Gold prices settled just below $2,000. For one, the metal could push higher with a good deal of recessionary risks still on the table. Two, there’s the potential for U.S. debt default in a matter of weeks, according to U.S. Treasury Secretary Janet Yellen. In fact, she warns that if the debt ceiling is not raised, it could trigger a “constitutional crisis,” as quoted by Kitco.com. She added, “It's Congress's job to do this. If they fail to do it, we will have an economic and financial catastrophe that will be of our own making," Yellen told ABC on Sunday. "And we should not get to the point where we need to consider whether the president can go on issuing debt. This would be a constitutional crisis." All of which is a solid catalyst for Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Newmont Corporation (NYSE: NEM) (TSX: NGT), Franco Nevada Corp. (NYSE: FNV) (TSX: FNV), and Royal Gold Inc. (NASDAQ: RGLD). In addition, Bank of America believes gold could see $2,500 this year on talk of a potential U.S. debt default, and a potential pause from the Federal Reserve.
Look at Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF), For Example
Calibre Mining Corp. announced results from its drill program at the past producing Talavera mine, now known as the Talavera extension, located within the Limon Mine Complex 3 km from the Limon processing plant. These new intercepts continue to demonstrate the resource expansion and new discovery potential at the Limon mine complex.
Drill intercept highlights at Talavera include:
- 10.22 g/t Au over 4.2 metres including 15.25 g/t Au over 2.0 metres; 15.46 g/t Au over 6.7 metres including 18.09 g/t Au over 5.7 metres; 10.58 g/t Au over 7.9 metres including 15.18 g/t Au over 2.9 metres in Hole LIM-22-4688;
- 3.89 g/t Au over 2.5 metres including 5.85 g/t Au over 1.5 metres; 4.45 g/t Au over 20.9 metres including 8.09 g/t Au over 5.4 metres and 6.69 g/t Au over 3.5 metres; 9.31 g/t Au over 3.1 metres in Hole LIM-22-4677;
- 3.92 g/t Au over 3.6 metres in Hole LIM-22-4673;
- 4.10 g/t Au over 4.2 metres in Hole LIM-22-4721
Note: True widths are unknown as several generations of gold bearing veins exist. As a result, the Company will advance a structural study employing the use of downhole televiewer technology to determine vein orientations.
Darren Hall, President, and Chief Executive Officer of Calibre stated: “I am encouraged by these initial results from the drill program at Talavera, which is located only 3 km west of the Limon processing plant. While not currently included in the Company’s Mineral Resources, Talavera is a former underground producer with past production of 800,000 ounces of high-grade ore and represents another opportunity to grow our resource base given the multiple high-grade vein sets.
We see excellent exploration opportunities across our portfolio of assets I look forward to sharing the results as our 2023 drilling programs progress.”
Other related developments from around the markets include:
Barrick Gold Corporation announced the declaration of a dividend of $0.10 per share for the first quarter of 2023. The dividend is consistent with the Company’s Performance Dividend Policy announced at the start of 2022. The Q1 2023 dividend will be paid on June 15, 2023 to shareholders of record at the close of business on May 31, 2023. “Through the maintenance of a robust balance sheet, we are able to continue to provide a strong base dividend to our shareholders, with our Performance Dividend Policy providing shareholders with the potential for additional upside going forward,” said senior executive vice-president and chief financial officer Graham Shuttleworth.
Newmont Corporation announced that following completion of due diligence it has entered into a binding Scheme Implementation Deed under which Newmont will acquire 100 percent of the issued share capital in Newcrest by way of an Australian court-approved Scheme of Arrangement. “The combination of Newmont and Newcrest represents an exceptional value proposition for shareholders and other stakeholders. It creates an industry-leading portfolio with a multi-decade gold and copper production profile in the world’s most favorable mining jurisdictions,” said Tom Palmer, President and CEO of Newmont. “Following a robust due diligence process, we have identified a number of opportunities to unlock substantial value and will apply our experience and expertise to Newcrest’s complementary and exceptional portfolio of long-life, low-cost gold and copper assets. Leveraging our experience from the acquisition of Goldcorp four years ago, we are positioned to deliver an estimated $500 million in annual synergies and an estimated $2 billion in incremental cash flow from portfolio optimization opportunities, both part of our strategy to maximize value for shareholders and other stakeholders.”
Franco Nevada Corp. reported, “Our diversified portfolio continues to generate strong cash flows and high margins. The first quarter was impacted by production disruptions at Cobre Panama and Antapaccay as well as lower energy prices. Stronger precious metal deliveries are anticipated in Q2 with both assets having returned to normal operations. ‘Cobre Panama’s CP 100 Expansion is on-track for year-end and we look forward to initial contributions from Magino, Se´gue´la and Salares Norte during the year,’, commented Paul Brink, CEO. Franco-Nevada is debt-free, is growing its cash balances and has a strong pipeline of growth opportunities.”
Royal Gold Inc. reports net income of $63.9 million, or $0.97 per share, for the quarter ended March 31, 2023, on revenue of $170.4 million and operating cash flow of $108.7 million. Adjusted net income was $63.3 million, or $0.96 per share. “Our first quarter provided a solid start to 2023,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “Steady portfolio performance drove strong revenue and operating cash flow, which allowed us to repay $75 million of our outstanding revolving credit facility balance while enhancing our strong liquidity position.”
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