?? - Gold Price Rallies as U.S. CPI Report Not Too Hot
CEO.CA Presents the Chairman's Briefing - January 16th, 2025
“The great merit of gold is precisely that it is scarce; that its quantity is limited by nature; that it is costly to discover, to mine, and to process; and that it cannot be created by political fiat or caprice.”
— Henry Hazlitt
Metals/Crypto Price
In Partnership With
Valkea reports that it has successfully completed over 2,000 metres of core drilling at its 100% owned Paana Project, adjacent to the Kittila Mine, Europe’s largest gold producer. The Phase 1 exploration program was designed to unlock the potential of the Aarnivalkea West target.
The Company’s dominant land package is strategically located within Finland’s highly-prospective Central Lapland Greenstone Belt in which several major mining companies, including Agnico Eagle, Kinross Gold, B2Gold and Rupert Resources are active. Assay results are expected in February.
See full press release?here.
Gold
Gold continues its sideways grind, carving out a narrow rising channel above its 50-period SMA (blue line, chart below). Those with an appreciation for TA like the setup.
There's a universe of analysts tracking gold's flight path... par for the course after its impressive run in 2024. As the metal continues to chop, it's especially sensitive to economic data, susceptible to abrupt short-term reversals and extreme volatility.
Though talk of a Middle East peace deal dampened the metal's safe-haven appeal one minute, a softer-than-expected PPI landed and firmed it right back up the next. Later today (Wednesday, January 15), the U.S. Bureau of Labor Statistics will publish its latest round of CPI digits. Prepare for extreme volatility.
In the medium to longer term, a case can be made for a markedly higher trading range. Many analysts view the economic uncertainty and inflationary price pressure we're currently experiencing as a potent catalyst. During a recent Kitco interview, Chris Mancini, associate portfolio manager of the Gabelli Gold Fund, believes inflation will remain stubbornly high as (President-elect) Donald Trump moves forward with plans to cut taxes and levy global tariffs.
“The bottom line is that the Republican agenda is inflationary in that tax cuts will push more liquidity into the system,” Mancini said.
If (WHEN) Trump's tariffs trigger a global trade war, the economy and labor market will surely suffer, which could force the Fed's hand.
“The key for investors will be to watch the labor market. Weakness in the labor market will prompt the Federal Reserve to cut rates even if inflation remains elevated,” Mancini said. “If the market starts to sniff some stagflation, then I think gold will do well.”
This just in (pre-session hours, Weds, Jan. 15)...
Today’s U.S. data point of the week, the consumer price index for December, saw CPI up 2.9%, year-on-year, right in line with market expectations and compares to up 2.7% in the November report. The core CPI came in a bit lighter than expected, at up 0.2% versus expectations for up 0.3%, month on month.
An intra-day 5-minute chart of the metal in the immediate wake of this tame(ish) inflation data dump...
General Mining Sector News
Barrick Suspends Operations at Loulo-Gounkoto
Last week we reported how conditions at Barrick Gold's (ABX.TO) Loulo-Gounkoto complex in the West African nation of Mali continued to deteriorate after the military-run gov't slapped a shipping ban on all (above-ground) precious metal stored on-site. Calling the action unwarranted and "in contravention" of the agreed dispute resolution mechanisms, the mining giant issued an?ultimatum on Jan.6, warning that if the issue is not resolved within one week, they'd have no choice but to halt production.
The AK-47 happy junta running the show in Mali has adopted a hardcore approach to extract concessions from foreign operators. Last year it stuffed Resolute Mining's CEO in a jail cell until he coughed up $160 million to settle his tax bill. Two months back they detained four (local) Barrick executives and issued an arrest warrant for CEO Mark Bristow to demonstrate their resolve.
The situation continued to deteriorate as the military-led authorities seized all of the precious metal stored on the Loulo-Gounkoto site. A recent Reuters piece quoted a Barrick staff memo stating, "A provisional order to seize our existing gold stock was issued last week and the Malian government began its enforcement on Jan. 11."
Two Barrick employees in Mali and a consultant working for mining companies confirmed the authenticity of the letter seen by Reuters. Speaking on condition of anonymity, the employees said it was sent to staff on Sunday. Barrick has not said what volume of gold is at risk, but one of the employees said Loulo-Gounkoto's stock was around 4 metric tons, citing internal estimates. This amounts to nearly $380 million, based on spot gold prices on Monday.
