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In
This Edition...
Precious
Metals
Market
Update
Gold &
Silver ETF's
Geopolitical
View
Gold
Producer News
Website Updates
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| Dear
Subscriber, |
| The
newsletter will
be published
next on
September 11,
2010. |
| IN THIS
EDITION OF
INSIDEMETALS
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In this
edition of the
InsideMetals
Newsletter,
we'll take a
look at gold
& silver
ETF's,
production,
pricing and
news, as well
as precious
metals trends,
gold producer
news and
recent website
updates, which
includes our
new
Advertising
and Media Kit
information.
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This Issue |
| Precious
Metals Markets
Update |
| Geopolitical
View |
| Whitney
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Gold Producer
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Gold Producer
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Gold Producer
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| PRECIOUS METALS
MARKET UPDATE |
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Gold closed
at $1213.00/oz
(London Fix)
on August 12,
2010, a 4.3%
increase from
the
$1162.50/oz
(London Fix)
closing price
on July 29,
2010, when
data for the
previous
newsletter was
gathered.
Silver closed
at $17.92/oz
(London Fix)
on August 12,
2010, a 1.8%
increase from
the $17.60 oz
(London Fix)
closing price
on July 29,
2010.
Platinum closed
at $1524.00/oz
(London Fix)
on August 12,
2010, a 1.9%
decrease from
the
$1553.00/oz
(London Fix)
closing price
on July 29,
2010.
Palladium closed
at $469.00/oz
(London Fix)
on August 12,
2010, a 3.9%
decrease from
the $488.00/oz
(London Fix)
closing price
on July 29,
2010.
GOLD
vs.
EURO/U.S.
DOLLAR
CHART
Gold
closed at
$1213.00 on
August 12, 2010.
The metal traded
in a narrow
range between
$1075.00 and
$1150.00 from
mid-February
through
mid-April, then
gold started to
climb and
established a
new record high
close of
$1261.00 (London
Fix) on June 28,
2010. During the
mid-February to
mid-April period
of consolidating
gold prices, the
US dollar began
to climb in
value with
respect to the
euro. The dollar
then began to
soar in value to
the euro in
mid-May, as
concerns about
the economies of
several European
countries,
principally
Greece and
Portugal
increased. The
Euro/$ value on
April 22, 2010
was 1.3339, and
declined to less
than 1.20 in
early June 2010.
The above
chart reflects
the usual
parallel
movement in
the price of
gold and the
value of the
U.S. dollar
since early
2008, until
early 2010. In
the last
couple of
months there
has been a
steady
increase in
the dollar
while the gold
prices have
fluctuated
with respect
to the U.S.
dollar as
indicated by
the strong
divergence in
the two lines.
In the last
couple of
weeks the
price of gold
and the Euro/$
value are
starting to
converge as
the US dollar
has weakened
and the Euro/$
ratio closed
at 1.279 on
August 12,
2010.
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The SPDR Gold
Trust (GLD)
now controls
41,368,653
ounces of
gold. The
trust's gold
holdings have
been steadily
increasing
since October
2008 and
reached record
holdings of
42,453,322
ounces on June
29, 2010. GLD
holdings were
41,256,552
ounces when
this
newsletter was
last issued,
since that
date there has
been an
increase in
the GLD
holdings of
over 112,000
ounces.
The
accumulation
of
silver
by
the
iShares
Silver
Trust
(SLV)
has
been
steadily
increasing
since
early
2008,
in
spite
of
declining
silver
prices
beginning
in
August
2008
through
October
2008.
SLV
silver
holdings
and
the
price
of
silver
moved
upward
in
mid-January.
Silver
prices
and
SLV
silver
holdings
had
been
steadily
rising
since
July
2009
and
reached
a
record
305,893,368
ounces
on
December
3,
2009,
when
the
price
of
silver
closed
above
$19.00
per
ounce
(London
Fix).
After
several
months
of
consolidating
silver
prices
and
a
decline
in
ounces
controlled
by
the
SLV,
there
was
a
brief
rise
in
the
silver
price
above
$19.50
per
ounce
in
May
2010,
followed
by
a
decline
in
the
number
of
ounces
controlled
by
the
trust
and
a
decline
in
the
price
of
silver.
The
SLV
currently
holds
294,212,301
ounces
of
silver,
a
decrease
of
1,101,479
ounces
since
the
newsletter
was
last
published.
