Gold prices just hit a record high of $2,197 and could push even higher, says Goldman Sachs. In fact, the firm just noted that the Federal Reserve’s meeting “reinforced the market’s (and ours) expectations that three cuts are likely this year, lending renewed support to gold to test and surpass March’s earlier record high,” they said, as quoted by Yahoo Finance. The firm also upgraded their 2024 gold forecast to $2,300 by the end of the year. All of which is a solid catalyst for gold stocks, such as Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF), Barrick Gold (NYSE: GOLD) (TSX: ABX), Royal Gold (NASDAQ: RGLD), Franco-Nevada (NYSE: FNV), and B2Gold Corp. (NYSE: BTG) (TSX: BTO).
In addition, safe-haven demand for gold continues to be supportive amid geopolitical uncertainty with ongoing wars and the upcoming US election. And two, China’s central bank just added even more gold, supporting the precious metal’s surge to record higher. In fact, in February, China added another 390,000 troy ounces of gold,raising its total holdings to 72.58 million troy ounces.
Look at Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF).
Calibre Mining Corp. just announced the Company has entered into a key pre-commissioning and commissioning contract with Reliable Controls Corporation of Salt Lake City for the Company’s Valentine Gold Mine (“VGM”) in Newfoundland and Labrador. The Company has also executed a US$60 million short term, gold prepayment agreement with Asahi Refining USA Inc., pursuant to which Asahi has agreed to purchase a total of 27,600 ounces of gold from the Company, comprising less than 10% of the Company’s expected 2024 gold production.
Darren Hall, President and Chief Executive Officer of Calibre, stated: “With construction at Valentine 61% complete I remain confident in our ability to deliver first gold during H1, 2025. To further derisk delivery, I am pleased to announce that we have secured RCC, a team of highly experienced commissioning experts to lead pre-commissioning and commissioning of the process plant.
Given the strong gold price environment, and continued investment across our portfolio of assets, we have executed a US$60 million 12-month gold prepay as part of our cash flow management strategy as we transition to a quality mid-tier gold producer. The prepay represents less than 10% of our expected 2024 gold production with deliveries commencing in May 2024.”
Reliable Controls Corporation
RCC is a specialized and highly experienced mine and mill commissioning business which have worked successfully on numerous mine builds, including with Newmont, Barrick, Rio Tinto and Teck. RCC will support Calibre to ensure all aspects of operational readiness, including human capital are in place to ensure a smooth and efficient transition from construction to steady-state operations.
Asahi Gold Prepayment Agreement
On March 27, 2024, Calibre entered into a US$60 million gold prepayment agreement with Asahi, pursuant to which Asahi has advanced a first installment of US$40 million and is expected to advance a second instalment of US$20 million on or about April 15, 2024. Calibre is required to deliver Asahi 2,300 ounces of gold per month over a twelve-month period, beginning in May 2024, such ounces determined based on gold forward curve prices averaging $2,239 per ounce. Approximately 2,233 ounces per month will be credited against the prepayment and Calibre will receive a cash payment for the balance. The obligations under the gold prepayment agreement and ancillary documents are guaranteed by certain US subsidiaries of the Company and secured by all present and after-acquired property of such US subsidiaries and certain gold and doré of the Company.
Other related developments from around the markets include:
Barrick Gold’s peerless gold and rapidly growing copper portfolios now extend across all the major gold and copper districts worldwide, providing the company with a solid base from which to grow its production and value, directed by a proven strategy and supported by a broad spectrum of skills, says president and chief executive Mark Bristow in its 2023 Annual Report. “Discovery and development are the true drivers of value and our strong focus on exploration is evident in our widespread hunt for new discoveries with Tier One1 potential as well as reserve replenishment opportunities,” he says.
Royal Gold announced that its Board of Directors has declared its second quarter dividend of $0.40 per share of common stock. The dividend is payable on Friday, April 19, 2024, to shareholders of record at the close of business on Friday, April 5, 2024.
Franco-Nevada Corporationrecently noted, “In late 2023, we were challenged by the unprecedented production halt at Cobre Panama. We are hopeful that the issues can be resolved, although we have taken a prudent approach for the carrying value of the asset", stated Paul Brink, CEO. "Despite the issue at Cobre Panama, our business remains robust and we continue to benefit from a long-duration, diversified portfolio. We finished the year with no debt and $1.4 billionin cash and cash equivalents. The balance of our business performed well in 2023 and is expected to grow in 2024 with contributions from the completion of the Tocantinzinho, Greenstone and Salares Norte gold mines. Our growth outlook through 2028 is driven by numerous new mines and mine expansions. $2.4 billion of available capital positions us well for attractive acquisitions in an environment where many project developers are capital constrained."
B2Gold Corp. announced its operational and financial results for the fourth quarter and full year 2023. The Company previously released its gold production and gold revenue results for the fourth quarter and full year 2023. Total gold production of 288,665 ounces in Q4 2023: Total gold production in the fourth quarter of 2023 was 288,665 ounces, including 18,054 ounces of attributable production from Calibre Mining Corp. The Fekola, Masbate and Otjikoto mines all exceeded their expected production in the fourth quarter, with Otjikoto achieving record quarterly production of 81,111 ounces. Total consolidated cash operating costs of $633 per gold ounce produced in Q4 2023: Total consolidated cash operating costs (see “Non-IFRS Measures”) (including estimated attributable results for Calibre) of $633 per gold ounce produced and consolidated cash operating costs from the Company’s three operating mines of $611 per gold ounce produced. On February 21, 2024, B2Gold's Board of Directors declared a cash dividend for the first quarter of 2024 (the “Q1 2024 Dividend”) of $0.04 per common share (or an expected $0.16 per share on an annualized basis), payable on March 20, 2024, to shareholders of record as of March 7, 2024.
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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