Lean Production system at Aikhal Division

Aikhal Mining and Processing Division of Alrosa began implementing tools for the Lean Production system.

The 5C system is one of the most famous methods of Lean Production. It helps to organize the workplace correctly, keep it clean, and maintain standards and discipline. The idea of introducing the 5C system to the Aikhal Division was born during the visit of Alrosa management to one of the sections of the mining technological equipment workshop.

To date, work on three of the stages of the system is being carried out at the sites of the mining equipment repair shop. These stages are organizing a workplace, strengthening discipline and creating safe working conditions. The entire team implements the project.

Premier Gold production over 16K Oz in 4Q

Premier Gold Mines Limited announces operating results for the three months and year ended December 31, 2019. The Company previously released its production results for the fourth quarter.

Premier is a gold-producer and respected exploration and Development Company with high-quality precious metal projects in proven, accessible and safe mining jurisdictions in Canada, the United States, and Mexico. Premier’s team is focused on creating a low-cost, mid-tier gold-producer from its two producing gold mines and two advanced-stage, multi-million ounce development projects.

The wide mineralized zones at Wallbridge

Wallbridge Mining Company Limited announces that it continues to extend intervals of gold mineralization characterized by wide intersections of 1-2 grams per tonne gold with narrower zones of high-grade material within the Area 51 vein network in the immediate hanging wall to the Tabasco/Cayenne shear system on its 100%-owned Fenelon Gold Property.

"The fact that many of these drill holes intersect multiple potentially mineable zones in Area 51 as well as the Tabasco/Cayenne shear system makes our drill program very efficient, allowing for low per-ounce discovery cost," stated Marz Kord, President & CEO of Wallbridge. "The wide mineralized zones, particularly near surface such as the 1.17 g/t Au over 70.50 metres in hole FA-19-098, could become part of a future potential open pit adding significant amounts of gold ounces to a high-grade underground operation."

Volatility drove gold ETF all-time highs

February Highlights:

Global gold-backed ETFs (gold ETFs) and similar products added 84.5 tonnes(t), or net inflows of US$4.9bn, across all regions in February, boosting holdings to new all-time highs of 3,033t.1 Combined with a gold price increase of nearly 2%, assets under management (AUM) grew 4.4% in US dollars during the month, breaching the previous September 2012 record high.

At that time, the gold price was 10% higher than current levels, highlighting two interesting trends: 1) the global growth in gold ETFs outside of the US; and 2) that US investors have not yet increased their gold allocations as much as they did in 2012.

Regional overview:

Market uncertainty surrounding the potential impact of the coronavirus outbreak on the global economy drove strong inflows to all regions during the month. North American funds led regional inflows (+42t, US$2.3bn, 2.9% AUM), while European funds added 2.8% to assets (+33t, US$2.0bn). Asian funds, primarily in China, also finished the month with strong inflows, adding 8.7t (US$425mn, 9.5%), while funds in other regions grew 6%, adding 0.8t and US$132mn.

Price performance:

The LBMA Gold Price reached an intra-month high of US$1,672/oz during the last week of February – levels last seen in 2013 – but gave back some of those gains to finish the month up 1.6% in US-dollar terms.

Prior to the late-month move in the markets, leverage in risky assets like stocks were at a lofty level. Uncertainty around global health and safety and its potential economic impact caused market volatility and de-risking. The quick, sharp sell-off in stocks may have caused margin calls – where liquidity sourcing from assets like gold was required – as stocks finished the month with the worst weekly performance since the financial crisis.

At the time of publication, gold has outperformed most major asset classes this year and is the only one in positive territory at this point, higher by over 8%. Gold’s performance separated itself from broader commodities, once again, as the broader commodity indices fell between 7% and 11% on the month and oil (WTI) fell another 15%.

Gold global trading volumes averaged US$195bn a day in February, an increase of 34% y-o-y, while futures open interest increased 27% to US$122bn. COMEX net longs4, via the COT report, hit all-time highs of 1,209t (US$63bn) during the month, a sign of overall bullish positioning. However, past instances of extreme bullish and bearish positioning that are not supported by a broader set of investors have often been followed by price reversals.

Looking forward:

Multiple drivers continue to support the demand for gold moving forward. US Treasuries have been the recipient of risk-off flows. The US 10-year and 30-year bond rates continue to hit all-time lows, improving the opportunity cost of holding gold. We have found that lower rates have a positive impact on gold prices and offer the opportunity for additional gold exposure (potentially replacing bonds) in a low-rate environment.

