Wednesday, March 10, 2021

Sierra Metals (SMTS)(SMT:CA)
Copper Prices Strengthen in 2021; Updating Estimates

As of April 24, 2020, Noble Capital Markets research on Sierra Metals is published under ticker symbols (SMTS and SMT:CA). The price target is in USD and based on ticker symbol SMTS. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.

Sierra Metals Inc is a precious and base metals producer in Latin America. The company acquires, explores, extracts, and produces mineral concentrates consisting of silver, copper, lead, zinc and gold in Mexico and Peru. Its activity includes the operation of the Yauricocha Mine in Peru, and the Bolivar and Cusi mines in Mexico. Yauricocha is an underground polymetallic mine using the sublevel block caving and cut-and-fill mining methods. Bolivar is a copper-silver-zinc-gold underground mine using room-and-pillar mining method. The majority of the revenue is earned by selling of the mineral concentrates to its customers in Peru.

Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Updating estimates. While our 2020 estimates are unchanged, we are increasing our 2021 EPS and EBITDA estimates to $0.40 and $180.1 million from $0.38 and $175.2 million, respectively. Our revised estimates reflect changes to our 2021 price deck including higher copper prices, along with lower gold prices. We have also made modest adjustments to our production estimates within the company’s guidance range.


Fundamentals appear favorable.  Base metals prices appear to be responding to increased demand expectations as markets recover and economic growth accelerates. Year to date through March 9, copper futures prices are up 14%. Secular themes including trends toward electrification favor metals used in electric vehicle batteries, charging stations, and solar and renewable …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

 

What Metals Prices Can Tell Us About the Economy

 

Mining investors are often lumped into one of two camps. First are investors that seek to capitalize on cyclical stories, such as for base metals whose prices generally respond to increasing demand because of accelerating economic growth. Second are precious metals investors that tend to invest in gold or silver as a store of value or hedge against inflation. For these investors, monetary and fiscal policies, along with relative currency values, are important. Perhaps more so than silver, gold is often a safety play in times of uncertainty. Silver straddles both spheres since it is prized for its industrial properties but is also considered an alternative to gold for precious metals investors on a smaller budget since it generally follows upward moves in the gold price.

Base Metals Take the Lead in 2021

In 2020, precious metals prices performed their role as a haven when the global pandemic upended markets and severely crimped economic growth. While silver and gold have retained much of their gains, base metals appear to have taken the lead in 2021 as markets recover and economic growth accelerates. While silver and gold futures prices are down 11.3% and 4.5% year-to-date, respectively, copper, lead, and zinc futures prices are up 16.2%, 5.6%, and 1.9%, respectively. With metals production impacted by COVID-related work restrictions in 2020, supply and demand fundamentals appear supportive of prices. Secular themes, including trends toward electrification, favor metals used in electric vehicle batteries, charging stations, and solar and renewable power technologies. These include copper, nickel, and silver, among others.

Gold as a Hedge Against Inflation and Black Swans

While precious metals, notably gold, worked as a flight to safety play in 2020, gold prices have yet to signal deep concern about inflation despite record monetary and fiscal stimulus. In early March, the U.S. Senate passed a $1.9 trillion relief package, with the U.S. House of Representatives expected to vote on the bill this week. For its part, the Federal Reserve remains committed to accommodative monetary policies as it seeks to achieve its goals with respect to price stability (inflation) and employment.

The Federal Reserve has already indicated a desire for inflation to average 2% and a willingness to go above to meet the target. As a result, bond yields have risen, with the 10-year Treasury yielding 1.6% versus 0.92% at the end of 2020. This is likely a function of economic and growth expectations. So far, the Fed seems unconcerned about the prospect of runaway inflation, and Treasury Secretary Janet Yellen, formerly Chair of the Federal Reserve, noted that inflation was not increasing prior to the pandemic when the unemployment rate was a low 3.5%. She said policymakers will be monitoring the situation closely and will be prepared to act if inflation becomes a problem.

Another headwind for gold has been a strong U.S. dollar. Despite falling 6.7% in 2020, the U.S. Dollar Index has risen 2.63% since the end of 2020 to finish at 92.31 on March 8. Given that countries around the globe are pursuing similar monetary and fiscal policies, the dollar is likely to remain strong relative to other currencies.

Conclusion

Taking these facts into consideration, investors could consider adding base metals mining stocks to their portfolios as a way to benefit from growing demand as global economic growth accelerates.  And for exposure to greater infrastructure spending and secular trends, changes which bode well for metals linked to the theme of electrification.