Both
the
GLD
and
SLV
are
maintaining
their
positions
in
spite
of
recent
sharp
fluctuations
in
gold
and
silver
prices.
This
suggests
that
investors
continue
to
believe
in
the
long
term
prospects
for
gold
and
silver.
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On
Thursday,
August
12,
2010
investors
turned
again
to
gold
as
a
refuge
after
concerns
about
a
weakening
economic
recovery
bubbled
to
the
surface
once
again
as
the
economic
data
continues
to
disappoint.
The
weak
data
includes
the
rise
in
unemployment
claims
reported
for
the
week
ending
August
7,
2010,
disappointing
data
from
the
Federal
Reserve
this
week,
and
polling
data
that
shows
China's
growth
is
slowing.
A
poll
conducted
by
The
Wall
Street
Journal
(reported
on
August
5,
2010)
finds
China's
growth
is
slowing
from
double-digit
rates
to
about
8%
as
the
government
is
throttling
down
on
its
growth.
The
poll
asked
economists
for
their
estimates
on
China's
growth
in
the
same
seasonally
adjusted
quarter-to-quarter
terms
used
by
other
major
economies.
The
Chinese
slow-down
is
being
orchestrated
by
policymakers
who
have
been
taking
measures
to
reduce
the
risk
to
their
economy
from
surging
house
prices
and
rapidly
expanding
debts.
China
ordered
banks
to
rein
in
their
lending
to
ward
off
asset-price
bubbles.
The
slow-down
will
cool
the
demand
for
commodities
such
as
copper
and
iron.
The
disappointing
data
from
the
Federal
Reserve
on
Tuesday,
August
10,
2010
indicated
that
the
recovery
has
slowed
and
the
pace
of
economic
recovery
is
likely
to
be
more
modest
than
had
been
anticipated.
The
assessment
from
the
Federal
Reserve
followed
the
weaker
than
expected
jobs
report
and
data
on
Wednesday
that
showed
the
U.S.
trade
deficit
widened
and
there
were
declines
in
the
Dow,
Nikkei
and
Shanghai
markets;
and
the
yen
briefly
reached
a
15-year
high
against
the
U.S.
dollar
and
the
euro
had
its
worst
sell-off
in
nearly
two
years.
Gold
prices
closed-up
at
$1213/oz
(London
Fix)
on
Thursday,
August
12,
a
monthly
high,
and
should
continue
to
rise.
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GOLD PRODUCER
NEWS |
July
30,
2010: Stillwater
Mining
Company
(SWC)
reported
Q2'10
net
profit
of
$14.6
million
on
revenue
of
$134.9
million.
This
compares
to
Q2'09
net
income
of
$4.6
million
on
revenue
of
$94.8
million.
Stronger
realized
PGM
prices
in
Q2'10
offset
the
production
decline
in
Q2'09.
The
average
realized
price
of
PGMs
sold
in
Q2'10
was
$725/oz,
well
above
the
$530/oz
average
price
realized
for
PGMs
sold
in
Q2'09.
The
total
quantity
of
PGMs
sold
in
Q2'10
were
116,700
ounces,
compared
to
135,700
ounces
sold
in
Q2'09.
Stillwater
mined
a
total
of
112,600
ounces
of
PGMs
in
Q2'10,
an
18.2%
decrease
from
the
137,700
ounces
produced
during
Q2'09.
Production
at
the
Stillwater
mine
decreased
to
79,200
ounces
of
PGMs
in
Q2'10
compared
to
103,000
in
Q2'09.
Production
at
the
Company's
East
Boulder
mine
was
33,400
ounces
in
Q2'10,
compared
to
34,700
ounces
in
Q2'09.
Total
cash
costs
averaged
$393/oz
in
Q2'10
compared
to
total
cash
costs
of
$331/oz
in
Q2'09.
July
30,
2010: Compania
de
Minas
Buenaventura
SA
(BVN)
posted
a
second
quarter
2010
net
profit
of
$110.9
million,
a
17%
drop
from
the
same
period
last
year
on
lower
gold
output
and
higher
production
costs.
Gold
production
in
the
second
quarter
declined
19%
year-on-year.
The
quarterly
result
was
mainly
explained
on
a
23%
decline
in
operating
income
and
a
12%
decrease
in
contributions
from
Yanacocha
and
Cerro
Verde
compared
to
the
year-earlier
period.
