The latest Federal Reserve minutes, a recap of last month’s Federal Open Market Committee (FOMC) meeting, noted that many central bankers are in favor of expanding the Fed’s third-round of quantitative easing (QE3).
“Looking ahead, a number of participants indicated that additional asset purchases would likely be appropriate next year after the conclusion of the maturity extension program in order to achieve a substantial improvement in the labor market,” the minutes stated.
The maturity extension program refers to Operation Twist, which is scheduled to end on December 31st, and consists of $45 billion in purchase of longer-term U.S. Treasuries and $45 billion in sales of short-term U.S. Treasuries per month. QE3, meanwhile, is currently comprised of $40 billion in purchases of mortgage-backed securities per month.
The Ben Bernanke-led central bank did not mention the size of any potential QE3 expansion under consideration, however.
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Following the release of the Fed minutes, gold futures initially climbed to $1,734.10 per ounce but soon after pared their gains on the way back toward $1,730. Silver futures extended their gains as well, to as high as $32.93, but later retreated toward $32.70 per ounce.
The full version of the minutes is available at the Federal Reserve’s website.
Fortuna Silver Mines Generates 30% Increase in Cash Flow
Fortuna also announced that at its San Jose mine in Mexico, the expansion of the processing plant to its design capacity and construction of an off-site dore plant in the coming year will contribute substantially to the Company’s profit margins. Furthermore, the Mines and Energy Ministry granted the construction permit for a new tailings facility at its Caylloma mine in Peru, now scheduled to be commissioned at the end of November 2012. Full Fortuna Silver Press Release
- Revenue of $43.84 million, a 35% increase over the prior year period
- Silver production of 1,027,741 million ounces, a 56% rise over Q3 2011
- Gold production of 5,348 ounces, 251% above the prior year period
- Cash cost per silver ounce, net of by-product credits, was US$4.81
