Gold could rally to $3,000 by 2025, according to Bank of America. In fact, according to the analysts, "We believe gold can hit $3,000/oz over the next 12-18 months, although flows do not justify that price level right now," as quoted by Investing.com. “The team thinks that the $3,000/oz target would require non-commercial demand to pick up from current levels, which in turn would require US interest rate cuts.” All of which could be beneficial for gold stocks, including U.S. Gold Corp. (NASDAQ: USAU), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Royal Gold Inc. (NASDAQ: RGLD), Franco Nevada Corp. (NYSE: FNV) (TSX: FNV), and Newmont Corp. (NYSE: NEM) (TSX: NGT).
Even Goldman Sachs just said that gold has the highest potential for a near-term price increase, as noted by LiveMint.com. "Imminent Fed rate cuts are poised to bring Western capital back into the gold market, a component largely absent of the sharp gold rally observed in the last two years," the brokerage firm said in its note Go for Gold, they added. The firm also raised its price target on gold to $2,700 by early 2025.
Look at U.S. Gold Corp. (NASDAQ: USAU)
U.S. Gold Corp., a gold exploration and development company, is pleased to provide the following update on the CK Gold Project engineering and updated Prefeasibility Study progress.
With the approval of the Mine Operating Permit on April 29, 2024, work on the Prefeasibility Study (PFS) update resumed in June 2024. As a result of changes related to permit commitments and ongoing engineering optimization studies to enhance project economics, the Company deems it highly beneficial to consider the results of these studies prior to completing the updated PFS. With gold, copper and silver prices approaching historic highs, far and above the original PFS of December 2021, management believes the time to optimize plant and operations is the present, as equity markets in the junior sector trail a new reality and a durable and well thought out mining operation is established.
Set out below are opportunities under consideration.
Engineering Studies Underway:
Tailings Management Facility (TMF) Optimization: In a review of the stacking sequence and access roads to the TMF, the Company hired Tierra Group International (TGI), a Denver, Colorado based geotechnical engineering firm, to review the overall design of the TMF, and, in particular, to improve road access, stacking and operability. During their review, TGI has identified opportunities to improve the capacity and ease the constructability of the TMF through improved design at, potentially, a reduced capital cost. This does not alter the TMF footprint or design concepts described in the permit approval, which now incorporates a membrane composite liner rather than a modified soil liner as contemplated in the December 2021 PFS.
Water Management Plan: In June 2024, the CK Gold Project received the water discharge permit (WYPDES) from the Wyoming Department of Environmental Quality with specific standards. As a result of the WYPDES approval, TGI has been asked by the Company to evaluate and make recommendations to the site-wide water management plan and water balance model. The Company has an agreement in place with the Cheyenne Board of Public Utility to purchase water to operate the mine. TGI is currently evaluating the possibility of improving water harvesting within the property boundary and storage capacity thereby reducing the amount of makeup water the Company would need to purchase.
Process Plant Trade-off Study: The December 2021 PFS contemplates a 20,000 ton per day sulfide concentrator employing conventional crush, grind, flotation and uses a series of flotation cells to generate a sulfide concentrate. The Company has recently been made aware of enhanced recovery processes using alternative flotation cell technology rather than the conventional technology in its current design. A compelling presentation was made pointing to operational experience at other mines to suggest that alternative flotation equipment and grinding has the potential of improving metal recoveries, lowering capital by reducing the mill building size and the number of conventional flotation cells, and operating costs by reducing personnel and power consumption. As such, the Company has determined the best approach is to investigate the use of this technology prior to finalizing the PFS. Accordingly, 150 kg of ore-grade material has been shipped to a metallurgical laboratory to determine the suitability of the Jameson Cell and IsaMill equipment for the Company’s ore.
In commenting on the engineering studies, George Bee, President and CEO said, “The time to make changes to a project is during the initial engineering so that the Feasibility Study (FS) is well thought out and durable. Nothing upsets project controls and cost management more than change orders once construction has started, and we will go into development with a well-engineered project consistent with the permit constraints and optimized for the best possible outcome.”
Luke Norman, Chairman added, “While gold, copper and silver prices are pushing new highs, the equity markets in the junior sector remain laggard in their response. Although the CK Project is permitted in principle and ready for development, we have time to accomplish these optimization opportunities. Testing alternative, mine-proven flotation technologies offers potential to further increase the economic framework of the mine. Furthermore, we are still looking to build value, based on investigations to commercialize the rock that we mine and set aside to extract the gold and copper ore. Adding a potential revenue stream from the aggregate could also offer additional benefits to both U.S. Gold Corp. and the State which would garner additional royalty payments. This commercialization also has the potential to offer alternative closure scenarios where the exhausted pit could serve as future water storage to reduce cost and disruption in the nearby Curt Gowdy Park where the current city reservoirs are situated.” Mr. Norman added, “Of course any of these potential changes would be subject to discussion with interested parties and additional permitting.”
Other related developments from around the markets include:
Barrick Gold reported increased earnings and production for its second quarter, in line with guidance, and said the Company was on track for a strong second half of the year. Net earnings1 were up 25% and the attributable EBITDA margin2 was up 17% quarter on quarter to 48% with strong operating cash flows of $1.16 billion and a material increase in free cash flow3 to $340 million. Net earnings per share were up 24% to $0.21, adjusted net earnings per share3 increased by 68% to $0.32, and the quarterly dividend was maintained at $0.10 per share. President and chief executive Mark Bristow said while steering the Company towards the achievement of its 2024 guidance, management was also maintaining its focus on value creation and growth.
Royal Gold announced that its Board of Directors has declared its fourth quarter dividend of $0.40 per share of common stock. The dividend is payable on Friday, October 18, 2024, to shareholders of record at the close of business on Friday, October 4, 2024.
Franco Nevada announced that its wholly-owned subsidiary has acquired from Compan~i´a de Minas Buenaventura S.A.A. and its subsidiary, an existing 1.8% net smelter return royalty on all minerals covering Newmont Corporation’s Yanacocha mine and adjacent mineral properties located in Peru. Consideration for the Royalty consists of $210 million paid in cash on closing, plus a contingent payment of $15 million in Franco-Nevada common shares, payable upon achievement of certain conditions. “We are pleased to partner with Buenaventura to acquire this existing Royalty which adds immediately cash flowing gold production and growth from a leading gold operator,” said Paul Brink, President & CEO of Franco-Nevada. “Yanacocha has been one of the largest gold mines globally and the district covered by the Royalty remains highly prospective with over 47 Moz AuEq in total reserves and resources. The Royalty covers current oxide production, the planned sulfide project and high-quality growth projects, including Conga, which together have the potential to add decades of contributions to Franco- Nevada.”
Newmont Corp. 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 CEO. "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."
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 U.S. Gold Corp. by U.S. Gold Corp. We own ZERO shares of U.S. Gold Corp.Please click here for disclaimer.
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