IAU, CEE, NRN, KRR
I-80 Gold aka IAU announced another set of excellent drill results from the newly-discovered South Pacific zone at its Granite Creek gold property in Nevada, with headline results including 13.8 g/t Au over 2.1M & 25.2 g/t Au over 2.2M in hole iGS21-16 plus 13.6 g/t Au over 4.7M & 17.6 g/t Au over 3.0M in hole iGS21-20. The SPZ has now been extended to a strike length of approximately 600M and a dip length of approximately 250M and remains open for expansion along strike and at depth, and is destined for development and production over the coming few years. On the basis of these results the drill campaign has been extended to 30km. As well, they are extending the decline currently under construction to approach the SPZ Zone.
Message 33808858
Centamin aka CEE released its first quarter report. The Sukari gold mine in Egypt has been in turnaround mode under new management for about a year now, and the results are starting to show from initiatives such as a revised mine plan, building a solar power plant and a paste till plant, and transitioning mining from contractors back to in house. As well, the reinstated exploration programme on the Sukari tenure is starting bear fruit. As expected, production was lower in Q1 at just over 93k oz Au, but CEE maintains their full year guidance of 430k-460 oz, so it is expected better quarters lie ahead as the transitions are completed. As of Mar. 31, their cash balance had declined to $217M, but this is expected to grow over the remainder of the year as transition expenditures end and production and costs decrease. They remain unhedged and debt-free.
Message 33808887
Northern Shield Resources aka NRN announced they have resumed exploration on their Root & Cellar gold/copper prospect in Newfoundland. After some drilling last year, they are back to mapping and sampling around IP anomalies, to be followed up by trenching if they find anything worthwhile. It is revealing that they don't even mention what was once their hot prospect Shot Rock in Nova Scotia, at all any more.
Message 33809268
Karora Resources aka KRR released the Q1 results from their gold mining operations in Australia. It was a difficult quarter due primarily to Covid causing staffing shortages, but they still managed to produce 27489 oz Au and are maintaining their guidance for 2022. They also invested heavily in development this quarter, so their cash balance dropped to $78, but that should start growing again, particularly when they reinstate nickel production later this year.
I'll be interested to see what costs have been when they release their financial results.
Message 33809291
And FWIW, I read several of the large brokerage's outlooks for PM and PM equities today. In general, they are cautious, as the easy monetary policy tailwind turns into an increasing interest rates headwind, and cost inflation eats into margins. That said, RBC also increased their price deck for gold and silver in each of the next five years and the long term by 5-12%. |
