US markets rise, Dec. 24-28

The gold price continued a strong December push, rising 1.9% to US$1,280.40. The Philadelphia Gold and Silver Index rose 1.4% to 69.68 and the Dow Jones Industrial Average rose 2.7% to 23,062.40. The S&P 500 Index rose 2.8% to 2,485.74.

Shares of Endeavour Silver rose 7% to US$2.15. To prolong its El Cubo silver mine life, the company announced in December 2018 that it would halve its production rate to 750 tonnes per day while it continues exploring for new reserves.  At the start of 2018, El Cubo had more than 4.8 million proven and probable oz. silver equivalent. The company expects it will produce as much as 4.5 million oz. silver equivalent in 2018.

Shares of Turquoise Hill Resources rose 8.3% to US$1.56. The company announced in late 2018 that it had signed a Power Source Framework Agreement with the Mongolian government. It says the agreement outlines steps to build a power plant at Mongolia’s Tavan Tolgoi coal mine that would provide a “long-term domestic power solution” for the Oyu Tolgoi copper-gold mine — a joint venture between Turquoise Hill and the Mongolian government.

Turquoise Hill expects to begin building the power plant in 2020, with commissioning scheduled for mid-2023. Turquoise Hill will own a majority interest in the future 300-megawatt plant.

Shares of Coeur Mining fell 3.3% to US$4.42. In late 2018 the company announced initial reserves and an updated resource estimate for its Silvertip silver-zinc-lead mine in northern British Columbia, as well as a mine plan and economic analysis. The mine now contains 1.6 million proven and probable tonnes grading 289 gram silver, 8.2% zinc and 5.6% lead for 14.9 million oz. silver, 292.7 million lb. zinc and 198.6 million lb. lead. It also has 1.17 million measured and indicated tonnes grading 223 grams silver, 8.6% zinc and 4.1% lead for 8.4 million oz. silver, 222.8 million lb. zinc and 105.9 million lb. lead, as well as some inferred resources.

The company estimates the mine has an initial life of 4.5 years, based on reserves. It should produce 8.2 million oz. silver equivalent per year at 930 grams silver equivalent. It has a $125-million, after-tax next present value at a 5% discount rate.


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