By: Tomas Ronolski - AllPennyStocks.com News

Thursday, February 11, 2016

The sell-off in risk assets has resumed amid concerns over the health of the European banking sector. Earlier today, major indexes in Europe dropped sharply. U.S. equities are also down sharply in mid-day trading, with the Dow Jones Industrial Average down more than 2%. The sell-off in risk assets continues to benefit safe haven assets such as gold. Gold prices have risen sharply today. In mid-day trading, the SPDR Gold Trust (ETF) (NYSE:GLD) was up almost 5%. The ETF has already gained more than 18% in 2016 so far. This is a remarkable comeback for gold, considering that the safe haven asset had been written off last year.

The bounce back in gold prices is a positive for gold miners, which have been grappling with low margins for three years now. This morning, one such miner provided an update on its commercial operations. Vancouver, Canada-based Inca One Gold Corp. (TSX-Venture:IO), which has a gold mining facility in Peru, reported its first year of commercial operations review.

IO said that 2015 was a year full of milestones and challenges to overcome. In 2015, the company achieved a number of major milestones, which moved it further towards its primary goal of becoming a leading commercial gold processor in Peru. The company said that its accomplishments for the year included the successful transition to a cash-flowing, gold-processing company, proving the concept of its business model and generating more than $15 million in revenue.

IO also noted that it was able to achieve all of this during a challenging period. IO noted that while mere surviving is the sole focus of several mining companies, it is not just about surviving but actually growing for the Company.

Edward Kelly, Inca One’s President & CEO, noted that in 2015, the company produced 13,097 ounces of gold and realized gold sales of approximately $15.4 million. The company also raised more than $5 million in capital. Kelly also noted that in 2015, the company established Chala One’s maximum operating capacity of 100 tons per day. The CEO further noted that overall in 2015, the company operated at approximately 57% of plant capacity, as it held back throughput while awaiting the Sunat VAT/IGV refund. The company also renegotiated supplier contracts that helped solidify its customer base and also began importing high-grade, gold-bearing materials from neighboring Bolivia to feed the Chala plant.

Even with today’s news, shares of IO are trading even on the day and close to their 52 week low emphasizing just how difficult the gold space has been over the years. The recent bump up in gold prices has yet to benefit the share price of IO, however with more favorable conditions in the sector, it may be a matter of time before IO shareholders start to benefit from gold’s recent resurgence.

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