Record Metal Prices Bolster Mexico’s IndustryBy Alejandro Ehrenberg | Thu, 08/06/2020 - 14:19
The Week in Mining underscores the resiliency of Mexico’s industry, where major and junior players have announced reassuring achievements despite the pandemic. Moreover, gold and silver keep soaring amid COVID-19 fears, governments are pumping unheard-of amounts of cash into the economy and unrelenting Washington-Beijing tensions prevail. This and more in your weekly Mining Roundup.
The Mexican stock market closed with positive numbers led by a strong advance in Peñoles shares. Peñoles contributed the most to this increment, with a 10.66 percent increase to MX$382 (US$17.13), a level not seen since May 2018.
Fresnillo seems to be weathering the pandemic, presenting solid 1H20 results. Higher commodity prices and lower costs have resulted in a significant rise in profitability for the world's top silver producer.
Torex Gold also announced strong 2Q20 financial results. “While this quarter was far from business as usual, we delivered solid operational performance and demonstrated the financial strength of our business,” stated Jody Kuzenko, President & CEO of Torex.
Minera Alamos added a new gold project to its portfolio. The company will acquire the Cerro de Oro gold project in Zacatecas, bolstering its total claim holdings in the district.
PROFEPA cleared Minera Cuzcatlán of water pollution allegations. The environmental authority found no infiltrations, discharges or spills of hazardous materials that could impact the outside of the San Jose mining operation.
Gold and Silver
Gold has skyrocketed past US$2,000/oz for the first time as traders look for havens amid the pandemic. “Investors have moved cash into the precious metal as COVID-19 cases rise in the US and more money is pumped into the global economy. The record high gold price has also been driven by concerns over tensions between Washington and Beijing,” noted the BBC.
The World Gold Council Launched a set of retail market regulating principles. As investors rush to get their hands on the yellow metal, they find that while gold-backed ETFs are regulated, bars, coins and jewelry tend not to be. The World Gold Council has proposed a solution.
Bank of America declared that silver prices could get a big boost if Joe Biden wins the 2020 election. Biden has advocated implementing parts of the Green New Deal, which would incentivize silver-intensive technologies.