Gold and silver shares added to their losses Thursday as the Philadelphia Gold & Silver Index (XAU) fell 2.09 points to 183.27 in early afternoon trading.
The XAU’s 1.1% sell-off was considerably greater than the weakness in precious metals, which only inched lower despite a modest decline in the U.S. dollar. COMEX gold futures dipped $4.50, or 0.3%, to $1,609.10 per ounce, while silver futures retreated $0.12, or 0.4%, to $29.13 per ounce.
Among gold producers, two of the largest decliners were Agnico-Eagle Mines (AEM) and Newmont Mining (NEM). AEM fell $0.71, or 1.9%, to $36.66 per share while NEM dropped $1.89, or 3.0%, to $60.99 per share.
Notable silver stocks heading south included First Majestic Silver (AG) and Silver Wheaton (SLW). AG retreated $0.29, or 1.7%, to $17.24 per share and SLW by $0.34, or 1.2%, to $29.23 per share.
With today’s move lower, the XAU extended its year-to-date loss to 19.1% – putting it on pace for its first annual decline since a 28.5% plunge in 2008. Furthermore, it has continued to underperform the metals themselves this year – as gold remains higher by 13.2% and silver is down just 5.9% in 2011.
Platinum Group Metals Moves Forward Toward Production
In August, Platinum Group Metals entered into a mandate letter with a consortium of financial institutions – including Barclays Capital and the Standard Bank of South Africa Limited – for a $260 million project finance loan to enhance the development of the Western Bushveld Joint Venture (WBJV) Project 1 Platinum Mine. Full Platinum Group Metals News Release.
- Preparation of detailed banking documents for the senior loan facility with the mandated syndicate of banks is ongoing
- The completion of this documentation, due diligence, hedging establishment and off take negotiations are expected to be completed during Q1 and Q2 of calendar 2012
- Project 1 is advancing towards a 275,000 ounce per year platinum, palladium, rhodium and gold planned production profile
- Full commercial construction is budgeted at $443 million and initial commercial production is scheduled for late 2013
