Historical Repetition in the Precious Metals Arena

Source: Michael Ballanger for Streetwise Reports   08/19/2018

Sector expert Michael Ballanger muses on the potential for a historical reprise of market events of 2015-2016, as well as on how algobots and bankers affect the precious metals markets.

History doesn’t repeat itself but it often rhymes.
– Samuel Clemens (Mark Twain)

I decided that before I sat down to write the weekly recap and outlook for the gold and silver markets that I would go to a few of the great commentary sites such as Streetwise, 321Gold, Goldseek and Gold-Eagle and read what the other “experts” are saying about the precious metals markets before I attack the keyboard. Earlier in the week, I had been working on a Western Uranium Corp. story and was astounded how stress-free it was writing about an energy deal as opposed to a sound money deal. After perusing perhaps two hundred paragraphs from some pretty smart guys and gals, it occurred to me that we are all looking at the same data and the same charts and reading the same headlines in an effort to sound original in our assessment of the metals

But what we are all missing are two very important and, in fact, crucial realities of today’s markets and I am going to focus on these in today’s missive. I could write about the COT report due out any moment (which I predict will be a doozy, with the Commercials recording a net long position for the first time ever), or I could drone on and on about RSI and MACD and the histograms and inverted teacups and screaming Dojis and hallucinating haramis, but it is all meaningless drivel in the context of the primary drivers for gold and silver. All that matters is that since the 2016 top at around $1,365 per ounce, gold has been unable to sustain any upward momentum thanks largely to the drivers.

Driver #1: Computerized Trading and Algobots
In 1998, I was first introduced to the concept of pattern-recognition algorithms that could trade stocks based upon the software’s uncanny ability to scan predictive movements and formations and execute buy or sell programs on such interpretation. The growth of computer-driven money management has now resulted in trading “floors” nearly devoid of human interaction, with carbon units only present to make sure the machines don’t go berserk (which they have on multiple occasions).

In vast, highly liquid markets like Forex and bonds and stocks, these algobots can operate fairly effectively, but in thin markets like commodities (and especially gold and silver), the algobots have a habit of feeding off each other. Once a short-term trend has been established, the ‘bots pounce and, in fact, extend and exaggerate it to the point of insanity. Once the ‘bots get control of the near-term trend, all other life forms join the party and the meme-du-jour becomes status quo, and there is no economic, financial or geopolitical event that will reverse it. The ‘bots do not analyze; they simply react and execute.

For this reason, I refute the idea that the Chinese are rigging the gold market by pegging the yuan to gold via the USD/CNY exchange rate. For most of the 2014-2018 period, a number of the blogger-gurus chortled on about how gold mirrored the JYP/USD cross—and before that the USD/EUR cross—but all that was, IMHO, was the pattern-recognition software picking up a working correlation and reacting to it. The more it worked, the more the ‘bots did it, and the cycle repeats itself over and over and over until the algo-scanners detect a “new kid on the block” of correlation. At that point, they run with it.

And because it is so completely warped in its extent and its intensity, the carbon-based trading units get on the keyboards and post accusatory rants about some sovereign entity rigging the price with all the fancy gold-yuan overlay charts being irrefutable “proof.” All it really proves is that the ‘bots have detected a correlation trend, and they have hijacked it. If any trading platform can abuse the system with not even the slightest of regulatory repercussion, it is the computers.

So, driver #1 is the existence of the algobots, and while it is entirely possible they are the riggers of the precious metals markets, they do so not from anything sinister or policy-driven; they are simply following the code written for them by the programmers.

Driver #2: Central Banks and Currency Regimes
Lord Rothschild said, “Give me control of a nation’s money and I care not who makes its laws.” And nowhere is that more evident than in the attitude of the banking community toward sound money. Bankers make fees from currency, and the more currency they control, the more fee income they derive.

For this reason, currency debasement is the primary incentive of all bankers. Take the financial crisis of 2007-2008. The global economy was humming along just fine, with the exception of the U.S. mortgage and housing market, where lack of adequate regulation allowed the markets to get out way ahead of their skis, resulting in a crash.

However, the only people affected were the banks and, technically, they were all toast. But since that would have vaporized shareholder equity for the elite class (primarily the bankers), it would have been a relative non-event for the rest of the working and middle class.

