada's Yukon Territory - Snowline Gold Announces Initial Mineral Resource at its Valley Gold Deposit.
After nearly 28k meters of drilling in 68 holes, the broad intervals of mineralization reported have resulted in an ounce count north of seven million ozs.
Highlights:
CEO Scott Berdahl: "In just two full exploration seasons, Snowline has advanced its Valley target from greenfield discovery holes to a robust multi-million-ounce gold deposit with continued exploration upside. The rapid advancement is a testament both to the quality of the discovery-with exceptional continuity of strong, non-refractory gold mineralization beginning at surface-and to the quality of the ongoing work by our talented and hard-working field team. We believe that Valley has excellent potential for continued growth, as evidenced by broad intervals of 1-2 g/t gold mineralization returned in drilling on multiple edges of the system. We are actively building on this milestone for Valley with our largest drill campaign to date, currently underway, while testing multiple prospective greenfield targets in a region we believe has the potential to become a prolific minerals district."
According to the company, the Valley Deposit occupies?<0.01% of the company's land holdings in the region, "within a cluster of high priority targets sharing key geological characteristics with Valley highlighting district level potential."
Snowline is currently active on the property with three rigs. 15,000 meters is planned for this field season. 4,000 meters have been drilled thus far. Assays are pending.
Early shareholders have been richly rewarded over this unique discovery cycle—a two-year SGD chart...
Agnico Eagle Tables Underground Plans for Detour Lake
A standout among the gold-producing Bigs, Agnico Eagle (AEM.TO), has updated its playbook for Detour Lake in northwest Ontario, including a PEA for underground development - AGNICO EAGLE RELEASES DETOUR LAKE PROPOSED UNDERGROUND MINING PLAN DEMONSTRATING STRONG RETURNS AND PATHWAY TO ANNUAL GOLD PRODUCTION OF ONE MILLION OUNCES.
In the guts of this June 19 press release, the company details plans outlining a path to produce one million ounces per year:
With the addition of an underground component, Detour is on track to join the ranks of the top five producing gold mines worldwide, according to Agnico Eagle Mines’ CEO, Ammar Al-Joundi.
Hits of the Week
A former Air Canada manager wanted on a national warrant for his alleged role in the largest gold heist in Canadian history is preparing to turn himself in according to his lawyer, CBC News reported Friday - Former airline manager wanted in Canada’s biggest gold heist to turn himself in — report
A giant state-owned Chinese commodities trader is nursing losses after a shipment of copper from Russia worth nearly $20 million went missing, reigniting fears over fraud in the often secretive market for buying and selling raw materials - Chinese Trader’s $20 Million Pile of Russian Copper Goes Missing
The United States on Tuesday imposed sanctions on Guyanese mining magnate Nazar Mohamed and his son over allegations the two men defrauded Guyana’s government of tax revenues and bribed public officials, the Treasury Department said - US imposes sanctions on Guyanese mining magnate over alleged fraud
The intervention is part of a wider push to block Chinese firms from delving further into Canada’s critical minerals sector. Prime Minister Justin Trudeau’s government has warned it will closely scrutinize transactions between domestic mining companies and Chinese government-linked firms and only approve deals “on an exceptional basis” -??Canada blocks Chinese rare earths deal in Trudeau-led crackdown
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