Gold Continues to Provide a Haven for Investors as Global Unrest Persists
December 03, 2020 at 09:00 AM EST
NEW YORK, Dec. 3, 2020 /PRNewswire/ -- Stock markets turned red earlier this week as concerns of the economic impact from the pandemic resurfaced once again. The ADP National Employment Report published on Wednesday indicates that private sector employment increased by 307,000 jobs from October to November, which is significantly missing expectations; consensus forecasts were calling for job growth of around 433,000, according to a report by Kitco. Nevertheless, recent announcements of potential vaccines are making investors hopeful for a more productive 2021, yet economists indicate that weak labor market growth could still be a major obstacle for growth. Clarity Gold Corp. (CSE: CLAR), Gold Resource Corporation (NYSE: GORO), B2Gold Corp. (NYSE: BTG), Kinross Gold Corporation (NYSE: KGC), IAMGOLD Corporation (NYSE: IAG)
Among the many variables impacting the price of gold are interest rates. In order to reduce the impact of the pandemic on the economy various economic measures had to be implemented, including near-zero interest rates and economic stimuluses for business and individuals. Kitco reports that, in a report published last week, analysts at ANG Traders explained that they "see gold prices rising to $1,900 an ounce as prices have bounced off critical support around $1,770 an ounce, which represented a 50% retracement from the lows in March to August's all-time high."
Clarity Gold Corp. (CSE: CLAR) announced breaking news this morning that, "to welcome Mr. Michael Williams to its Advisory Board. Michael brings over 24 years of experience as a senior executive within the mining industry and enriches Clarity's team with his experience in structuring, administrating, raising capital and marketing of Toronto Stock Exchange listed companies.
Mr. Williams has held a senior role in several public companies including Underworld Resources Ltd, which was sold to Kinross Gold Corp for $138,000,000. He has developed an international banking and financing network that includes extensive contacts with both institutional and retail investors. Mr. Williams has raised significant equity capital for advanced exploration and development projects.
Mr. Williams is the founder and Executive Chairman of Aftermath Silver and currently serves as a director, President and CEO of Vendetta Mining Corp.
"We are very pleased to have the guidance of a recognized professional with multiple successes in capital markets, advanced mineral exploration and development." said James Rogers, CEO of Clarity. "Michael's expertise is aligned with our long-term vision of excellence; to build a company with quality assets and a brilliant team, it all stems from a solid foundation. We are delighted to welcome him on our Advisory Board."
Issuance of Options
The Company is also pleased to announce that it has granted incentive stock options (each, an "Option") to acquire an aggregate of 400,000 common shares of the Company (each, a "Share") to certain consultants under its stock option plan. Each Option is exercisable for a period of three years expiring on December 2, 2023, at a price of $1.21 per Share."
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Gold Resource Corporation (NYSE: GORO) reported on October 15th, preliminary record Nevada gold production results for the third quarter ended September 30, 2020, which contributed to consolidated production of 12,575 gold ounces, 333,761 silver ounces and significant base metals. Nevada gold production increased by 51% as the production ramp up phase continues. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned $115 million to its shareholders in consecutive monthly dividends since July 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery. Preliminary record third quarter production from the Company's Nevada Mining Unit totaled 7,847 gold ounces, a gold production increase of 51% over the prior quarter. Through the first three quarters of 2020, the Company's Nevada Mining Unit's preliminary production numbers total 16,747 gold ounces. The third quarter was the first full quarter that the Company was able to regularly access portions of the deposit's high-grade "Pearl" zone, while also mining the deposit's lower grade "Isabella" zone. The Pearl zone is estimated to contain 80% of the gold ounces at the Isabella Pearl deposit with an estimated average gold grade of 4.0 grams per tonne.
B2Gold Corp. (NYSE: BTG) announced on September 17th, additional positive exploration drilling results from the Cardinal and FMZ zones near Fekola, and the Mamba zone in the Anaconda area such as new high-grade drill results from the Cardinal and FMZ zones extend the mineralization to over 3.5 kilometres along strike, continuing to indicate potential for additional gold deposits near the Fekola mine, with additional potential at depth and along strike. Resource infill drilling completed at the Cardinal zone, with an initial Inferred Mineral Resource estimate expected in the first quarter of 2021. Additional high-grade drill intercepts at the Mamba zone extend the mineralized zone by over one kilometre, to a total known strike length of approximately 2.2 kilometres (20 kilometres north of Fekola) Resource infill drilling at the Mamba zone in the Anaconda area approximately 90% complete, with an updated mineral resource estimate for the Anaconda area expected by the end of the fourth quarter of 2020. In 2020, B2Gold continued exploration drilling near Fekola and the Anaconda area with an $18 million program in Mali that focussed on exploration at the Cardinal and FMZ zones near the Fekola deposit which demonstrate potential for additional gold deposits within 3 kilometres of the Fekola mill, expanding the mineral resources within the Anaconda area, including the Mamba zone, and further testing the sulphide zones.
Kinross Gold Corporation (NYSE: KGC) announced on October 20th, that it expects to produce an average of approximately 2.5 million gold equivalent ounces (Au eq. oz.)1 per year from 2020 – 2029 driven primarily by promising organic opportunities across its global portfolio. J. Paul Rollinson, President and CEO, commented on Kinross' long-term production outlook . "Our growing production profile and declining cost trend over the next three years are expected to drive strong free cash flow performance, placing Kinross in an excellent position to generate substantial value for our shareholders. Furthermore, our positive long-term production outlook, with estimated average annual production of 2.5 million Au eq. oz. to 2029, provides a solid foundation to continue building value into the future. "Kinross has a diverse global portfolio with top-tier assets that have long mine lives complemented by a large mineral reserve and resource base. The reinvestments in our portfolio, continuous improvement initiatives and exploration programs have enabled us to add lower cost and lower risk projects that leverage existing infrastructure and enhance our long-term production profile. Our strong production profile, combined with our robust financial position and recently reinstated quarterly dividend, point to an exciting future for our Company."
IAMGOLD Corporation (NYSE: IAG) reported on November 4th, its consolidated financial and operating results for the quarter ended September 30, 2020. "IAMGOLD performed well in challenging circumstances, generating $105.1 million in operating cash flows and producing 159,000 ounces of gold, resulting in $80.0 million in free cash flows from our operating mine sites." commented Gordon Stothart, President and CEO of IAMGOLD. "In the quarter, we successfully completed our new bond issuance, lowering our interest costs, extending the maturity to 2028 and enhancing our financial flexibility with a cash balance of approximately $900 million. This cash position, along with access to our largely undrawn $500 million credit facility, brings our total liquidity to over $1.4 billion, enabling us to cover our portion of Côté's capital expenditures. Project engineering at Côté is now 66% complete, as early works continue and permitting advances to enable construction activities. Looking to the fourth quarter, production will be underpinned by Essakane and by Saramacca's contribution to Rosebel. As reported Monday, we had a seismic event at Westwood, with all employees safely brought above ground. I would like to recognize our Westwood team for their safe and successful response to this event. The Westwood mill is expected to restart operations in the next few days while the underground mine operations remain suspended."
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