Now, this is a point of fierce debate because it is said that everyone was going to be impacted because “the system was freezing up,” which included deposits, but the vast number of Americans whose balances were well below the federal deposit insurance guarantee ($100,000 in Canada) were not at risk. Only the owners of the banking shares were at any real risk, so rather than allow the natural elimination of those entities that took unnecessary risks and failed, Hank Paulson begged Congress for, and received, a massive bailout through printed, fabricated, phony counterfeit money. In this manner, the utility of gold and silver as the rightful providers of safe-haven attributes was snatched away and replaced with the utmost of moral hazard.

Ten years later, with stock valuations stretched on the crest of a $14 trillion injection wave, gold and silver have been relegated to the role of cult-status investing. Only old people in North America (and citizens of Argentina, Venezuela and Turkey) believe in the safe-haven utility of gold and silver. Further, the youngsters would rather own pot stocks and cryptodeals (or Elon Musk’s Rocket to Mars for the price of a pizza deal) rather than two metals representing 5,000 years of monetary functionality.

In a nutshell, central banks and politicians knowthat if gold succeeds as a replacement for the rotting paper currency that underpins the “system,” then the Emperor’s-New-Clothes-Ponzi-scheme gig will be up and they will be unable to sustain this tax-and-spend, boom-and-bust cycle that allows the banker/politician criminal partnership to flourish.

The investing pubic also knows that gold is the mortal enemy of the money-printers/credit-creators because it shines an embarrassing and incriminating light on the banking cartel and their Machiavellian maneuvers. It is for this reason that they opt for Bitcoin as a receptacle for excess currency units and an alternative to bank accounts that can be subject to bail-ins and other confiscatory procedures.

These are the two primary drivers that dominate the demand-supply conundrum that infuriates fundamental analysts in their assessment of the balance of money flow between the buyer and seller of gold and silver. Their influence has dwarfed all forms of fundamental and technical analysis, and has completely negated their impact on pricing. It has been further exacerbated by driving participants away from the market because of the constantly inexplicable behavior whereby price defies historical directional stimuli and moves as if guided by some “invisible hand.” This type of behavior is always, and without fail, the result of interventions that free market advocates abhor.

The COT Report
Just as I complete a thorough debunking of “all that has worked in the past,” and having declared it obsolete, out comes the COT report. It is a wildly bullish report from a couple of perspectives. First, the Commercial aggregate short position is now within 5,000 contracts of the December 2015 bottom in gold at $1,045. Second, the net shorts for Large Specs (dumb money) at 215,500 contracts is 45% higher than it was at the bottom in December 2015. In a normal world, absent the criminal interventions and manipulations mentioned earlier, I would go “all in” on options on the JNUG and NUGT, and buy several hundred GLD contracts for January expiry. However, I am awaiting evidence of a short squeeze, engineered and triggered by the Commercials and agonizingly executed by the Large Specs, who stand to get annihilated if gold turns now.

I would also observe that in referring back to primary Driver #1, there is no rational human being, analyst or otherwise, who would allow a position in anything to grow as large as what we have witnessed in the Large Spec aggregate short position. Prudent portfolio management would prune down, but since the algobots are only reactive (to trends), they have simply followed the programming code and piled on. When the programming rules instruct them to cover, there will be a mad scramble to do so, and that is what will send this pendulum of doom in the opposite and welcomed direction.

Once I see evidence of distressed buying (hopefully this week), I will be adding to the GLD options, where a month ago I took a 25% opening position in the October $120s (some $5 higher). The beauty of scaling into positions over a number of days (or weeks) is that you can be wrong in your timing but still live to fight another day. I still have 75% of the original funds available to add to positions, but at levels far more palatable than they were thirty days ago. In this manner, I am able to avoid taking a sledgehammer to my forehead in self-recrimination and loathing.

As the title of this missive implies, conditions for the gold and silver markets are today similar, but not identical, to conditions in 2015, when prices bottomed and set up one of the most breathtaking rallies of my career, which lasted until August of 2016. The HUI followed later, on January 19, 2016, with a bottom tick of 99.17 before screaming to over 280.

Yes, it is true that history never repeats, but as for rhyming, this is a “Casey-at-the-Bat” poem in full regalia. Everything about the bottom of December 2015 is now in place, with even greater force and conviction. We shall soon see whether a historical repetition of the events of 2015-2016 unfold, unleashing a cavalcade of stampeding buyers in gold and silver bullion, futures, junior and senior gold miners and, of course, the explorers.

Bring it.