BVN's
gold
output,
including
its
share
of
Yanacocha
dropped
by
19%
to
261,953
ounces
in
the
second
quarter
compared
to
the
second
quarter
of
2009.
August
2,
2010: Goldcorp
Inc.
(GG)
announced
that
it
has
entered
into
a
$500
million
credit
facility
through
a
syndicate
of
lenders
comprised
of
Nova
Scotia,
Bayerische
Hypound
Vereinnsbank
AG,
Societe
Generale,
Bank
of
Montreal,
and
Royal
Bank
of
Scotland.
The
revolving
$500
million
credit
facility
is
available
to
finance
acquisitions
and
for
general
corporate
purposes,
and
is
unsecured.
This
credit
facility
combined
with
a
present
cash
balance
of
$400
million
will
allow
Goldcorp
to
acquire
additional
gold
assets
for
cash
and
continue
its
growth
path.
August
4,
2010: Yamana
Gold
Inc.
(AUY)
reported
net
earnings
of
$90.9
million
for
Q2'10
on
revenue
of
$351.4
million.
For
the
quarter
Yamana
produced
253,264
gold
equivalent
ounces
(GEO)
at
a
cash
cost
of
$103
per
GEO.
The
quarterly
production
was
comprised
of
208,399
ounces
of
gold
and
2.5
million
ounces
of
silver,
a
6%
increase
from
Q1'10
and
a
5%
increase
over
Q1'09..
Adjusted
net
earnings
for
Q2'10
were
$85.8
million.
Production
increased
across
nearly
all
of
the
Company's
wholly
owned
mines,
quarter-over-quarter
as
expected.
Refer
to
the
press
release
for
production
details
and
development
updates.
Production
for
the
full
year
is
expected
to
be
in-line
with
previous
guidance
of
1.03
million
GEO
to
1.145
million
GEO.
Copper
production
is
expected
to
be
in
excess
of
150
million
pounds
in
2010.
August
5,
2010: Gold
Fields
Ltd.
(GFI)
announced
net
earnings
for
the
quarter
which
ended
June
30,
2010
of
$120
million
compared
with
net
earnings
of
$44
million
and
a
loss
of
$29
million
in
the
March
2010
and
June
2009
quarters
respectively.
Highlights
for
the
quarter
include
a
new
production
record
of
over
200,000
ounces
at
Tarkwa,
a
2%
decline
in
the
average
cash
cost
from
$703/oz
in
the
quarter
ended
March
30,
2010
to
$688/oz
for
the
quarter
ended
June
30,
2010.
For
the
quarter
ended
June
30,
2010,
GFI
produced
898,000
ounces
of
gold,
compared
to
906,000
ounces
produced
in
the
year-earlier
quarter.
In
the
June
quarter
South
Deep
achieved
record
production
levels
since
becoming
a
fully
mechanized
mine.
South
Deeps
production
has
increased
by
52%
year-on-year,
achieving
a
current
annual
production
of
256,000
ounces,
as
it
progresses
to
an
expected
annual
production
of
750,000
to
800,000
ounces
targeted
for
2014.
August
5,
2010: Stillwater
Mining
Company
(SWC)
announced
the
formal
start-up
of
operations
at
its
new
Recycling
Processing
and
Sample
Plant
in
Columbus,
Montana.
The
new
Catalytic
Converter
Recycling
and
Sample
Plant
will
expand
the
company's
capacity
to
recycle
spent
automotive
and
industrial
catalysts
and
includes
enhanced
dust
collection
and
pneumatic
conveyance
into
the
smelter.
Adjacent
to
this
facility
the
Company
is
currently
constructing
a
new
state-of-the-
art
automated
x-ray
system
which
will
allow
the
expedited
assay
of
catalyst
materials.
The
installation
of
the
x-ray
equipment
should
be
completed
in
September.
August
6,
2010: Compania
de
Minas
Buenaventura
SA
(BVN)
announced
that
it
has
received
permits
from
Peru's
Energy
and
Mining
Ministry
to
initiate
metallurgical
operations
at
its
La
Zanja
deposit
which
is
a
joint
venture
with
Newmont
Mining
Corp.
Buenaventure
owns
53%
of
the
project
and
Newmont
the
other
47%.
The
mine
is
expected
to
produce
over
100,000
ounces
of
gold
annually.
August
6,
2010: Gammon
Gold
Inc.
