WEEKLY GOLDEN TIDBITS

Top 5 Market Moments

Evolution Mining (EVN) to acquire Frogs Breath gold mine for $300 million (https://www.afr.com/company/asx/evn)

Evolution Mining has announced that it will acquire the Frogs Breath gold mine in Western Australia for $300 million. The acquisition is expected to boost Evolution’s annual gold production by 40,000 ounces. The Frogs Breath gold mine is located in the Murchison region of Western Australia and has a JORC Resource of 2.3 million ounces of gold. The acquisition is subject to shareholder approval and is expected to be completed in the first half of 2024.

Northern Star Resources (NST) reports strong quarterly results (https://www.nsrltd.com/investor-and-media/reports/quarterly-reports)

Northern Star Resources has reported strong quarterly results, with its profit rising by more than 10%. The company’s strong results were driven by higher gold prices and lower production costs. Northern Star is one of Australia’s largest gold producers. In the third quarter of 2023, Northern Star produced 163,000 ounces of gold at an all-in sustaining cost (AISC) of A$1,389 per ounce. The company’s gold production is expected to increase to 650,000 ounces in 2024.

Newcrest Mining (NCM) to sell undeveloped gold project in Western Australia (https://www.newcrest.com/)

Newcrest Mining has announced that it will sell its undeveloped gold project in Western Australia to a consortium of Chinese investors for $1 billion. The sale is part of Newcrest’s strategy to focus on its core gold projects. The undeveloped gold project is located in the Pilbara region of Western Australia and has a JORC Exploration Target of 3 million ounces of gold. The sale is expected to be completed in the first half of 2024.

Regis Resources (RRL) to acquire mineral sands project in Western Australia for $200 million (https://regisresources.com.au/)

Regis Resources has announced that it will acquire a mineral sands project in Western Australia for $200 million. The acquisition is expected to expand Regis’ mineral sands business and provide the company with access to new markets. The mineral sands project is located in the Eneabba region of Western Australia and has a JORC Resource of 180 million tonnes of heavy mineral sands. The acquisition is expected to be completed in the first half of 2024.

Bellevue Gold (BGL) completes feasibility study for Bellevue gold project (https://s28.q4cdn.com/583965976/files/doc_multimedia/portfolios/bellevue-gold-feasibility-february-18-2021.pdf)

Bellevue Gold has announced that it has completed a feasibility study for its Bellevue gold project in Western Australia. The feasibility study found that the project is economically viable and has the potential to produce 250,000 ounces of gold per year. The Bellevue gold project is located in the Murchison region of Western Australia and has a JORC Reserve of 2.7 million ounces of gold. The project is expected to be developed in two stages, with the first stage expected to produce 200,000 ounces of gold per year.

Commodities Corner: Gold Recap

Gold prices experienced a significant decline during the last trading week, falling from a high of $1,987.3 per ounce on November 13 to $1,924.5 per ounce on November 17. This represents a decrease of approximately 3.2% over the five-day period.

Key factors contributing to the decline

Several factors contributed to the decline in gold prices during the last trading week. These include:

  • Stronger-than-expected U.S. economic data: The release of stronger-than-expected U.S. economic data, including retail sales and industrial production, raised expectations for further interest rate hikes by the Federal Reserve. This led to a strengthening of the U.S. dollar, which made gold less attractive to investors.
  • Profit-taking: Some analysts believe that the recent decline in gold prices may also be due to profit-taking by investors following the metal’s strong performance in recent months.

Outlook for gold

The outlook for gold prices in the near term remains uncertain. Some analysts believe that the recent decline in gold prices may be a short-term correction, and that the metal could regain its upward momentum in the coming months. Others believe that gold prices may continue to decline in the near term, as investors focus on the potential for further interest rate hikes by the Federal Reserve.

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