Gold prices could skyrocket, says Rick Rule, founder of Rule Investment Media, as noted by Bitcoin.com. In fact, he’s confident the struggling U.S. economy will send gold prices through the roof. “Rule also emphasized that the current economic climate, characterized by interest rate fluctuations, quantitative easing (QE), and other financial mismanagement by policymakers, will only increase demand for gold. Rule said: If that’s correct, demand for precious metals-related assets will increase fourfold, which is precisely what I think is going to happen.” That could be great news for companies such as Golden Cariboo Resources (TSXV: GCC) (OTC: GCCFF),Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Newmont Corporation (NYSE: NEM) (TSX: NGT), Franco Nevada Corp. (NYSE: FNV) (TSX: FNV), and Royal Gold Inc. (NASDAQ: RGLD). Even analysts at UBS say gold because 1) central bank interest will remain robust; 2) broad dollar weakness; and 3) rising recession risks.
Look at Golden Cariboo Resources (TSXV: GCC) (OTC: GCCFF), For Example
Golden Cariboo Resources announced it has applied to amend its existing permit to significantly expand exploration activities at the Company’s Quesnelle Gold Quartz Mine property near Hixon, central British Columbia.
The Company has applied to amend their existing exploration permit for an additional five years to further define the known zones, including the Quesnel Quartz deposit, as well as areas to the north of the new discovery (announced May 18, 2023) which are currently open at depth and along strike to the NW/SE. Exploration plans include an additional 40 drill pads and up to 200 diamond drill holes, as well as 5 km of trenching and 7 km of trail construction.
Company director Andrew H. Rees commented “Results from the fall 2022 exploration program including the Company’s new discovery near a Greenstone contact, 800 meters NW of the Main Zone, have led the company to significantly expand its proposed exploration activities at the Quesnelle Gold Quartz Mine property. Our exploration team is excited to advance activities in the area surrounding the new discovery in an effort to expand known areas of mineralization while increasing drill targets on the property.”
The technical information in this news release has been reviewed by Jean Pautler, P.Geo., a qualified person with respect to NI 43-101.
Other related developments from around the markets include:
Barrick Gold Corporation announced the declaration of a dividend of $0.10 per share for the first quarter of 2023. The dividend is consistent with the Company’s Performance Dividend Policy announced at the start of 2022. The Q1 2023 dividend will be paid on June 15, 2023 to shareholders of record at the close of business on May 31, 2023. “Through the maintenance of a robust balance sheet, we are able to continue to provide a strong base dividend to our shareholders, with our Performance Dividend Policy providing shareholders with the potential for additional upside going forward,” said senior executive vice-president and chief financial officer Graham Shuttleworth.
Newmont Corporation announced that following completion of due diligence it has entered into a binding Scheme Implementation Deed under which Newmont will acquire 100 percent of the issued share capital in Newcrest by way of an Australian court-approved Scheme of Arrangement. “The combination of Newmont and Newcrest represents an exceptional value proposition for shareholders and other stakeholders. It creates an industry-leading portfolio with a multi-decade gold and copper production profile in the world’s most favorable mining jurisdictions,” said Tom Palmer, President and CEO of Newmont. “Following a robust due diligence process, we have identified a number of opportunities to unlock substantial value and will apply our experience and expertise to Newcrest’s complementary and exceptional portfolio of long-life, low-cost gold and copper assets. Leveraging our experience from the acquisition of Goldcorp four years ago, we are positioned to deliver an estimated $500 million in annual synergies and an estimated $2 billion in incremental cash flow from portfolio optimization opportunities, both part of our strategy to maximize value for shareholders and other stakeholders.”
Franco Nevada Corp.reported its first quarter results. Our diversified portfolio continues to generate strong cash flows and high margins. The first quarter was impacted by production disruptions at Cobre Panama and Antapaccay as well as lower energy prices. Stronger precious metal deliveries are anticipated in Q2 with both assets having returned to normal operations. “Cobre Panama’s CP 100 Expansion is on-track for year-end and we look forward to initial contributions from Magino, Se´gue´la and Salares Norte during the year”, commented Paul Brink, CEO. Franco-Nevada is debt-free, is growing its cash balances and has a strong pipeline of growth opportunities.
Royal Gold Inc. reported net income of $63.9 million, or $0.97 per share, for the quarter ended March 31, 2023 on revenue of $170.4 million and operating cash flow of $108.7 million. Adjusted net income1 was $63.3 million, or $0.96 per share. Our first quarter provided a solid start to 2023,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “Steady portfolio performance drove strong revenue and operating cash flow, which allowed us to repay $75 million of our outstanding revolving credit facility balance while enhancing our strong liquidity position.”
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