The gold price itself had 12 months of consolidation. Now we are entering a new stage of a bull market which Barry Dawes of Martin Place Securities believes “will take it much, much higher” (reports Stockhead).
In the big scheme of things, the pullback we have seen over the past 12 months is ‘small beer’, Dawes told the Virtual Gold Conference earlier this week.
“Now everything is aligned up for gold prices in the decade to be very strong,” he says.
“The short and medium term looks very good; the long term looks very good.”
Punters should look to the big gold stocks in the US – they are the ones that matter, Dawes says.
Choppy waters often precede a sea change and that’s certainly the case in financial markets today as investors jockey for position ahead of the inevitable upward shift in U.S. interest rates
Gold’s “flash crash” late last week, which briefly drove the price below $US1700 an ounce, coincided with a seemingly modest uptick in the U.S. 10-year bond yield from 1.2% to 1.3%. But that tiny rise was enough to trigger the dumping of gold worth $US4 billion in a single deal.
Someone managing a big investment portfolio appears to have made a judgement call on U.S. interest rates and sold gold in preparation for meaningfully higher rates in the next six-to-12 months.
Perth-based Bardoc Gold has appointed local company GR Engineering Services (ASX: GNG) to manage the engineering, procurement and construction (EPC) of a processing facility at its namesake Bardoc project near Kalgoorlie in WA (reports Small Caps)
The move comes just a week after Bardoc initiated a cashflow optimisation study aimed at increasing the forecast production rate, margins and cashflow at the 3.07 million ounce project.
It represents a significant step for the company as it continues towards streamlining the mining and production schedule and improving project economics and returns.
Golds reserves across nearly 400 global projects fell by 10% over the last five years, according to consultancy Metals Focus (reports MiningNews).
Reserves fell from 26,989 tonnes in 2016 to 24,238t by the end of 2020.
"This highlights that depletion from mining has outpaced reserve replacement from resource upgrades over the past five years despite the gold price reaching a record high in 2020," Metals Focus said.
"This trend contrasts with production from these mines, which increased by 3% over the same period, despite the significant impact on production last year from COVID-19."
Resources also fell by 2% to 30,367t.
The past and the future collided at this week’s Diggers & Dealers mining forum in the outback WA city of Kalgoorlie with of iron ore and gold challenged for top dog status by the fast-growing crop of “green” metals
Three speakers highlighted the story of yesterday’s investment winners, and tomorrow’s likely winners.
Bill Beament, a flag-carrier for gold over the past decade, turned critic when he unveiled the new name for his copper and battery metals focused business, Develop, saying that “gold is not green, sorry but it’s not”.
Red 5 has outlined a bold plan in its bid to turn around its high-cost Darlot goldmine near Leinster by opening up new underground frontiers while trucking ore to a more efficient processing plant being built at its King of The Hills mine near Leonora (re
The plan unveiled yesterday ahead of the company’s presentation at the Diggers & Dealers Mining Forum in Kalgoorlie-Boulder was described by Red 5 as a “step change” in Darlot’s production costs.
Red 5’s recent focus has been on the development of King of The Hills, where first gold has been tipped for the June quarter.
But the miner yesterday revealed it had spent the past eight months feverishly working on a plan to streamline Darlot.
Bardoc Gold (ASX: BDC) has kicked-off an optimisation study that aims to enhance the already strong definitive feasibility study and bring in increased early cash flow for its flagship 3 million ounce namesake gold project near Kalgoorlie in Western Australia (reports Small Caps).
The current DFS estimates pre-production capital of $177 million is required with a 32-month payback period.
Average gold sales are predicted of 135,760 ounces per annum over an 8.2-year mine life.
The life-of-mine all-in sustaining costs are expected to total $1,188/oz.
The mining giant says lithium demand will grow 25-35% a year for next 10 years. Meanwhile, Pilbara Minerals is cleaning up in the here-and-now as spodumene shortage forces buyers to pay-up for spot cargoes.
Another Eastern States-lite Diggers & Dealers bash kicks off on Monday beneath Kalgoorlie’s big blue sky.
Big blue sky perhaps but the weather forecast is not great.
Just as well then that the biggest and the best, the mighty west, remains COVID-free because the delegates will need to get up nice and close to rub whatever they can to keep the late night chills at bay.