Hedge funds slash bullish wagers on gold over Trump election win
The precious metal has fallen about 8% from a record high on Oct. 31, with losses accelerating after Trump’s election victory last week.
McEwen Mining reported its first quarter results on April 9, along with the news that it is considering the sale of its Mexican assets. The net proceeds would be used to advance other development projects and retire a portion of the company’s debt.
The El Gallo heap leach complex in Sinaloa state produced 5,413 oz. of gold in Q1 2019. Gold is recovered from residual leaching of the heap. The processing plant underwent a small expansion during the quarter to boost efficiency and enable faster gold recovery.
McEwen is also studying the feasibility of complete redevelopment – the Fenix project – of El Gallo. The feasibility study examines the construction of a mill at El Gallo, an innovative method of in-pit tailings disposal, and feed sourcing from several deposits. Fenix carries a 12-year life of mine and annual production rate of 47,000 oz. of gold equivalent.
The company released 2019 guidance of 162,000 oz. of gold (up from 135,203 in 2018), 3.2 million oz. of silver (3.0 million). Using a ratio of 75:1 for gold to silver, that equates to 205,000 gold equivalent ounces (175,640).
(This article first appeared in the Canadian Mining Journal)
