With the likelihood of more stimulus, and central banks saying they’ll keep rates low with necessary liquidity, gold could push higher. In fact, analysts at Citi for example have a $2,500 price target, comparing its catalysts to that of the rally between 1970 and 1980. Others, like Frank Holmes, CEO at U.S. Global Investors have said, “It’s quite easy to see gold going to $4,000. We’ve not seen this level where central banks are printing money at a zero interest rate. At zero interest rates, gold becomes a very, very attractive asset class.”
Plus, we have to consider the Labor Department said its consumer price index was up by 0.4% last month after gaining 0.2% in November. That shows an uptick in inflation, which is supportive of higher gold prices, too.
With those catalysts, stocks like Stevens Gold Nevada Inc. (CSE:SG)(OTC:STVGF) Could Benefit
The company just announced it has completed the staking of 72 new claims contiguous with the original Millennium Gold Property. The Property is located 4.8 km northeast of Lake Havasu City in Mojave County, western Arizona.
The new claims were staked to encapsulate high gold assays from rock samples described in historic exploration reports and results from a review of inhouse remotely sensed Aster survey data. An Aster survey is a satellite-based imaging tool that uses Short Wave Infrared (SWIR) bands to produce maps on a regional and local scale. Aster has three visible/near-infrared bands with 15 m resolution, six short-wave infrared bands at 30 m resolution and five thermal-infrared bands at 90 m resolution. Results from the Aster survey documented patterns of bedrock alteration commonly associated with epithermal style gold mineralization.
These included widely developed and focused areas of iron oxide, silicification and clay-rich alteration which were used to guide claim staking. The acquisition of the new claims provides the Company with new exploration targets that can be followed-up with prospecting, rock sampling and geophysical surveys followed by drilling. Claim staking was undertaken by North American Exploration under the supervision of David Morris.
The Property located in west Arizona is an early stage, underexplored low sulphidation volcanic-hosted epithermal gold deposit with geological similarities in style of mineralization and alteration to other nearby epithermal deposits including the Castle Mountain Mine and the Moss Mine. The presence of these and numerous other epithermal gold deposits in the general area of the Property indicates the district is fertile exploration terrain and has good potential for additional deposits. Exploration can proceed 12 months of the year and is adjacent to readily available amenities and hydro-electric power.
Other related developments from around the markets include:
Barrick Gold Corp. (NYSE:GOLD)(TSX:ABX) announced preliminary full year and fourth quarter 2020 results which indicate that it has met its 2020 guidance targets. Preliminary gold production for the full year of 4.8 million ounces is at the midpoint of the 4.6 to 5.0 million ounce guidance range, while preliminary copper production of 457 million pounds is also within the guidance range of 440 to 500 million pounds. The preliminary Q4 results show sales for the quarter of 1.19 million ounces of gold and 108 million pounds of copper, as well as preliminary Q4 production of 1.21 million ounces of gold and 119 million pounds of copper. The average market price for gold in Q4 was $1,874 per ounce, while the average market price for copper was $3.25 per pound.
Newmont Corporation (NYSE:NEM)(TSX:NGT) announced its Board of Directors has approved a share repurchase program for up to $1.0 billion of common equity, to be completed over the next 18 months. The program will be executed at the Company’s discretion, utilizing open market repurchases to occur from time to time throughout the authorization period, and is in addition to Newmont’s industry-leading dividend framework. Newmont’s capital allocation philosophy balances steady reinvestment in the business, maintaining financial strength and flexibility, and providing leading returns to shareholders. Recently, the Company announced an industry-leading dividend framework, which includes a sustainable base dividend and additional returns at higher gold prices. The share repurchase program builds on the $1.0 billion 2020 program, which retired 22 million shares at an average price of $45 per share.
Kinross Gold Corporation (NYSE:KGC)(TSX:K) will release its 2020 fourth-quarter and full-year financial statements and operating results on Wednesday, February 10, 2021, after market close. The Company will also provide its full-year 2021 guidance, mineral reserve and mineral resource statement as of December 31, 2020, and an exploration and project update. Kinross will hold a conference call and audio webcast on Thursday, February 11, 2021 at 8 a.m. ET to present the results, followed by a question-and-answer session.
Royal Gold Inc. (NASDAQ:RGLD) reported net income of $59.9 million, or $0.91 per share, on record revenue of $158.4 million in its second quarter of fiscal 2021 ended December 31, 2020. Adjusted net income was $60.1 million, or $0.92 per share, after excluding a $0.01 loss on the change in fair value of equity securities. “Excellent performance from our operating portfolio combined with continued robust metal prices led to another quarter of record revenue and strong operating cash flow,” commented Bill Heissenbuttel, President and CEO. “The positive price environment continues to support organic growth from within the portfolio including new revenue contributions from Relief Canyon and South Laverton. Solid operating cash flow of almost $100 million allowed us to further strengthen the balance sheet, increase our annual dividend for the 20th consecutive year, and complete our funding of the advance payment for the 80% base silver stream at Khoemacau. We are pleased to see progress at Khoemacau remain on track for first shipment of concentrate in the third calendar quarter of 2021.”
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 Stevens Gold Nevada Inc. by a third party. We own ZERO shares of Stevens Gold Nevada Inc. Please click here for full disclaimer.
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