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Lots of deals despite soft precious metal prices

Lots of deals despite soft precious metal prices

FromKitco NEWS Roundtable


Lots of deals despite soft precious metal prices

FromKitco NEWS Roundtable

ratings:
Length:
52 minutes
Released:
Dec 11, 2020
Format:
Podcast episode

Description

Lots of deals despite soft precious metal pricesThere was a noticeable uptick in the number of deals in the junior space this week despite wobbly precious metal prices. George Salamis, president and CEO of Integra Resources, joined correspondent Paul Harris, editor Neil Christensen and Mining Audiences Manager Michael McCrae to record Kitco Roundtable podcast on Friday. Gold's momentum has slowed. The near-term sentiment in the gold market is mixed as the price runs out of momentum testing critical resistance around $1,850 an ounce according to the latest results of the Kitco News. Wall Street analysts are mostly bearish with 40% calling for lower prices. Main Street investors bucked the trend with 54% as bullish. Despite softer precious metal prices, there were some headline deals. Wheaton Precious Metals is putting its money to work once again announced in a new streaming agreement with Capstone Mining Corp. On Friday the precious metals streaming company said that it would pay Capstone $150 million for 50% of its silver production up to 10 million ounces. The agreement then falls to 33% of production for the rest of the mine life, the company said.Ascot Resources (TSX: AOT; OTCQX: AOTVF) announced on Thursday the closing of a US$105 million project financing package with Sprott and Beedie Investments. The financing is comprised of a senior credit facility for US$80 million provided by Sprott, and a subordinated convertible facility for US$25 million provided by Beedie and Sprott.Northern Vertex Mining (TSX.V:NEE, OTC-NASDAQ Intl: NHVCF) and Eclipse Gold Mining (TSX.V:EGLD, OTC:EGLPF) announced Monday that they have entered into a definitive arrangement agreement to combine in an at-market merger. This merger will create a new gold growth resource business focused on the Western United States. Northern Vertex will be the resulting company with offices in the U.S. and Canada.Salamis said the deal environment looks great. "You've got the major mining companies who are producing gold predicated on mine plans that were done a year or two years ago at $1,300-$1,400 gold [now looking at] a $1,800-$1,900 gold envrionment, plus a $20 silver environment," said Salamis. "They're making money hand over fist, and they're wiping out debt to the tune of about 30% per quarter.""We're not, we're not fussed at all by this weakness that we've seen with the gold price lately. We believe the long-term fundamentals are still there." Follow the panelists:Neils Christensen TwitterPaul Harris TwitterMichael McCrae Twitter   
Released:
Dec 11, 2020
Format:
Podcast episode

Titles in the series (100)

Join Kitco Kitco correspondent Paul Harris and mining audiences manager Michael McCrae who highlight the biggest news in precious metals and mining.