Month: August 2013

Marlin Gold Mining Ltd. is pleased to announce the completion of its rights offering on the TSX Venture Exchange, which expired at 4:00 p.m. (Eastern time) on August 9, 2013. The shareholders of Marlin Gold, including Wexford Spectrum Trading Limited and Wexford Catalyst Trading Limited, the Company’s largest shareholders, exercised rights to acquire 335,164,159 common shares of the Company under both the basic subscription privilege and the additional subscription privilege which resulted in the Rights Offering being oversubscribed by 35,080,262 shares. The Company has issued an aggregate of 300,083,896 common shares at a price of $0.05 per Share for gross proceeds of $15,004,195 pursuant to the Rights Offering.

Gold Resource Corp (NYSE MKT:GORO) reported Friday that second quarter production at its Mexico operations rose 42 per cent year-over-year as cash costs increased and realized prices dropped in line with the mining industry, though the company said it expects production costs to drop as it benefits from higher mill throughput in the future. It also addressed a recent sellof by one of its largest shareholders, opining that the sale of its stock had nothing to do with the company, but rather with the current lackluster mining environment.

Sierra Iron Ore Corp. is pleased to announce the results of the annual general meeting of shareholders that was held on August 9, 2013. The meeting was well attended with over 25% of the outstanding shares voted.

In an earlier article, we went over the true all-in costs to mine an ounce of gold in Q1FY13 and discussed one of the most important metrics to analyze the gold industry – the actual cost of mining an ounce of gold, which can help an investor figure out whether it is time to buy GLD and/or the gold miners. In that analysis, we used FY2012 financials to calculate the combined results of publicly traded gold companies and came up with a true all-in industry average cost of production to mine each ounce of gold.

In this article, I’ll have a look at Torex Gold Resources (TORXF.PK), a near-term gold mine developer in the Guerrero Gold Belt in Mexico, approximately 180 km south of Mexico City. The company is planning to develop its 5Moz+ gold mine at the El Limon zone of its 29,000 hectare Morelos project. This project is expected to cost $675M and was originally planned to start production in Q1 2015. In this article, I’ll have a closer look at the El Limon Bankable Feasibility Study, run some numbers on the expected annual cash flow and talk about the risks, as Torex Gold needs to relocate a village. This will result in my investment thesis at the end of this article.

Brigus Gold Corp. today reported financial results for the second quarter ended June 30, 2013.

Mercator Minerals Ltd today announced its financial results for the three months and six months ended June 30, 2013. During the second quarter 2013, the Company generated revenues of $64.2 million, cash flow from operations of $3.8 million, and net income of $8.8 million, or $0.03 per share. On an adjusted net earnings basis, after adjusting for certain non-cash items, the Company reported a net loss of $10.7 million, or $0.03 per share.

Fortuna Silver Mines Inc. today reported revenue of $30.1 million, cash generated from operations, before changes in working capital of $5.9 million and a net loss of $10.6 million in the second quarter of 2013 reflecting a non-cash pre-tax impairment charge of $15.0 million. The non-cash impairment charge is related to the impact of declining silver prices on the carrying value of the Caylloma mine in Peru.