Gold is expected to shine. Last trading at $2,2028, analysts say it could run to $2,500 with significant catalysts. All of which is positively 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 Marathon Gold Corp. (TSX: MOZ) (OTC: MGDPF). If fact, some top catalysts include potential interest rate cuts from the Federal Reserve, rising geopolitical tension, and strong demand from central banks.
For one, if the Fed does lower rates, as promised, gold becomes far more attractive. Two, with rising tension in the Middle East, gold will become a safe haven trade. For example, when the war broke over Ukraine and the Israel-Gaza situation, investors sought safety in gold. Three, election year results could influence gold prices, too. According to Deseret News, “Democratic presidential election wins led to an average gold price increase of 1.5%, while Republican wins brought a 5.5% decrease on average.”
In addition, global central banks have been buying a good deal of gold. According to The Wire, “Central banks particularly made record purchases of gold in 2022 and 2023, especially after the Ukraine war broke out when Russia and China started accumulating gold as part of a hedging strategy. Overall, there was a 100% increase in gold accumulation by the world’s central banks in 2022 and the trend continued in 2023. Central banks bought over 800 tonnes of gold in 2022, compared to just 450 tonnes in 2021, a near-100% increase. 2023 also saw well over 800 tonnes of gold being bought by central banks.”
Look at Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF), For Example
Calibre Mining Corp. announced operating results for the three months and year ended December 31, 2023, and 2024 production, sales, and cost guidance (all financial amounts are expressed in U.S. dollars unless otherwise indicated).
Record Q4 and Full Year 2023 Highlights
- Cash $86 million, a 52% increase over end of year 2022, after a C$40 million investment in Marathon Gold;
- 5th Consecutive record consolidated quarterly gold production of 75,482 ounces:
- Nicaragua Q4 gold production of 64,963 ounces and Nevada gold production of 10,519 ounces;
- Record consolidated full year production of 283,494 ounces, exceeding 2023 production guidance:
- Nicaragua full year gold production of 242,109 ounces and Nevada gold production of 41,385 ounces;
- Achieved another successful year on many fronts including exploration success and milestones across all assets, reaffirming the Company’s multi-year, grade-driven, socially, and environmentally sustainable production growth strategy;
- Announced the combination of Calibre and Marathon Gold to create a high-growth, cash flow focused, mid-tier gold producer in the Americas with expected annual production of 500,000 ounces and completed the C$40 million financing to become Marathon’s largest shareholder;
- Announced a normal course issuer bid demonstrating a responsible potential use of available cash, reflecting the best interests of Calibre;
- Exploration success at Libertad yielded an Initial Mineral Resource Estimate at the Volcan Gold Deposit and identified additional gold trends proximal to the mill, providing further opportunity to leverage the available surplus processing capacity; and
- Published our 2022 sustainability report, affirming our commitment to transparency and accountability, and joined the Mining Association of Canada, strengthening our commitment to responsible mining.
2024 Consolidated Gold Production and Cost Guidance
- Consolidated gold production and sales of between 275,000 and 300,000 ounces;
- Consolidated Total Cash Costs between $1,075 and $1,175 per ounce of gold;
- Consolidated All-in Sustaining Costs between $1,275 and $1,375 per ounce of gold;
- Growth Capital of between $45 and $55 million; and
- Exploration Capital of between $25 and $30 million.
Darren Hall, President & Chief Executive Officer of Calibre, stated: “I am proud of the Calibre team for achieving a fourth consecutive year of record production, and exceeding the high end of our 2023 production guidance, boosting our cash on hand by 52% to $86 million after a C$40 million investment into Marathon Gold. Looking ahead to 2024, we foresee another robust year demonstrated by an increase in annual gold production guidance. Throughout 2023, we accomplished numerous milestones as we continue to execute our corporate strategy of transitioning into a mid-tier gold producer.
The recently announced combination of Calibre and Marathon Gold is a transformational transaction for Calibre and puts the Company in an exciting position as we complete the construction of the Valentine Gold Project in Central Newfoundland & Labrador to create an Americas focused, high-margin, high-growth, mid-tier gold company. With a healthy balance sheet, strong operating cash flow and available debt, the combined company expects to facilitate seamless construction of the Valentine gold project with a continuous flow of exciting discovery and resource-building drill results from Newfoundland & Labrador, Nevada and Nicaragua.
With multiple drill rigs turning across our asset portfolio, our exploration investment continues to yield exciting results in many areas including the discovery of a potential high-grade gold source below the operating Jabali mine and three new target areas located near the Libertad mill. This demonstrates significant upside at depth and strong potential for resource expansion and the expansion of existing high-grade gold discoveries across our Limon property providing further opportunity to leverage the available surplus processing capacity at our Libertad mill.
We continue to integrate our responsible and sustainable mining practices throughout our operations, made evident in the publication of our 2022 Sustainability Report and affiliation with the Mining Association of Canada. These actions underline our commitment to transparency, accountability, and adherence to the highest standards of environmental and social responsibility.
I look forward to 2024 as we work to expand our business in Newfoundland & Labrador transitioning to a mid-tier gold producer in 2025. Given our track record of delivery, production growth, significant high-grade gold discoveries and exploration success, strong cash flow and exciting large scale open pit development underway with Marathon, I believe Calibre continues to present a compelling gold equity investment opportunity.”
Other related developments from around the markets include:
Barrick Gold Corporation recently noted, “Following the formal completion of the Porgera Project Commencement Agreement, work has started on the recommissioning of the Porgera gold mine in Papua New Guinea, which has been in care and maintenance since April 2020. This work is expected to be completed over the next few weeks, paving the way for mining and processing to restart in the first quarter of 2024. Barrick president and chief executive Mark Bristow, who was closely involved in the negotiations that eventually delivered the restart agreement, said the mine’s new ownership structure was in line with the company’s host country partnership business model.”
Royal Gold Inc. recently reported net income of $49.3 million, or $0.75 per share, for the quarter ended September 30, 2023, on revenue of $138.6 million and operating cash flow of $98.1 million. Adjusted net income was $49.7 million, or $0.76 per share. "We turned in another quarter of strong financial results with year-over-year increases in revenue, earnings and operating cash flow," commented Bill Heissenbuttel, President and CEO of Royal Gold. "The cash flow produced by our portfolio allowed us to pay down a further $75 million of the amount drawn on our revolving credit facility, and we ended the quarter with increased liquidity of approximately $770 million. While cash flow was strong and the portfolio generally performed well, short-term production delays and interruptions at a couple of our major revenue drivers may mean that sales for the year will come in at the low end of, or slightly below, the guidance range we provided in April."
Franco Nevada Corp. noted that its partner, First Quantum Minerals provided an update in respect of its position regarding the next steps required for the responsible environmental stewardship of the Cobre Panama mine site and First Quantum's intention to pursue all appropriate legal avenues to protect its investment and rights. Franco-Nevada will also pursue all appropriate legal avenues to enforce its rights and protect its investment in Panama.
Marathon Gold Corp. announced that it intends to mail and file its management information circular dated December 11, 2023 and related meeting and proxy materials in connection with the special meeting of holders of common shares of Marathon scheduled to be held on January 16, 2024 in connection with its previously announced proposed plan of arrangement with Calibre Mining Corp. Pursuant to the arrangement agreement dated November 12, 2023 between Marathon and Calibre and the accompanying Arrangement, Marathon Shareholders (other than Calibre) will receive 0.6164 of a Calibre common share for each Marathon Share held. The purpose of the Marathon Meeting is to seek approval of the Marathon Shareholders in respect of the Arrangement.
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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