InvestMacro

Source: Streetwise Reports  (10/13/22)

Shares of Gatos Silver Inc. traded 29% higher yesterday after the company reported it achieved record levels of production at its Cerro Los Gatos mine during Q3/22. The firm raised its FY/22 production guidance while lowering its operating cost estimates.

After U.S. markets closed Tuesday, silver explorer, developer, and producer Gatos Silver Inc. (GATO:TSX; GATO:NYSE) announced “record production results from its 70%-owned Cerro Los Gatos (CLG) mine for the quarter and nine months ended September 30, 2022.”

The company highlighted that in Q3/22, silver production at GLG increased by 59% to 2.7 Moz Ag (million ounces silver), compared to 1.7 Moz Ag in Q3/21.

The firm advised that due to the positive results it achieved in Q3/22, it is raising its FY/22 production guidance and, at the same time, is lowering its FY/22 cost guidance.

Gatos Silver’s CEO Dale Andres stated, “Our continued strong operating performance at CLG during the quarter reflects planned production sequencing, with mill throughput exceeding design capacity by 15% and with higher ore grades compared with a year earlier.”

Gatos Silver raised its forward silver production guidance at the CLG mine by 9.2% over its previous estimates and advised that for FY/22, it expects the mine to produce 9.35-9.65 Moz Ag (silver), compared to its prior projections of 8.50-9.0 Moz Ag.

“Our priority exploration and definition drilling objectives are to extend our mine life by converting the higher-grade portion of our current Mineral Resource into Reserves and to follow up on the mineralization recently discovered at depth in the new South-East Deeps zone while assessing its potential implications for the entire Los Gatos district, Andres added.”

In addition to the record silver production mentioned above, during Q3/22, the GLG mine also registered record production of both lead and zinc. Zinc production increased by 32% year-over-year to 17.8 Mlb (million pounds), and lead production rose 13% y-o-y to 12.2 Mlb.

The company explained that the gains in production were attributed to record amounts of higher-grade material processed at the mill, which averaged 2,862 tpd (tonnes per day). The firm stated that it expects to process the same volumes but of somewhat lower-grade ore in Q4/22 as the highest-grade sections of the orebody were milled in Q3/22.

The company said that in Q3/22, it completed a fourth lift of the tailings dam and indicated that the construction of its paste plant is nearly finished. These events are expected to increase productivity and lower operating costs beginning in Q4/22.

Gatos Silver raised its forward silver production guidance at the CLG mine by 9.2% over its previous estimates and advised that for FY/22, it expects the mine to produce 9.35-9.65 Moz Ag (silver), compared to its prior projections of 8.50-9.0 Moz Ag.

The company added that it is also raising its estimates for gold (Au), lead (Pb), and zinc (Zn) concentrates production by even higher per percentages and stated that for FY/22, it expects to produce 5.0-5.3 Koz Au (thousand ounces gold), 43-45 Mlb Pb (million pounds lead), and 58-61 Mlb Zn.

The firm pointed out that while it is increasing production, it is now incurring lower total operating expenses and now expects FY/22 all-in-sustaining costs (AISC) to decrease by about 14% compared to prior forecasts. The company said that for FY/22, it expects AISC on a co-product basis of $15.50-16.50 per Ag eq oz. Gatos added that AISC for payable silver ounces produced is expected to be even lower at $11.50 -12.50 per Ag eq oz.

The firm advised that it estimates that for FY/22, it will have total sustaining capital expenditures in the amount of $75 million.

Gatos Silver mentioned that after it finishes construction of its paste plant in Q4/22, it expects that all-in –sustaining costs (AISC) will fall substantially throughout FY/23. In addition, there are no large expenses projected for tailings dam construction in FY/23, which will also lower overall expenses.

The company noted that, as it previously announced, it is proceeding with its plans to move its executive offices to Vancouver, B.C., from Denver, Colo., and expects to complete the transition in Q4/22.

The firm indicated that as of September 30, 2022, the Los Gatos Joint Venture (LGJV) had a cash balance of $39 million, compared to $40 million on June 30, 2022. In addition, the company advised that because of the CLG mine’s strong operating performance in Q3/22, it received its second quarterly dividend from the LGJV in the amount of $10 million.