This is a major blow to the Canadian mining giant—$380 million is a fat chunk of change (Loulo-Gounkoto accounts for roughly 14% of Barrick’s 2025 guidance). Yesterday, January 14, Barrick made good on its threat to suspend operations via a terse press release - Barrick Provides Further Update on Loulo-Gounkoto Operations in Mali.
While Barrick states that it remains committed to what it calls "constructive engagement" with the Malian government "to find an amicable solution that ensures the long-term sustainability of the Loulo-Gounkoto mining complex and its vital contribution to Mali's economy and communities," it regrets to inform it has initiated the temporary suspension of operations.
Mali says Barrick owes $512 million in unpaid taxes and dividends. Barrick begs to differ.
There have actually been a few positive, albeit expensive, developments on the Malian negotiation front in recent weeks. B2 Gold (BTO.TO) struck a deal for its Fekola Project, and more recently, Allied Gold (AAUC.TO) surrendered a 35% stake in a new operation tied to its Sadiola Project in the western part of the country - Allied Gold gets Mali’s go-ahead for new project near Sadiola.
Mid-tier Gold Producers Hitting Their Stride
While the two Bigs, Newmont and Barrick, struggle to establish positive momentum, a handful of mid-tiers are reporting meaningful developments on the production front.
In last week's Briefing we highlighted K92 Mining's (KNT.TO) record quarterly production results at its Kainantu Project in Papua New Guinea.?Further up the food chain, Equinox, Lundin, and Alamos also reported record production.
Equinox Gold
Equinox Gold (EQX.TO), with its seven operating mines in Canada, the US, Mexico and Brazil, produced 213,906 ozs of the shiny stuff in Q4 of 2024 and 621,870 ozs for the year, both record counts -?Equinox Gold Reports Record Quarterly and Annual Gold Production: Produced 213,960 Ounces of Gold in Q4 2024 and 621,870 Ounces of Gold for Full-Year 2024.
领英推荐
Greg Smith, President & CEO of Equinox Gold commented: "2024 was a pivotal year for Equinox Gold, defined by our success at Greenstone. We consolidated 100% ownership of the mine, achieved commercial production, and produced more than 111,700 ounces of gold in the first, partial year of operations at Greenstone. Several of our mines delivered their strongest fourth quarter in the Company's history, contributing to consolidated 2024 production of approximately 621,870 ounces of gold, the highest annual production since Equinox Gold's founding. As Greenstone ramps up to full capacity, we look forward to continued growth in 2025."
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Lundin Gold
Lundin Gold (LUG.TO) produced 135,241 ozs of glitter in Q4, a 36.2% improvement over the same quarter of 2023, and 502,029 ozs for the year from its Fruta del Norte gold mine in Ecuador (2024 guidance was set between 450,000–500,000 ozs) - LUNDIN GOLD EXCEEDS 2024 PRODUCTION GUIDANCE AND ACHIEVES RECORD ANNUAL PRODUCTION OF 502,029 OUNCES OF GOLD.
Ron Hochstein, President and CEO commented,?"I'm pleased to announce that?Lundin Gold?has exceeded the high end of our 2024 production guidance of 450,000 to 500,000 oz with record annual production of 502,029 oz., including production in the fourth quarter of 135,241 oz. With the plant expansion project substantially complete, in 2025 we look forward to achieving average mill throughput of 5,000 tpd and improved gold recoveries to produce 475,000 – 525,000 oz."
Alamos Gold
Not to be outdone, Alamos Gold (AGI.TO) also reported record (annual) production - Alamos Gold Achieves Increased 2024 Guidance with Record Annual Production; Three-Year Operating Guidance Outlines 24% Production Growth by 2027 at Significantly Lower Costs.
CEO John A. McCluskey: “With the solid finish to the year, we met both our quarterly and increased annual production guidance. Production increased 7% from 2023 to a record 567,000 ounces and combined with strong margin expansion, we generated record revenues and free cash flow while investing in high-return growth.”
Back in September of 2017, Alamos took out Richmont Mines and its Island Gold deposit in Northern Ontario in a deal valued at US $770 million. Since then, the mid-tier producer has tripled the deposits ounce count—Island's reserve base currently stands at roughly 1.725 million ozs grading 10+ g/t Au. Resources across all categories = roughly 4.6 million ozs.
