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Mako Completes $10M Placement & Commences 45,000 Metre Drill Program
August 29, 2021
Mako Gold Limited ("Mako" or "the Company"; ASX:MKG) is pleased to announce that the second tranche of the $10M share placement (Placement) as announced on 8 July 2021 has been completed. The Company has issued 60,689,600 shares at an issue price of 8.0c per share for gross proceeds of c.$4.9M (Second Tranche Share Placement).
The Second Tranche Share Placement was approved by shareholders at a general meeting of the Company held on 20 August 2021 (General Meeting). The Company has also granted 4,000,000 unlisted Advisor Options with an exercise price of $0.12 expiring on 31 August 2023 as approved at the General Meeting.
HIGHLIGHTS
- Mako Gold completes second tranche of oversubscribed Placement to raise $10M
- 45,000m drill program has commenced on the Company's projects in Côte d'Ivoire
- Drilling is ongoing at the Gogbala Prospect on the first phase of a 10,000m RC/DD drill program over a high priority 2km-long area for a potential second resource target
- Drilling to resume at Tchaga following completion of phase 1 drilling at Gogbala
- Maiden Resource date to be extended based on recent positive drill results at southern extension of Tchaga and recent Gogbala drilling
- Assay turn-around times have returned to 3-4 weeks following Mako's strategy of utilising two assay laboratories
- Mako is fully funded to execute the 45,000m drill program and additional exploration with circa $15M in cash reserves
Mako's Managing Director, Peter Ledwidge commented:
"The completion of the second tranche of the $10 million capital raise gives the Company a clear runway to execute our aggressive exploration strategy. The Board of Directors have approved up to 45,000m of drilling which gives the company the green light to continue drilling on the Napié Project and to commence a maiden drilling program on the Korhogo Project. Due to the recent outstanding results received on the Tchaga Prospect, the Company will extend the expected date of its maiden Mineral Resource Estimate as it continues to expand the footprint at the Tchaga Prospect. We look forward to providing assay results shortly from diamond drilling at Tchaga and from reverse circulation drilling at Gogbala."
Together with existing cash reserves as at 30 June 2021 ($4.55M), the proceeds from the divestment of the Niou Project ($0.95M)1 and completion of the $10M Placement ensures, Mako is well funded to execute a systematic exploration and growth strategy at its flagship Napié Project ("Napié") that aims to extend existing high-grade mineralisation, test multiple high priority regional prospects with an aim to deliver a maiden Mineral Resource Estimate. Funds will also be used for a maiden drilling program at the Company's Korhogo Project and for general working capital requirements and corporate costs. Drilling is ongoing at Napié and will continue through the remainder of 2021 and beyond.
MKG:AU
26m
Top 5 Canadian Mining Stocks This Week: Sanu Gold Sparkles with 200 Percent Gain
Welcome to the Investing News Network's weekly look at the best-performing Canadian mining stocks on the TSX, TSXV and CSE, starting with a round-up of Canadian and US news impacting the resource sector.
The S&P/TSX Venture Composite Index (INDEXTSI:JX) fell 1.22 percent on the week to close at 610.22 on Friday (December 6). Meanwhile, the S&P/TSX Composite Index (INDEXTSI:OSPTX) posted a 0.16 percent increase to reach 25,691.8, and the CSE Composite Index (CSE:CSECOMP) dropped 2.68 percent to 137.68.
The US Bureau of Labor Statistics released its employment situation report on Friday. The data shows that total nonfarm payrolls increased by 227,000 in November. The figures reflect a rebound from October’s disappointing addition of just 12,000 jobs, as hurricanes Helene and Milton and a Boeing (NYSE:BA) strike impacted the labor market.
Overall, the labor market remained strong in November, with the unemployment rate seeing little change at 4.2 percent, up from 4.1 percent in October. This was reflected by 7.1 million unemployed workers, up from 7 million the previous month. Meanwhile, the participation rate was also steady, recording a 0.1 percent decline to 62.5 percent.
The report is the final piece of data before the US Federal Reserve’s last policy meeting of 2024, which will occur on December 17 and 18. The central bank is expected to cut its benchmark interest rate by 25 points.
North of the border, Statistics Canada released its labor force survey on Friday. Employment increased by 51,000 in November, with the employment rate at 60.6 percent. However, the unemployment rate jumped 0.3 percent to 6.8 percent. Apart from the pandemic, this figure marks the highest unemployment rate since January 2017. The jobs gained during the month were primarily concentrated in the public sector, which added 45,000 full-time jobs to the workforce.
In the commodities space, the price of gold lost 0.64 percent this week to hit US$2,633.14 per ounce on Friday at 4:00 p.m. EST, while silver sank 1.22 percent to US$30.98 per ounce. Copper was unchanged, ending at US$4.20 per pound on the COMEX. More broadly, the S&P GSCI (INDEXSP:SPGSCI) was down 0.8 percent to close the week at 531.4.
Equity markets were mixed this week. The S&P 500 (INDEXSP:INX) moved up 0.83 percent to end Friday at 6,090.28, while the Nasdaq-100 (INDEXNASDAQ:NDX) gained 3.06 percent to come in at 21,617.28. For its part, the Dow Jones Industrial Average (INDEXDJX:.DJI) finished the week down 0.63 percent to 44,642.51.
Find out how the five best-performing Canadian mining stocks performed against that backdrop.
