Gold and Silver Continue to SoarBy Alejandro Ehrenberg | Thu, 07/23/2020 - 14:24
The Week in Mining underscores developments in Mexico’s mining industry, where major operators Fresnillo plc and Peñoles saw their shares climb due to strong 2Q20 results. Juniors and explorers also presented good progress. In the precious metals market, analysts identified robust fundamentals that make for an optimistic outlook.
Fresnillo plc cut its gold guidance for the full year due to COVID-19-related restrictions at two of its mines, reports Proactive Investors.
Nevertheless, Fresnillo’s strong 2Q20 results led to Peñoles’ shares rising to their highest levels since November 2018, according to Reuters.
Premier Gold Mines presented a new vision to ensure the long-term viability of its Mercedes mine. The updated plan will lead to future production growth at Mercedes, the company stated.
GR Silver announced strong drill results at its Plomosas project. Results illustrate the potential to expand Ag-Au mineralization along strike and down-dip for a much larger mineralized footprint.
Authorities from API Altamira have published an open invitation to receive bids for the operation of a mineral storage terminal.
Silver is a crucial element in the technologies of the future. A case in point is 5G, the next major evolution of mobile communication technology. Silver will be a necessary component in almost all of 5G’s aspects.
The photovoltaic sector will also remain a source of demand for silver over the next 10 years: Mexico has to leverage its silver production and climb up the value chain.
The World Gold Council reported that high risk, low opportunity cost and positive price momentum will support gold investment. “Investors have embraced gold in 2020 as a key portfolio hedging strategy; the pandemic will continue to reinforce the role of gold as a strategic asset,” it stated.