With respect to gold, the near-term outlook is a little less certain, with perhaps greater volatility on the horizon as speculative interest dissipates. While the Federal Reserve likely has the tools necessary to combat a sharp rise in inflation, interest rates are likely to remain relatively lower for longer, and gold’s value could be supported as investors seek it as a store of value. Because both inflation and nominal yields are expected to rise moderately in 2021, investors should pay more attention to real yields (nominal yield less inflation), which could in some cases be negative. Lastly, allocations to precious metals and associated equities make sense as a precaution against unexpected events that could materialize, including misjudgment by the Fed, a broad sell-off of equities, or any other events that increase uncertainty and angst among investors.

Additionally, metals prices are up when compared with year-end 2019, and mining companies should be profitable at these levels. Moreover, high-quality reserves in favorable mining jurisdictions are becoming increasingly scarce, and merger and acquisition activity could accelerate as larger producers seek to replenish and grow resources and reserves by acquiring juniors. Therefore, investors could benefit by allocating capital to both producers and junior exploration companies.     

Suggested Reading:

Can Mining be “Green” and Sustainable?

What is the Future of Entertainment Consumption?

The Correlation Between Stocks and Unemployment

Metals & Mining Fourth Quarter 2020 Review and Outlook

 

Sources:

House Set to Take Up $1.9 Trillion Stimulus, Putting Biden on Track to Sign This Week, The Washington Post, Tony Room and Jeff Stein, March 8, 2021.

Yellen Plays Down Inflation Fears, Associated Press, U.S. News & World Report, Martin Crutsinger, March 8, 2021.

Hedge Funds Continue to Unload Their Bullish Gold Bets as Fed Remains Indifferent to Rising Bond Yields, KITCO, Neils Christensen, March 8, 2021.

Relentless U.S. Dollar Rally Continues as Yields Top 1.6%, FXSTREET, Kathy Lien, March 8, 2021.

 

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Ely Gold Royalties Sells Claim located on the Hercules Gold Property, Nevada

 

Strategic District Scale Property Currently Being Explored by Northern Vertex Ely Gold Retains 2% NSR on J & M Lode Claim

Vancouver, British Columbia–(Newsfile Corp. – March 9, 2021) – Ely Gold Royalties Inc. (TSXV: ELY) (OTCQX: ELYGF) (“Ely Gold“) is pleased to announce that through its wholly-owned subsidiary, Nevada Select Royalty Inc, it has completed a Sale Agreement with Northern Vertex Mining Corp (“Northern Vertex” formerly Eclipse Gold Mining Corporation) whereby Northern Vertex has purchased one lode mining claim (the “J & M Claim“) within their Hercules Gold Property ( “Hercules” or the “Property“) located in the Walker Lane Trend, Nevada. Eclipse Gold Mining merged with Northern Vertex Mining Corp effective February 12, 2021.

Ely Gold had previously purchased the J & M Claim from a third party for US$20,000 and sold it to Northern Vertex for the same amount with Ely Gold retaining a 2.00% Net Smelter Royalty (“NSR”).

Hercules Gold Property

Northern Vertex is exploring the district-scale Hercules Gold Property which is located approximately a one hour drive from Reno and has all the characteristics of a large, low-sulphidation epithermal gold system.

Ely Gold’s strategic claim is located between the West Cliffs and Hercules structural zones (see Figure 1) of Hercules. Both zones are east dipping and south plunging with potential for additional mineralization down dip on the faults and veins exposed at surface within these zones. The West Cliffs structural zone is the most continuous zone of alteration in the project area and potential for additional mineralization exists to the east of this zone. The J & M Lode claim is located in an area of post mineral cover with the potential for a southwestern extension to the Hercules structural zone to exist beneath the cover as well as deeper mineralization associated with the down dip extension of the West Cliffs zone. Mineralization in both zones plunges southward and possibly indicates an additional structural intersection zone in the vicinity of the J & M claim.

Jerry Baughman, President of Nevada Select commented, “We are very pleased to add Northern Vertex to our list of experienced counter-parties exploring our Nevada asset portfolio. This transaction is a testament to our ability to make third-party property purchases due to our long-standing relationships throughout Nevada.”

Gold mineralization in both the West Cliffs and Hercules zones primarily occurs as banded and brecciated quartz veins indicating multiple episodes of faulting and hydrothermal activity related to gold deposition. Stockwork zones and strongly silicified rocks occur adjacent to the high-angle quartz veins and host disseminated gold mineralization as well. Low angle zones of gold mineralization occur between the high angle veins and structures indicating additional mineralization potential to the east and west of the outcropping high angle veins and structures.

Reverse circulation (RC) drilling at West Cliffs returned 74.68 meters of 0.54ppm gold and 4.78 ppm silver. At Hercules, RC drilling returned 89.92 meters of 0.65 ppm gold and 12.51ppm silver 1.

1.MDA Amended Technical Report Lyon County, Nevada at the following link: https://eclipsegoldmining.com/site/assets/files/1497/eclipse-43101.pdf

Qualified Person

Stephen Kenwood, P. Geo, is director of the Company and a Qualified Person as defined by NI 43-101. Mr. Kenwood has reviewed and approved the technical information in this press release.

