Top Stories This Week: Experts Unfazed by Lower Gold Price, Recapping PDAC

Catch up and get informed with this week’s content highlights from Charlotte McLeod, our editorial director.

Our coverage this week at INN centered on the Prospectors & Developers Association of Canada convention, which ran entirely online this year from March 8 to 11.

Better known as PDAC, the event is normally held in Toronto, and is always a major occasion for those in the mining industry — this year’s entirely virtual gathering was no exception.

To mark the occasion, I spoke with a number of favorites in the resource space: Rick Rule, EB Tucker, Frank Holmes and Jeffrey Christian. The gold price was unsurprisingly a key topic of conversation, and the experts shared their views on its decline so far in 2021, as well as what could be next.

To recap, after rising as high as US1,950 per ounce in January, gold has trended down, even falling below the US$1,700 per ounce mark. It was sitting at about US$1,725 on Friday (March 12) afternoon.

Despite that price activity, the main takeaway from the industry insiders I spoke with was that the future still looks bright for the yellow metal.

Rick, who recently announced his partial retirement from Sprott (TSX:SII,NYSE:SII), reiterated comments he made toward the end of 2020, saying gold is in “a cyclical decline in a secular bull market.” He added that cyclical declines are not uncommon during bull markets — in fact, they can be frequent and fairly deep. In his opinion, those who can’t tolerate that volatility may want to exit the sector.

“I would suggest that investors who can’t stand that volatility — that they simply exit the sector. It’s a factor — it’s part of participating in the sector” — Rick Rule, Sprott

EB, who is a director at Metalla Royalty & Streaming (TSXV:MTA,NYSEAMERICAN,MTA) and Nova Royalty (TSXV:NOVR,OTC Pink:NVARF), is well known for his gold and silver price predictions, and he said he still expects US$2,500 gold and US$50 per ounce silver in 2021. But he also has an interest in copper and nickel, which have both experienced price momentum this year.

Although both metals have traditional industrial applications, he sees demand from the electric vehicle sector and other “green” end users becoming more common in the years to come.

With the divide between precious and base metals top of mind, we asked our Twitter followers this week which metal they’re most positive on right now: gold, silver, copper or nickel.

By the time the poll closed, silver was the winner with nearly 50 percent of the vote — but it’s worth noting that a large number of respondents wrote in uranium.

We’ll be asking another question on Twitter next week, so make sure to follow us @INN_Resource or follow me @Charlotte_McL to share your thoughts.

Finally, INN’s Georgia Williams took a look at the tech space this week, honing in on bitcoin, which some believe has been stealing attention from gold with its exciting price activity.

Bitcoin’s move into the mainstream has increased the investment options available to investors — 2021 has brought the launch of the first bitcoin ETFs, along with additions to the bitcoin trust space.

But is bitcoin really in competition with gold? The consensus seems to be that the two assets can coexist in a portfolio — although of course it’s up to each individual investor to decide for themself.

“Investors may consider bitcoin for capital appreciation, as an alternative to traditional investments, as a complement to gold exposure and/or (to position) as a potential hedge against inflation” — Raj Lala, Evolve ETFs

Want more YouTube content? Check out our YouTube playlist At Home With INN, which features interviews with experts in the resource space. If there’s someone you’d like to see us interview, please send an email to cmcleod@investingnews.com.

And don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Nova Royalty is a client of the Investing News Network. This article is not paid-for content.

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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YAMANA GOLD INC. is pleased to announce it has received the permit at its Jacobina mine to increase throughput to 10,000 tonnes per day . Throughput is expected to reach 8,500 tpd by the second quarter of 2022. At this processing rate production at Jacobina will increase through the second half of 2022 with a full year at a production level of 230,000 ounces per year beginning in 2023. The Company is also reporting ...

YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:AUY) ("Yamana" or "the Company") is pleased to announce it has received the permit at its Jacobina mine to increase throughput to 10,000 tonnes per day ("tpd"). Throughput is expected to reach 8,500 tpd by the second quarter of 2022. At this processing rate production at Jacobina will increase through the second half of 2022 with a full year at a production level of 230,000 ounces per year beginning in 2023.

The Company is also reporting particularly strong operating performance from El Peñón and Cerro Moro, both of which were planned to have higher production in the last several months of the year as they sequenced into higher grade zones, all of which supports the Company's previous guidance that fourth quarter production will exceed 270,000 gold equivalent ounces ("GEO") (1 ) and annual production will exceed overall 2021 guidance of 1,000,000 GEO (1 ) . Fourth quarter all-in sustaining costs ("AISC") (2) are also expected to be the lowest of the year and are estimated to be approximately $980 per GEO (1 ) or lower, which is 7% below AISC (2) reported for the prior three quarters.

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Newmont Corporation (NYSE: NEM, TSX: NGT) ("Newmont" or the "Company") announced today the pricing of its public offering of $1.0 billion aggregate principal amount of 2.600% sustainability-linked senior notes due 2032 (the "Notes"). Subject to customary conditions, the offering is expected to close on December 20, 2021. The offering is being made pursuant to the Company's shelf registration statement filed with the Securities and Exchange Commission.

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Newmont Corporation announced today that it has commenced offers to purchase for cash any and all of the outstanding 3.700% Notes due 2023 issued by Newmont and 3.700% Notes due 2023 issued by Goldcorp Inc., a wholly-owned subsidiary of Newmont . The following table sets forth the material pricing terms for each Offer: In connection with the Newmont Notes Offer, Newmont is soliciting consents from holders of the ...

Newmont Corporation ("Newmont" or the "Company") (NYSE: NEM, TSX: NGT) announced today that it has commenced offers to purchase for cash any and all of the outstanding (i) 3.700% Notes due 2023 (the "Newmont Notes") issued by Newmont (the "Newmont Notes Offer") and (ii) 3.700% Notes due 2023 (the "Goldcorp Notes" and, together with the Newmont Notes, the "Notes") issued by Goldcorp Inc., a wholly-owned subsidiary of Newmont ("Goldcorp") (the "Goldcorp Notes Offer" and, together with the Newmont Notes Offer, the "Offers" and each, an "Offer"). The following table sets forth the material pricing terms for each Offer:

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MARKETS

Markets
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COMMODITIES

Commodities
Gold1781.76-1.16
Silver22.40-0.18
Copper4.330.00
Palladium1860.00+38.50
Platinum944.00+7.00
Oil69.74+0.25
Heating Oil2.18+0.01
Natural Gas3.69+0.03