Precious metals faced steep losses on Thursday amid broad-based weakness in financial markets.
COMEX gold futures, per the December 2011 contract, settled lower by $54.10, or 3.1%, at $1,720.20 per ounce. This afternoon the spot price of gold tumbled $42.27, or 2.4%, to $1,721.19 – marking its largest single-day decline since a 2.5% loss on September 28th of this year.
Silver futures fared considerably worse than gold, with the COMEX December 2011 contract finishing down $2.33, or 6.9%, to $31.50 per ounce. The spot silver price retreated $2.06, or 6.1%, to $31.65 later this afternoon – giving gold’s sister precious metal its worst day since September 23 ,2011.
With today’s declines, gold cut its month-to-date gain to just 0.4%, while silver extended its loss to 7.5%. However, on a year-to-date basis gold and silver remain higher by21.1% and2.3%, respectively.
Fortuna Silver Reports “Best Quarter Yet”
The Company noted that it expects to report sustained low cost quarterly silver production growth over the upcoming 18 months as it expands its San Jose mine in Mexico from 1,000 tonnes per day (tpd) to the design capacity of 1,500tpd. Fortuna also reported that it continues to seek organic growth opportunities beyond existing reserves and resources; to that end, the Company presently has eight drill rigs turning on its 70,000 hectare properties in Peru and Mexico. Full Fortuna Silver Press Release
- Operating income of $14.89 million, compared to $1.03 million in Q3 2010
- Cash position (including short term investments) and working capital as at September 30, 2011 were $62.73 million and $70.22 million respectively
- Silver production of 660,749 ounces up from 474,489 ounces in 2010; silver accounted for 70% of revenue
- Cash cost per silver ounce, net of by product credits, of $1.45
