Gold is getting closer to $3,000 and could soon test $3,100, according to Goldman Sachs. In fact, as noted by Reuters, the firm just “raised its year-end 2025 gold price forecast to $3,100 per ounce, up from $2,890, citing sustained central bank demand. The bank estimates that ‘structurally higher central bank demand will add 9% to the gold price by year-end, which combined with a gradual boost to ETF holdings as the funds rate declines.’” All of which is a solid catalyst for gold stocks, such as Calibre Mining (TSX: CXB) (OTCQX: CXBMF), Agnico Eagle Mines (NYSE: AEM) (TSX: AEM), Newmont Corporation (NYSE: NEM) (TSX: NGT), Franco Nevada Corp. (NYSE: FNV) (TSX: FNV), and Alamos Gold (NYSE: AGI) (TSX: AGI).
In addition, “if policy uncertainty, including tariff concerns, remains high, Goldman sees the potential for gold to surge to $3,300 per ounce by year-end due to prolonged speculative positioning. The bank has also revised its central bank demand assumption upward to 50 tonnes per month from the previous estimate of 41 tonnes. If purchases average 70 tonnes per month, gold prices could climb to $3,200 per ounce by the end of 2025, assuming positioning normalizes,” Goldman Sachs added.
Look at Calibre Mining (TSX: CXB) (OTCQX: CXBMF), For Example
Calibre Mining Corp. just announced financial and operating results for the three months (“Q4”) and full year ended December 31, 2024. Consolidated Q4 and FY 2024 filings can be found at www.sedarplus.ca and on the Company’s website at www.calibremining.com. All figures are expressed in U.S. dollars unless otherwise stated.
Darren Hall, President and Chief Executive Officer of Calibre, stated: “Calibre delivered a record Q4 consolidated gold production of 76,269 ounces, and full year 2024 production of 242,487 ounces, surpassing the revised 2024 annual production guidance. As of February 15, 2025, the year is off to a strong start with consolidated production trending 15% higher than budget and cash increased to $161 million, a 23% increase over December 31, 2024.
2025 is set to be a transformative year for Calibre, with the Valentine Gold Mine on track for first gold during the second quarter. We hired a high quality, experienced operating team through 2024 and are working with Reliable Controls Corporation to conduct pre-commissioning and commissioning to ensure operational readiness. In addition, all necessary equipment and resources for timely production are on site. Based on the 2022 Feasibility Study*, Valentine’s life-of-mine average production is expected to be approximately 195,000 ounces per year, with the process plant expected to reach 2.5 Mpta by the end of 2025.
The exploration potential at Valentine is incredibly exciting. We have seen continued success since the discovery made southwest of the Leprechaun deposit in late 2024 with initial drill results returning grades more than 40% above Mineral Reserve grade. As we progress during 2025, we are preparing for the largest pure exploration program in Valentine’s history. With tens of kilometres of the Valentine Lake Shear Zone and the Parallel Northwest Contact still untested, we remain optimistic about the significant upside potential as we advance efforts to establish this district as a new gold camp.
With strong gold prices, consistent operating performance, successful exploration results and Valentine on track to enhance diversification and growth, I am confident that we will continue delivering superior value for our shareholders.”
FY & Q4 2024 Highlights
Construction of the multi-million-ounce Valentine Gold Mine is on track for first gold during Q2 2025:
-- Tailings Management Facility is complete and receiving water;
-- SAG and Ball Mill continue to advance towards pre-commissioning;
-- Structural, mechanical and piping activities advancing in the Grinding, ADR, Reagents and Gold Room areas;
-- CIL leaching tanks construction is complete and mechanical/electrical work has commenced;
-- Overland and coarse ore stockpile conveyor is progressing and reclaim tunnel is preparing for apron feeders;
-- Primary crusher installation is complete and commissioning is well advanced;
-- Pre-commissioning across the site is well underway; and
-- Initial project capital costs, exclusive of sunk costs, remain at approximately C$744 million.
