Gold and silver futures rebounded from yesterday’s losses amid a broad-based rally in the commodities complex.
COMEX gold for December 2011 delivery settled higher by $16.80, or 0.9%, at $1,830.10 per ounce. However, later this afternoon in electronic trading the yellow metal extended its gains, hitting an intra-day high of $1,847.50.
Silver outperformed gold, with the COMEX Decemeber 2011 futures contract jumping $0.98, or 2.4%, to $41.19 per ounce.
Gold and silver equities rebounded from earlier losses but lagged precious metals by a wide margin. The Philadelphia Gold & Silver Index (XAU) inched higher by 0.1% to 217.37 this afternoon. Two of the largest gainers in the sector today were Randgold Resources (GOLD) and Pan American Silver (PAAS), which advanced 2.7% and 2.0%, respectively.
Among cyclical commodities, crude oil was one of the top performers. Oil futures settled higher by $2.02, or 2.3%, at a nearly six-week high of $90.21 per barrel.
In the currency markets, the euro advanced 0.7% to 1.3669 against the U.S. dollar this afternoon.
Fortuna Silver Emerges as Multi-Mine Operator
San Jose is expected to produce 520,000 ounces of silver and 4,600 ounces of gold in 2011, and 1.7 million ounces of silver and 15,000 ounces of gold in 2012 at an estimated cash cost per silver ounce of $5.04, net of by-products. Full Fortuna Silver Press Release
- Fortuna Silver expects that recoveries will continue to improve over the coming weeks to the targeted 88% recovery for silver and 90% for gold, as the process continues to be fine tuned and the plant is sourced with production ore.
- For 2011, Fortuna’s consolidated production guidance is 2.4 million ounces of silver, 7,530 ounces of gold plus approximately 38.4 million pounds of combined lead and zinc production.
- For 2012, the Company anticipates an increase in production to 3.7 million ounces of silver, 18,041 ounces of gold and approximately 39.8 million pounds of combined lead and zinc production.
