FinancialBuzz.com News Commentary
According to Incrementum AG, gold prices are projected to rally to levels, last seen four years ago as rising inflation and negative real interest rates combine to boost demand. Incrementum AG stated prices may climb to $1,400 to $1,500 an ounce this year. Gold prices have already climbed year to date and investors are approaching the new presidential administration with caution as it tries to implement its political and economic agendas. These uncertainties, along with the upcoming France elections, the lingering Brexit process, will increase demand for safe-haven assets such as gold. Kenadyr Mining Holdings Corp. (TSX-V: KEN), Exeter Resource Corp. (NYSE: XRA), Timmins Gold Corp. (NYSE: TGD), Primero Mining Corp. (NYSE: PPP), Yamana Gold Inc. (NYSE: AUY)
Ronald-Peter Stoeferle, managing partner at Incrementum AG, explained, "The real pick up in momentum might start at the beginning of summer. It's in the very early stages of the bull market, so everybody is still kind of cautious or slightly negative, but this will improve. As soon as we get the signal for rising inflation, we'll invest in inflation-sensitive assets again such as silver equities, gold equities, energy and the broad commodity complex." Stoeferle manages 30 million Swiss francs in the renamed Incrementum Inflation Diversifier Fund.
Kenadyr Mining Holdings Corp. (TSX-V: KEN) announced on March 29th that it has completed its previously announced acquisition of Kenadyr Mining Corporation. In connection with the Transaction, the Company consolidated its common shares on the basis of one post-consolidation share for each two pre-consolidation shares and changed its name to 'Kenadyr Mining (Holdings) Corp.' The Transaction will constitute the Company's 'Qualifying Transaction' pursuant to Policy 2.4 - Capital Pool Companies of the TSX Venture Exchange and the Company will carry on the business of Kenadyr.
The Company's post-consolidation common shares will resume trading on the Exchange under the new ticker symbol 'KEN' after the Exchange's conditions for listing are satisfied and the Exchange issues its final exchange bulletin confirming the completion of the Transaction. The Company's common shares are anticipated to resume trading on March 31, 2017. The focus of the Company's business going forward will be the acquisition, development and operation of mineral properties, with its principal focus at this stage on the Borubai Project in the Kyrgyz Republic.
The Borubai Project encircles the Zijin/KyrgyzAltyn newly constructed and operational Taldy-Bulak Levoberejny mine (TBL mine), which was built at a cost of $296-million (U.S.). According to a news release published by Zijin Mining Group Co. Ltd. on August 15, 2011, the national resources table of Kyrgyz Republic stated that the Taldy-Bulak Levoberejny field contains (C1 plus C2) 8,906,100 tonnes of gold ore (the average grade is 7.23 grams per tonne), and the gold metal volume is 64,420.5 kilograms, among which, the C1 grade (initial mining reserve) is 4,949,754 tonnes of gold ore (the average grade is 7.02 grams per tonne), and the gold metal volume is 34,754.6 kilograms. The TBL mine is designed to produce 125,000 ounces of gold per annum. The TBL mine deposit directly connects to KMC's initial drill target, the south zone, which was previously drilled by the Soviets."
Exeter Resource Corp. (NYSE: XRA) focuses on the discovery, evaluation and development of gold-copper deposits in the Americas. The Company's flagship project, the Caspiche project is well located in Chile's Maricunga district which has good infrastructure and is in close proximity to other large scale mining operations and projects in development. On March 28, 2017, the company announced that it entered an agreement with Goldcorp, Inc. where Goldcorp will acquire all outstanding shares of Exeter for a total consideration of C$247 million.
Timmins Gold Corp. (NYSE: TGD) is a Canadian gold mining company engaged in exploration, development and production exclusively in Mexico. Its principal assets include the producing San Francisco mine in Sonora, Mexico and the development stage Ana Paula project in Guerrero, Mexico. Earlier in February, the company provided an update on its 100% owned Ana Paula project (the 'Project') located in the Guerrero Gold Belt, in the State of Guerrero, Mexico. Ana Paula is a high-grade, open pit gold development project that was the subject of a positive Preliminary Economic Assessment ('PEA') in February 2016. From October 2016 to the end of January 2017, approximately 7,903 meters of infill drilling in 34 core holes has been completed at the Ana Paula deposit.
Primero Mining Corp. (NYSE: PPP) is a Canadian-based precious metals producer that owns 100% of the San Dimas gold-silver mine and the Cerro del Gallo gold-silver-copper development project in Mexico and 100% of the Black Fox mine and adjoining properties in the Township of Black River-Matheson near Timmins, Ontario, Canada. In February, the company announced its updated year-end 2016 Mineral Reserves and Mineral Resources. Damien Marantelli, Chief Operating Officer stated, "Our 2016 exploration program substantially replaced our depleted mineral resources. However, our mineral reserve estimate was affected by mining depletion and improvements we made to our geological controls and modelling methodologies. We believe these important changes will set up our mines for future successes through improved planning, predictability and deliverability."
Yamana Gold Inc. (NYSE: AUY) has a diversified portfolio of assets providing sustainable gold production supported by a large mineral reserve and mineral resource base. The company has recently announced that it has completed a secondary offering by private placement of 6,000,000 common shares of Brio Gold Inc. Yamana sold the Brio shares at a price of C$3.35 per Brio share for total proceeds of C$20,100,000 to an arm's length institutional shareholder. The sale of Brio shares followed a number of inbound expressions of interest from certain shareholders of Yamana, who were not able to participate in the purchase rights offering late last year, although who saw the merits of the transaction and the value proposition in Brio shares.
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