The company's success via the business end of the drill bit continues with this press release dated January 13 - Alamos Gold Continues to Define High-Grade Mineralization Across the Island Gold Deposit; Ongoing Success Expected to Drive Additional Growth in Mineral Reserves and Resources.
Island Gold Main zone exploration highlights—high-grade mineralization extended outside the mineral reserves and resource blocks—include the following hits:
Island West (C-Zone)
Island East (E1E-Zone)
Goliath Tags High-grade in BCs Prolific Gldn Triangle
Goliath Resources (GOT.V) made an impression when investors woke up to assays out of the company's Golddigger Property in BCs prolific Golden Triangle on Monday morning -?Goliath Drills Remarkable Hole Assaying 34.52 g/t AuEq (1.11 oz/T AuEq) Over 39.00 Meters, Including 132.93 g/t AuEq (4.27 oz/T AuEq) Over 10.00 Meters, Plus Several High-Grade Holes With Multiple Intercepts, System Remains Wide Open, Golden Triangle, B.C. Assays Pending For 89 Out Of 105 Drill Holes.
The company reported results from five drill holes that expanded the high-grade mineralization within the Bonanza Gold Zone from 180,000 m2 (720 x 612 x 410 meter triangular area) to 341,000 m2 (835 x 685 x 612 x 410 meter polygon area). The highlight interval is in the text of the headline. The zone remains open in all directions.
The market's reaction...
The company also states that high-grade gold mineralization "with excellent continuity and predictability" has been confirmed in its Surebet and Golden Gate zones.
American Eagle Reports Assays From NAK
American Eagle (AE.V), the Babine Cu-Au porphyry-focused exploreco with two mining giants on its registry—Teck (19.9%) and South32 (19.9%)—dropped a round of assays yesterday (Jan. 14) from its district-scale NAK Project - American Eagle Intersects 407 Metres of 0.78% Copper Equivalent from Surface, Including 248 Metres at 1.1%.
The company is in the midst of an aggressive drilling campaign at NAK. CEO Anthony Moreau: "With a robust treasury and a clear roadmap ahead, we're well-positioned to deliver more great results in 2025, with 30,000 meters of drilling planned, and fully funded budgets for the next 2 or 3 years. We're confident this will allow us to well define the project's potential, test its boundaries around the Babine porphyry, and possibly uncover some exciting surprises along the way."
The following link will take you to a broader discussion of these January 14 results - American Eagle Intersects 407 metres of 0.78% Copper Equivalent from surface.
Hits of the Week
US President-elect Donald Trump last week reiterated his interest in taking control of Greenland, a semi-autonomous territory of Denmark, which could be useful for the US because of its strategic location and rich mineral resources. A 2023 survey showed that 25 of 34 minerals deemed “critical raw materials” by the European Commission were found in Greenland - Factbox-Key details of Greenland's rich but largely untapped mineral resources
G Mining Ventures (TSX: GMIN) has received an interim environmental permit for its Oko West gold project in Guyana, allowing it to begin early works construction activities ahead of schedule. The interim permit — which is valid for one year — was granted by Guyana’s Environmental Protection Agency (EPA) following G Mining’s submission of its environmental impact assessment (EIA) and environmental impact statement (EIS) last November - G Mining receives interim environmental permit for Oko West project in Guyana
Altius Minerals (TSX: ALS) says it has won a partial arbitration ruling that could give the company expanded royalty rights over the Silicon gold district of Nevada. Shares of Altius rose on the decision. On Friday, the company announced an arbitration tribunal determined that the lands subject to its 2015 royalty agreement with AngloGold Ashanti not only include the entire 26.6 km2 base area of interest as described in the agreement, but also certain contiguous/adjacent lands that extend beyond the area - Altius Minerals wins arbitration decision on Nevada gold royalty rights
Panama’s government has kicked off a public consultation on an environmental audit of First Quantum Minerals’s (TSX: FM) Cobre Panama copper mine, which was announced in mid-2024 by then president-elect José Raúl Mulino. The Ministry of Environment (MiAmbiente) invited this week environmental organizations, local communities, academia, the private sector, and the general public to participate in the process, which will remain open until February 7 - Panama opens public consultation on First Quantum mine
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