best performing precious metal for the week was silver, but still down
1.45%. Tom Palmer, CEO of Newmont Mining, the biggest gold producer, sees
a higher floor forming under the gold market as years of stimulus devolve
into a fight to contain inflation. Gold has held up much better than
cryptocurrencies as the broader markets have pulled back. This week we saw
several major crypto firms freeze customer withdrawals.
Resources closed a private placement with Newmont Ventures, a wholly-owned
subsidiary of Newmont Corporation. Awalé projects are in Côte d'Ivoire and
Glen Parson is the CEO. Odienné is the main project and the agreement is
staged such that Newmont could earn up to 75% of the project.
transactions totaled $1.7 billion in 2021, the strongest year since 2015.
The sector has booked $487 million year-to-date compared to $455 million
by this time last year. Wheaton Precious Metals has again been the most
active with $366 million in streams, followed by Osisko Gold Royalties
with $110 million.
worst performing precious metal for the week was palladium, down 6.06%.
Sibanye-Stillwater said it has suspended operations at its Montana-based
palladium and platinum mines after the area was hit by flooding that
washed away access roads and bridges. The Johannesburg-based precious
metals producer was forced to evacuate some workers from the Stillwater
and East Boulder mines and will wait for the waters to subside before
conducting an assessment, spokesman James Wellsted said by phone.
futures continue to consolidate in a bearish pattern as the precious metal
is caught between a broad risk-off and strong dollar flow. There may be an
eventual resumption of the medium-term downtrend if the market continues
to trade below $1,889-$1,899 and $1,917-$1,927 resistance layers. Broader
range support remains near $1,700.
inflation continues to be a key theme for precious metals producers, and
against that backdrop, the royalty names as a group outperformed in 2021,
(down 4% on average versus the producers down 13% and gold 4%). So far in
2022, the royalty sector is down 2% on average against a flat gold price
(up 1%), and while slightly lagging the senior producers they are
outperforming the intermediate and junior gold producers, down 12% and
held much of its biggest gain in more than three months, reports
Bloomberg, as shifting expectations of the speed of the Federal Reserve
tightening helps the yellow metal rediscover its role as the ultimate
haven asset. The resilience of bullion as the Fed announced its biggest
interest-rate increase since 1994 is reminding investors of gold's appeal,
the article continues.
Fields has agreed to acquire Canada's Yamana Gold for around $7 billion,
reports Bloomberg. The deal provides greater geographic diversification
but material EPS dilution. Under the terms of the agreed offer, 100% of
Yamana outstanding shares will be purchased at a ratio of 0.6 of an ordinary
Gold Fields share, valuing Yamana at $6.7 billion. The transaction is
expected to close in the second half of the year. Yamana's board has
agreed to back the deal, which will require approval from both sets of
Mining will acquire all of the issued and outstanding shares of Gold
Standard by way of a court-approved plan of arrangement. Gold Standard's
key asset is the 100%-owned South Railroad Project, a feasibility-stage,
open-pit, heap leach project located on the prolific Carlin trend in
Nevada. In February 2022, Gold Standard completed a robust feasibility
study and permitting activities are currently underway. Gold Standard also
owns the Lewis Project, a large, strategically located, prospective land
package on the Battle Mountain trend in Nevada.
inflation is historically bullish for gold prices. Now, however, it is
being quickly counteracted by more aggressive pricing for a policy
response from the Federal Reserve and other central banks. As such, there
needs to be more signs that economic growth is cracking under the strain
of higher inflation and tighter financial conditions, which would, in
turn, support sustained safe-haven inflows into the precious metals
Gold announced it was suspending operations at Mt. Morgan, and open pit
operations at Jupiter are to be suspended at the end of June. Over the
past six months, Dacian noted it has seen a rapid change in the
environment with significant inflationary cost pressures. Dacian will
process existing stockpiles of ore and focus on exploration drilling below
the Jupiter Pit.
billionaire hedge fund manager Stanley Druckenmiller says that in an
inflationary bull market, he wants to own Bitcoin more than gold "for
sure." However, he explained that in a bear market, he would prefer
to own the yellow metal.