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This was a tragic week for Implats, as a serious incident resulted in loss of life. The official press release provided limited details, but Mining Weekly has since offered more comprehensive coverage on the extent of this devastating event.
'Darkest day' for Implats as 11 die, 75 hospitalised in Impala Rustenburg 11 Shaft incident
Implats explains that the deaths and injuries occurred when 11 Shaft personnel conveyance was hoisting employees to surface at the end of their shift when the conveyance unexpectedly started rapidly descending. Its rapid descent was stopped by the conveyance counterweight becoming trapped by the jack catches.
This was seriously a huge accident and our thoughts and prayers go out the the miners and their loved ones.
You Probably Heard About the Panama Roadblocks
The Supreme Court of Panama declared First Quantum's contract to operate the Cobre Panama mine unconstitutional, which resulted in the suspension of commercial production by the Canadian miner. The ruling came after weeks of public protests, with opponents considering the deal too generous.
TORONTO, Nov. 28, 2023 (GLOBE NEWSWIRE) -- First Quantum Minerals Ltd. (“First Quantum” or “the Company”) (TSX: FM) notes the announcement by the Supreme Court of Justice in Panama that it has declared Law 406 unconstitutional. Law 406 approved the concession contract for the Cobre Panama mine on October 20, 2023. The Supreme Court has published its ruling and confirms that it intends to submit its ruling for publication in the Official Gazette immediately. The Company is reviewing the ruling and continues to reserve all its local and international legal rights in regards to developments in Panama.
Due to the continued illegal blockades at the Punta Rincón port and roads to the site, the Cobre Panama mine has suspended commercial production and is applying a program of Preservation and Safe Maintenance to ensure the compliance and environmental integrity of the site, preservation of the assets, and safe maintenance of the plant and facilities. The security and safety of the workforce at Cobre Panama remains a priority for the Company.
The Cobre Panama mine accounts for approximately 1% of global copper production. The legal dispute and controversy surrounding its mining contract have become central to Panama's upcoming 2024 presidential election. Calls for renegotiation, including proposals from the leading candidate Ricardo Martinelli, introduce additional uncertainty to the situation.
First Quantum has initiated arbitration proceedings against Panama, and the government's ban on new mining concessions further complicates the negotiation process
Yesterday, there were notable updates in the royalty and streaming sector, particularly $OGN.V. Both Orogen and Source Rock reported record royalty revenue but the market really liked seeing the growth at $OGN.V.
Below are their key highlights:
Net Income from Operations: Net income was $675,989 for the three-month period ended September 30, 2023, compared to a net income of $123,461 for the same period in 2022. This resulted in a net income of $1,439,818 or $0.008 per share year to date (2022 - net loss $99,093 or $0.001 per share).
Royalty Revenue: Royalty revenue of $1,628,409 was earned during the current period with 614 attributable gold equivalent ounces ("GEOs") sold at average price of US$1,928 per ounce, up 29% compared to the same period in 2022 and up 41% compared to the previous quarter.
G&A Expenses: General and administrative expenses of $858,323 were incurred in the current period, up 7% compared to the same period in 2022 and down 10% compared to the previous quarter.
Cash flow: Cash flow of $733,377 was used in operating activities in the current period. Cash flow generated from operating activities, excluding changes in non-cash working capital, was $993,571, up 565% compared to the same period in 2022 and up 46% from the previous quarter.
Working Capital: The Company has working capital of $17,473,228 at September 30, 2023 compared to $12,083,375 at the beginning of the fiscal year, an increase of $5,389,853. The Company has no long-term debt.
All in all a good update for the market.
Looks like Ivanhoe Mines has made a new copper discovery.
Kitoko discovery includes drill hole DD008 intersecting 5.19 metres true width, grading 11.64% copper, at a 1% copper cut-off
With Gold having a strong week, there is a lot catching our attention.
One story that caught our eye was West Red Lake Gold. There was a lot of buzz this year with Frank Guistra backing this company that recently acquired the Madsen mine in Red Lake, Ontario.
As expected, the excitement died off as financing was imminent.
Yesterday, $WRLG.V announced they closed their private placement for $15,080,000.
West Red Lake Gold Mines Ltd. (“West Red Lake” or the “Company”) (TSXV: WRLG) is pleased to announce that, further to its news releases dated November 6, 2023 and November 7, 2023, the Company has closed its brokered private placement offering (the “Offering”) of 29,000,000 units of the Company (each, a “Unit”) at a price of $0.52 per Unit (the “Offering Price”) for gross proceeds of $15,080,000, which includes the exercise in full of the Agents’ option.
……
Each Unit is comprised of one common share of the Company (each, a "Common Share") and one common share purchase warrant of the Company (each, a "Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share at a price of $0.68, subject to adjustment in certain events, until November 28, 2026.
The stock was trading closer to the private placement unit price of C$0.52, but quickly moved up and closed to C$0.61, marking a notable 22% paper gain for the day.
This stock has the potential to evoke FOMO, but concurrently, some investors may perceive it as an unfolding execution story, especially considering the recent failure of Pure Gold in people's minds.
Regardless, this is a story that caught our eye yesterday.
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