Ecuador court gives green light for Silvercorp, Salazar’s El Domo project
The ruling removes the last major obstacle for the $250 million project, located 150 km northeast of Guayaquil.
The gold price made a serious attempt to scale the psychologically important $1,400 level on Friday, sending investors scurrying for gold mining stocks.
Bullion bulls are celebrating an 18% jump in the price of gold since the metal hit multi-year lows below $1,200 at the end of June.
Barrick Gold Corp (TSX:ABX) gained 3% to $21.20 on Friday, up an astounding 49% in just seven weeks.
The Toronto-based global number one gold miner continues to recover from 21-year lows of $14.22 struck on July 5, following a string of setbacks at the company.
Barrick is now worth $21 billion on the TSX, gaining $7 billion in market value in as many weeks. The company, which has written down the value of its assets by some $13 billion this year, peaked at a market capitalization in January 2011 of more than $54 billion.
Gains for Newmont Mining Corp (NYSE:NEM) have been more modest, but the $16.4 billion Denver-based company which hopes to mine around 5 million ounces this year is still up nearly 20% since gold’s June 28 low.
The world’s third largest gold producer in terms of ounces mine behind Newmont, AngloGold Ashanti (NYSE:AU) gained 3.3% on Friday, but the Johannesburg-based company has made few strides on the back of the resurgent gold price.
Shares of company are still down a 45% year to date as it struggles with unrest in the its home country’s mining sector and falling gold output. In dollar terms Anglogold’s JSE-listed shares have performed even worse, down 10% as the rand continues to slide against the US and Canadian dollar.
SEE ALSO: Friday rally sets up gold price breakout
Fellow South African miner Gold Fields’ (NYSE:GFI) was the lone counter in the red on Friday as the company suffered a second day of losses in reaction to its purchase of three Barrick gold mines.
Gold Fields acquisition in Australia will add more than 400,000 to its annual output, putting it within range of the mined ounces of Canada’s Goldcorp (TSX:G) which expects to produce between 2.5 million and 2.8 million ounces in 2013.
Vancouver-based Goldcorp, the world’s most valuable listed gold company, added 2.4% on Friday, pushing its market value to $26.6 billion.
Goldcorp is the best performer of the gold majors, keeping its 2013 market value losses to 10% despite the 16% drop in the gold price this year.
Canadian peer Kinross Gold (TSX:K) – which this year expects to produce between 2.4 million to 2.6 million ounces – traded up more than 3%.
Australia’s Newcrest Mining (ASX:NCM) jumped more than 5% on the Sydney bourse.
The 2 million to 2.3 muillion ounce producer is still 43% cheaper than at the start of the year after suffering $6 billion in writedowns, a dividend cut and an investigation by Australian market regulators prompted by suspicious price movements.
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Comments
Warwick
Where are the gold bears now?