The Gold Report
Notable Quotes
"ICG has closed a CA$2.5M flow-through placement." (12/24/15) Integra Gold Corp. - Thibaut Lepouttre, Caesars Report More >
"The exploration upside at MAG's Juanicipio project is substantial." (12/23/15) MAG Silver Corp. - Gwen Preston, Resource Maven More >
"AKG's management continues to deliver on its development milestones." (12/22/15) Asanko Gold Inc. - Nana Sangmuah, Clarus Securities More >
"We are initiating coverage on KDX with a Buy rating." (12/21/15) Klondex Mines Ltd. - Don Blyth, Paradigm Capital More >
"VIT's Eagle is a shovel-ready, fully permitted, prefinanced gold project." (12/17/15) Victoria Gold Corp. - Tom Hayes, Edison Investment Research More >
Significant Improvement in Gold Project Economics
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JOHN WILSON, Resource Capital Research
(12/01/2008)
"The broad view that gold projects held by junior exploration companies have become un-financeable, is likely to be challenged in coming months. Our view, supported by discussions with some companies, is that project finance has not dried up, but the required conditions to be met are likely to be more stringent, and in effect the effective cost of finance will increase. The increasing emphasis will be on “de-risking” gold projects in order to have a chance to achieve a favourable financing outcome. This de-risking process will involve: • Increasing emphasis on reserves rather than resources. • More rigorous feasibility studies. • Locking in future margins with a requirement for forward sales and downside protection for a significant component of gold output. • Increased focus on country risk. • Increased equity component of financing Generally, gold project economics are improving significantly with strong producer currency gold prices and easing of capital and operating cost pressures. The outlook for junior gold companies to raise equity capital is challenging. The effective cost of achieving an equity raising in current markets will be high."
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Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.
More Experts
"We expect PGLC's Relief Canyon site to be meaningfully advanced in 2016." (12/16/15) Pershing Gold Corp. - Heiko Ihle, Rodman & Renshaw More >
"ICG continues to stand out as one of the most active junior exploration companies globally." (12/9/15) Integra Gold Corp. - Michael Gray, Macquarie Equity Research More >
"We are initiating coverage on NMI with a Buy rating." (12/9/15) Newmarket Gold Inc. - Heiko Ihle, Rodman & Renshaw More >
"TV's mill throughput was up 19% MOM; zinc recovery improved by 9%." (12/9/15) Trevali Mining Corp. - Joseph Gallucci, More >
"THO pays a good dividend and produces at the lowest quartile costs." (12/9/15) Tahoe Resources Inc. - Gwen Preston, Resource Maven More >