Gold prices are testing higher highs. Last trading at $2,562, gold could easily test $2,700 this year, and possibly $3,000 by next year, according to analysts at Citi. Not only is the potential for interest rate cuts driving gold higher, but so is uncertainty with nearing elections and heightened tensions in the Middle East. All of which is also helping to fuel upside in gold stocks including Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF), Barrick Gold (NYSE: GOLD) (TSX: ABX), Royal Gold Inc. (NASDAQ: RGLD), Franco Nevada (NYSE: FNV) (TSX: FNV), and Newmont Corp. (NYSE: NEM) (TSX: NGT).
In addition, as noted by CBS News, “One of the most significant drivers of gold's price surge has been the aggressive purchasing by central banks worldwide. This trend shows no signs of slowing down, either, as many countries seek to diversify their reserves away from traditional currencies. The sustained demand from these institutional buyers provides a solid foundation for continued price appreciation and is likely to play a role in gold's price trajectory over the next month. As we move into September, the confluence of these factors — central bank buying, economic uncertainty, sustained investor demand, growing industrial uses and supply constraints — creates a compelling case for continued strength in gold prices.”
Look at Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF), For Example
Calibre Mining Corp. announced additional, near surface, resource expansion drill results from its exploration programs at the Pan Heap Leach Gold Mine (“Pan”), located on the prolific Battle Mountain – Eureka gold trend in Nevada, USA. Results at Pan continue to reveal gold grades higher than the stated Mineral Resource grade of 0.4 g/t gold (see Calibre Delivers Fourth Consecutive Year of Mineral Reserve Growth news release here). Today’s drill results across the Pan mine property demonstrate the potential to increase resources, grade, mine life and confidence around the Pan mine.
Highlights from the Nevada drill program include (Estimated True Width “ETW”):
- 0.45 g/t Au over 117.4 metres ETW in hole PR24-113;
- 0.56 g/t Au over 59.4 metres ETW including 1.31 g/t Au over 9.1 metres ETW in Hole PR24-111;
- 0.46 g/t Au over 71.6 metres ETW in Hole PR23-208;
- 0.66 g/t Au over 36.6 metres ETW in hole PR23-212;
- 0.93 g/t Au over 24.4 metres ETW in Hole PR23-201;
- 0.45 g/t Au over 10.7 metres ETW in hole PR24-066;
- 0.58 g/t Au over 15.2 metres ETW in hole PR24-067;
- 0.58 g/t Au over 13.7 metres ETW in hole PR24-076;
- 0.42 g/t Au over 24.4 metres ETW in hole PR24-81;
- 0.41 g/t Au over 29.0 metres ETW in hole PR24-126;
- 1.38 g/t Au over 9.1 metres (“ETW”) in Hole PR23-181;
- 1.08 g/t Au over 6.1 metres ETW in Hole PR24-024; and
- 0.34 g/t Au over 32.0 metres ETW in hole PR24-131.
Darren Hall, President and Chief Executive Officer of Calibre, stated: “Since acquiring Pan in early 2022, we have successfully increased Mineral Reserves by 50% net of two years of production depletion and with exploration success, we anticipate this trend could continue. The majority of today’s drill results contain grades that are higher than our stated Mineral Reserve grade and, in many cases, sit outside our Mineral Reserve pit shell. These results bode well for longevity to Pan’s future mine life.
We remain focused on reinvesting in our future with a demonstrated track record of delivery and growing consolidated Mineral Reserves, after 825,000 ounces of production, over the last four years. We continue to drill Pan and Gold Rock in Nevada, the multi-million-ounce Valentine Gold Mine in Newfoundland and Labrador with an additional 100,000 metre drill program underway and a multi-rig discovery and resource expansion drill program in Nicaragua.
Calibre Mining is proud to announce the release of our Valentine Gold Mine's 2023 Sustainability Brief, highlighting our unwavering commitment to a strong environmental, social, and governance performance across our operations. This report showcases our initiatives aimed at minimizing environmental impact, fostering community engagement, and ensuring the highest standards of responsible mining practices. By integrating robust sustainability performance at all phases of our mining cycle and transparent reporting, we continue to demonstrate Calibre's dedication to sustainable development, reinforcing our position as a leader in the mining industry and our commitment to creating long-term value for all stakeholders.”
Link 1 – Drilling Tables
Link 2 – Figures
Other related developments from around the markets include:
Barrick Gold announced the declaration of a dividend of $0.10 per share for the second quarter of 2024. The dividend is consistent with the Company’s Performance Dividend Policy announced at the start of 2022. The Q2 2024 dividend will be paid on September 16, 2024 to shareholders of record at the close of business on August 30, 2024. In addition to the dividend, Barrick repurchased 2.95 million shares during the second quarter under the $1 billion share buyback program that was announced in February 2024.
Royal Gold reported net income of $81.2 million, or $1.23 per share, for the quarter ended June 30, 2024, on revenue of $174.1 million and operating cash flow of $113.5 million. Adjusted net income was $82.6 million, or $1.25 per share. “The second quarter of 2024 was an excellent quarter for Royal Gold, with near-record revenue, and increased operating cash flow and earnings. After minor adjustments, earnings for the quarter were a quarterly record,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “Our portfolio performed well and benefited from the record high quarterly gold price, and we took advantage of the strong results to continue to pay down our debt. Including a further repayment in July, we have repaid $225 million of debt so far in 2024 and have now returned to a net cash position with total available liquidity of approximately $1 billion."
Franco Nevada announced that its wholly-owned subsidiary, Franco-Nevada (Barbados) Corporation has acquired a gold stream from SolGold plc with reference to production from the Cascabel project located in Ecuador. FNB has partnered with Osisko Gold Royalties Ltd.’s subsidiary, Osisko Bermuda Limited, to provide a syndicated financing package on a 70%/30% basis. FNB will provide a total of $525 million and Osisko a total of $225 million of funding for a total $750 million. FNB will provide $70 million and Osisko $30 million for a total of $100 million in pre-construction funding available as three equal sized staged payments. The first tranche will be funded at closing with two further tranches, subject to development milestones.
Newmont announced second quarter 2024 results and declared a second quarter dividend of $0.25 per share. "Newmont delivered a solid second quarter, producing 2.1 million gold equivalent ounces and generating $594 million in free cash flow," said Tom Palmer, Newmont's President and Chief Executive Officer. "We continued to advance our divestiture program and, to date, have announced $527 million in proceeds this year. With this momentum, we completed $250 million in share repurchases and repaid $250 million in debt. As we head into the second half of the year, we remain confident in our ability to continue executing on shareholder returns, meet our full year guidance and deliver on our commitments."
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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