IMIMF - Gold Prices Plummet But Some Stocks Rise To The Occasion
While Gold Prices Dip, Some Gold Stocks Reach New Highs
Today, gold prices dropped sharply. In fact they fell below a psychological support level of $1,600. The markets remained bearish across the board taking safe haven in cash of all things. Panic was seen across the board today as coronavirus related headlines took the market’s breath away. Thursday marked the second day this week that the SPX was halted due to a circuit breaker halt. Meanwhile, there are new reports that show the Federal Reserve indicated that it’s implementing a safety net of sorts.
The announcement that more than $1.5 trillion will be thrown into the banking system over the next two days came as a jolt to the market for a fleeting moment. It comes as the Treasury market has shown signs of strain. Interest rates on U.S. government debt recently dropped to record lows. Meanwhile, as you would think investors would pour money into safer assets like gold stocks, the markets have been a bit confusing.
Some traders are looking at April gold futures prices. The support level at $1,564.00 is of particular interest right now. This is the last low in the price uptrend that is still intact on the daily bar chart for gold. As far as gold stocks are concerned, we saw leaders like Barrick Gold stocks (GOLD-Stock Report), Kinross Gold (KGC-Stock Report) and Harmony Gold stock (HMY-Stock Report) all dropped right off the open. But there were a few gold stocks that ended up taking off on Thursday.
Gold Stocks Tipping The Scales
While most gold stocks, in general, took a hit today, there are others that actually reached new highs this week. One of the only gold stocks to do so was IMC International Mining (IMIMF-Free Report) (IMCX).
As you can see, the shares of the company have been on the move most of the year. While it briefly touched $0.50CAD in February, the gold stock firmly tested this left on March 12. Not much was reported by the company early on in 2020 but recent developments seem to have triggered more attention on the company in the interim. In addition to its current property in Arizona, IMC is in the middle of finalizing a new acquisition.
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Last month the company, along with Thane Minerals, signed a letter of intent whereby IMC would purchase Thane. The deal will effectively give IMC International access to Thanes projects, which include the 100% owned Cathedral property in northern British Columbia.
The Cathedral Project is in an area called the “Quesnel Terrane” which is rich in mineralization perfect for gold discovery. In fact, just North West of this region is an area called “The Golden Triangle,” which hosts some of the richest gold ore bodies in the world.
The Quesnel Terrane hosts past and planned production of 50 billion pounds of copper, 28 million ounces of gold, and has 16 producing and development projects. These are numbers that rival some of the top producing regions in the world.
The fact that Cathedral is still in a relatively unexplored portion of the northern Quesnel Terrane means that IMC International has a real opportunity to strike gold first.
Not a Question of If But When?
Recently IMC put out a news release titled: IMC International Mining Corp. Announces Listing on Frankfurt Stock Exchange.
This press release was mainly announcing the company’s new Frankfurt Stock Exchange listing but that’s not all. Within the second paragraph of this news release company states:
“In addition, IMC continues to proceed towards completing the previously announced transaction to purchase 100% of Thane Minerals Inc. The Company anticipates the closing of the transaction will occur on or before March 15, 2020.”
Considering the timing of this, it may be one of the reasons why attention has built around the company. Nevertheless, Thursday was a rough day in the market, yet there were still some gold stocks that managed to produce positive momentum.
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