Gold and silver shares turned lower alongside precious metals in late Tuesday morning trading amid profit taking in the sector.
The spot price of gold – which hit a new all-time record high of $1,922.20 per ounce earlier this morning – tumbled $32.72 to $1,867.48 per ounce, while silver slid $1.01 to $41.99 per ounce as of 11:43am ET.
Gold and silver shares relinquished their gains as well, with the Philadelphia Gold & Silver Index (XAU) dipping 0.3% to 222.14. The XAU had been higher by as much as 1.9% at 226.94.
Among gold producers, notable decliners included Agnico-Eagle Mines (AEM) and Gold Fields (GFI), which fell 0.4% and 2.7%, respectively.
Silver Standard Resources (SSRI) and Silver Wheaton (SLW), two of the world’s largest silver companies, retreated 3.1% and 1.2%, respectively.
The sell-off in precious metals coincided with a modest rebound in the broader equity markets. The Dow Jones Industrial Average (DJIA), which had been down as much as 307.73 points at 10,932.53, pared its loss to trade at 11,026.23 later this morning.
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.
