Gold just hit a record high of $2,549.90 and is expected to push even higher, creating substantial opportunity for stocks, such as 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). From here, according to analysts at UBS, gold prices could rally to $2,600 by the end of the year. Other analysts, including those at Citi have a $3,000 price target on gold over the next 18 months, especially with Middle East tension and the Federal Reserve. Bank of America also said gold could also test $3,000 in the next 12 to 18 months.
Forcing gold higher is safe-haven buying ahead of the potential for an interest rate cut from the Federal Reserve in just weeks. That’s in addition to explosively heightened tensions in the Middle East. “(Gold) remains supported by geopolitical risks and anticipated Federal Reserve rate cuts amid heightened tensions involving Iran, Israel, and Ukraine,” said derivatives platform Saxo Bank's Strategy team, as quoted by BullionVault.com.
Look at Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF), For Example
Calibre Mining Corp. just announced drill results from its 2024 resource conversion and expansion program within the Guapinol open pit area on the Company’s 176 km2 Eastern Borosi Mine Complex in northeastern Nicaragua. This prolific land package sits adjacent to a larger, 100%-owned, 7,281 km2 Atlantic Mineral Concession package which has high potential for the discovery of both epithermal gold-silver and porphyry copper-gold systems.
Gold highlights from the Eastern Borosi drill program
- 13.24 g/t Au over 5.8 metres Estimated True Width (“ETW”) including 18.52 g/t Au over 4.0 metres ETW in Hole GP-24-182;
- 9.24 g/t Au over 6.2 metres ETW including 17.45 g/t Au over 3.1 metres ETW in Hole GP-24-189;
- 11.62 g/t Au over 3.8 metres ETW including 22.36 g/t Au over 1.9 metres ETW in Hole GP-24-187;
- 9.25 g/t Au over 1.6 metres EW including 12.70 g/t Au over 1.1 metres ETW in Hole GP-24-179;
- 7.81 g/t Au over 8.6 metres ETW including 16.61 g/t Au over 3.7 metres ETW in Hole GP-24-181;
- 3.37 g/t Au over 2.9 metres ETW including 6.13 g/t Au over 1.4 metres ETW and 3.31 g/t Au over 7.3 metres ETW including 8.15 g/t Au over 1.6 metres ETW and 6.67 g/t Au over 0.8 metres ETW in Hole GP-24-178A; and
- 5.01 g/t Au over 4.5 metres ETW including 8.59 g/t Au over 2.5 metres ETW in Hole GP-24-186.
Note: Estimated True Widths for reported vein intercepts are based on 3D models of individual veins. Estimates are determined in cross-section by measuring the modelled vein thickness perpendicular to the vein margins and through the midpoint of the drill hole intercept. Percentage-based differences between individual ETWs and down-hole interval lengths will vary between drill holes depending on drill hole inclination, variations in vein strike and dip, and overall geometries of the different vein systems.
Darren Hall, President and Chief Executive Officer of Calibre, stated: “Today’s drill results from Eastern Borosi confirm that significant high-grade gold mineralization exists outside of the present deposit area surrounding the Guapinol operation, reinforcing the potential for mine life extension. These drill results build upon the high-grade gold mineralization results reported earlier this year (see News Release dated April 15, 2024) confirming the significant mineral endowment of the district as well as the high potential for discovery and resource expansion within the entire 176 km2 Eastern Borosi land package.”
Link 1 – Figures
Link 2 – Drilling Tables
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."
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