Why Intermediate-Term Outlook For Gold Looks Reasonably Bright
Palm Beach, FL – December 15, 2020 – Investors are always looking for some data or info, or trends that can help them decide what to buy or sell and more importantly… when to buy or sell. They look to find reliable info, data, trends… something… that could give them an inside track. That’s harder than it sounds… but over the past few decades there has been one voice that investors have continually believed, no matter what the other info or trends are saying… Warren Buffett! Well, he made an investment that had some scratching their heads. Instead of purchasing gold, he bought a significant amount of publicly traded stock in a stock mining company. Investors wondered “why would the man who said: Gold gets dug out of the ground in Africa or someplace, then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.” Active stocks in the mining markets this week include Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Golden Independence Mining Corp. (OTCQB: GIDMF) (CSE: IGLD), Newmont Corporation (NYSE: NEM) (TSX: NGT), Osisko Gold Royalties Ltd (NYSE: OR) (TSX: OR), Alamos Gold Inc. (NYSE: AGI) (TSX: AGI).
Investors.com recently opined: “If Buffett sees value in gold mining, does buying gold stocks or betting on a rising gold price make sense for individual investors now? The article continued: “Gold and gold stocks powered higher earlier this year as the Federal Reserve and Congress uncorked a gush of liquidity and fiscal support amid the coronavirus lockdown. They took off again as hopes for a V-shape recovery were splashed by a summer coronavirus wave that lasted through June and most of July. Wall Street began to imagine an extended era of ultralow interest rates, multi-trillion-dollar deficits, a weak dollar and — eventually — a rekindling of inflation pressures. In April, Bank of America put a $3,000-per-ounce 18-month price target on gold. That might require more than a whiff of inflation with no response from the Fed.”
Golden Independence Mining Corp. (CSE: IGLD) (OTCQB:GIDMF) BREAKING NEWS: GOLDEN INDEPENDENCE RELEASES ADDITIONAL ASSAY RESULTS INCLUDING 270 FEET GRADING 1.10 g/t GOLD – Golden Independence (the “Company”) is pleased to announce additional drill results from previously-unreleased holes completed on the Independence project subsequent to the 2010 Historical Resource Estimate (the “Historical Resource”). These results are from 12 reverse circulation (RC) holes drilled in 2017 by a previous operator. These 12 RC holes, in addition to the 44 holes announced on December 9th, 2020, were not available for the Historical Resource but will be included in the upcoming resource update, anticipated in Q1/21, as will the RC holes from the Company’s ongoing drill program.
- 270 feet grading 1.10 g/t gold in hole AGEI-02 including 5 feet grading 10.00 g/t gold
- 160 feet grading 0.79 g/t gold in hole AGEI-08
- 90 feet grading 1.24 g/t gold in hole AGEI-04 including 5 feet grading 5.26 g/t gold
“Along with further expansion of the oxide mineralization, several of these 12 drill holes intersected significant widths of structurally hosted gold mineralization beneath the oxides.” commented Golden Independence CEO Christos Doulis. “We will integrate results from the 56 recently released historic drill holes with the 20 to 22 drill holes from our ongoing drill program into our upcoming resource update which should significantly expand the historic oxide resource at the Independence project.” Read this entire release along with charts and images for the Golden Independence news at: https://www.financialnewsmedia.com/news-igld/
Other recent developments in the mining markets include:
Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX) and AngloGold Ashanti Limited (NYSE:AU) recently concluded the sale of their interest in Morila Gold Limited, which owns 80% of the Morila gold mine in Mali, to Firefinch Limited (previously named Mali Lithium Limited) (ASX:FFX) for $28.8 million cash. The state of Mali continues to hold the remaining 20%.
Noting that all Morila employees had been re-employed by Firefinch, Barrick president and chief executive Mark Bristow said the transaction would benefit the mine’s Malian stakeholders by giving Firefinch the opportunity to extend its life by accessing satellite resources and adapting the infrastructure. The mine had been scheduled for closure in 2021.
Newmont Corporation (NYSE: NEM) (TSX: NGT) recently announced its 2021 outlook with attributable gold production guidance of 6.5 million ounces and AISC2 of $970 per ounce. Attributable gold production3is expected to be between 6.2 and 6.7 million ounces per year in 2022 and 2023, increasing to between 6.5 to 7.0 million ounces in 2024 and 2025 while improving costs.
“Newmont’s outlook remains strong and stable as we apply the rigor and discipline of our proven operating model across our world-class portfolio. Our five-year outlook reflects improving production and costs as we continue to deliver value from superior operational and project execution,” said Tom Palmer, President and Chief Executive Officer. “Our strong financial position allows us to continue investing in profitable, organic growth while simultaneously returning cash to shareholders through our industry leading dividend framework.”
Osisko Gold Royalties Ltd (NYSE: OR) (TSX: OR) and Osisko Development Corp. (“Osisko Development“) (ODV: TSX-V) announced the successful launch of Osisko Development – a premier gold development company in North America, with the objective of becoming the next mid-tier gold producer. The common shares of Osisko Development (“ODV Shares“) will begin trading on the TSX Venture Exchange on or about December 2, 2020 under the symbol “ODV”.
Earlier Osisko Royalties and Osisko Development completed their previously announced spin-out transaction, which resulted in, among other things, Osisko Royalties transferring certain mining properties, including the Cariboo Gold Project, and a portfolio of marketable securities (through the transfer of the entities that directly or indirectly own such mining properties and marketable securities) to Osisko Development Holdings Inc. (“Osisko Subco“), following which Osisko Subco and 1269598 BC Ltd. (“Barolo Subco“) were amalgamated by way of a triangular amalgamation under the Business Corporations Act (British Columbia) (the “Amalgamation“) to form “Amalco“. Upon the Amalgamation, Osisko exchanged its Osisko Subco shares for ODV Shares, which resulted in a “Reverse Take-Over” of Osisko Development (the “RTO“).
Alamos Gold Inc. (NYSE: AGI) (TSX: AGI) recently announced that the Company’s Board of Directors has declared a quarterly dividend of US$0.02 per common share. As announced in October 2020, the Company has increased its quarterly dividend by 33% to an annual rate of US$0.08 per common share. The increase reflects the Company’s strong free cash flow outlook following the completion of the lower mine expansion at Young-Davidson in July 2020. The Company has paid dividends for 11 consecutive years during which time $187 million has been returned to shareholders through dividends and share buybacks.
The dividend is payable on December 21, 2020 to shareholders of record as of the close of business on December 7, 2020. This dividend qualifies as an “eligible dividend” for Canadian income tax purposes. The Company has implemented a dividend reinvestment and share purchase plan (“DRIP”). This gives shareholders the option of increasing their investment in Alamos, at a discount to the prevailing market price and without incurring any transaction costs, by electing to receive common shares in place of cash dividends. For shareholders that elect to participate in the DRIP, common shares will be issued from treasury at a 3% discount to the prevailing market price.
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