• 2 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 5 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 7 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 8 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 7 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal

This Top Base Metal Producer Is Diversifying -- Into Gold

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


Leave a comment

Leave a comment




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