Originally trained during the inflationary 1970s, Michael Ballanger is a graduate of Saint Louis University where he earned a Bachelor of Science in finance and a Bachelor of Art in marketing before completing post-graduate work at the Wharton School of Finance. With more than 30 years of experience as a junior mining and exploration specialist, as well as a solid background in corporate finance, Ballanger’s adherence to the concept of “Hard Assets” allows him to focus the practice on selecting opportunities in the global resource sector with emphasis on the precious metals exploration and development sector. Ballanger takes great pleasure in visiting mineral properties around the globe in the never-ending hunt for early-stage opportunities.

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Disclosure:
1) Statements and opinions expressed are the opinions of Michael Ballanger and not of Streetwise Reports or its officers. Michael Ballanger is wholly responsible for the validity of the statements. Streetwise Reports was not involved in any aspect of the article preparation. Michael Ballanger was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
3) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Charts courtesy of Michael Ballanger.

Michael Ballanger Disclaimer:
This letter makes no guarantee or warranty on the accuracy or completeness of the data provided. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This letter represents my views and replicates trades that I am making but nothing more than that. Always consult your registered advisor to assist you with your investments. I accept no liability for any loss arising from the use of the data contained on this letter. Options and junior mining stocks contain a high level of risk that may result in the loss of part or all invested capital and therefore are suitable for experienced and professional investors and traders only. One should be familiar with the risks involved in junior mining and options trading and we recommend consulting a financial adviser if you feel you do not understand the risks involved.

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/08/19/historical-repetition-in-the-precious-metals-arena.html

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Drill Results from Great Basin Project Reveal Gold Mineralization

Source: Streetwise Reports   08/19/2018

A gold explorer announces drill results for the Goldstrike Oxide Gold Project in Utah that show gold mineralization above the cut-off grade.

Liberty Gold Corp. (LGD:TSX) recently announced the results from initial reverse circulation drill testing of the historical heap leach pads and one area of historical mine waste backfill at the Goldstrike project.  This work is the flagship of its three principal gold projects located in the Great Basin of the United States.

Results confirm that the historical leach pads, the back fill below the pad linings and bedrock to depth contain areas of gold mineralization above the cut-off grade used in the Goldstrike Preliminary Economic Assessment.

Some of the highlights of the work are:

  • The results to date support Liberty Gold’s thesis that considerable gold remains in surficial deposits created during the historical mining operation, which operated during a period of very low gold prices and much higher ore-to-waste cut-off grades. Heap leach technology has advanced considerably in the last 20 years, with recovery of gold possible from previously leached material.
  • The heap leach pads are underlain by considerable thicknesses of mineralized backfill material.
  • Drill holes encountered areas of unmined mineralization in the pit floors and walls under backfilled areas.
  • Cyanide solubility tests carried out in conjunction with fire assaying of the drill samples from the heap leaches show moderate cyanide solubility. Additional testing will be carried out to determine potential recovery and the best methods to achieve it.
  • Cyanide solubility of backfill material averages 86%.

The company noted that to aid in further advancement and de-risking of the Goldstrike Property, drill testing of the historical heap leach pads, stockpiles, waste dumps and pit backfill is underway.  Most of the areas currently being tested lie within the PEA pit and are classified as waste in the model. Conversion of any of these areas to mineralized leach material would potentially add low-cost ounces to the resource, consisting of gold in material previously drilled, blasted and placed on surface.

An RC drill program is currently underway with two drills, with over 16,000 metres drilled to date.  In addition to testing of the historic heap-leach, stockpile and waste dump areas, infill and step out drilling around the existing resource and testing of new targets property-wide is also underway, Liberty Gold indicated.

Goldstrike is located in the eastern Great Basin, immediately adjacent to the Utah/Nevada border, and is a Carlin-style gold system, similar in many ways to the prolific deposits located along Nevada’s Carlin trend, Liberty stated and indicated that, like Kinsley Mountain and Newmont’s Long Canyon deposit, Goldstrike represents part of a growing number of Carlin-style gold systems located off the main Carlin and Cortez trends in underexplored parts of the Great Basin.

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Disclosure:
1) Jake Richardson compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Liberty Gold. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Liberty Gold, a company mentioned in this article.

( Companies Mentioned: LGD:TSX,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/08/19/drill-results-from-great-basin-project-reveal-gold-mineralization.html

Gold Miner Announces Assay Results for Nevada Project

Source: Streetwise Reports   08/19/2018

Company reported results for drilling at Tuscarora Gold Project in Elko, Nevada.

