Vancouver, Kelowna, and Delta, British Columbia--(Newsfile Corp. - October 9, 2024) - Investorideas.com, a global investor news source covering mining and metals stocks releases a snapshot looking at recent news and updates with gold stocks featuring Asia Broadband Inc. (OTC: AABB), a resource company focused on the production of precious metals and the accumulation of physical gold holdings.
According to Identec Solutions, "Mexico's mining market was worth USD 1.83 billion in 2022 and is expected to grow at a compound annual growth rate of 2.9% from 2023 to 2030."
"Gold mining in Mexico is a significant sector within the country's mining industry, contributing to its position as one of the world's top producers of precious metals."
"74% of Mexico's mining concessions are owned by Canadian companies. Some of the most notable mining companies are Industrias Pe?oles, Fresnillo PLC, Grupo Mexico, Torex Gold, Newmont, Southern Silver Exploration, Ganfeng Lithium, Fortuna Silver Mines, Alamos Gold, Hochschild Mining, and Excellon Resources."
Asia Broadband Inc. (OTC: AABB) uses its geographic expertise, experience and extensive industry contacts to facilitate the expansion of precious metals property holdings and production in Mexico. Current mining and production projects include Acaponeta, Bonanza, Tequila, La Guadalupe, Buen Pais, Zodiac, La Paz, Etzatlan and the Etzatlan Processing Plant.
Asia Broadband just announced that the Company's new processing facility site in Etzatlan, Mexico continues the installation process with an expected completion date in Q1 2025. The plant will be primarily dedicated to processing a large-scale surface ore stockpile per the Company's exclusive agreement. Previously, the plant construction and installation target completion estimate was the second half of 2024, but several of the major equipment and supporting accessories deliveries were delayed by the Asian suppliers, beyond the Company's control. Additionally, the plant construction team has worked through delays caused by permitting processes and severe weather conditions. In the coming months, the last remaining equipment necessary to complete the plant will be delivered, installed and tested for integration into the plant system processes.
The Company continues with its on-site lab testing campaign by utilizing recently gathered data and the stockpile evaluation technical report to extrapolate the highest mineral concentration targets for evaluation and confirmation for prioritized processing. The on-site analysis lab is an efficiency tool that expedites the production target identification process with rapid test results and extensive testing capacity. The lab and testing program accelerates the new processing facility operations with reduced costs and maximized plant revenues.
AABB's new plant is designed to utilize advanced mining equipment automation and efficiencies to maximize processing throughput and metals extraction and minimize the production costs. Additionally, the new facility will be built with expanded processing capability that will be implemented after the initial production levels have been established.
In December 2022, AABB completed the land purchase for the site of the new processing facility to be constructed with respect to the terms of the historic and long-term processing and production agreement signed previously for a large-scale gold and silver ore stockpile located in Las Jimenez, Etzatlan, Jalisco, Mexico. The agreement allows the Company exclusivity to purchase the 4 million ton ore stockpile at an economically feasible price point. An evaluation report has estimated the stockpile to represent over $1 billion in total gold and silver value. The stockpile processing project is the largest high-yield asset addition for the Company to date in its strategic expansion initiative to acquire gold production and increase AABB's physical gold holdings.
The 4.94 hectare processing plant land parcel, that includes a water concession, is located approximately 5.8 miles from the ore stockpile in Etzatlan, Mexico, and 48 miles from the AABB Buenavista mining warehouse. The new facility build-out is budgeted for a $3 million cost and is initially planned to have a 200 ton per day (tpd) processing capacity. At this first level of processing, the mill is estimated to generate over $11 million in revenue annually. However, the Company will also be accelerating a mill expansion installation to increase the processing capacity 5 fold to 1,000 tpd, once the initial processing level of the mill is consistently at capacity.
"As we continue to receive the remaining pieces of equipment for installation and testing over the coming months, we will remain focused on the utilizing the high-grade testing results completed by our technical team from the ore stockpile to create prioritized target zones for production. With our own mineral testing lab on the facility site, we can identify the highest mineral concentration priority targets in a very short period of time instead of having to rely on outside mineral analysis services. The efficiency and quality advantage with our processing lab will allow us to achieve the greatest value throughput to maximize and expand revenues when stockpile production begins," explained Chris Torres, AABB President and CEO.
According to Statista.com, "In 2022 Mexico produced more than 199 million ounces of silver and therefore, was the world's largest silver producing country."
Silver mining in Mexico made big headlines last week with news that Coeur Mining is buying Silvercrest in a $1.7 billion deal. Coeur Mining, Inc. and SilverCrest Metals Inc. announced that they have entered into a definitive agreement (the "Agreement") whereby, a wholly-owned subsidiary of Coeur will acquire all of the issued and outstanding shares of SilverCrest pursuant to a court-approved plan of arrangement.
From the news: Under the terms of the Agreement, SilverCrest shareholders will receive 1.6022 Coeur common shares for each SilverCrest common share. The Exchange Ratio implies consideration of $11.34 per SilverCrest common share, based on the closing price of Coeur common shares on the New York Stock Exchange ("NYSE") on October 3, 2024. This represents an 18% premium based on 20-day volume-weighted average prices of Coeur and SilverCrest each as at October 3, 2024 on the NYSE and NYSE American, respectively, and a 22% premium to the October 3, 2024 closing price of SilverCrest on the NYSE American. This implies a total equity value of approximately $1.7 billion based on SilverCrest's common shares outstanding. Upon completion of the Transaction, existing Coeur stockholders and SilverCrest shareholders will own approximately 63% and 37% of the outstanding common stock of the combined company, respectively.
"The acquisition of SilverCrest creates a leading global silver company by adding low-cost silver and gold production and significant free cash flow to our rapidly growing production and cash flow driven by the recent expansion of our Rochester silver and gold mine in Nevada," said Mitchell J. Krebs, Chairman, President and Chief Executive Officer of Coeur. "Together with SilverCrest's large and growing cash balance and no debt, our balance sheet is expected to be materially strengthened on day one. This immediate deleveraging, along with the significant combined expected free cash flow, will allow for rapid debt repayment and investment in other organic growth opportunities while offering shareholders an unparalleled re-rating opportunity. With over 15 years of experience operating our Palmarejo underground silver and gold operation next door in Chihuahua, we look forward to adding the high-quality Las Chispas mine to create a leading global silver company at a time when the demand for silver in renewable energy and a wide range of electrification end uses is rapidly rising."
Heliostar Metals Ltd. hit a 52 week high this week on news of a $6M financing with Eric Sprott.
Heliostar aims to grow to become a mid-tier gold producer. The Company is focused on developing the 100% owned Ana Paula Project in Guerrero, Mexico and has recently entered into an agreement to acquire a portfolio of production and development assets in Mexico.
According to a recent article, "Gold mining sweeping mining industry changes passed into law by Mexico in 2023 under President Andrés Manuel López Obrador have yet to cause any significant decreases in production but have caused concern among investors and mining companies."
"Mexican gold mine production dropped notably after the 2023 Mining Law passed, showing a decrease of about 2.5 metric tons, or 20%, of the gold output following approval in May 2023."
"However, gold production numbers quickly recovered, and by December 2023, they were mirroring production from 2022, a trend that continued through February 2024, according to data from Statista."
Although changes are on the wind, the future still shines bright for miners in Mexico.
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