The company stated that last week “it announced an updated CLG Mineral Reserve Estimate, Mineral Resource Estimate and Life of Mine plan and expects to produce a new technical report at the end of October 2022.”

Gatos Silver reiterated that, as it advised in a prior news release, it is presently working to find a licensed auditor in B.C., Canada, to perform an audit and complete a review of its financial statements. The firm indicated that it anticipates that at least one material issue may exist and will take the necessary steps to remedy any items discovered in the audit process as soon as practicable.

Specifically, the company advised that “it anticipates completing an impairment assessment based on the 2022 Mineral Reserve in Q4/22 and is working towards completing all outstanding SEC and OSC filings as soon as practicable.”

Gatos Silver is focused on exploration, development, and production at the Cerro Los Gatos deposit in the State of Chihuahua, Mexico, in which it owns a 70% interest through a joint venture. The property encompasses about 103,087 ha and is highly prospective for mining silver, zinc, lead, and some gold.

Gatos Silver started yesterday with a market cap of around $178.4 million, with approximately 69.1 million shares outstanding and a short interest of about 2.4%. GATO shares opened 8% higher yesterday at $2.79 (+$0.21, +8.14%) over the previous day’s $2.58 closing price. The stock traded between $2.78 and $3.43 per share and closed for trading at $3.33 (+$0.78, +29.07%).

Disclosures:
1) Stephen Hytha wrote 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: None. 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 decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Source: Streetwise Reports  (10/12/22)

Two core drill holes are showing broad mineralization at Defense Metals Corp.’s Wicheeda rare earth element deposit.

Defense Metals Corp. (DEFN:TSX.V; DFMTF:OTCQB; 35D:FSE) on Tuesday released results from two core drill holes showing broad mineralization at its 100%-owned Wicheeda rare earth element (REE) deposit in British Columbia.

The deepest hole drilled so far on the site at 395 meters, WI22-68, intersected 3.58% total rare earth oxide (TREO) over 124 meters, including 6.7% TREO over 18 meters and one 3-meter sample of 8.58% TREO.

Last month, Noble Capital Markets Senior Research Analyst Mark Reichman issued a note continuing to rate the company Outperform with a target of CA$0.90.

Just last week, analyst Michael Gray of Agentis Capital initiated coverage on Defense Metals, saying Wicheeda was well-located with access to key infrastructure and “could become a globally significant producer” of REEs.

“We are initiating coverage with a high conviction that DEFN is a best-of-breed North American REE developer that is well-positioned to its leverage growing global REE demand and government support to become part of a North American REE critical metals supply chain,” Gray wrote on October 3, 2022, when he set a 12-month valuation of CA$3.50 for the stock.

On Tuesday, he issued a note reaffirming his valuation, saying the hole “outperformed the deposit average.”

“We think the REE-enriched carbonatite unit could be larger than Defense anticipated, with coarse-grained mineralization encountered at depth in hole 68,” Gray wrote.

A second hole released this week, WI22-63, returned 2.29% TREO over 39 meters, including 5.08% TREO over 9 meters.

Last month, Noble Capital Markets Senior Research Analyst Mark Reichman issued a note continuing to rate the company Outperform with a target of CA$0.90.

The Catalyst

Gray said it’s an “excellent time to enter the REE space.” REEs are in high demand in the new green economy for purifying water, MRIs, fertilizers, weapons, research, wind turbines, computers, and permanent magnet motors for electric vehicles (EVs).

Defense Metals hopes to produce as much as 10% of the world’s light REEs to compete with China, which has about 85% of the world’s REE processing capacity. Political issues between the United States, China, and Taiwan put that vital supply at risk.

Given those needs, the company said it is moving as quickly as possible with the project.

Gray with Agentis said industries that use the elements are set to expand.

“We have taken our deposit from a bulk sample to pre-feasibility in four years,” Defense Metals Chief Executive Officer and Director Craig Taylor said. “I don’t think there is another rare earth deposit I can think of that has advanced this quickly.”

A preliminary economic assessment (PEA) for Wicheeda in 2021 showed an after-tax net present value of CA$512 million. Its 43-101 technical report showed a 5 million tonne indicated resource at 2.95% total rare earth oxides (TREO) and a 29.5 million tonne inferred resource averaging 1.83% TREO.