American Pacific Mining Corp. (USGD:CSE;USGDF:OTCPK) recently announced assays of the remaining 11 holes from the Phase 1 drill program at the Tuscarora Gold Project in Elko, Nevada. According to the news release, a total of 3,143 meters has been drilled by the company in 16 holes focusing on the South Navajo zone. This property is a 1,818 acre land package containing a series of high-grade vein systems and stockworks, optioned from NOVO Resources in late 2017, the company noted.

Some of the highlights from the final results are:

  • APTU18-013: 1.5m at 10.30 g/t Au (drilled in an area approximately 450 meters north of main South Navajo zone)
  • APTU18-015: 12.2m at 3.44 g/t Au (including 1.5m at 18.40 g/t Au)
  • APTU18-015: 13.7m at 1.74 g/t Au
  • APTU18-016: 6.1m at 2.06 g/t
  • AuAPTU18-016: 9.1m at 5.88 g/t Au (including 3m at 13.42 g/t Au).

“I’m extremely pleased with these initial drill results. Assays have confirmed the historic results while also displaying a new level of disseminated mineralization on the property and adding considerable strike length to the mineralization. The focus of this project will expand to the other veins and structures that we know exist at Tuscarora, but have yet to be drill-tested,” said Warwick Smith, CEO of American Pacific Mining.

The company reported it has yet to assay any mineralized intervals for silver, but work is in progress and is expected to add to the value of the gold intercepts.

Tuscarora is a high-grade gold project located in a prime precious metals district in Nevada, 35 km northeast of the Carlin Trend, 20 km southwest of the Jerritt Canyon deposit and 50 km east-northeast of the Midas deposit, the company reported.

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Disclosure:
1) Jake Richardson compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: American Pacific Mining. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of American Pacific Mining, a company mentioned in this article.

( Companies Mentioned: USGD:CSE;USGDF:OTCPK,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/08/19/gold-miner-announces-assay-results-for-nevada-project.html

Sampling at Historical Core at Mexican Asset Shows up to 1,285 g/t Silver Equivalent

Source: Streetwise Reports   08/18/2018

Following this finding, the project owner continues sampling and exploring.

Goldplay Exploration Ltd. (GPLY:TSX-V;GLYZF:OTCQB) reported that initial results from sampling historical core holes drilled at its San Marcial project showed “significant silver values, supporting the high-grade nature” of this asset and “upside potential for resource expansion,” according to a news release. These new data are from one of 22 holes drilled in 2010.

That hole, SM10-22, showed 19.5 meters at 157 grams per ton Ag eq, including 1.5 meters at 1,285 grams per ton Ag eq. “The high-grade interval from this hole represents the deepest intersection outside of the historical resource to date in the San Marcial project,” the release noted.

Indeed, further upside could come from resource expansion because the 22 historical holes had been excluded from the 2008 NI 43-101 resource. Upside also could come from the continuity of the silver, lead, zinc and gold mineralization down dip, outside of the historical resource, and the existing geological features, all of which already have been identified via previous drilling, the company noted.

“The core reviewed to date reveals a structurally controlled mineralized system with silver mineralization associated with significant concentrations of lead, zinc and gold, hosted by hydrothermal breccias and fault zones,” said President and CEO Marcio Fonseca in the release.

As for the other 21 historical core drill holes, Goldplay began sampling those as well. It plans to use all of the new data to develop a fresh three-dimensional, geological and silver mineralization model of San Marcial. The goals of these sampling efforts are to expand the resources and delineate mineralized zones such that they would support a high-grade, open-pit mine on the property.

Once the company receives new drill permits, expected in Q3/18, it will launch a drilling program at San Marcial to continue expanding the resource along strike and down dip in the area of the historical resource. Goldplay aims to release a new resource estimate in Q4/18, the company stated.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following company mentioned in this article is a billboard sponsor of Streetwise Reports: Goldplay Exploration. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Goldplay Exploration, a company mentioned in this article.

( Companies Mentioned: GPLY:TSX-V;GLYZF:OTCQB,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/08/18/sampling-at-historical-core-at-mexican-asset-shows-up-to-1-285-g-t-silver-equivalent.html

Streaming Company Posts $318 Million of Net Earnings in Q2

Source: Streetwise Reports   08/16/2018

This precious metals firm highlighted that Q2/18 revenue and operating cash flow were up year over year.