(GRS)
announced
that
it
will
record
a
non-cash
goodwill
and
asset
impairment
charge
related
to
its
suspension
of
operations
at
El
Cubo
in
Mexico.
The
decision
was
a
result
of
continued
labor
disruptions
by
the
unionized
workforce
and
rising
costs
of
operations.
The
Company
conducted
a
long-lived
asset
impairment
test
whereby
future
life-of-mine
cash
flows
reflecting
recent
union
productivity
experience
were
factored
against
the
El
Cubo
carrying
value.
Based
on
this
test,
the
Company
will
record
a
goodwill,
and
asset
impairment
charge
of
$193.3
million
for
the
second
quarter
ended
June
30,
2010.
The
remaining
carrying
value
of
the
El
Cubo
mine's
long-lived
assets
will
be
$60.9
million.
While
the
charge
will
reduce
Q2'10
reported
earnings
by
$193.3
million,
it
is
a
non-cash
accounting
adjustment
and
will
not
affect
reported
cash
flows,
cash
balance,
or
proven
and
probable
reserves.
August
6,
2010: Goldcorp
Inc.
(GG)
announced
completion
of
its
sale
of
the
San
Dimas
gold-silver
mine
in
Mexico
to
Primero
Mining
Corp.
(formerly
Mala
Noche
Resources
Corp.).
Goldcorp
received,
pursuant
to
the
transaction,
31,151,200
common
shares
of
Primero,
representing
36%
of
Primero's
issued
and
outstanding
common
shares,
$216
million
in
cash,
a
$60
million,
12-month
convertible
note
bearing
an
annual
interest
rate
of
3%
and
a
$50
million,
5-year
promissory
note
bearing
an
annual
interest
rate
of
6%.
Goldcorp
has
the
right
to
maintain
its
percentage
interest
in
Primero
as
long
as
Goldcorp
and
its
affiliates
hold
at
least
10%
of
the
issued
and
outstanding
common
shares
of
Primero.
August
6,
2010: Newmont
Mining
Corp.
(NEM).
Workers
at
PT
Newmont
Nusa
Tenggara
(NNT),
an
Indonesian
unit
of
NEM
agreed
to
end
their
strike
at
Batu
Hijau
which
has
been
in
effect
since
August
2,
2010
over
payment
on
overtime
hours.
August
6,
2010: Silver
Wheaton
Corp.
(SLW)
announced
that
it
has
amended
its
silver
purchase
agreement
related
to
the
sale
of
the
San
Dimas
mine
by
Goldcorp
Inc.
to
Primero
Mining
Corp.
Primero
will
assume
the
obligations
to
deliver
silver
to
Silver
Wheaton
that
were
the
responsibility
of
Goldcorp.
The
agreement
which
previously
ended
in
2029
has
been
extended
to
life-of-mine.
During
the
first
four
years
of
the
agreement,
Primero
will
deliver
per
annum,
the
first
3.5
million
ounces
of
payable
silver
produced
at
San
Dimas,
and
50%
of
any
excess,
plus,
Silver
Wheaton
will
receive
an
additional
1.5
million
ounces
of
silver
per
annum
from
Goldcorp.
Beginning
in
the
fifth
year,
Primero
will
deliver
to
Silver
Wheaton
a
per
annum
amount
equal
to
the
first
six
million
ounces
of
payable
silver
produced
at
San
Dimas
and
50%
of
any
excess.
Goldcorp
will
continue
to
guarantee
the
delivery
by
Primero
of
all
silver
produced
and
owing
to
Silver
Wheaton
until
2029,
and
payment
of
$0.50/oz
for
any
shortfall
below
215
million
cumulative
ounces
delivered
to
Silver
Wheaton
by
the
end
of
2011.
August
9,
2010: Goldcorp
Inc.
(GG)
declared
its
eight
monthly
dividend
payment
of
$0.015
per
share
for
2010.
Shareholders
of
record
at
the
close
of
business
on
Thursday,
August
19,
2010
will
be
entitled
to
receive
payment
of
this
dividend
on
Friday,
August
27,
2010.
August
9,
2010: Kinross
Gold
Corp.
(KGC)
announced
that
it
has
filed
with
securities
regulatory
authorities
a
notice
of
a
special
meeting
of
shareholders
to
be
held
on
September
15,
2010.
