Why Wall Street Bankers Are Still Optimistic on Gold In 2021

PALM BEACH,  Fla., March 17, 2021 /PRNewswire/ -- Gold performed extremely well in 2020 and now the question is what will it do in 2021 and beyond? After setting fresh records this year, will gold prices go up past $2,000 per ounce once again any time soon? 2020 has seen a "phenomenal" inflow of gold-backed exchange-traded funds, fueling an investment-led rally, but while ETF inflows are still expected to be strong, 2020's level of inflows would be hard to keep up. An article that compared the outlooks of 2 industry banks & economists, said that: "In a recent report, Goldman Sachs, the investment bank, said that it is maintaining its 2021 gold price target of $US2,300 an ounce as the global economy returns to balance between positive news of potential vaccines for the COVID-19 virus and the still prevalent risks of further economic damage from more waves of the virus…. (while) Citibank is also optimistic about the commodity's future. In their (recent) gold price prediction, the bank's analysts said they see the metal rising to $2,200 per ounce in three months and to $2,400 per ounce in six to 12 months. "We lift the 2021E base case gold price forecast by $300 per ounce, versus our early July update, to a record $2,275 per ounce," they added."  Active stocks in the mining markets this week include Golden Independence Mining Corp. (OTCQB: GIDMF) (CSE: IGLD), Eldorado Gold Corporation, (NYSE: EGO) (TSX: ELD), IAMGOLD Corporation (NYSE: IAG) (TSX: IMG), Kinross Gold Corporation (NYSE: KGC) (TSX: K), First Majestic Silver Corp. (NYSE:AG) (TSX:FR).

The article had more to say about Goldman's expectations: "Goldman expects the falling US dollar to continue to weaken into 2021, which should help support gold prices.  Although Goldman Sachs economists see a strong economic recovery in the US and worldwide next year, commodity analysts Jeffrey Currie and Mikhail Sprogis, the authors of the gold report, said that there is still a "strong strategic case for gold.  In our view, the structural bull market for gold is not over and will resume next year as inflation expectations move higher, the U.S. dollar weakens and E.M. (Emerging Markets) retail demand continues to recover," the analysts said.

Golden Independence Mining Corp. (CSE: IGLD) (OTCQB:GIDMF)  BREAKING NEWS:  GOLDEN INDEPENDENCE INTERSECTS 9.11 G/T GOLD AND 25.2 G/T SILVER OVER 80 FEET INCLUDING 23.16 G/T GOLD AND 49.8 G/T SILVER OVER 30 FEET AT INDEPENDENCE PROJECT -  Golden Independence (the "Company") is pleased to announce the next series of drill results from its recently completed 2020 resource expansion drill program at the Independence project, south of Battle Mountain, Nevada. Results from these four reverse circulation (RC) holes include:

  • 9.11 g/t gold and 25.2 g/t silver over 80 feet (24.4 metres)
    • including 12.06 g/t gold and 30.7 g/t silver over 60 feet (18.3 metres)
    • including 23.16 g/t gold and 49.8 g/t silver over 30 feet (9.1 metres)
  • 0.92 g/t gold and 18.5 g/t silver over 115 feet (35.1 metres)
    • including 1.78 g/t gold and 30.7 g/t silver over 50 feet (15.2 metres)
  • 0.52 g/t gold and 9.8 g/t silver over 185 feet (56.4 metres)
    • including 1.24 g/t gold and 24.2 g/t silver over 15 feet (4.6 metres)
  • 0.65 g/t gold and 17.5 g/t silver over 40 feet (12.2 metres)

"These four holes are the first in a series testing the main oxide historic resource zone to depth." commented Golden Independence President Tim Henneberry. "This main area was historically mined for gold veins so higher grade intervals within the oxide zone, while not unexpected, are a nice bonus as we expand the Independence Project's mineralized foot print in advance of the upcoming H1 resource estimate." he concluded.

 "Hole AGEI-32 returned 85 feet grading 0.52 g/t Au and 4.6 g/t Ag within the known mineralized zone of the Independence Project and also returned 80 feet grading 9.11 g/t Au and 25.2 g/t Ag outside of the known mineralized zone." noted Golden Independence CEO Christos Doulis. "These results support our model that higher grade areas within the oxide zone are the result of vertical fracture structures linked to the deeper sulfide mineralization and reinforce our belief that results from our recent drill program will significantly expand and increase the historic oxide resource at the Independence Project." he continued.    Read this entire release for the Golden Independence news at:  https://goldenindependence.co/news/

Other recent developments in the mining markets include:

Eldorado Gold Corporation, (NYSE: EGO) (TSX: ELD) recently reported the Company's financial and operational results for the fourth quarter and year ended December 31, 2020. For further information please see the Company's Consolidated Financial Statements and Management's Discussion and Analysis filed on SEDAR at www.sedar.com under the Company's profile.