Wheaton Precious Metals Corp. (WPM:TSX; WPM:NYSE) announced its Q2/18 financial and operating results along with its most recent dividend.

The company reported Q2/18 net earnings of $318 million, which included a $246 million gain from disposal of the San Dimas silver stream.

Q2/18 revenue was $212 million, up 6% year over year (YOY). Sales volume was 6 million ounces (6 Moz) of silver and 81,100 ounces (81.1 Koz) of gold.

Average cash costs in Q2/18 were $4.54 per ounce of silver sold and $407/oz of gold sold, higher than those in Q2/17, which were $4.51/oz and $393/oz, respectively.

Adjusted net earnings in Q2/18 were $73 million, up 9% YOY. Cash flow from operations was $135 million, up 8% YOY. Reflecting on H1/18, President and CEO Randy Smallwood said in a news release, “Wheaton’s high-quality portfolio and strong margins generated over $260 million of operating cash flow” during that period.

As of June 30, 2018, Wheaton had about $93M million of cash on hand and $957 million outstanding through its $2 billion revolving term loan.

Along with reporting Q2/18 financial results, the streamer declared its third quarterly cash dividend for 2018. It was $0.09 per common share, up 29% from the dividend of the same period in 2017.

Wheaton also provided recent noteworthy transaction updates, which included completion of two acquisitions. One was the cobalt stream from Vale’s Voisey’s Bay mine, and the other, which closed after the end of the second quarter, was the gold and palladium stream from Sibanye-Stillwater’s Stillwater and East Boulder mines. “These additions ideally fit within our existing portfolio as they are both high-margin and long-life mines with significant exploration potential,” noted Smallwood.

Also post-Q2/18, Wheaton acquired Adventus Zinc Corp. and a right of first refusal on any new precious metals streaming or royalty deals on Adventus’ Ecuador properties.

As for total attributable production during Q2/18, Wheaton achieved 6.1 Moz of silver and 85.3 Koz of gold. Compared to Q2/17’s figures, silver production dropped 15% whereas gold production rose 7%, compared to Q2/17’s figures.

With respect to the mines individually, Salobo produced 63.9 Koz of attributable gold, about 11% more than that produced in Q2/17, due to greater recovery and throughput offset partly by lower grades.

Peñasquito produced 1.3 Moz of attributable silver, a 15% decrease relative to Q2/17 because production from the oxide heap leach was lower.

Antamina produced 1.5 Moz of attributable silver, about 23% less than that produced in Q2/17. This drop was anticipated and due to mine sequencing in the open pit.

San Dimas produced 5.7 Koz of attributable gold and 0.6 Moz of attributable silver.

Vale’s Sudbury mines produced 4.9 Koz of attributable gold, about a 34% decrease YOY, resulting from reduced throughput and lower grades.

Constancia produced 0.6 Moz of attributable silver and 3.2 Koz of attributable gold, about 9% and 37% more than quantities produced in Q2/17, respectively. Increased production of both metals is attributed to higher grades and greater throughput.

Looking forward, Wheaton expects to achieve production in FY18 of 355 Koz of gold, 22.5 Moz of silver and 10.4 Koz of palladium.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following company mentioned in this article is a billboard sponsor of Streetwise Reports: Wheaton Precious Metals. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports (including members of their household) own securities of Wheaton Precious Metals, a company mentioned in this article.

( Companies Mentioned: WPM:TSX; WPM:NYSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/08/16/streaming-company-posts-318-million-of-net-earnings-in-q2.html

Midtier Gold Producer Reports Q2 Results and Updates Guidance

Source: Streetwise Reports   08/16/2018

The figures provided incorporate the three Brazilian mines the company acquired earlier this year.

Leagold Mining Corp. (LMC:TSX.V; LMCNF:OTCQX) announced Q2/18 financial and operating results for its four producing mines: Los Filos in Mexico and Riacho dos Machados (RDM), Fazenda Brasileiro and Pilar de Goias, all in Brazil.

The numbers represent a full quarter of operations for Los Filos but only 38 days of operations (May 24 to June 30, 2018) for the trio of Brazilian assets.

Leagold’s Q2/18 revenue was $86.9 million, and $10.1 million of it came from mine operations. As of June 30, 2018, the company had $69.4 million in cash and cash equivalents.

