Gold steadies as traders weigh outlook for Fed rate cuts
Bullion traded near $2,626 an ounce in thin trading after closing 1.1% higher on Friday.
Great Panther escaped the mayhem on the markets and ended Thursday up 3.6% on the TSX after announcing it shipped 100 tonnes of silver-gold pyrite concentrates from its Guanajuato operation to a new buyer in Mexico.
Last week the company disappointed the markets with quarterly results that showed a drop in revenues due to the shipping delays and lower silver production as a result of falling grades. The volatile stock is down almost a quarter over the last month.
The Guanajuato operation currently produces over 250 tonnes per month of silver-gold bearing pyrite concentrates. Great Panther said the new sales will lead to strong revenues in the third and fourth quarters.
Great Panther also operates the Topia silver-gold-lead-zinc mine located in Durango State, which sells its silver-rich lead and zinc concentrates under a separate contract.
Motley Fool reports Great Panther is in the midst of an aggressive three-year expansion to increase production by 72% to 3.8 million silver-equivalent ounces by 2012 and over the same period expects to double its mineral resources to more than 40 million silver-equivalent ounces to secure at least a 10-year mine life for its two Mexican mines.
Great Panther, closed a $24.2 million equity offering in April and finished the June quarter with cash and equivalents of $37.7 million. Great Panther reported net income of $2.5 million, down from $4.4 million in the second quarter of 2010.
