Investors Eye Gold Stocks as Price Continues to Move Higher
FN Media Group Presents Microsmallcap.com Market Commentary
NEW YORK, June 10, 2020 /PRNewswire/ -- Gold prices continue to climb as investors flock to safe-haven assets amid financial uncertainty around the globe. The renewed excitement in gold investments is boding well for gold miners and exploration companies alike. From gold producers Harmony Gold Mining Company Limited (NYSE:HMY), SSR Mining Inc. (NASDAQ:SSRM) (TSX:SSRM) and New Gold Inc. (NYSE:NGD) (TSX:NGD) to gold royalty company Sandstorm Gold Ltd. (NYSE:SAND) (TSX:SSL) to gold exploration company Genesis Metals Corp. (TSX-V:GIS) (OTCQB:GGISF), there are various ways to gain exposure to the gold sector.
Due to the increased interest in gold, Canadian gold ETFs pulled in C$382-million in April, which represents the biggest monthly gain in four years. Now, Canada's gold ETF market is worth nearly C$3 billion, double from a year ago. At the same time, gold ETFs across the globe have attracted $14.5 billion in investments in under five months, topping the $11.7 billion that flowed into the funds in 2009.
This influx of investment into the sector helped junior gold exploration company Genesis Metals Corp. (GIS.V) (GGISF.QB) to raise C$1 million in financing earlier this year and fund ongoing drilling at its 290 square kilometers Chevrier Project in the Abitibi Greenstone Belt, one of the world's most gold-endowed regions.
Gold Mining Activity Resumes Following Pandemic-Related Shutdowns
After pandemic-related shutdowns in March and April, Genesis Metals Corp. (GIS.V) (GGISF.QB) resumed drilling at Chevrier in May and has now completed the Phase I drilling program at Chevrier with a total of 2,502 metres in 9 holes drilled.
The company plans to announce its second phase drilling program once all assays are received and evaluated. Genesis Metals Corp. also expects to begin a surface exploration program this month to assess target areas identified in 2019 property-wide glacial till survey, all of which is fully funded.
Gold royalty company Sandstorm Gold Ltd. (NYSE:SAND) also recently announced infill drill results from the Hod Maden project in Turkey, which were reported by its 70% partner Lidya Madencilik San. ve Tic. A.S. A total of 2,864 metres in 24 drill holes have been completed in 2020 at Hod Maden and continued infill, geotechnical, hydrological and exploration drilling is expected to resume once travel and work restrictions are lifted in Turkey.
M&A activity has also continued in the gold industry, with SSR Mining Inc. (NASDAQ:SSRM) (TSX:SSRM) announcing a no-premium, all-stock merger of equals with Denver-based Alacer Gold Corp. on May 11. The post-merger company will save on expenses and control a diversified portfolio of high quality, long-life operating mines that will help to mitigate risk as output from each mine will be proportionately less significant.
Meanwhile, Harmony Gold Mining Company Limited (NYSE:HMY) is expanding its gold portfolio through the purchase of AngloGold Ashanti's last remaining assets in South Africa. Last month, the company announced its plan to raise up to $US200 million via a share issue to fund part of the purchase, which includes the world's deepest gold mine, Mponeng.
New Gold Inc. (NYSE:NGD) (TSX:NGD) also recently closed a strategic partnership deal with Ontario Teachers' Pension Plan which resulted in upfront cash proceeds of $300 million. New Gold Inc. now has total available liquidity of $590 million, which includes approximately $390 million in cash and cash equivalents. Under the terms of the partnership, Ontario Teachers' will acquire a 46.0% free cash flow interest in the New Afton mine with an option to convert the interest into a 46.0% joint venture interest in four years, or have their interest remain as a free cash flow interest at a reduced rate of 42.5%.
Gold Investments Continue to Grow
With monetary stimulus expected to continue and a potential global recession on the horizon, gold continues to be seen as an investment hedge. Although gold prices continue to face volatility, the long-term forecast for the yellow metal remains bullish.
Investors continue to put cash into gold ETFs, with the 2020 inflows already exceeding any full year on record. The biggest contributor is the SPDR Gold Share ETF, which experienced its best month since 2009 in April and brought in another $1.4 billion in May. Meanwhile, BlackRock's iShares Gold Trust is close to hitting its yearly record with $3.7 billion in inflows so far in 2020.
Gold producers like Harmony Gold Mining Company Limited, SSR Mining Inc. and New Gold Inc. and gold exploration companies like Genesis Metals Corp. (GIS.V) (GGISF.QB) are also experiencing increased investor interest.
For more information about Genesis Metals Corp. (TSXV:GIS) (OTCQB:GGISF) click here.
Disclaimer: Microsmallcap.com (MSC) is the source of the Article and content set forth above. MSC owns and operates Streetsignalnews.com. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of Genesis Metals Corp.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.
FN Media Group, LLC