Gold could test $2,000 again. In fact, at this rate – with inflation, fears of recession, and the potential for escalating conflict – gold could see $2,500 before long. According to Jeff Currie, Goldman Sachs global head of commodities research, as quoted by Bloomberg, “It’s a perfect storm for gold right now. There’s three legs to this story. One, you have strong investor demand for gold over concerns about inflation, recessions, and downturn in places like Europe.” In addition, “Gold is being reinforced by elevated inflation and heightened geopolitical risk,” said Kelvin Wong, an analyst at CMC Markets, as quoted by Mining.com. All could be positive for companies, such as Calibre Mining Corp. (TSXV: CXB) (OTCQX: CXBMF), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Newmont Corporation (NYSE: NEM) (TSX: NGT), B2Gold Corp. (TSX: BTO) (NYSE: BTG), and Equinox Gold Corp. (TSX: EQX) (NYSE: EQX).
Look at Calibre Mining Corp. (TSXV: CXB) (OTCQX: CXBMF), For Example
Calibre Mining Corp. announces financial and operating results for the three months ended March 31, 2022. Consolidated financial statements and management discussion and analysis for the three months ending March 31, 2022 can be found at www.sedar.com and the Company’s website, www.calibremining.com. All figures are expressed in U.S. dollars.
Q1 2022 HIGHLIGHTS
- Gold sales of 52,487 ounces grossing $99.6 million in revenue, at an average realized gold price1 of $1,897/oz;
- Consolidated total cash costs (“TCC”)1 and All-In Sustaining Costs (“AISC”)1 of $1,060 and $1,199 per ounce, respectively;
Nicaragua: TCC $1,013 and AISC $1,108 per ounce respectively;
Nevada: TCC $1,268 and AISC $1,283 per ounce respectively;
- Successful completion of the acquisition of Fiore Gold on January 12, 2022 creating a diversified, Americas focused, growing, mid-tier gold producer;
- Smooth integration of the Nevada assets recognizing initial synergies and savings within the broader entity and stronger balance sheet despite the current inflationary environment;Cash of $77.3 million as at March 31, 2022, after $19.0 million of Fiore Gold acquisition cash components;
- Net income of $11.7 million; basic net income per share of $0.03;
- Adjusted net income of $16.4 million or $0.04 per basic share in Q1 20222;
- Nicaragua Mineral Reserves increased to 1,013,000 ounces of gold, at a record grade of 4.62 g/t (see news release dated February 23, 2022);
- Nicaragua Indicated Mineral Resources increased to 1,806,000 ounces of gold (see news release dated February 23, 2022);
Significant exploration developments include:
Drill results from the Pan Mine in Nevada demonstrate resource expansion and higher-grade potential, including 1.02 g/t Au over 50.3 metres, 0.83 g/t Au over 34.0 metres, 0.58 g/t Au over 41.2 metres and 0.68 g/t Au over 24.4 metres (see news release dated March 8, 2022 and April 12, 2022);
170,000 metre drill program underway which includes resource delineation, infill, and geotechnical drilling as well as early-stage generative exploration drilling to test numerous satellite targets around Libertad, the Eastern Borosi Project and Nevada.
- Launched the multi-year sustainability strategy (see news release dated March 15, 2022).
Darren Hall, President and Chief Executive Officer of Calibre, stated: “Calibre had an excellent start to the year, responsibly delivering record gold production at a total cash cost of $1,060 per ounce and AISC of $1,199 per ounce positioning the Company well to deliver on full year guidance, despite the current inflationary environment.
Other related developments from around the markets include:
Barrick Gold Corporation reported preliminary Q1 sales of 1.0 million ounces of gold and 113 million pounds of copper, as well as preliminary Q1 production of 1.0 million ounces of gold and 101 million pounds of copper. As previously guided, Barrick’s gold production in 2022 is expected to be the lowest in the first quarter increasing through the year, while copper production is expected to be higher in the second half of the year. We remain on track to achieve our full year gold and copper guidance1. The average market price for gold in Q1 was $1,877 per ounce, while the average market price for copper in Q1 was $4.53 per pound.
Newmont Corporation announced first quarter 2022 results. "Newmont delivered a solid first quarter performance with $1.4 billion in adjusted EBITDA as we safely managed through the Omicron surge. The strength of our proven operating model and global portfolio in the world's best mining jurisdictions is the foundation of Newmont's clear and consistent strategy to create value and improve lives through sustainable and responsible mining. In April, we published our 18th Annual Sustainability Report, which provides a transparent look at our ESG performance and the issues and metrics that matter most to our stakeholders. As a values-based organization and the gold sector's recognized sustainability leader, Newmont has a long history of leading change in our approach to ESG and our core values are fundamental to how we run our business and where we choose to operate,” says Tom Palmer, Newmont President and Chief Executive Officer.
B2Gold Corp. announced its gold production and gold revenue for the first quarter of 2022. Total gold production in the first quarter of 2022 was 209,365 ounces (including 12,892 ounces of attributable production from Calibre), above budget by 5% (9,760 ounces), and consolidated gold production from the Company's three operating mines was 196,473 ounces, above budget by 4% (8,431 ounces), with solid performances from the Company's three mines, with each mine exceeding its budgeted production for the first quarter of 2022 (see "Operations" section below). Due to the timing of higher-grade ore mining, consolidated gold production from the Company's three operating mines is expected to be significantly weighted to the second half of 2022. As expected, compared to the first quarter of 2021, total consolidated gold production was lower by 5% (11,279 ounces), due to the planned significant waste stripping campaign and lower mined ore tonnage at the Fekola Mine in the first quarter of 2022, as Phase 6 of the Fekola Pit continues to be developed in the first half of 2022.
Equinox Gold Corp. announced positive drill results from 2021 exploration drilling in the 70-km-long greenstone belt in Bahia State, Brazil that hosts the Company’s 100%-owned Fazenda and Santa Luz gold mines. Exploration has identified multiple near-mine and regional discoveries that highlight growth potential in the Bahia Belt. “The 2021 exploration program in the Bahia Belt has led to the discovery of significant gold mineralization at multiple targets within haulage distance to our existing mines,” said Scott Heffernan, EVP Exploration for Equinox Gold. “Drilling at the Canto 2 target adjacent to our Fazenda Mine was particularly important, intersecting very high grades and clearly highlighting the potential for both open pit and underground resource growth and mine life extension at Fazenda. Equinox Gold also secured exploration permits covering an additional 323 square km, bringing the total land package in the Bahia Belt to nearly 1,300 square km covering the majority of this highly prospective but underexplored greenstone belt.
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 Calibre Mining Corp. by Calibre Mining Corp. We own ZERO shares of Calibre Mining Corp. Please click here for full disclaimer.
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