• 6 minutes Can the World Survive without Saudi Oil?
  • 10 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 15 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 2 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 5 hours Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 1 hour WTI @ $75.75, headed for $64 - 67
  • 12 hours Judge Approves SEC Settlement With Tesla, Musk
  • 7 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 7 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 10 hours EU to Splash Billions on Battery Factories
  • 7 hours China Thirsty for Canadian Crude
  • 9 hours Iranian Sanctions - What Are The Facts?
  • 12 hours Gold price on a rise...
  • 12 hours Porsche Says That it ‘Enters the Electric Era With The New Taycan’
  • 8 hours Two Koreas: U.N. Command Wrap Up First Talks On Disarming Border
  • 7 hours Shell, partners approve huge $31 billion LNG Canada project. How long till Canadian Federal government Environmentalates it into the ground?
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

This Top Base Metal Producer Is Diversifying -- Into Gold

The last two years saw miners rushing away from gold -- into metals like copper, zinc, and iron ore.

But news this week suggests that trend may be reversing; signaling investment capital and investor confidence returning to precious metals.

The development comes in Mexico. Where local press reports that one of the country's largest base metals producers is planning to take its first steps into the gold mining business.

The company is Minera Autlan, Mexico's largest producer of manganese ferroalloys for the steel sector, which said that it is on the verge of buying a minority stake in an unnamed gold mine -- with a formal announcement expected in the next few months.

The move into bullion reportedly comes as Autlan's management has grown concerned about falling profits in the steel sector, prompting a push to diversify the company's mining activities. Related: Macroeconomic Instability For Emerging Markets Thanks To Commodity Bust

The fact that management would consider gold as its first purchase speaks highly of the prospects they see for the sector. Given that precious metals represents a greater departure for the firm than, say, copper or zinc.

And Autlan is reportedly putting serious capital behind its new ventures, with management having set aside $300 million for new mining projects. Related: Can Tesla Deliver A Self-Driving Electric Car Before 2020?

That suggests the upcoming gold mining purchase could be first in a number of new ventures, which, in turn, would mean that Mexico's gold sector could see a significant infusion of capital from this new source.

Such purchases would also be a great "line in the sand" for the gold market in general. Showing that top minds in the mining sector are seeing good potential in precious metals -- even at today's lower prices.

We'll see exactly what type of projects Autlan targets -- watch for an announcement on specifics over the next few months.

Here's to buying at the bottom,

Dave Forest

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News