The
purpose
of
the
meeting
is
to
consider
the
issuance
of
Kinross
common
shares
in
connection
with
the
previously
announced
business
combination
with
Red
Back
Mining
Inc.
August
10,
2010: Gammon
Gold
Inc.
(GRS)
reported
Q2'10
operating
profit
as
a
result
of
increased
production
and
higher
gold
prices.
Excluding
items,
Gammon
reported
earnings
of
$11.4
million,
up
from
a
profit
of
$3.4
million
in
the
year-earlier
quarter.
Including
the
charge,
Gammon
reported
a
net
loss
of
$180.3
million,
compared
to
a
year-earlier
loss
of
$6.8
million.
Gammon
booked
a
charge
related
to
the
suspension
of
operations
at
its
El
Cubo
mine
in
Mexico.
Q2'10
revenue
rose
32%
to
$57
million
as
a
result
of
higher
realized
gold
and
silver
prices
based
on
the
production
of
52,506
gold
equivalent
ounces,
up
from
50,814
gold-equivalent
ounces
produced
in
the
year-earlier
quarter.
Gammon's
average
realized
gold
price
rose
31%
to
$1,201
per
ounce,
while
its
average
realized
silver
price
rose
35%
to
$18.47
per
ounce.
August
11,
2010: Newmont
Mining
Corp.
(NEM).will
seek
shareholder
approval
for
an
initial
IPO
of
up
to
$800
million
for
its
Indonesian
Joint
Venture,
PT
Newmont
Nusa
Taggara
(NNT),
the
operator
of
the
Batu
Hijau
copper-gold
mine.
NNT
will
seek
shareholder
approval
on
August
19,
2010
to
issue
as
many
as
1.13
billion
new
shares.
The
meeting
will
also
discuss
the
sale
of
as
many
as
880
million
shares
held
by
Pukuafu
Indah,
one
of
the
shareholders.
The
share
sale
may
help
NNT
fund
an
expansion
of
the
mine
as
metal
prices
rebound.
Batu
Hijau
is
Indonesia's
second
largest
copper
mine.
NEM
owns
48.5%
in
the
joint
venture,
including
a
17%
interest
obtained
as
collateral
from
Pukuafu.
Other
partners
include
PT
Bumi
Resources
and
local
administrations
in
West
Nusa
Tengarra,
and
Sumitomo
Corp.
which
owns
24.5%
of
the
JV.
Per
a
divestiture
agreement
with
the
Indonesian
government,
NEM
offered
its
final
required
7%
interest
in
April
for
$444
million.
August
11,
2010: Iamgold
Corp.
(IAG)
reported
Q2'10
earnings
of
$37.5
million,
a
decline
of
19%
compared
to
year-earlier
Q2'09
earnings,
after
higher
realized
gold
prices
were
offset
by
lower
production.
Excluding
some
items,
the
adjusted
Q2'10
net
income
rose
24%,
to
$39.1
million,
up
from
$31.5
million
in
Q2'09.
Revenue
for
Q2'10
declined
5%
from
Q2'09
to
$214
million.
IAG
produced
190,000
ounces
of
gold
in
Q2'10,
24%
less
than
Q2'09
after
closing
its
Doyon
mine
in
Canada
at
the
end
of
the
year,
and
because
of
lower
grades
at
mines
in
Africa,
as
well
as
its
flagship
Rosebel
operation
in
Suriname,
which
was
affected
by
unusually
heavy
rainfall
which
resulted
in
the
processing
of
lower
grade
stockpiles.
The
average
cash
costs
for
the
Q2'10
ballooned
to
$623/oz
up
from
$437/oz
in
the
year-earlier
quarter,
as
higher
gold
prices
pushed
up
royalty
payments,
and
lower
production
and
increased
waste
stripping
at
some
mines
increased
costs.
Gold
output
in
2010
is
expected
to
be
between
980,000
and
1,010,000
ounces,
compared
to
a
range
of
980,000
and
1,000,000
ounces.
Costs
are
now
expected
to
range
between
$490/oz
and
$530/oz
compared
to
an
earlier
forecast
of
$490/oz
to
$510/oz.
August
12,
2010: AngloGold
Ashanti
Ltd.
(AU)
posted
better
than
expected
adjusted
headline
Q2'10
earnings
of
$129
million
after
posting
lower
costs
and
a
strong
increase
in
production
from
its
mines
in
South
Africa
and
the
Americas.
Adjusted
headline
earnings
for
the
previous
quarter
were
$61
million.
