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Weekly Roundups

Southern Silver Trusts Mexico to Consolidate Silver Project

By Alejandro Ehrenberg | Thu, 06/25/2020 - 12:39

The Week in Mining highlights developments in Mexico’s mining industry. Southern Silver raised its working interest in a high-grade silver project in Durango, while First Majestic decided to sell seven of its properties in the country. Also, silver remains undervalued in the market and a strong ESG profile is the best bet against COVID-19.

 

Mexico

Southern Silver Exploration has executed an agreement with Electrum Global Holdings L.P. to purchase Electrum’s 60 percent indirect working interest in the Cerro Las Minitas project in Durango. The US$15 million deal will increase Southern Silver’s working interest in the project from 40 percent to 100 percent.

https://mexicobusiness.news/mining/news/southern-silver-will-acquire-100-high-grade-silver-project?tag=mining

First Majestic Silver, owner of three mines in Mexico, has signed two separate letters of intent stipulating the option to acquire seven of its properties in Jalisco and Durango. In the background looms First Majestic’s tax dispute with the Mexican government.

https://mexicobusiness.news/mining/news/first-majestic-readies-sell-mexican-properties?tag=mining

Víctor Toledo, Mexico’s Minister of Environment and Natural Resources, suggested that lithium be nationalized. Minister Toledo also stated that it would be desirable that the Mexican government create a company to control lithium production in the country. The relevance and desirability of these proposals are unclear.

https://mexicobusiness.news/mining/news/nationalizing-lithium-would-waste-geopolitical-opportunity?tag=mining

 

Metals

Naeem Aslam, a commodities writer at Forbes, wrote a column listing five key factors that are likely to push gold prices higher in the coming days. Aslam analyses further COVID-19 waves, possible new tariffs on the EU, the US-China trade war, US unemployment claims and the wrapping up of the third earnings quarter.

https://www.forbes.com/sites/naeemaslam/2020/06/25/gold-prices-trump-and-covid-19/#10536d8c2df1

Kitco News says that “including silver in one’s investment portfolio is really one of the easiest decisions to make right now.” That is because silver is very cheap measured by the amount of US dollars in existence and of debt.

https://www.kitco.com/commentaries/2020-06-25/Silver-is-still-cheap-for-now.html

Mining Weekly reports that “Fitch Solutions expects the copper market to tighten further as economic activity recovers and pushes the average price above current levels for the remainder of the year.”

https://www.miningweekly.com/article/fitch-solutions-maintains-copper-price-forecast-as-economies-start-to-reopen-2020-06-24

 

ESG

Board members of the Initiative for Responsible Mining Assurance (IRMA) recently held a webinar where they discussed how IRMA has helped companies and communities respond to COVID-19. Companies that have adopted IRMA standards have found that they can face COVID-19 more confidently.

https://mexicobusiness.news/mining/news/esg-standard-boosts-defenses-against-covid-19?tag=mining

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Alejandro Ehrenberg Alejandro Ehrenberg Journalist and Industry Analyst

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