I’ve been saying for some time that the US dollar may be in the process of peaking; the implications of this could be huge, explains Peter Krauth, resource sector specialist and editor of Gold Resource Investor.
Remember, precious metals, oil, and nearly all commodities whether hard or agricultural, are priced in dollars. If the dollar continues to weaken, commodities are likely to see rising prices for several years as the dollar weakens.
Barrick Gold (GOLD) provided drill results and an update on drilling at the Donlin Gold project (50/50 Barrick/NovaGold), including initial assays on this year’s program. Drilling is ahead of schedule and almost 80% complete, as the project advances towards a feasibility study decision.
This is one of the largest and highest-grade undeveloped open-pit deposits globally. ABX looks quite oversold and attractive to accumulate at current levels.
Agnico Eagle (AEM) reported Q2 results, with payable gold production of 858,170 ozs. at all-in costs of $1,026, providing for plenty of margin. Net income was $275.8M with the first full quarter of Kirkland Lake Gold production. Ontario and Nunavut production helped deliver strong performance.
Full year guidance of 3.2M–4.2M ounces is still on track, with management expecting inflation to remain challenging in H2. Corporate merger synergies are mostly completed and were above initial estimates. Operation and strategic optimization synergies are expected over the next several years.
At Detour Lake updates show higher reserves, more robust mine plan and potential for exploration and production upside. The deposit has been extended 2km west of current pit outline. Like Barrick, AEM looks oversold and attractive to accumulate at current levels.
Equinox Gold (EQX) said the Mesquite mine had poured its milestone 5 millionth ounce of gold, since initial operations in 1986, with 450,000oz. gold produced since acquired by EQX.
The Greenstone Project (60/40 Equinox/Orion Mine Finance) in Ontario, Canada, is being built on schedule and budget, is 35% complete, and set to pour first gold as one of Canada’s largest gold mines in H1 2024. It will produce more than 400,000 ozs. gold annually in the first 5 years, and 5Moz. over its initial 14-year mine life. EQX is quite oversold and attractive to acquire at current levels.