Production
for
the
quarter
was
1.13
million
ounces
of
gold
at
$617/oz
compared
with
production
of
1.08
million
ounces
in
Q1'10
at
$619/oz.
South
African
operations
delivered
an
outstanding
performance
with
a
16%
increase
in
production
to
447,000
ounces
and
an
11%
drop
in
costs
to
$560/oz.
The
Americas
division
posted
a
strong
quarter
with
a
7%
increase
in
production
to
221,000
ounces.
AngloGold
reduced
its
hedgebook
by
300,000
ounces
and
received
a
gold
price
8.6%
below
spot
price.
This
leaves
a
commitment
of
3.22
million
ounces,
which
represents
less
than
75%
of
annual
production
at
current
rates.
AngloGold
has
a
target
of
adding
about
1
million
ounces
to
current
production
over
the
next
five
years
from
existing
projects.
AngloGold's
full
year
2010
guidance
remains
un
changed
at
4.6
to
4.7
million
ounces
at
a
total
cash
cost
of
$590
to
$615
per
ounce.
August
12,
2010: AngloGold
Ashanti
Ltd.
(AU)
announced
that
it
has
entered
into
an
agreement
with
B2Gold
Corp.
to
amend
the
Gramalote
Joint
Venture
Agreement.
Under
the
amended
terms,
AngloGold
will
retain
its
51%
interest
in
the
JV
and
will
become
manager
of
the
Gramalote
Project
in
Colombia.
B2Gold
was
the
project
manager,
and
will
retain
its
49%
interest
in
the
project.
The
amended
agreement
calls
for
spending
$9.18
million
in
the
second
half
of
2010
to
fund
10,000
meters
of
exploration
diamond
drilling
to
test
additional
targets
and
to
complete
in-fill
drilling
on
the
Gramolote
deposit
and
to
perform
feasibility
work.
The
Gramalote
deposit
contains
a
resource
of
approximately
2.4
million
ounces
of
gold.
August
12,
2010: Silver
Wheaton
Corp.
(SLW)
reported
that
net
earnings
increased
by
almost
200%
in
Q2'10
while
silver
equivalent
production
increased
48%
during
the
first
half
of
the
year.
Silver
Wheaton
reported
net
earnings
of
$53.26
million
in
Q2'10,
up
from
$18.44
million
during
Q2'09.
Attributable
silver
equivalent
production
for
Q2'10
is
5.7
million
ounces,
an
increase
of
33%
over
Q2'09.
Silver
Wheaton
is
forecasting
production
of
22.2
million
ounces
of
silver
and
20,000
ounces
of
gold,
or
23.5
million
silver
equivalent
ounces
for
2010.
During
Q2'10
Silver
Wheaton
acquired
1.8
million
units
of
Ventana
Gold
for
a
total
consideration
of
$19.8
million.
As
part
of
this
transaction,
Silver
Wheaton
has
been
granted
a
right
of
refusal
over
any
silver
production
from
Ventana's
Columbian
properties
including
its
La
Bodega
gold-silver
deposit.
|
| AMEX
GOLD PRODUCER
NEWS |
|
July
30,
2010: Brigus
Gold
Corp.
(BRD)
reported
that
it
closed
its
previously
announced
private
placement
offering
of
10,000,000
common
shares
of
the
Company
as
flow-through
shares
for
purposes
of
the
Canadian
Income
Tax
Act
at
a
price
of
C$1.40
per
Flow-Through
Share
for
total
gross
proceeds
to
Brigus
of
C$14,000,000.
The
offering
included
the
exercise
of
the
additional
C$2
million
option
and
was
completed
on
a
guaranteed
agency
private
placement
basis
by
Haywood
Securities
Inc.
as
lead
underwriter.
The
funds
will
be
used
for
exploration
and
development
activities
at
the
Company's
Black
Fox
gold
mine
and
adjoining
Grey
Fox
-
Pike
River
Project
in
Ontario.
August
4,
2010: Minefinders
Corporation
Ltd.
(MFN)
reported
Q2'10
revenue
of
$21.6
million
on
gold
production
of
13,783
ounces
of
gold
and
277,147
ounces
of
silver.
Income
from
operations
was
$2.4
million,
and
a
net
loss
of
$0.9
million
was
recorded
for
the
quarter
as
proceeds
of
$21.6
million
was
realized
from
the
sale
of
14,073
ounces
of
gold
and
266,129
ounces
of
silver
at
an
operating
cash
cost
of
$597
per
gold
equivalent
ounce
sold.