-- Record consolidated Q4 gold production of 76,269 ounces, 2025 off to a strong start;
-- Consolidated FY 2024 gold production of 242,487 ounces, exceeding updated 2024 guidance;
Drill results from the expanded 100,000 metre drill program at Valentine yield significant gold mineralization outside of the known Mineral Resource estimate and up to 1,000 metres southwest of the known Leprechaun open pit with grades more than 40% above Mineral Reserve grade:
-- 2.43 g/t Au over 172.8 metres including 3.84 g/t Au over 90.9 metres; and
-- 2.12 g/t Au over 95.4 metres; 2.26 g/t Au over 78.3 metres;
- Ore control drilling results at the Marathon Pit at Valentine yielded 44% additional gold on 47% higher grades than modelled in the 2022 Mineral Reserve estimate, increasing confidence of the deposit;
- Received the Federal Environmental Assessment approval for the third open pit, the Berry Pit at Valentine, and commenced construction activities at Berry in Q4 2024;
- Achieved one million ounces of gold production in Nicaragua since becoming a producer in Q4 2019;
- Initial Inferred Mineral Resource estimate declared at the Talavera Gold Deposit located 3 km from the Limon mill comprised of 3,847,000 tonnes averaging 5.09 g/t gold, yielding 630,000 ounces of gold;
- High grade gold mineralization and new discoveries continue across the Limon Mine Complex with quarterly drill results among the best to-date at both Talavera and the VTEM Gold Corridor, signaling the exceptional potential at Limon:
-- 12.57 g/t Au over 7.1 metres including 26.65 g/t Au over 3.3 metres;
-- 12.96 g/t Au over 19.9 metres; 10.59 g/t Au over 13.5 metres; and
-- 9.97 g/t Au over 6.9 metres; 14.64 g/t Au over 7.5 metres;
- Continued to intercept high grade gold mineralization from the resource conversion and expansion program within the Guapinol open pit area at the Eastern Borosi mine in Nicaragua, reinforcing the potential for mine life extension:
-- 13.24 g/t gold over 5.8 metres ETW including 18.52 g/t gold over 4.0 metres ETW; and
-- 9.24 g/t gold over 6.2 metres ETW including 17.45 g/t gold over 3.1 metres ETW
FY 2024 Gold Sales and Cost Metrics
- Consolidated gold sales of 242,452 ounces, generating $574.4 million in gold revenue, at an average realized gold price1 of $2,369/oz; Nicaragua 207,224 ounces and Nevada 35,228 ounces;
- Consolidated Total Cash Cost1 (“TCC”) of $1,336/oz; Nicaragua $1,313/oz and Nevada $1,473/oz;
- Consolidated All-In Sustaining Cost1 (“AISC”) of $1,583/oz; Nicaragua $1,480/oz and Nevada $1,683/oz; and
- Cash and restricted cash of $131.1 million and $54.6 million, respectively, as at December 31, 2024.
Other related developments from around the markets include:
Agnico Eagle Mines and O3 Mining Inc. announced that Agnico Eagle has taken-up and acquired 110,424,431 common shares of O3 Mining, representing approximately 94.1% of the outstanding common shares of O3 Mining on a basic basis, pursuant to its board-supported take-over bid for all of the outstanding Common Shares for $1.67 in cash per Common Share. The aggregate consideration payable for the Deposited Shares is $184,408,800. Agnico Eagle will pay for the Deposited Shares by January 28, 2025. All of the conditions of the Offer have been satisfied or waived. O3 Mining's President and Chief Executive Officer, Mr. José Vizquerra commented: "We are pleased to achieve this excellent and timely outcome for our shareholders who tendered their Common Shares to the Offer. While providing an opportunity for our shareholders to realize immediate value at a significant premium, the transaction will also enable the efficient advancement of the Marban Alliance project by Agnico Eagle, an experienced operator that has the financial strength, mining expertise and community commitment to take the project to its next stage of development."
Newmont announced that it has agreed to sell its Musselwhite operation in Ontario, Canada, to Orla Mining Ltd for up to $850 million in total consideration. Under the terms of the agreement, Newmont will receive cash consideration of $810 million upon closing and up to $40 million 1 in contingent payments. The transaction is expected to close in the first quarter of 2025, subject to certain conditions being satisfied. 2 Upon closing the announced transactions, Newmont will have surpassed its target of delivering more than $2 billion in gross proceeds from non-core divestitures.
Franco Nevada just noted, “Record gold prices generated higher revenues, Adjusted EBITDA and earnings in Q3 compared to Q2 2024,” stated Paul Brink, CEO. “GEO sales were stable compared to Q2 although lower compared to Q3 2023 without the contribution from Cobre Panama. The quarter benefitted from contributions from the newly commissioned Tocantinzinho mine in Brazil, and increased contributions from royalties from the recently completed Greenstone mine and the newly acquired Yanacocha royalty. Candelaria reported an increase in copper and gold production for the quarter. While Candelaria’s copper output is on track, Lundin Mining has revised its 2024 gold production guidance lower to reflect revised gold grades for the period. In addition, revenue from our Diversified assets translated into lower GEOs reflecting record gold prices. We have adjusted our 2024 guidance as a result. Franco-Nevada continues to benefit from higher gold prices with limited exposure to cost inflation. The company remains debt-free with substantial available capital and has a strong pipeline of potential precious metal streams and royalties.”
Alamos Gold reported fourth quarter and annual 2024 production. The Company also provided updated three-year production and operating guidance and announced a construction decision on the Lynn Lake project in Manitoba. “With the solid finish to the year, we met both our quarterly and increased annual production guidance. Production increased 7% from 2023 to a record 567,000 ounces and combined with strong margin expansion, we generated record revenues and free cash flow while investing in high-return growth,” said John A. McCluskey, President and Chief Executive Officer. “This investment in growth is expected to drive our production 24% higher over the next three years. We are also pleased to announce the start of construction on Lynn Lake, another attractive project that will provide additional growth into 2028. All of this growth is in Canada, it is lower cost, and it is all fully funded providing Alamos with one of the strongest outlooks and lowest political risk profiles in the sector. This growth is underpinned by high-quality, long-life assets with significant upside potential that we expect to continue to unlock with our largest exploration budget ever,” Mr. McCluskey added.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Calibre Mining Corp. by Calibre Mining Corp. We own ZERO shares of Calibre Mining Corp. Please click here for disclaimer.
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