Gold could soon hit $2,000, even $2,300, say analysts at Goldman Sachs over the next 12 months. Thanks to the coronavirus, tensions with China, and fears of economic doom and gloom, the Federal Reserve, low bond yields, and a weak dollar, $2,000 seems inevitable at this point. "When rates are at zero, gold is better than having money saved in the bank," said Ed Keon, chief investment strategist and managing director of QMA, as quoted by CNN. "Historically, gold is a good hedge during times of volatility and uncertainty." In addition, Bank of America analysts say gold could run to $3,000. As long as issues persist, and the U.S. dollar remains weak, gold could continue to shine. This is all opening a wide range of opportunity for companies including Emgold Mining Corporation (TSXV:EMR)(OTC:EGMCF), Rio Tinto Ltd. (NYSE:RIO), Hecla Mining Company (NYSE:HL), Troilus Gold Corp. (TSXV:TLG)(OTC:CHXMF), and Newmont Corporation (NYSE:NEM)(TSX:NGT).
Emgold Mining Corporation (TSXV:EMR)(OTC:EGMCF) BREAKING NEWS: Emgold Mining Corporation announced that it has completed the non-brokered private placement (the "Offering") described in its news releases dated July 21 and 22, 2020. In connection with the closing of the Offering, the Company issued an aggregate of 33,334,570 units (the "Units") at a price of CDN$0.06 per Unit for gross proceeds of CDN$2,000,074. Each Unit consists of one common share in the capital of the Company and one whole non-transferable common share purchase warrant. Each whole Warrant is exercisable to acquire one Share at an exercise price of CDN$0.08 per Share until July 30, 2022 which is 24 months from the date of issuance.
The Company will pay aggregate finder’s fees of CDN$113,073.80 and issue 1,954,563 Share purchase warrants in connection with subscriptions from subscribers introduced to the Offering by finders. Each Finder’s Warrant is exercisable to acquire one Share in the capital of the Company at an exercise price of CDN$0.08 per Share until July 30, 2022, which is 24 months from the date of issuance.
The Offering, including payment of finder’s fees, remains subject to final approval of the TSX Venture Exchange. The securities issued under the Offering, and any Shares that may be issuable on exercise of any such securities, will be subject to a statutory hold period expiring four months and one day from the date of issuance of such securities. Emgold intends to use the net proceeds of the Offering for exploration of Emgold’s properties and for general working capital purposes.
Other related developments from around the markets include:
Newmont Corporation (NYSE:NEM)(TSX:NGT) announced that its Board of Directors declared a quarterly dividend of $0.25 per share of common stock, payable on September 24, 2020, to holders of record at the close of business on September 10, 2020. The declaration and payment of future quarterly dividends remains at the discretion of the Board of Directors and will depend on the Company's financial results, cash flow and cash requirements, duration and impact of the Covid pandemic, future prospects, and other factors deemed relevant by the Board.
Rio Tinto Ltd. (NYSE:RIO) Chief Executive J-S Jacques said “We have been agile and adapted our way of working, to deliver another resilient performance while navigating the new and ongoing challenges of dealing with COVID-19. Despite the challenging backdrop, we generated underlying EBITDA of $9.6 billion, with a margin of 47%, driven by our strong and stable operations, with all of our assets continuing to operate throughout the first half. As a result, we have declared an interim dividend of $2.5 billion, equivalent to 155 US cents per share, and have reconfirmed our 2020 production guidance across all commodities. “Our world-class portfolio of high-quality assets and our strong balance sheet consistently serve us well in all market conditions and particularly in turbulent times. This, together with our disciplined capital allocation, underpins our ability to sustain production, increase our investment in the business, pay taxes and royalties to governments and continue delivering superior returns to shareholders.”
Hecla Mining Company (NYSE:HL) announced preliminary production results and its cash position at the end of the second quarter as well as a new investment by Investissement Quebec. “Our quick actions at the beginning of the pandemic minimized impact on our operations and finances, so production and cash flow generation were strong this quarter,” said Phillips S. Baker, Jr., Hecla’s President and CEO. “Because U.S. mines are essential businesses and the other two mines returned to production in the quarter, we increased production and internally generated cash flow. This performance has allowed us to substantially reduce our revolving line of credit which we expect to be fully repaid by year end. Hecla produces one third of all the silver in the U.S., giving investors unique exposure to what we believe will be higher silver prices in the future.”
Troilus Gold Corp. (TSXV:TLG)(OTC:CHXMF) provided an update on its activities since restarting operations at site in May, exploration plans for this summer and the remainder of the year and major technical milestones to be delivered through the next few months. Justin Reid, Chief Executive Officer of Troilus commented: “2020 has been a time of unprecedented challenge and adjustment as the entire global economy shut down to slow the spread of COVID-19. Troilus closed its offices and operations in mid-March, but we have been able to continue to advance our development plans on all fronts and remain on track to deliver an updated mineral resource estimate that will incorporate the results from the successful drill campaigns in the Southwest Zone released earlier this year (see press releases dated January 28, 2020, April 14, 2020, April 21, 2020 and May 14, 2020), to be followed shortly thereafter by a Preliminary Economic Assessment targeted for completion in September. In May, we began a phased re-opening at site, with top priority on protecting the health of our employees, contractors and local communities. Activity has focused on infrastructure upgrades and our geological team has now been in the field for a month accessing the massive new area of claims we acquired and staked in April (see press release dated April 28, 2020), in many cases exploration is happening there for the first time in 50 years. Pre-existing logging roads have provided our team unprecedented access and exposure to these areas. Last month, Troilus closed an upsized, oversubscribed, bought-deal financing for $25 million, welcoming new investors to Troilus and substantially strengthening our balance sheet, providing the ability to execute on our development plans through 2021.”
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