STOCKS TELEGRAPH

Tag: precious metals

  • Lithium Americas Corp. (LAC) Stock Prices Volatile as Mining Project Opposition Continues

    Lithium Americas Corp. (LAC) stock prices were down by 4.69% as of the market closing on July 23rd, 2021, bringing the price per share down to USD$13.01. Subsequent premarket fluctuations have seen the stock rise by 10.53%, bringing it up to USD$14.38.

    LAC Stock Regains Excavation Approval

    July 24th 2021 saw Lithium Americas Corp gain approval from a U.S federal judge ruling for the continuation of its excavation work. LAC stock is set to resume excavating at the Thacker Pass lithium mining site in Nevada. LAC came across a hiccup when environmental lobbyists claimed the company’s activity could harm sage grouse and other wildlife. This is in line with increasing pressure from environmental groups to courts and regulators in attempts to block mining projects. The favorable ruling was a rare win for critical U.S mineral projects, some of which produce metals essential for building electric vehicles.

    LAC Excavation in Limbo

    The excavation project was given the green light by the Trump administration in January of 2021. Continued digging has been allowed while the courts determine the lands historical import for Native Americans. The judge handling the case has said she expects to publish her decision in early 2022. As a part of the deliberations, LAC stock paused its digging operations until July 29th, 2021.

    Hopeful for Positive Outcome

    A major factor in the consideration of the case is the size of the land being affected. With a meagre quarter of an acre possibly being affected in a project that spans 18,000 acres, this will play a contributing role in the ultimate decision. Furthermore, those opposing the excavation have not yet been able to concretely prove what specific damage the digging executed by LAC stock will cause.

    Clash with Environmentalists

    With only hypothetical guesses to go on, the court places the onus of proof on environmentalists to show the potentially irreparable damage. The environmental groups that sued to block the project have expressed their disappointment in the court’s ruling. One of their main concerns besides the wildlife is the removal of cultural and historical artifacts. The lobbying groups expect to continue challenging LAC stock in order to facilitate the cancellation of the entire project.

    Future Outlook for LAC Stock

    Armed with the positive development of the excavation project, LAC stock finds its outlook considerably brighter. The company is poised to continue its trajectory of success as it continues pushing for the continual development of its digging operations. Investors are hopeful for long-term gains in shareholder value as LAC carries on effectively executing its business strategy.

  • Americas Gold and Silver Corp. (USAS) Stock Experiences Minor Volatility Following Galena Milestone

    Americas Gold and Silver Corp. (USAS) stock prices were up by 1.25% at the end of market trading on July 12th, 2021, bringing the price per share up to USD$1.62. Subsequent premarket fluctuations saw the stock fall by 6.79%, bringing it down to USD$1.51.

    Galena Milestone

    The company announced on July 12th 2012 that it had reached a significant milestone in its Galena Complex Recapitalization Plan, having completed its Phase 1 drilling program. The most recent mineral resource update was released in September 2020, having successfully demonstrated the significant exploration potential at the property. This is shown by the significant increase in Measured and Indicated Resource of 36%, while Inferred Resource was up by 100%.

    Mineral Resource Forecast

    An updated Mineral Resource estimate is forecasted to be provided by the company by the end of August 2021. USAS is confident that the resource estimates will increase by the company’s target for over 50 million ounces of silver when considering Galena on a 100% basis. This forecast is based on the success of continued exploration from drilling completed during July 2020 through to June 2021.

    Production Growth

    2021 is expected to be a transitional year at the Galena Complex with production volumes in mind, as exploration drilling continues to facilitate ongoing success. The company’s operations will support production growth towards a 2 million silver ounce per year plan by the end of 2022. Contingent on the ongoing success of the exploration drilling, the company is confident in the long run that production will hit its historical annual production levels of roughly 5 million ounces per year.

    Galena Phase 2

    The Phase 2 drill program has an anticipated commencement date of the third quarter of 2021, with several targets already identified. Drilling will be centered around a newly developed drill station east on the 5500-Level, in the interest of continuing to test the extension of the Silver Vein at depth. This comes after the success of the initial 21-hole drill program, with subsequent drill stations being planned further east on the 5500-Level in order to continue targeting the Silver Vein and 360 Complex.

    Future Outlook for USAS

    Armed with the promising development of their exploration drilling program, USAS is poised to capitalize on the opportunities afforded to it by its continued and effective allocation of resources. Current and potential investors are hopeful that management will continue to facilitate organic and long term growth as the company continues to extrapolate its trajectory of success.