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August 30, 2017

#Gold All in-sustaining cost #AISC


The attached research paper "#Gold & Precious Minerals" by Scotiabank deals with AISC (all-in sustaining cost).  Generally speaking, for the senior and intermediate gold producers, a gold price of US$ 1'000 to US$ 1'100 per ounce is needed for FCF (free cash flow) breakeven.

 

From Scotiabank:

 

The industry has done well cutting costs to maintain their margins despite much lower gold prices. It's a well-known narrative that gold producers have cut spending heavily since the peaks of 2011-2012;  analysis confirms that in 2016, standardized AISC margins (%) for the group have returned to levels similar to 2012 (~25-30%) when the gold price was more than $400/oz higher. "Sustaining FCF" margins (i.e., after deducting cash taxes and interest) have rebounded even further with margins now ~18% vs. 17% in 2012. Since 2012, Nemont Mining has improved their standardized AISC position the most (from seventh to third), while Yamana Gold has slipped the most (from first to seventh).

 

 

 

August 20, 2017

#Debt & working capital in #Mining: @EY_MiningMetals: across mining sector, leverage is being brought back under control







#Miners have beeen reducing #debt levels this year as #commodities prices have increased





Gearing dropped to 34% for the top 50 miners, back to levels last seen in 2013, but still 2x that of 2011



EY - Debt in mining http://www.ey.com/gl/en/industries/mining---metals/ey-debt-in-mining





EY - Debt in mining

August 7, 2017

#Gold & #silver Commitments of futures traders


Net Commitments of #gold futures traders show that large speculators #hedgefunds & money managers have increased their long positions. Net commercial traders increased their short positions (attachment 1). It looks like the market is in the building stage for something to come.

 

The Gold Barometers reveals that gold stocks are just about overbought and the physical gold is neutral and this already for some time as gold is in a trading range (attachment 2).

 

The KITCO Gold Survey indicates that Wall Street is 47% bullish and 41% bearish for this week. Main Street (Retail investors) are 48% bullish and 38% bearish for this week (attachment 3).

 

The XAU hourly gold chart shows that gold had a good week till Friday but lost all it gains on the U.S. unemployment figures. As per Friday, New York time 4 p.m. gold closed at US$ 1'258 per ounce for a loss of US$ 11 on the week (attachment 4).

 

The ARCA Gold Index (HUI) (attachment 5) shows that gold stocks tried to break through the 200-day moving average but failed. The weekly chart shows the same picture as HUI tried to break through the 40-week moving average on the upside but just couldn't make it (attachment 6). This is the 4th unsuccessful attempt this year to rally over this average.

 

Net Commitments of silver futures traders show the same picture as in gold. Large speculators are building their long positions while net commercial dealers are increasing their short positions. These positions are still small compared where they were over the last 12 months.


 

August 3, 2017

World @GoldCouncil H1 #Gold demand down 14%;slower #ETF inflows offset stronger consumer demand

World @GoldCouncil's detailed publication on gold demand and supply trends during the second quarter 2017, analysed by sector and by region.



READ THE REPORT » [
http://worldgoldcouncil.newsweaver.co.uk/IRMGDT/nvtbshu2mdr-1tu1js0r3i?email=true&a=5&p=52164376&t=23725835
]
http://worldgoldcouncil.newsweaver.co.uk/IRMGDT/1b69v5rit0s-1tu1js0r3i?email=true&a=2&p=52164376&t=23725835

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Articles
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ETF inflows slowed dramatically from last year's record pace
ETF holdings continued to grow: after adding 56t in Q2, H1 inflows reached 167.9t. European ETFs saw
the strongest H1 inflows: holdings in these funds reached a record 977.7t.

http://worldgoldcouncil.newsweaver.co.uk/IRMGDT/p3kzz31y19f-1tu1js0r3i?email=true&a=2&p=52164376&t=23725835

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Bar and coin investment rebounded from very low levels
Q2 demand gained 13% from Q2 2016, while H1 demand rose 11%. A strong jump in Turkey was fuelled by
economic recovery, double-digit inflation and relative currency stability.

http://worldgoldcouncil.newsweaver.co.uk/IRMGDT/uhxvokmh3es-1tu1js0r3i?email=true&a=2&p=52164376&t=23725835

-----------------------------------
Jewellery demand strengthened from weak 2016, but fell short of the long-term average
India was the main contributor to the 8% gain in Q2, as it recovered from extremely low 2016 demand.

http://worldgoldcouncil.newsweaver.co.uk/IRMGDT/102xlkbhzhp-1tu1js0r3i?email=true&a=2&p=52164376&t=23725835

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Technology demand registered its third consecutive quarter of growth
Growth in wireless charging and development of features that use LEDs boosted demand. New smartphone
handsets supported chip production.

http://worldgoldcouncil.newsweaver.co.uk/IRMGDT/1cegqz5qkcg-1tu1js0r3i?email=true&a=2&p=52164376&t=23725835


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Second Feature Article
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Gold demand statistics
Latest statistics on gold global supply and demand. View second quarter 2017 gold statistics. [
http://worldgoldcouncil.newsweaver.co.uk/IRMGDT/wkn69wxgxmx-1tu1js0r3i?email=true&i=2&a=5&p=52164376&t=23725835
]
http://worldgoldcouncil.newsweaver.co.uk/IRMGDT/1lgf2nllpfe-1tu1js0r3i?email=true&a=2&p=52164376&t=23725835