I’ve asked each client of mine to answer the following question for posting on the blog: “How has the recent market action impacted your company and what’s your outlook going forward?” Below are the exact quotes received:
Hello Peter,
With regards to the recent drop in the price of gold, as shocking as it may be we as a Company continue to remain extremely bullish on the metal as we have been all along since we started years ago!
Because of its low all-in cost structure, the San Francisco Mine will continue to be profitable even at much lower gold prices. We will continue to monitor the gold price and can revise our operations accordingly should the price trend downward from current levels.
We are on schedule to complete our Phase 3 throughput expansion as we rermain confident of reaching over 125,000 ounces of gold production. In addition we are nearing completion of our current drill exploration program aimed at significantly increasing reserve ounces and mine life this year.
Thank you,
Alex Tsakumis
Vice President Corporate Development Timmins Gold
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“Although we are within a month of full production at the Bracemac-McLeod mine with our partner Xstrata Zinc, there is a lack of recognition in the market that the project has been de-risked. There has been a recent decline in zinc prices, but it’s not expected to last. Xstrata is closing its Brunswick mine in Canada this month, an operation which yielded 2.9 million tonnes of ore last year. We believe that this closure, the shutdown of the Perseverance mine in Canada, the start of production at Bracemac-McLeod, the other forthcoming mine closures, and the predicted rally in zinc prices should positively impact the market value of Donner Metals”.
Donner Metals Ltd (TSX.V: DON) has a zinc/copper mine beginning full commercial production next month (May 2013) in Matagami, Quebec with joint venture partner Xstrata Zinc. Recent news of high-grade intersections between the deposits at the mine shows strong potential for expanding the life of mine beyond the 7+ years expected that the 3.73M tonnes reserves (9.6% zinc, 1.26% copper, 28.25 g/t silver, 0.43 g/t gold) and 2.63M tonnes inferred resources will produce. A 63,000 metre drilling program is ongoing, designed to extend the mine life and explore regionally in this world-class mining camp.
President and CFO Normand Champigny, and CEO Harvey Keats