Additionally, the Federal Reserve made a surprise 50bps rate cut in an attempt to ease concerns about the coronavirus effects. Futures in the US are pricing in a total of 100bps of cuts in 2020, which would take the target rate down to 50-75bps. The impact of monetary policy on gold highlights how gold tends to outperform during easing cycles.

Our 2020 Outlook themes remain constant. We expect market risk and slowing economic growth interaction to impact gold prices, particularly as the financial effects of the coronavirus are realised. Additionally, lower interest rates, increased gold price volatility and central bank intervention could continue.

Gold-backed ETF inflows, alongside central bank purchases and gold reserves, were a large driver of global gold demand in 2019, despite decreased jewellery and bar and coin demand – the result of higher gold prices. This dichotomy is likely to continue as market uncertainty could drive inflows into gold investments, while economic slowing, particularly in China, could hurt jewellery and technology demand. 

Forevermark Diamond shaped coin

A diamond's cut shapes the sparkle that makes it an everlasting symbol of love burning bright. Nowhere is this more evident than with this extraordinary coin, which was inspired by a diamond… and is shaped like one too! In collaboration with Crossworks Manufacturing and Forevermark diamonds, this first ever diamond-shaped coin is an exciting addition to our premium lineup in 2020 by Royal Canadian Mint.

Its multi-dimensional shape matches the patented cut of the 0.20-carat Forevermark Black Label diamond embedded on one of the coin's engraved facets. More than a year in the making, this diamond-within-a-diamond showpiece is the ultimate tribute to the magnificence of a perfectly cut Canadian gemstone. It’s a stunning gift that combines world-class engraving and sophisticated elegance the Forevermark Diamond coin.

Incentivise Bank Credit Growth

The Reserve Bank of India (RBI) in the recent monetary policy has tweaked the liquidity management framework by replacing the daily scheduled repo operation with long-term repo operation (LTRO). The RBI has additionally announced an incentive structure for banks to encourage credit flows to the MSME and consumer segments.

The agency believes that the measures are encouraging for banks especially in the current environment.  However, the overall success of the measures is hinged on a low interest elasticity of demand. Post the announcement, the RBI has already infused INR750 billion through one LTRO and another two tranches of three-year LTROs. It has also announced one more auction of INR250 billion for the next three years.

The impact of COVID-19 on De Beers cycle 2

De Beers Group announced the value of rough diamond sales (Global Sightholder Sales and Auctions) for the second sales cycle of 2020. De Beers Group today announced the value of rough diamond sales for the second sales cycle of 2020 remained valued of US$355 million (provisional).

Advances search for the Lulo diamond source

Lucapa Diamond and its Project Lulo partners Endiama and Rosas & Petalas are on the search for the hard-rock sources of the high-value alluvial diamonds being mined at the Lulo diamond project in Angola. Following the highly-encouraging tributary sampling results set out the Project Lulo partners commenced a drilling program in the Canguige catchment area targeting five kimberlite pipes considered prospective to host diamonds, along with two additional priority anomalies.

Once the existing priority kimberlites are drilled, kimberlite bulk samples from these five pipes will be excavated for processing to test for diamonds. The Canguige catchment is upstream of the Cacuilo River valley, where Lucapa and its partners have, for several years, been mining some of the world’s highest-value and quality alluvial diamonds.

2020 platinum supply to exceed over demand by 1.5%

World Platinum Investment Council (WPIC) published twenty-second Platinum Quarterly data set, which is examines activity in the fourth quarter and for full year 2019 and includes a new forecast for 2020. Independent analysis is provided by our research partners: SFA (Oxford) in respect of 2019 and prior years; Metals Focus in respect of 2020.

Overview of supply and demand:

The Foreword to the report provides an overview of supply and demand developments in the platinum market, as well as our view on issues and trends relevant to considering exposure to platinum as an investment asset. There is also a short update on our product partnerships.

White paper published to advance women in mining

A new White Paper on Women in Mining released by the Minerals Council aims to streamline the industry’s strategies to advance women in the industry It focuses, in particular, on improving the representation of women in the sector and encouraging leaders to make decisions that are in the best interest of women.

The White Paper forms part of ongoing work that the Minerals Council, together with its tripartite partners in government and organised labour, is doing to promote gender diversity and inclusion at all levels in the workplace. It makes provision for ensuring that women are given ample opportunity to achieve their full potential at work, and prioritises the closing of the gender pay gap.