During
the
quarter
Minefinders
received
a
draft
pre-feasibility
study
examining
a
mill
addition
at
its
Dolores
mine
in
northern
Mexico
and
it
also
received
a
pre-feasibility
study
for
its
La
Bolsa
gold
and
silver
project,
also
in
Mexico.
La
Bolsa
contains
Measured
and
Indicated
Resources
of
151,121
ounces
of
gold
and
1,939,460
ounces
of
silver.
August
5,
2010: Endeavour
Silver
Corp.
(EXK)
reported
a
second
quarter
June
2010
net
earnings
loss
of
$412,000
compared
to
a
June
2009
net
earnings
loss
of
$1,832,000
on
revenue
of
$19,692,000,
compared
to
revenue
of
$8,236,000
for
the
year-earlier
quarter.
Silver
production
for
Q2'10
climbed
41%
to
836,439
ounces
and
gold
production
jumped
61%
to
4,460
ounces.
Cash
costs
declined
15%
to
$5.94
per
ounce,
net
of
gold
credits.
Net
earnings
dipped
as
expected
due
to
increased
exploration
and
other
expenses.
Silver
and
gold
production
were
both
slightly
ahead
of
plan.
Exploration
programs
are
progressing
on
time
and
below
budget,
and
drill
results
will
be
released
in
the
third
quarter.
August
5,
2010: New
Gold
Inc.
(NGD)
reported
gold
sales
of
82,402
ounces
in
Q2'10,
up
56%
from
gold
sales
of
52,890
ounces
in
Q2'09.
Gold
production
increased
62%
to
89,919
ounces
from
55,663
ounces
in
Q2'09.
Earnings
from
mine
operations
increased
by14%
to
$35.9
million
from
$14.6
million
in
Q2'09.
Net
earnings
from
continuing
operations
for
Q2'10
were
$17.4
million
compared
to
a
net
loss
of
$199.3
million
for
the
same
period
in
Q2'09.
New
Gold's
cash
balance
at
the
end
of
the
second
quarter
was
$376.1
million,
representing
a
$32.4
million
increase
from
the
end
of
Q1'10.
All
three
of
the
Company's
operating
mines,
Mesquite,
Cerro
San
Pedro
and
Peak,
had
strong
production
and
earnings
contributions
with
gold,
silver,
and
copper
sales.
Refer
to
the
press
release
for
details
on
mine
operations
and
development
(New
Afton
and
El
Morro).
New
Gold
reiterates
its
2010
production
guidance
of
330,000
to
360,000
ounces
of
gold
at
a
total
cash
cost
of
$445
to
$465
per
ounce,
net
of
by-product
sales.
August
6,
2010: Richmont
Mines
Inc.
(RIC)
reported
financial
and
operating
results
for
Q2'10.
For
the
quarter
Richmont
posted
net
earnings
of
$0.2
million,
compared
to
a
net
loss
of
$1.4
million
for
Q2'09.
Revenue
for
Q2'10
was
$20.7
million,
a
notable
32%
increase
over
the
$15.7
million
reported
for
Q2'09,
as
the
number
of
gold
ounces
sold
increased
by
18%
to
15,606
ounces,
from
13,250
ounces
sold
in
the
year-earlier
quarter.
The
increased
revenue
also
resulted
from
the
higher
realized
average
price
of
$1,218/oz
compared
to
$941/oz
realized
in
Q2'09.
Higher
production
resulted
in
operating
costs,
including
royalties,
increasing
to
$14.6
million
in
Q2'10,
from
$11.9
million
in
Q2'09.
The
average
cash
cost
of
gold
sold
rose
from
$787/oz
in
Q2'09
to
$908/oz
in
Q2'10,
due
to
the
lower
recovered
grades
at
both
Beaufor
and
Island
Gold
mines.
Exploration
and
project
evaluation
costs
declined
41%
to
$1.8
million
in
Q2'10,
compared
with
$3.0
million
in
Q2'09.
Refer
to
the
press
release
for
details
on
project
development
and
exploration.
August
9,
2010: Gold
Star
Resources
Ltd.
(GSS)
announced
its
unaudited
Q2'10
results
which
include
a
net
income
of
$7.6
million,
while
gold
revenue
for
the
quarter
was
$120.3
million,
an
increase
of
31%
over
Q2'09
revenue.