About Ely Gold Royalties Inc.

Ely Gold Royalties Inc. is a Nevada focused gold royalty company. Its current portfolio includes royalties at Jerritt Canyon, Goldstrike and Marigold, three of Nevada’s largest gold mines, as well as the Fenelon mine in Quebec, operated by Wallbridge Mining. The Company continues to actively seek opportunities to purchase producing or near-term producing royalties. Ely Gold also generates development royalties through property sales on projects that are located at or near producing mines. Management believes that due to the Company’s ability to locate and purchase third-party royalties, its strategy of organically creating royalties and its gold focus, Ely Gold offers shareholders a favourable leverage to gold prices and low-cost access to long-term gold royalties in safe mining jurisdictions.

On Behalf of the Board of Directors
Signed “Trey Wasser”
Trey Wasser, President & CEO

For further information, please contact:

Trey Wasser, President & CEO
trey@elygoldinc.com

972-803-3087

Joanne Jobin, Investor Relations Officer
jjobin@elygoldinc.com

647-964-0292

FORWARD-LOOKING CAUTIONS: This press release contains certain “forward-looking statements” within the meaning of Canadian securities legislation, including, but not limited to, statements regarding completion of the Transaction. Forwardlooking statements are statements that are not historical facts; they are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions, or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the Company’s inability to control whether the buy-down right will ever be exercised, and whether the right of first refusal will ever be triggered, uncertainty as to whether any mining will occur on the property covered by the Probe Royalty such that the Company will receive any payment therefrom, and the general risks and uncertainties relating to the mineral exploration, development and production business. The reader is urged to refer to the Company’s reports, publicly available through the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effect.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Figure 1

Source: Ely Gold Royalties

Tr’ondëk Hwëch’in Chief & Golden Predator CEO Present at 2021 Annual PDAC Conference

 

Please join Chief Roberta Joseph, Tr’ondëk Hwëch’in, and Janet Lee-Sheriff, Golden Predator Mining Corp’s Chief Executive Officer, as they present at the 2021 Annual Prospectors & Developers Association of Canada (PDAC) Conference. The session will be held online on Wednesday March 10, 2021 from 11:30AM -12:30PM EST and is focused on planting the seeds for engagement, looking at engagement from the lens of both the First Nation government and the exploration/mining company.

PDAC hosts the world’s premier mining and exploration conference annually in Toronto, this year attendees from around the world will attend online due to Covid travel restriction. For more information on the session and on the PDAC Annual Conference please visit:

https://www.pdac.ca/convention/programming/sustainability-program/sessions/sustainability-program/planting-the-seeds-to-grassroots-engagement-what-does-engagement-look-like-at-each-stage-of-the-mining-sequence

About Tr’ondëk Hwëch’in

The Tr’ondëk Hwëch’in are a Yukon First Nation based in Dawson City, Yukon. The citizenship of roughly 1,100 includes descendants of the Hän-speaking people, who have lived along the Yukon River for millennia, and a diverse mix of families descended from Gwich’in, Northern Tutchone and other language groups. Yukon First Nations set the land-claims process in motion during the 1970s. Tr’ondëk Hwëch’in began negotiating their individual land claim in 1991. The Tr’ondëk Hwëch’in Final Agreement was signed on July 16, 1998, and came into effect on September 15, 1998.

The Tr’ondëk Hwëch’in government ensures a strong and healthy future for citizens while maintaining connections to traditional knowledge and the land. The First Nation is governed by an elected Chief and one Deputy Chief and three Councilors, who rely on direction from the Elders’ Council, a body comprising all Tr’ondëk Hwëch’in people aged 55 and over. The General Assembly—all voting-age citizens—gather at least once a year to pass extraordinary resolutions, approve legislation and provide direction to political leaders.

About Golden Predator Mining Corp.

Golden Predator is advancing the past-producing Brewery Creek Mine towards a timely resumption of mining activities in Canada’s Yukon. With established resources grading over 1.0 g/t gold the Company is completing a Bankable Feasibility Study for the restart of heap leach operations. The Brewery Creek Mine project operates with a Socio Economic Accord with the Tr’ondëk Hwëch’in.

