Year: 2013

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.

Red Tiger Mining Inc. is pleased to announce that an updated Independent Technical Report for resource and reserve disclosure on the Company’s wholly owned San Antonio Properties in Sonora, Mexico, in accordance with NI 43-101 reporting standards has been filed on SEDAR.

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.

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.

McEwen Mining Inc. is pleased to provide a summary of the Company’s Q2 operating results. During the quarter the Company delivered record production at lower costs.

Freyja Resources Inc. is pleased to announce that it has entered into an amended and restated pre-acquisition agreement with Cyprium Mining Corporation dated effective July 31, 2013 on substantially the same terms as the pre-acquisition agreement which was entered into between Freyja and Cyprium on June 14, 2013 (the “Original Agreement”). For further details regarding the Original Agreement, please see Freyja’s press release dated June 18, 2013.

Quaterra Resources Inc. announced today that it is seeking TSX Venture Exchange and NYSE MKT approval of a “best efforts” non-brokered private placement offering of up to 25,000,000 units at a price of US$0.10 per unit, for gross proceeds of up to US$2.5 million. Each unit will consist of one common share of the Company and one non-transferable common share purchase warrant exercisable into one common share at a price of US$0.15 for a period of 3 years from the date of closing. The private placement is expected to close on or about August 28, 2013, subject to finalization of subscription agreements and receipt of regulatory approval.