Gold prices are still pushing aggressively higher. Last checked, the metal was up another $26.10 to $2,337.80 and could race even higher to $2,500. For one, central bank buying isn’t showing any signs of cooling off, with China buying even more for the seventeenth month in a row, says The Wall Street Journal. All of which is fueling speculation over the potential devaluation on the yuan, “amid geopolitical concerns over heightened aggression with Taiwan.” Two, issues in the Middle East and speculation the Federal Reserve may soon loosen its monetary policy have also been key drivers of gold’s upside. All of which is strongly impacting companies such as Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Royal Gold Inc. (NASDAQ: RGLD), Franco Nevada Corp. (NYSE: FNV) (TSX: FNV), and Newmont Corp. (NYSE: NEM) (TSX: NGT).
In addition, VanEck’s portfolio manager of gold and precious metals strategies, Imaru Casanova added that, “In recent years, rallies of this type have often been followed by periods of consolidation around an established, higher level, with the metal trading in a sideways pattern until a new catalyst emerges driving prices even higher. The return of investment demand, as evidenced by inflows into global gold bullion ETFs, could be that catalyst, with a potential to drive gold higher,” as quoted by Investing.com.
Look at Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF), For Example
Calibre Mining Corp. just announced the operating results for the three months ended March 31, 2024 (all financial amounts are expressed in U.S. dollars unless otherwise indicated).
Darren Hall, President and Chief Executive Officer of Calibre, stated: “Consistent with H1 2024 production expectations the team delivered 61,767 ounces in Q1, with gold production H2 weighted as additional organic production sources and higher-grade zones of gold mineralization are brought into the mine plan. We remain on track to deliver full year 2024 production guidance of 275,000 – 300,000 ounces.
The beginning of 2024 has proven to be exciting for Calibre with the close of the acquisition of the multi-million-ounce Valentine Gold Mine (“VGM”) in Canada, a fourth consecutive year of Mineral Reserve growth and our inclusion into the Van Eck GDX Index. Since becoming a gold producer during Q4, 2019, Calibre has delivered annual production growth of 28% year on year, with a track record of meeting or beating expectations. We are on a clear and concise path of delivery and growth. With an investment of more than 130,000 metres of resource expansion and discovery drilling in 2024, I am excited to see continued positive results across our entire portfolio of assets.
2024 and 2025 will be transformational years, driven by an increase in gold production and significant exploration across the Americas. I am pleased to report the final phases of construction and operational readiness remain on track and fully funded at VGM in preparation for first gold production in H1, 2025 to unlock significant production growth and value for our shareholders.
During this time of significant growth, Calibre remains committed to its pursuit of excellence in sustainability and ethical mining practices. Our efforts extend beyond regulatory compliance, focusing on continuous improvement to minimize our environmental footprint, as well as transparent and extensive community engagement to create a positive impact in the regions in which we operate.”
