The soft labor report supports the case for a rate cut, but how big a cut is the Fed planning?
On Friday mining audiences manager Michael McCrae recorded Kitco Roundtable.
Gold mostly traded sideways this week ending at the $2,497 level. Silver ended the week at $27.80.
On Friday, U.S. nonfarm payrolls rose by 142,000 last month, according to the Bureau of Labor Statistics. This figure fell short of the consensus estimate of 164,000. A soft labor report gives the Federal Reserve more support to make an interest rate cut.
First Majestic Silver (NYSE:AG) announced this week that it entered into a definitive merger agreement with Gatos Silver whereby First Majestic will acquire all of the issued and outstanding common shares of Gatos. The all share deal is valued at $970 million.
First Majestic said the combined companies will consolidate three world-class, producing silver mining districts in Mexico. The combined annual production of the new entity will be 30-32 million ounces of silver-equivalent, including 15-16 million ounces of silver at all-in sustaining costs of $18.00-$20.00 per silver-equivalent ounce.
Markets are not loving the deal. First Majestic closed down 16% for the week.
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Kitco Roundtable is brought to you by Revival Gold. Revival Gold is one of the largest, pure gold, mine developers in the United States. The Company is advancing engineering and economic studies on the Mercur Gold Project in Utah and mine permitting preparations and ongoing exploration at the Beartrack-Arnett Gold Project located in Idaho.
Revival Gold is listed on the TSX Venture Exchange under the ticker symbol “RVG” and trades on the OTCQX Market under the ticker symbol “RVLGF”. The Company is headquartered in Toronto, Canada, with its exploration and development office located in Salmon, Idaho.
