ABX:CC - This is Why Gold Could Rally to $3000 this Year
Gold prices could rally to $3,000 by year end, says Goldman Sachs. The firm “sees continued tailwinds for gold amid an ongoing flight to safety due to geopolitical risks, continued buying of the commodity by central banks, and rising demand among Asian households,” as noted by BarChart.com. Gold is also pushing higher after Federal Reserve Chairman Jerome Powell told a U.S. Senate panel the U.S. economy had cooled, and “made no surprisingly hawkish comments that could have thrown cold water on the Fed cutting interest rates yet this year,” as noted by Kitco.com. All of which was positive news for gold and stocks such as U.S. Gold Corp. (NASDAQ: USAU), 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).
Look at U.S. Gold Corp. (NASDAQ: USAU), For Example
U.S. Gold Corp. just announced that we will be a proud Copper Boot sponsor of the 128th Annual Cheyenne Frontier Days.
This 10-day event features the world's largest outdoor rodeo and has been an important tradition in the region since its founding in 1897. Its activities celebrate the country's rich western heritage, drawing top professionals competing for more than $1 million in prizes, and includes events such as a chuckwagon cook-offs, nightly concerts and a western art show that is among the most prestigious in the Rocky Mountain region.
"This is U.S. Gold’s second year running as a Copper Boot sponsor and third year overall of sponsorship of Cheyenne Frontier Days which speaks to our long-term commitment to the region, the local economy and small businesses within the community. Our CK Gold Project continues to align with the mission of the city of Cheyenne as we look to provide significant economic activity for Cheyenne and Laramie County. We look forward to celebrating the spirit of the West which is alive and well here in the Rocky Mountains," said George Bee, Chief Executive Officer of U.S. Gold.
In May of this year, U.S. Gold’s CK Gold Project received its Mine Operating Permit from the Wyoming Department of Environmental Quality, essentially clearing the major regulatory hurdles towards project development. With proven and probable reserves of 1.01 million ounces of gold and 248 million pounds of copper, average annual production for the CK Gold Project is estimated at 108,500 ounces of gold equivalent over a ten-year mine life, which the Company believes will aid federal and state plans to electrify the automotive industry. Copper is an essential element in renewable energy and electric transmission while gold has long demonstrated its value in preserving wealth and defending against inflation and currency volatility.
Other related developments from around the markets include:
Barrick Gold announced that its subsidiary Barrick Gold (International Holdings) Ltd. has entered into an exploration earn-in agreement with Geophysx Jamaica Ltd. with respect to certain properties located in Jamaica. The Agreement initially provides Barrick with access to approximately 4,000 square kilometers of consolidated land positions throughout the country, with a favorable geological setting comparable to the Dominican Republic, where Barrick operates the Pueblo Viejo mine. Barrick will have the right to work with Geophysx to earn up to an 80% joint-venture interest in designated properties upon fulfillment of certain spending obligations and study-deliverable milestones. Barrick will act as the operator, in partnership with Geophysx, leveraging Geophysx’s existing personnel, knowledge, facilities and equipment.
Royal Gold announced that its wholly owned subsidiary, RGLD Gold AG, sold approximately 52,600 gold equivalent ounces comprised of approximately 39,200 ounces of gold, 593,200 ounces of silver and 1,500 tonnes of copper related to its streaming agreements during the three-month period ended June 30, 2024. The Company had approximately 12,000 ounces of gold and 450,500 ounces of silver in inventory at June 30, 2024. RGLD Gold AG’s average realized gold, silver and copper prices for the second quarter were $2,339 per ounce, $28.46 per ounce and $9,475 per tonne ($4.30 per pound), respectively. Cost of sales was approximately $459 per GEO for the second quarter. Cost of sales is specific to the Company’s streaming agreements and is the result of the Company’s purchase of gold, silver or copper for cash payments at a set contractual price, or a percentage of the prevailing market price of gold, silver or copper when purchased.
Franco Nevada recently noted , “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. announced first quarter 2024 results and declared a first quarter dividend of $0.25 per share. "Newmont delivered a strong first quarter operational performance, producing 2.2 million gold equivalent ounces and generating over $1.4 billion in cash from operations before working capital changes," said Tom Palmer, Newmont's President and Chief Executive Officer. "Underpinned by the gold industry's leading portfolio of Tier 1 gold and copper operations, we remain well-positioned to achieve our full-year guidance and deliver meaningful synergies and productivity improvements from the combined portfolio. We remain focused on delivering on the commitments we laid out at the beginning of this year, creating an attractive value proposition for new and existing investors during this unique time in the gold industry."
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