Q1 2024 Highlights
- Completed the acquisition of Marathon Gold, securing significant future growth as construction of the multi-million-ounce Valentine Gold Mine surpasses 61% complete;
- Consolidated quarterly gold production of 61,767 ounces:
- Nicaragua gold production of 55,007 ounces and Nevada gold production of 6,760 ounces;
- Delivered fourth consecutive year of Mineral Reserve growth with consolidated 2023 Mineral Reserves increasing 398%, since acquisition in 2019, to 1,426,000 ounces gold (see press release dated March 12, 2024):
- Nicaragua Mineral Reserves increased 4%, to 1,126,000 ounces at a grade of 5.13 g/t gold;
- Nevada Mineral Reserves increased 12% to 300,000 ounces;
- VGM boasts a significant mineral endowment with the addition of 2.7 Moz of Reserves and 3.96 Moz of Measured and Indicated Resources (inclusive of Reserves) and 1.10 Moz of Inferred Resources (see press release dated March 12, 2024);
- Operational readiness progress continues at VGM with: appointment of a Vice President of Canadian Operations and Process Plant Manager, and commissioning contract with Reliable Controls Corporation of Salt Lake City;
- Positive drill results one kilometre southwest of VGM Resources, combined with high-grade ore control drilling outside of reported Mineral Reserves, add additional tonnes and demonstrate strong discovery potential across the 32 kilometre shear zone (see press releases dated February 6 and February 14, 2024):
- 3.14 g/t Au over 14.8 metres Estimated True Width (“ETW”) and 39.90 g/t Au over 1.8 metres ETW;
- 46.53 g/t Au over 5.3 metres and 17.16 g/t Au over 7.0 metres;
- Company-wide mineral endowment in The Americas of over 4.1 Moz Reserves, 8.6 Moz of Measured and Indicated Resources (inclusive of Reserves) and 3.6 Moz of Inferred Resources (see press release dated March 12, 2024);
- Continued interception of bonanza grade drill results along the multi-kilometre Panteon VTEM Gold Corridor within the Limon Complex (see press release dated January 30, 2024):
- 111.92 g/t Au over 4.1 metres ETW;
- 15.63 g/t Au over 5.7 metres ETW including 33.60 g/t Au over 2.6 metres ETW;
- Intersection of shallow, open pit mineable grades and widths from the Volcan deposit within the Libertad Complex advance the Company toward a mid-2024 mining decision as permitting remains ongoing (see press release dated March 5, 2024);
Other related developments from around the markets include:
Based on the success of Kibali, which Barrick Gold has built into Africa’s largest gold mine, the company is ready to invest in new gold and copper opportunities in partnership with the government of the DRC, says president and chief executive Mark Bristow. Speaking to media at a site visit to the mine, Bristow said Kibali was on track for another value-creating year on the back of a strong production performance. It was also well set to replace the ounces that were being depleted by mining with more of the same high quality. “Kibali has transformed what was previously the disadvantaged north-east region of the country into a new economic frontier and a flourishing commercial hub. Of our $5 billion investment in the DRC, more than half has been spent with local contractors and suppliers, many of whose growth into substantial businesses we have promoted by enhancing their commercial and technical skills and providing them with the opportunities to exercise these. Kibali’s third hydropower station, for example, was built by an all-Congolese team,” he said.
Royal Gold announced that management will host an Investor Update to provide an update on Royal Gold’s business, including 2024 guidance, on Wednesday, April 17, 2024 from 10:00 a.m. to noon EDT (8:00 a.m. to 10:00 a.m. MDT). A press release detailing 2024 guidance will be issued, before market open, on the same day. Prepared remarks by members of Royal Gold’s management team will be followed by a live question and answer session.
Franco Nevada recently noted that, "In late 2023, we were challenged by the unprecedented production halt at Cobre Panama. We are hopeful that the issues can be resolved, although we have taken a prudent approach for the carrying value of the asset", stated Paul Brink, CEO. "Despite the issue at Cobre Panama, our business remains robust and we continue to benefit from a long-duration, diversified portfolio. We finished the year with no debt and $1.4 billion in cash and cash equivalents. The balance of our business performed well in 2023 and is expected to grow in 2024 with contributions from the completion of the Tocantinzinho, Greenstone and Salares Norte gold mines. Our growth outlook through 2028 is driven by numerous new mines and mine expansions. $2.4 billion of available capital positions us well for attractive acquisitions in an environment where many project developers are capital constrained."
Newmont Corp. reported higher gold Mineral Reserves of 135.9 million attributable ounces for 2023 compared to the Company’s 96.1 million ounces at the end of 2022. Newmont has significant upside to other metals, including more than 30 billion pounds of copper reserves and nearly 600 million ounces of silver reserves. "Newmont has strengthened its position as the responsible gold leader with the industry's highest concentration of quality operations, reserves and resources," said Tom Palmer, Newmont's President and Chief Executive Officer. "In 2023, we added more than 47 million ounces of gold reserves and 14 billion pounds of copper reserves through the acquisition of Newcrest and the continuation of our industry-leading exploration program. With the largest gold and copper reserve base in the industry, Newmont is well-positioned to deliver stable production and meaningful value to stakeholders today and in the future."
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