While gold was flashing yellow, gold miners made a number of aggressive deals this week. Ron Macdonald, CEO of Zinc8 Energy Solutions (CSE:ZAIR), joined correspondent Paul Harris and Mining Audiences Manager Michael McCrae to record Kitco Roundtable podcast on Friday.
While gold was flashing yellow, gold miners made a number of aggressive deals this week.
Ron Macdonald, CEO of Zinc8 Energy Solutions (CSE:ZAIR), joined correspondent Paul Harris and Mining Audiences Manager Michael McCrae to record Kitco Roundtable podcast on Friday.
Today gold tumbled around 4% as investors sold off the precious metal. February Comex gold futures were last trading at $1,839.40, down 3.88% on the day after breaching a key $1,850 an ounce level.
The fall is being blamed on a rise in bond yields and worries about the economy, resulting in liquidation and a flight to cash.
However, analysts are still holding onto a long-term bullish trend for gold. Writes that the year ahead is shaping up to be a ‘steady-as-she-goes’ year for Fed policy, which is expected to be generally supportive of precious metals for the next two to three years.
Despite gold´s wobbles, miners announced big moves this week. Agnico Eagle bought TMAC Resources for $286 million Canadian. Of course Shandong announced its takeover offer last May after TMAC but was prevented by federal government with Canadian and China relations souring. Agnico Eagle paid about 26% higher than Shandong´s bid.
SilverCrest Metals announced this week that it secured project financing facility of US$120 million with RK Mining to build its Las Chispas project in Mexico. SilverCrest already has a contract with Ausenco for construction. Commissioning of the process plant is targeted for Q2 2022 and production ramp-up is slated to begin in Q3 2022.
Macdonald´s Zinc8 develops energy storage technology. Macdonald is excited about the political changes ahead in the U.S., and the Biden administration should be supportive of moves towards renewables and electrification.