Consolidated gold production during Q2/18 was 64,517 ounces at an all-in sustaining cost (AISC) of $950 per ounce of gold sold; Leagold sold 66,982 oz during Q2/18.

Specifically, at Los Filos, Q2/18 gold production was 43,541 oz, 15% less than that in Q1/18, at an AISC of $967/oz. The decrease was due to fewer gold ounces being placed on the heap-leach pads in Q1/18 and the time lag in leaching recovery, along with underground grades being lower than expected, by 2–2.5 grams per ton.

However, gold production at Los Filos, and therefore cash flow, in H2/18 should improve because more gold was placed on the heap-leach pads in Q2/18 than in Q1/18. Also, Leagold has commissioned an agglomerator, and high-grade material is being processed separately. “The Los Filos processing plan now schedules a significant increase in the uncrushed, nonagglomerated material placed on the pads,” said CEO Neil Woodyer in a news release.

At RDM, Q2/18 gold production totaled 7,889 oz at an AISC of $818/oz. Grades averaged 1.27 g/t, and recoveries were 82%. Currently, Leagold is working to connect RDM to the national power grid, which is anticipated sometime in Q4/18.

At Fazenda, gold production totaled 7,460 oz at an AISC of $891/oz. Grades averaged 1.93 g/t, and recoveries were 92%. Newly acquired equipment slated for delivery in H2/18 should improve mining efficiencies there, the company indicated.

At Pilar, gold production totaled 5,627 oz at an AISC of $1,060/oz. Grades averaged 1.32 g/ton, and recoveries were 94%. Because an area of lower grades adversely affected production, Leagold adjusted the mining sequence to first target areas of higher grades.

“We are now focused on using our experienced operations team to identify and implement short- and long-term optimizations at each of the mines,” Woodyear noted. “We are also reorienting each of the mines in Brazil into individual profit centers. Some of these changes will take time to deliver results.”

Leagold revised its FY18 guidance to incorporate its recent acquisitions. It is now 325–350 Koz of gold production at an AISC of $940–975/oz.

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Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following company mentioned in this article is a billboard sponsor of Streetwise Reports: Leagold Mining. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

( Companies Mentioned: LMC:TSX.V; LMCNF:OTCQX,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/08/16/midtier-gold-producer-reports-q2-results-and-updates-guidance.html

Q2/18 Results Infer High Quality of Gold Producer’s BC Mine

Source: Streetwise Reports   08/16/2018

A ROTH Capital Partners report interpreted this company’s quarterly results.

In a research note dated Aug. 12, analyst Joe Reagor with ROTH Capital Partners reported that Pretium Resources Inc.’s (PVG:TSX; PVG:NYSE) Q2/18 financials were “in line with expectations” and highlighted the quality of the company’s Brucejack mine.

Pretium’s Q2/18 revenue of $146.5 million ($146.5M) and earnings per share of $0.17 were higher than ROTH’s estimates of $141.2M and $0.16, respectively. “The slight beat,” Reagor noted, “can be attributed to gold sales exceeding production slightly, in our view.”

Reagor pointed out that the day after the mining firm reported its Q2/18 results, on Aug. 10, its share price “increased significantly.” This was due to the market acknowledging the company “is putting its startup issues in the rear view” and showcasing the high caliber of Brucejack. During the quarter, the mine generated $72M in cash, and its all-in sustaining cost was $648 per ounce.

“We note that some investors have continued to question the company’s ability to generate enough cash to buy out its gold stream by year-end; we believe this quarter’s financial results have gone a long way to answer that question,” wrote Reagor.

ROTH has a Buy rating and a US$19 per share price target on Pretium; the stock is currently trading at around US$8.81 per share. “We continue to believe the company trades at a significant discount to its discounted cash flow value due to historic resource questions, and we believe that continued strong performance will result in a significant increase in valuation,” concluded Reagor.

[NLINSERT]

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following company mentioned in this article is a billboard sponsor of Streetwise Reports: Pretium Resources. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Pretium Resources, a company mentioned in this article.

Disclosures from ROTH Capital Partners, Pretium Resources Inc., Company Note, August 12, 2018

Regulation Analyst Certification (“Reg AC”): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

ROTH makes a market in shares of Pretium Resources Inc. and as such, buys and sells from customers on a principal basis.

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.

( Companies Mentioned: PVG:TSX; PVG:NYSE,
)

from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/article/2018/08/16/q2-18-results-infer-high-quality-of-gold-producers-bc-mine.html