With rising risks of a U.S. recessions, we’re likely to see even more safe-haven gold buying. We also have to consider that high inflation is still persistent. Plus, even global central banks are racing to buy gold. In fact, in the first quarter, they bought 228t of gold – 34% higher than the previous record set is 2013. That also follows annual demand of 1,078t in 2022. That being said, analysts at UBS believe gold prices could hit $2,100 by year-end; $2,200 by March 2024. That’s all positive news for Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF), 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).
UBS also mentioned, “We think gold should remain a hedge within a portfolio context, with our analysis showing that around a mid-single-digit percentage allocation to gold in a balanced USD-based portfolio would have improved risk-adjusted returns and lessened drawdowns over recent decades.”
Look at Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF), For Example
Calibre Mining Corp. just announced that, following the commencement of mining at its 100% owned Eastern Borosi open pit mine in early April, ore deliveries to the Libertad processing plant commenced in May.
Darren Hall, President and Chief Executive Officer of Calibre, stated: “I am very pleased with the progress made at the Eastern Borosi mine complex, successfully transforming the exploration district to a production centre. In April we began mining from the high-grade Guapinol open pit with a reserve grade of 6.8 g/t gold and ore deliveries to the Libertad mill commenced mid-May. The development of Eastern Borosi marks another significant milestone for the Company which will positively contribute to our grade driven production growth as we reaffirm our 2023 guidance of 250,000 to 275,0000 ounces.”
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 Corporationannounced 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. noted that: 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. announced that its Board of Directors has declared its third quarter dividend of $0.375 per share of common stock. The dividend is payable on Friday, July 21, 2023, to shareholders of record at the close of business on Friday, July 7, 2023.
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