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Gold price rally lifts Top 50 mining stocks above $1 trillion for first time

The Top 50 most valuable mining companies added $80.2 billion in market capitalization over the three months to end September, thanks to surging gold and silver prices, iron ore prices firmly in triple digits, and a copper price flirting with two-year highs.

Mining’s majors looked poised to join the trillion dollar club at the outset of 2020, but the pandemic torpedoed the early stages of a cyclical upswing for the industry, delaying the milestone by nine months.

Measured from the height of the pandemic in March-April, the index has recovered by nearly $330 billion.

Primary gold producers and precious metals royalty companies now make up more than a third of the value of the top 50 and contributed $130 billion of the gains since the Q1 slump.

Nine out of ten of the best performers over the quarter are gold producers. No. 2 on the winners’ list is copper giant Freeport McMoRan, which, thanks to its Grasberg mine also ranks as one of the world’s largest gold producers…CLICK for complete article 

A Beginner’s Guide To Interpreting Drill Results

If you want to achieve a high success rate as a natural resource investor, then you must have the ability to accurately interpret drill results. This is something that few retail investors are capable of doing and therefore is a simple way of getting the upper hand over other speculators.

In this article we will use Unigold and their highly anticipated sulphide drilling results which are set to come out at the end of the week, as an example.

Resource Classification

Before we delve into the interpretation of drill results, we must first need to know the different classifications of resources and what they each mean.

There are three categories that resources can be classified into: measured, indicated, and inferred. The different classifications are assigned based on degrees of confidence with resources in the ‘measured’ category having the highest degree of confidence and ‘inferred’ having the lowest. The following table summarizes the degree of confidence assigned to each category of resources….CLICK for complete article

Is A Massive Gold Rally On The Horizon?

RESEARCH HIGHLIGHTS:

  • Gold rebounded quickly and broke to higher prices after the COVID deep selling.
  • Our Fibonacci support levels for Gold are resting near $1,885, $1,815 & $1,790.
  • More downside pressure on price is possible, but if support is maintained at $1,885 then we could see a big upside recovery trend take Gold to $2,250.

Just before the COVID-19 collapse in the markets hit near February 25, 2020, Gold started a double-dip move after reaching $1,692 on February 24.  First, Gold dipped from $1,692 to $1,564, then recovered to new highs ($1,704.50) on March 10, 2020.  Then, as the deeper COVID-19 selling continued, Gold prices dipped again – this time targeting a low level of $1,450.90.

What we found interesting is how quickly Gold prices recovered and broke to even higher price levels after this deep selling.  Our belief is that when a crisis event first hits, which we sometimes call the “shock-wave”, all assets take a beating – including Gold and Silver.  This is the event where traders and investors pull everything to CASH (closing positions).  Then, as the shock-wave ends, traders re-evaluate the price levels of assets to determine how they want to deploy their capital….CLICK for complete article

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The VR Metals Resource Letter provides subscribers his unique insights, opinions and recommendations on the following market sectors: METALS (Gold, Silver, Copper, Palladium and Platinum) and all Natural Resource investments including ENERGY (Crude Oil, Natural Gas. Green/Solar energy and materials), Cyclical (Annual Forecast Model) analysis and technical analysis are utilized. Huge opportunities may lay ahead for all natural resource plays and the VR METALS/RESOURCE Letter will be on top of them regardless of which direction they move!

Gold Inches Closer To $2,000

Gold prices advanced higher on Monday as a weaker US dollar and expectations that the US Federal Reserve will reiterate its dovish monetary policy stance later this week helped to reinvigorate investor interest for bullion.

Spot gold was up nearly 1.0% at $1,959.44 per ounce by 11:15 a.m. EDT — its highest in almost two weeks and the largest gain during this period. US gold futures also rose 1.0% to $1,969.20 per ounce.

“Gold is firm on the basis that the Fed could adopt a further dovish message with respect to average inflation targeting,” Michael Hewson, chief market analyst at CMC Markets UK, said in a Reuters interview.

“If you want to have a policy of average inflation targeting, you’re going to have to go into detail as to how you are going to arrive at that particular outcome,” Hewson added…CLICK for complete article

World’s gold miners wary of production ramp-up despite price surge

The world’s top gold miners are retrenching after covid-19 related shutdowns despite record prices for the yellow metal, with cost-conscious executives prioritizing investor returns over production growth.

Gold prices have jumped 30% this year to roughly $2,000 an ounce as central banks dial-up stimulus measures in response to the coronavirus pandemic.

That has fuelled a cash surge for miners, with top- and mid-tier producers holding roughly $5 billion in cash as of June 30, according to Scotiabank estimates.

But interviews with executives, analysts and fund managers show miners are hesitant to spend on pricey projects and tap marginal deposits that require sizeable capital and take years to break even.

Seven out of 10 of the global gold miners, including Newmont , the world’s biggest gold miner, Canada’s Barrick and South Africa’s Gold Fields, have cut planned output for the year by 7%, citing coronavirus-related shutdowns, regulatory filings show.

The caution is a reversal from the 2011 gold price boom, which prompted buyers to overspend on acquisitions and led to billions in impairments when prices crashed in subsequent years.

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