The Top Reasons to Still Get Bullish on Gold Prices
Posted On July 28, 2022
Gold prices are under pressure, as the U.S. dollar and bond yield surge higher. However, according to John Hathaway, senior portfolio manager of Sprott Hathaway Situations Strategy, as noted by Kitco.com, he’s bullish on gold because the U.S. central bank is closer to the end of its tightening cycle than it is to the start. In addition, according to Kitco.com, “Hathaway said that he would expect the central bank to start to pivot and slow the pace of rate hikes by the end of the summer. He added that the central bank will not want to push the economy into a recession ahead of the November election. Not only is the fundamental outlook starting to change for gold, but Hathaway said that the market’s speculative positioning is ripe for a contrarian trade. He added that sentiment in the gold and mining sector has hit multi-year lows.” All could be positive for gold and silver companies, such as Benchmark Metals Inc. (TSXV: BNCH) (OTCQX: BNCHF), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Newmont Corporation (NYSE: NEM) (TSX: NGT), First Majestic Silver Corp. (NYSE: AG) (TSX:FR), and Endeavour Silver Corp. (NYSE: EXK) (TSX: EDR).
Look at Benchmark Metals Inc. (TSXV: BNCH) (OTCQX: BNCHF)
Benchmark Metals Inc. provided an update on exploration drill planning of multiple new targets in close proximity to the 619,000 ounce, 1.65 grams per tonne gold equivalent in the Measured and Indicated, AGB Deposit1. The targets include a large kilometre-scale, fault-bounded geophysical target adjacent to the existing deposit. The Company’s flagship Lawyers Gold-Silver project is located within a road-accessible region of the prolific Golden Horseshoe area of north-central British Columbia, Canada.
John Williamson, CEO commented, “We continue to develop large new targets in close proximity to the existing deposits that have never been drill-tested. These new targets demonstrate similar geochemical and geophysical characteristics to the known zones of mineralization in close proximity to the high-grade AGB Deposit. The new targets exhibit significant new discovery potential and are high priority drill areas. The Company continues to finalize its Preliminary Economic Assessment and has geotechnical drilling in progress for the 2023 Feasibility Study.”
AGB Target Area Highlights
– Large untested resistivity geophysical anomaly adjacent to AGB.
This resistivity body is interpreted as possible silicification related to mineralization associated with a large, steeply-dipping fault system.
– Three soil anomalies situated approximately 3 km to the north along-strike and within the same structural corridor as AGB, associated with the hanging-wall mineralization.
Coincident VLF geophysical anomalies, similar to those seen at AGB.
– These blind targets have not seen historical or contemporary drilling and have strong discovery potential to add additional gold-silver ounces given their proximity to existing deposit areas at Lawyers.
– Priority drill targets for the imminent summer campaign.
The Company has produced multiple intriguing targets possibly related to mineralization adjacent to the high-grade AGB Deposit consisting of soil geochemistry anomalies coincident with IP and VLF geophysical anomalies in areas lacking outcrop exposure. These blind targets are situated both parallel to and along-strike of the north-trending faults controlling mineralization at AGB.
Other related developments from around the markets include:
Barrick Gold Corporation president and chief executive Mark Bristow said the Reko Diq copper-gold project, a partnership between the company, the Balochistan Provincial Government and Pakistani state-owned enterprises, would create substantial value for the province through multiple generations. Speaking after his meeting here today with Balochistan chief minister Abdul Quddus Bizenjo, Bristow said that in the negotiations Barrick and the Government of Pakistan had worked to ensure that Balochistan will receive a substantial share of the benefits generated by Reko Diq.
Newmont Corporation announced second quarter 2022 results. “Newmont delivered a solid second quarter performance, producing 1.5 million gold ounces and generating $514 million in free cash flow. Through our industry-leading portfolio of assets and projects, our proven integrated operating model, our balanced and disciplined approach to capital allocation and our values-driven commitment to our purpose of creating value and improving lives through sustainable and responsible mining, Newmont remains well-positioned to safely manage through the evolving and unprecedented challenges that face our industry and the world at large,” said Tom Palmer, Newmont President and Chief Executive Officer.
First Majestic Silver Corp. announced that total production in the second quarter of 2022 from the Company’s four producing operations, the San Dimas Silver/Gold Mine, the Jerritt Canyon Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine, reached 7.7 million silver equivalent ounces consisting of 2.8 million ounces of silver and 59,391 ounces of gold. The Company’s financial results for the second quarter of 2022 are scheduled to be released on Thursday, August 4, 2022.
Endeavour Silver Corp. reported second quarter 2022 production of 1,359,207 silver ounces and 9,289 gold oz, for silver equivalent 1 production of 2.1 million oz. Production continues to outpace the 2022 production guidance of 6.7-7.6 million silver equivalent ounces, totaling 4.1 million AgEq oz for the six months ended June 30, 2022. “Amid ongoing turmoil in the markets due to supply constraints, continued inflation concerns, and uncertainty from the raising of interest rates from historical lows, we had another solid quarter of production” stated Dan Dickson, Chief Executive Officer. “Despite the current macro trends, the Company and precious metals outlook remains optimistic. Given our positive view for short-term precious metal prices, we are comfortable holding back bullion inventory over the quarter for future sale.”
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