"Eldorado's strong fourth-quarter finish to 2020 caps a year in which we delivered on our original guidance, generated strong free cash flow and continued to strengthen our overall capital position," said George Burns, Eldorado's President and Chief Executive Officer. "That this was accomplished during an historically challenging global operating environment is a tribute to the dedication of our people.  "We enter 2021 positioned once again to deliver, both operationally and at our most important growth projects. Consistent with Eldorado's disciplined approach to capital allocation, we will continue to strengthen our balance sheet while reinvesting in mine and project development programs that prioritize profitability and strong returns. Chief among these is the advancement of the world-class Skouries project in Greece. Our recently signed amended investment agreement with the Greek government sets the stage for a productive and mutually beneficial relationship with the Hellenic Republic. Our focus in 2021 is on unlocking the compelling value at Skouries and throughout our portfolio."

Kinross Gold Corporation (NYSE: KGC) (TSX: K) recently announced its results for the fourth quarter and year ended December 31, 2020.  J. Paul Rollinson, President and CEO, made the following comments in relation to 2020 fourth-quarter and year-end results: 

"Kinross delivered an excellent year in 2020, generating record free cash flow of more than $1 billion from our diversified portfolio of mines. We met our original guidance for the ninth consecutive year despite the impacts of the global pandemic. Kinross managed COVID-19 risks by implementing rigorous measures to keep our employees safe, maintain business continuity and support local communities. I would like to thank our workforce around the world for meeting the challenges of the pandemic. Our ability to quickly adapt and safely execute our plans in a difficult environment speaks to the strong culture of operational excellence we have built at Kinross.

"Operationally, our three largest mines – Paracatu, Kupol and Tasiast – produced 62% of our total ounces and were the lowest cost mines in our portfolio in 2020. Tasiast was a standout performer and achieved record annual production and low costs for the second consecutive year. We also added 5.7 million ounces to our mineral reserve estimates after depletion as a result of successful exploration and mine optimization programs. Kinross made good progress at our projects, including Tasiast 24k and La Coipa, and added to our portfolio with the acquisition of the Chulbatkan and Peak projects. Construction at the Fort Knox Gilmore project was completed on time and under budget and we continued to advance Udinsk and Lobo-Marte.

IAMGOLD Corporation (NYSE: IAG) (TSX: IMG) recently announced additional assay results from its delineation diamond drilling program at the Gosselin Zone discovery, located approximately 1.5 kilometres northeast of the Côté Gold deposit. The Gosselin delineation drilling program is being undertaken as part of the Côté Gold Joint Venture Project, a 70:30 joint venture between IAMGOLD and Sumitomo Metal Mining Co., Ltd. ("SMM"). Côté, located 125 km southwest of Timmins and 175 km north of Sudbury, Ontario, Canada, is currently under construction with first gold production anticipated in the second half of 2023 (see news release dated July 21, 2020).

In January 2021, IAMGOLD reported the completion of thirty-three (33) diamond drill holes totaling 13,735 metres as part of the resource delineation drilling program, completed between the fourth quarter 2019 and early December 2020. Assay results previously reported from the first twenty-four (24) diamond drill holes totaling 10,049 metres confirmed the continuity of broad gold bearing mineralized intervals associated with the Gosselin Zone (see news release dated January 21, 2021).

First Majestic Silver Corp. (NYSE:AG) (TSX:FR) and Sprott Mining Inc. ("Sprott Mining") recently announced that they have entered into a definitive agreement (the "Share Purchase Agreement") whereby First Majestic will acquire all of the issued and outstanding common shares of Jerritt Canyon Canada Ltd. ("Jerritt Canyon") from Sprott Mining (the "Acquisition") for $470 million in shares of First Majestic plus 5 million First Majestic share purchase warrants. Concurrent with the Acquisition, Eric Sprott, President of Sprott Mining, will complete a $30 million private placement investment in First Majestic.

Jerritt Canyon owns and operates the Jerritt Canyon Gold Mine located in Elko County, Nevada. Jerritt Canyon was discovered in 1972 and has been in production since 1981 having produced over 9.5 million ounces of gold over its 40-year production history. The mine currently operates as an underground mine and has one of three permitted gold processing plants in Nevada that uses roasting in its treatment of ore. This processing plant has a capacity of 4,500 tonnes per day ("tpd") and is currently operating at an average rate of approximately 2,200 tpd due to limited ore production from two underground mines. The property consists of a large, underexplored land package consisting of 30,821 hectares (119 square miles). In 2020, Jerritt Canyon produced 112,749 ounces of gold at a cash cost of US$1,289 per ounce. First Majestic has identified several opportunities to enhance both the cost and production profile of Jerritt Canyon as well as near-term brownfield potential between the SSX and Smith mines and long-term property wide exploration potential.

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