That's why it's time to bet big on gold

Gold prices are currently at a record high above $2,400 and could continue to rise aggressively. All thanks to a higher likelihood of a rate cut by the Federal Reserve this year. “Lower yields, some safe-haven buying and then the notion of a weakening economy driving rates down along with the dollar, all of that is supporting the gold market,” said David Meger, director of alternative investments and trading at High Ridge Futures, as noted by CNBC. All of this is a solid catalyst for gold and gold stocks, including Caliber Mining Corp. (TSX: CXB) (OTCQX: CXBMF), BarrickGold (NYSE: GOLD) (TSX: ABX), Royal Gold Inc. (NASDAQ:RGLD)Franco Nevada (NYSE: FNV) (TSX: FNV) and Company: Newmont Corp. (NYSE:NEM) (TSX:NGT).

According to CME Group's Fed Watch, there is currently a nearly 80 percent probability that the September 18 meeting will see a rate cut of between 4.75 and 5 percent.

For example, look at Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF).

Calibre Mining Corp. announced that the Honourable Steven Guilbeault, Minister of Environment and Climate Change of Canada, has approved the expansion of a third open pit, the Berry deposit, at its 100% owned Valentine Gold Mine. An updated environmental impact assessment regarding the proposed modifications to Valentine to include the Berry deposit and associated infrastructure changes was submitted to the Impact Assessment Agency of Canada in August 2023.

Following the IAAC's thorough analysis of the submitted update, including the results of consultation with Indigenous groups, communities and advocacy organizations, and review of the results of the IAAC's public comment process, Minister Guilbeault signed an amended statement of decision approving the addition of the Berry Pit.

Darren Hall, President and CEO of Calibre, said: “I am pleased to announce that we have received federal environmental approval for the development of the Berry Pit at Valentine. With this approval and the recent award of provincial mining and surface leases for Berry and associated infrastructure, we now have the key approvals for the three pit plan contained in the 2022 Feasibility Study.”

“Since acquiring Valentine in January, we have advanced development to 98%, construction from 50% to 77%, and hired an experienced operations team, positioning us to deliver first gold in the second quarter of 2025.”

Click on the links below to view the IAAC's amended decision statement and analysis on the Berry Pit expansion:

Link1 – Amended decision statement

Link2 – Analysis of Marathon Gold Corporation’s proposed changes to the Valentine Gold Project

Other related developments in the markets include:

BarrickGold reported preliminary production of 948,000 ounces of gold and 43,000 tonnes of copper in the second quarter and preliminary sales of 956,000 ounces of gold and 42,000 tonnes of copper in the second quarter. As previously forecast, Barrick's gold and copper production in 2024 is expected to increase incrementally each quarter throughout the year, with a higher weighting in the second half of the year. The Company remains on track to achieve our full year gold and copper guidance. The average market price for gold in the second quarter was $2,338 per ounce, while the average market price for copper in the second quarter was $4.42 per pound. Preliminary gold production in the second quarter was higher than in the first quarter due to increased production at Turquoise Ridge following completion of the Sage autoclave maintenance in the first quarter, the continued successful ramp-up at Porgera and significant increases at Tongon, North Mara and Kibali.

Royal Gold announced that its wholly owned subsidiary RGLD Gold AG sold approximately 52,600 gold equivalent ounces, including approximately 39,200 ounces of gold, 593,200 ounces of silver and 1,500 tonnes of copper, in connection with its streaming agreements during the three month period ended June 30, 2024 (the “Second Quarter”). The Company had approximately 12,000 ounces of gold and 450,500 ounces of silver in inventory as of June 30, 2024. RGLD Gold AG's average realized gold, silver and copper prices during the Second Quarter were US$2,339 per ounce, US$28.46 per ounce and US$9,475 per tonne (US$4.30 per pound), respectively. Cost of sales during the Second Quarter were approximately US$459 per GEO. Distribution costs are specifically determined by the Company's streaming agreements and arise from the Company's purchase of gold, silver or copper for cash at a fixed contract price or a percentage of the prevailing market price of gold, silver or copper at the time of purchase.

Franco Nevada announced that its wholly owned subsidiary, Franco-Nevada (Barbados) Corporation, has acquired a gold stream from SolGold relating to production from the Cascabel Project in Ecuador. FNB has partnered with Osisko Gold Royalties Ltd.'s subsidiary, Osisko Bermuda Limited, to provide a syndicated financing package on a 70%/30% basis. FNB will provide a total of $525 million and Osisko will provide a total of $225 million in financing, for a total of $750 million. FNB will provide $70 million and Osisko will provide $30 million, for a total of $100 million in pre-construction financing, available in three equal instalments. The first tranche will be funded at closing, with two further tranches to follow subject to development milestones.

Newmont announced second quarter 2024 results and announced a second quarter dividend of $0.25 per share. “Newmont delivered a solid second quarter, producing 2.1 million gold equivalent ounces and generating $594 million in free cash flow,” said Tom Palmer, President and CEO of Newmont. “We continued to advance our divestment program and announced $527 million in proceeds so far this year. With this momentum, we completed $250 million of share repurchases and repaid $250 million of debt. As we enter the second half of the year, we remain confident in our ability to continue to deliver shareholder returns, meet our full year guidance and deliver on our commitments.”

Legal Disclaimer / Except for the historical information contained herein, the matters discussed in this article contain 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 does it purport to provide, investment advice or investment recommendations to readers of this publication. Readers should seek their own advice in making specific investment decisions. Winning Media is compensated for its services only in the form of cash-based compensation. Pursuant to an agreement, Winning Media has received three thousand five hundred dollars from Calibre Mining Corp. for advertising and marketing services for Calibre Mining Corp. We own ZERO shares of Calibre Mining Corp. Click here to view the disclaimer.

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