Gold
Star's
cash
position
increased
to
$181.2
million.
Gold
production
for
Q2'10
was
over
100,000
ounces
and
gold
sales
for
the
quarter
was
100,412
ounces,
a
1.4%
increase
over
Q2'09.
The
realized
price
of
gold
for
Q2'10
averaged
$1,198/oz
compared
to
$928/oz
in
Q2'09.
The
budget
for
2010
exploration
has
been
increased
to
$23
million.
The
increase
includes
$5
million
for
drilling
at
the
Buesichem
South
discovery.
For
the
first
half
of
the
year,
$11.1
million
has
been
spent.
Q2'10
exploration
activities
were
focused
primarily
in
Ghana
on
resource
definition
drilling
in
areas
surrounding
its
operations
in
Sierra
Leone
at
the
Sonfon
property,
and
interpretation
of
airborne
geophysical
surveys
in
Ghana.
Four
drill
rigs
are
active
along
the
Wassa/HBB
corridor
with
drilling
at
Chichiwelli,
Adoikrom,
Benso
and
Wassa
Main.
In-fill
resource
drilling
at
Chiciwelli
was
completed
in
Q2'10
and
resource
modeling,
pit
optimization,
metallurgical
sampling
and
geotechnical
studies
are
scheduled
for
the
second
half
of
2010.
August
10,
2010: Northgate
Minerals
Corp.
(NXG)
reported
that
its
Q2'10
profit
fell
to
$4.3
million,
down
from
$5.4
million
in
the
year-earlier
quarter,
as
gold
production
declined
and
quarterly
gold
sales
fell
34%
to
65,943
ounces
due
to
lower
output
from
its
Stawell
mine
in
Australia
and
its
Kemess
mine
in
British
Columbia.
Average
production
costs
in
the
quarter
rose
nearly
59%
to
$693
an
ounce.
The
rise
in
production
costs
offset
gains
from
a
higher
realized
gold
price.
Quarterly
revenue
fell
5.8%
to
$122.7
million.
Excluding
an
unrealized
gain
related
to
copper
sales,
Northgate
posted
a
loss
of
$7.1
million
compared
to
the
year-earlier
profit
of
$10.1
million.
August
12,
2010: Aurizon
Mines
Ltd.
(AZK)
reported
that
Q2'10
earnings,
excluding
one-time
items,
rose
C$4.4
million
from
year-earlier
Q2'09
earnings
of
C$3.9
million.
Revenue
in
Q2'10
was
C$50.5
million,
an
increase
of
12%.
Gold
production
in
Q2'10
declined
3.4%
to
38,527
ounces,
and
gold
sales
also
declined
5%
to
39,964
ounces.
The
Company
expects
to
produce
145,000
to
155,000
ounces
in
2010,
and
forecasts
that
its
production
will
range
between
160,000
and
170,000
ounces
in
2011,
as
it
begins
to
mine
higher
grade
portions
of
the
Casa
Berardi
mine.
Aurizon
is
debt
free
with
a
cash
balance
of
C$124
million
as
of
June
30,
2010,
and
hopes
to
complete
its
feasibility
study
at
Joanna
by
the
end
of
2010,
and
begin
permitting
and
construction
in
2011.
August
12,
2010: Claude
Resources
Inc.
(CGR)
reported
Q2'10
production
of
11,902
ounces
of
gold
from
its
Seabee
Operations,
a
54%
increase
over
7,735
ounces
produced
in
Q2'09.
For
the
quarter
ended
June
30,
2010,
CGR
reported
net
earnings
of
$0.3
million,
compared
to
a
net
loss
of
$3.9
million
for
Q2'09.
With
improved
grade
at
Seabee
Deep
and
with
increased
contributions
from
Santoy
8
to
Seabee
Operations,
management
continues
to
forecast
46,000
to
50,000
ounces
of
production
for
2010.
The
average
cash
operating
cost
for
the
quarter
was
$753/oz.
The
average
realized
gold
price
for
the
quarter
was
$1,213/oz.
Claude
continued
its
aggressive
exploration
and
development
strategy
during
Q2'10.
Surface
drilling
at
Madsen
continues
to
yield
encouraging
results
from
the
Austin
East
and
Starratt
Olsen
targets
while
dewatering
and
| | |