For additional information on Golden Predator Mining Corp.:

Janet Lee-Sheriff
Chief Executive Officer
(604) 260-8435
info@goldenpredator.com
www.goldenpredator.com

Source: Golden Predator Mining

 

 

David Kelley of Chakana Copper presents at the Virtual Metals Investor Forum on March 4-5, 2021

 

 

SOURCE: Chakana Copper

Comstock Mining Announces Notice of 2020 Year End Results and Business Update Webcast Via Zoom

 

VIRGINIA CITY, Nev., March 08, 2021 (GLOBE NEWSWIRE) — Comstock Mining Inc. (the “Company”) (NYSE American: LODE), an emerging leader in climate-smart, sustainable mineral development and production, will host a conference call on Thursday, March 11, 2021 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report its 2020 year end results and provide a business update. The Webcast will include a moderated Q&A, after the prepared remarks. Please join the event 5-10 minutes prior to the scheduled start time. The link and/or dial-in telephone numbers for the live Webcast are as follows:

Join Zoom Meeting

https://us02web.zoom.us/j/7437013377

Meeting ID: 743 701 3377

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+12532158782,,7437013377# US (Tacoma)

+13462487799,,7437013377# US (Houston)

Dial by your location

+1 253 215 8782 US (Tacoma)

+1 346 248 7799 US (Houston)

+1 669 900 9128 US (San Jose)

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+1 646 558 8656 US (New York)

Meeting ID: 743 701 3377

Find your local number: https://us02web.zoom.us/u/kGBcBXcOw

The recording of the Webcast will be available, within 24 hours of the call, on the Company website:

http://www.comstockmining.com/investors/investor-library

About Comstock Mining Inc.

Comstock Mining Inc. (NYSE: LODE) (the “Company”) is an emerging leader in sustainable mineral development and production of environment-enhancing, increasingly scarce strategic and precious metals, focused on conservation-based waste, high-value, cash-generating, mineral and metals essential to meeting the rapidly increasing demand for clean energy technologies. The Company has extensive, contiguous property in the historic, world-class Comstock and Silver City mining districts (collectively, the “Comstock District”) with fully permitted, metallurgical labs and an operational, mineral processing and beneficiation platform that includes a growing portfolio of mercury remediation, gold and silver extraction facilities. To learn more, please visit www.comstockmining.com.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, are forward-looking statements. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. Forward-looking statements include statements about matters such as: consummation of all pending transactions; project, asset or Company valuations; future industry market conditions; future explorations, acquisitions, investments and asset sales; future performance of and closings under various agreements; future changes in our exploration activities; future estimated mineral resources; future prices and sales of, and demand for, our products; future operating margins; available resources; environmental conservation outcomes; future impacts of land entitlements and uses; future permitting activities and needs therefor; future production capacity and operations; future operating and overhead costs; future capital expenditures and their impact on us; future impacts of operational and management changes (including changes in the board of directors); future changes in business strategies, planning and tactics and impacts of recent or future changes; future employment and contributions of personnel, including consultants; future land sales, investments, acquisitions, joint ventures, strategic alliances, business combinations, operational, tax, financial and restructuring initiatives; the nature and timing of and accounting for restructuring charges and derivative liabilities and the impact thereof; contingencies; future environmental compliance and changes in the regulatory environment; future offerings of equity or debt securities; asset sales and associated costs; future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties, many of which are unforeseeable and beyond our control and could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our filings with the SEC and the following: counterparty risks; capital markets’ valuation and pricing risks; adverse effects of climate changes or natural disasters; global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources; operational or technical difficulties in connection with exploration or mining activities; contests over title to properties; potential dilution to our stockholders from our stock issuances and recapitalization and balance sheet restructuring activities; potential inability to comply with applicable government regulations or law; adoption of or changes in legislation or regulations adversely affecting businesses; permitting constraints or delays; decisions regarding business opportunities that may be presented to, or pursued by, us or others; the impact of, or the non-performance by parties under agreements relating to, acquisitions, joint ventures, strategic alliances, business combinations, asset sales, leases, options and investments to which we may be party; changes in the United States or other monetary or fiscal policies or regulations; interruptions in production capabilities due to capital constraints; equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, zinc, cyanide, water, diesel fuel and electricity); changes in generally accepted accounting principles; adverse effects of terrorism and geopolitical events; potential inability to implement business strategies; potential inability to grow revenues; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies, equipment and raw materials due to credit or other limitations imposed by vendors or others; assertion of claims, lawsuits and proceedings; potential inability to satisfy debt and lease obligations; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; inability to maintain the listing of our securities; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as may be required by securities or other law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither this press release nor any related calls or discussions constitutes an offer to sell, the solicitation of an offer to buy or a recommendation with respect to any securities of the Company, the fund or any other issuer.

Contact information

Comstock Mining Inc.
117 American Flat Rd
PO Box 1118
Virginia City, NV 89440
http://www.comstockmining.com

Corrado De Gasperis
Executive Chairman & CEO
Tel (775) 847-4755
degasperis@comstockmining.com

Zach Spencer
Director of External Relations
Tel (775) 847-5272 ext.151
questions@comstockmining.com

Source: Comstock Mining

Research coverage of Comstock Mining (LODE) on Channelchek is provided by Noble Capital Markets, Inc. Please refer to the research disclosures on the most recent LODE report for more information.