About 5,000 meters ended up being drilled this year over 15 holes. Results from 11 holes are still outstanding. The company is expecting to begin a preliminary feasibility study (PFS) before the end of 2022.

Industries Set to Expand

Realizing the importance of REEs, the U.S. government in February announced a US$35 million grant to MP Materials Corp. to process the elements at its California facility. The company has agreed to invest US$700 million to create more than 350 jobs in the permanent magnet sector by 2024.

Gray with Agentis said industries that use the elements are set to expand.

“The fundamentals for REE demand growth (are) very positive,” he wrote. “Demand is high, and forecasts suggest it will continue to grow, vis a vis the markets for EVs, wind turbines, and defense technologies.”

Currently, the analyst covering Defense Metals Corp. include Mark Reichman of Noble Capital Markets and Michael Gray of Agentis Capital. You can see all the analyst and newsletter coverage by clicking “See More Live Data” in the data box above.

Defense Metals recently also entered into a Mineral Exploration Agreement with the McLeod Lake Indian Band for Wicheeda that creates a framework for communication and cooperation between the company and the group as they move forward.

The company is also testing an acid bake extraction process for the REEs that could lower capital and operating costs. High-temperature concentrated sulfuric acid is used to convert the REEs to water-soluble sulfates, which can then dissolve during a water leach. A precipitation process is then used to recover the REEs.

The process is expected to allow for a more than 95% recovery rate for the REEs, compared to less than 90% with the alternative caustic cracking process. Testing for the new process will likely be finished soon.

Ownership, Analyst Coverage, and Share Structure.

Three money managers — Marquest Asset Management, U.S. Global Investors, and Probity/Qwest Funds — own a small percentage of the company. The rest is retail.

Currently, the analyst covering Defense Metals Corp. include Mark Reichman of Noble Capital Markets and Michael Gray of Agentis Capital. You can see all the analyst and newsletter coverage by clicking “See More Live Data” in the data box above.

Defense Metals has a market cap of CA$46.76 million with 183.4 million shares outstanding, 140.3 million of them free floating. It trades in a 52-week range of CA$0.36 and CA$0.17.

Disclosures:

1) Steve Sobek wrote this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He and 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: Defense Metals Corp. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Defense Metals Corp. Please click here for more information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) 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.

4) 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 decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Defense Metals Corp., a company mentioned in this article.

Source: Clive Maund  (10/4/22)

In light of yesterday’s lithium results from Argentina Lithium & Energy Corp., expert Clive Maund takes a look at the 10-year, 15-month, and 6-month charts for the natural resource company to tell you his outlook.

Regardless of how many electric vehicles spontaneously combust in the near future, the charts for Argentina Lithium & Energy Corp. (LIT:TSX.V; PNXLF:OTC; OAY3:FSE) suggest that it is headed higher, possibly much higher, perhaps for reasons of its own such as (this added later) the company coming out with positive lithium results yesterday from its second drill hole at Rincon West.

We’ll start by looking at the long-term 10-year chart to get a “big picture” perspective on what’s going on with the stock.

Argentina Lithium & Energy Corp is therefore rated an immediate speculative Buy here.

On this chart, we can see that, following a massive spike higher in 2016 and a lesser spike higher in 2017, it went into a bearmarket that did more than erase all of the prior gains — it became almost worthless, dropping to about CA$0.04 at the lows of the giant Cup & Handle base that is delineated on the chart.

A year ago, it spiked dramatically higher to complete the right side of the Cup before slumping back to slowly complete the Handle part of the pattern, which price / volumen action just over the past couple of weeks suggests that it may now have done.

The 15-month chart enables us to examine in much more detail the entire Handle part of the pattern that formed following the spike a year ago.

As we can see, this Handle has taken the form of an orderly downtrend, and in recent months, it has become clear that a base pattern has been forming at the support above its lower boundary that we will now proceed to look at in more detail on the 6-month chart.

The 6-month chart looks most encouraging. First off, we can see that a fine Double Bottom has formed from early August along a line of support at the 20-cent level.

Next, we can see the persistent heavy buying that started to kick in about two weeks ago that has driven the Accumulation line strongly higher.

Lastly, we can see that, after declining steeply for months, the 50-day moving average has started to turn up and thus converge with the falling 200-day, which of course, makes a rally more likely.

