At the beginning of the month, Farallon Mining Ltd. (TSE:FAN), (PINK:FRLIF) announced the completion of its collective bargaining process with the Mexican mining labour union. Yesterday, after the company released the discovery of a new zone of zinc at its G-9 mine, it looks like the bargaining on FAN stock price may begin.After the company started production at its G-9 mine, for more than 2 years its concentrates have been shipped to smelters in Korea, China, Japan and Canada.
At the end of this August, by announcing the extension of the zinc and copper concentrates contracts up to December 2014 Farallon Mining Ltd. opened the door for the almost constant rise of its share price.
In two months time up to yesterday the return on investment in FAN shares is 61%.
Yesterday, when Farallon Mining Ltd. released the new zone with the statement that “the Company will be aggressively pursuing both these discoveries to incorporate them into the resource base by year-end.”, on the Toronto Stock Exchange the share price rose by 3.57%. On the American OTC market, investors granted FRLIF a 13.90% jump up on the news.[BANNER]
Though the fact that on the Canadian market the shares of FAN are overbought for a long time now, the company’s good operational performance and promising financial results maintained huge demand and the good performance of the stock.
Yesterday, FAN stock closed the market at $0.58 per share, which represents 89% of its 52-week high.