The advance late in September brought it up to a band of significant resistance in the CA$0.26 to CA$0.28 zone, where it was entitled to pause, which is what it has done, but the positive price/volume action of the past couple of weeks with largish white candles and strong upside volume suggest that “something is going on” with this stock and that it won’t be long before it succeeds in breaking above this resistance which should lead to a larger move.

Argentina Lithium & Energy Corp is therefore rated an immediate speculative Buy here. The stock trades in good volumes on the US OTC market, where there has been a big increase in upside volume in recent weeks.

Argentina Lithium & Energy Corp.’s website.

Argentina Lithium & Energy Corp. closed at CA$0.27, $0.189 on September 30, 2022.

CliveMaund.com Disclosures

The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

Disclosures:
1) Clive Maund: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family 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: Argentina Lithium & Energy Corp. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.

3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.

4) 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.

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 decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Argentina Lithium & Energy Corp., a company mentioned in this article.

By InvestMacro.com | #metals #silver #xagusd #slv

Silver End of Day Update: October 05 2022

The Silver SLV ETF finished the day with a decline by -1.91 percent, closing the day around the 18.99 price level, according to unofficial data at the New York close. SLV opened the at 18.69 with the high reaching approximately 19.1085 and the low of the day bottoming at 18.3684.

The Silver RSI level is Bullish:

The Relative Strength Index, an indicator that can indicate overbought (above 80) and oversold levels (below 20), shows that the current RSI score is at 61.9. This is a Bullish reading on the daily time-frame.

Silver Trends:

The Silver SLV ETF has risen by 5.15 percent over the past 10 days while seeing a gain by 7.78 over the past 30 days. The 90-day change is -6.50 while the 180-day return and the 365-day return are -12.45 and -22.24, respectively.

By investmacro.com

By InvestMacro.com | #metals #copper #xcuusd #jjc

Copper End of Day Update: October 05 2022

The Copper JJC ETF finished the day with an increase of 1.43 percent and closed the day around the 17.72 price level, according to unofficial data at the New York close. JJC opened the day at 17.41 with the high of the day being 17.78 and the low of the day at 17.26.

The current price is trading slightly above its 50-day simple moving average after a long recent drawdown. The ETF price, meanwhile, is trading quite a ways under the 200-day moving average.

The Copper JJC ETF RSI level is Bullish:

The Relative Strength Index, an indicator that can indicate overbought (above 80) and oversold levels (below 20), shows that the current RSI score is at 56.0. This is a Bullish reading on the daily time-frame.

Copper Trends:

The Copper ETF is higher by 2.61 percent over the past 10 days while seeing a decline of -3.28 over the past 30 days. The 90-day change is -16.85 while the 180-day return and the 365-day return are -19.69 and -15.22, respectively.

By investmacro.com

By RoboForex Analytical Department

Gold continues falling – by Monday 19 September, it has reached $1,664. Earlier, it rebounded from the resistance level at $1,680 to indicate how strong the bearish pressure still is. This week, investors are expecting another aggressive rate hike from the US FOMC to continue its fight against growing inflation. Market players believe that it will be a 75-point hike, but if the regulator raises the rate by 1%, it might force Gold to continue plummeting.

Despite the fact that Gold usually acts as a “safe haven” asset” when inflation rises, high interest rates increase expenditures to store physical Gold. At the same time, increasing economic risks do not inspire market players to buy such “safe haven” assets, making the USD a more preferable investment.

Since mid-2020, Gold has been stuck inside a sideways channel between $2,065 and $1,680. If bears succeed to keep the metal at the current levels (and there are no fundamental reasons that might hint at a possible reversal so far), Gold might plummet to $1,300 in the long-term.

As we can see in the H4 chart, after rebounding from 1730.00, XAU/USD is forming another descending wave towards 1646.00. Later, the market may start a new growth with the target at 1727.00. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving below 0 outside the histogram area. In the future, the line may reverse and grow towards 0.

In the H1 chart, Gold continues trading downwards with the short-term target at 1650.00. Later, the market may grow towards 1690.00 and then resume falling to reach 1646.00. From the technical point of view, this scenario is confirmed by the Stochastic Oscillator: its signal is moving below 20 and may soon grow towards 50. After that, the line may resume falling to return to 20.

Disclaimer

Any predictions contained herein are based on the author’s particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.