Data for this article was retrieved at 4:00 p.m. EST on December 6, 2024, using TradingView's stock screener. Only companies trading on the TSX, TSXV and CSE with market capitalizations greater than C$10 million are included. Companies within the non-energy minerals and energy minerals sectors were considered.
1. Sanu Gold (CSE:SANU)
Weekly gain: 200 percent
Market cap: C$22.67 million
Share price: C$0.15
Sanu Gold is working to advance its Bantabaye, Diguifara and Daina gold projects in West Africa’s Siguiri Basin in Guinea. They cover a combined 28,000 hectares, and all three sites have seen exploration in 2024.
The company has identified five priority targets at Bantabaye. The most recent results, released on July 10, include 1.94 grams per metric ton (g/t) gold over 14 meters, including a 1 meter intersection of 29.89 g/t gold.
Target areas at Daina are open along trend in both directions. On November 12, Sanu announced the start of a new drill program geared at understanding key targets that still need to be tested
An inaugural drill program began at Diguifara, Sanu's third property, on October 28. At least 2,000 meters of air-core and reverse-circulation drilling were planned across 19 holes. The company has identified three undrilled, high-priority targets along 3.2 kilometers of strike, where previous auger work revealed grades up to 4.8 g/t gold.
Sanu's shares soared this week after it announced a strategic partnership. Montage Gold (TSXV:MAU,OTCQX:MAUTF) will acquire a 19.9 percent stake in Sanu by issuing 2.3 million shares worth C$5.5 million.
Additionally, Sanu announced a non-brokered private placement for up to C$4.56 million. It is led by members of the Lundin Family, which is expected to gain a 10 percent stake in the company.
Montage and the Lundin Family join AngloGold Ashanti (NYSE:AU,JSE:ANG), which holds a 14 percent interest in Sanu, and Capital Dl, which has a 10 percent interest.
2. New Zealand Energy (TSX:NZ)
Weekly gain: 66.15 percent
Market cap: C$22.81 million
Share price: C$1.08
New Zealand Energy is an oil and gas producer focused on projects in New Zealand’s Taranaki Basin.
According to the company’s December 2023 oil and gas reserves summary, it holds proven and probable quantities of 1.64 million barrels of oil equivalent across a range of producing, non-producing and undeveloped projects.
The firm has spent 2024 working to redevelop verified gas condensate reserves at the Tariki Field, starting with the Tariki-5 well in September and the Tariki-5A well in November. The projects are a 50 percent joint venture with L&M Energy.
Results from testing at the Tariki-5 well were released on October 25. They revealed a “worst-case scenario” as drilling encountered a fault above the gas reservoir. The company said it is working on a plan to drill a hole intended to intersect the reservoir up-dip of the fault. If successful, it is expected to be a good gas-producing well.
New Zealand Energy released preliminary results from the Tarikii-5A well on Monday (December 2). In the announcement, the company said the well intersected the target Tariki sands and is interpreted to bear gas. The next testing steps are planned for the week of December 16, and gas production and sales will start shortly after. The company expects the reservoir to deliver a minimum of 10 terajoules per day.
3. Northern Graphite (TSXV:NGC)
Weekly gain: 58.82 percent
Market cap: C$17.04 million
Share price: C$0.135
Producer and developer Northern Graphite is the only miner of flake graphite in North America.
The company owns the Lac des Iles mine in Québec, Canada, which hosts an indicated amount of 213,000 metric tons of graphitic carbon, with an additional inferred amount of 106,000 metric tons.
In its Q2 results, released on August 29, Northern reported that it had increased production at Lac des Iles to 4,082 metric tons, up 59 percent from the 2,574 metric tons produced in the first quarter.
The company is working to boost production at the site to its 25,000 metric ton nameplate capacity. Its most recent news was its Q3 operating and financial results, which were released on November 28.
Northern highlighted substantial production volumes from the Lac des Iles mine and said it achieved record sales after moving production to a four-shift, seven-day-per-week schedule. The company also started permitting during the fourth quarter and said it expects a new open pit to be ready in the new year.
4. Athena Gold (CSE:ATHA)
Weekly gain: 57.14 percent
Market cap: C$10.93 million
Share price: C$0.055
Athena Gold is an explorer focused on advancing its Excelsior Springs and Laird Lake projects.
Excelsior Springs is located within the Walker-Lane tectonic zone in Nevada, US. It saw historic drilling from the mid-1980s through 2011, with 84 reverse-circulation drill holes. Since acquiring the property from Nubian Resources (TSXV:NBR,OTCQB:NBRFF) in December 2020, the company has drilled an additional 29 holes.
The most recent news from the project came on August 29, when Athena announced it had expanded the project through the acquisition of the historic Blue Dick mine. The mine was discovered in 1870 and was host to high-grade silver deposits. The acquisition expands the Excelsior Springs land holdings to 1,675 hectares.
On September 11, Athena entered into a binding letter of intent with Libra Lithium to acquire a 100 percent interest in the Laird Lake and Oneman Lake gold projects in Ontario, Canada. The agreement will create a new Canadian subsidiary, with Athena holding an 80.1 percent ownership stake and Libra holding 19.9 percent.
On December 2, Athena reported results from a reconnaissance and prospecting program at Laird Lake. The program delivered high-grade samples of up to 373 g/t gold, the highest ever returned from the site. The company said the results will guide a property-wide geochemistry survey during the first half of 2025.
5. Kingsmen Resources (TSXV:KNG)
Weekly gain: 54.76 percent
Market cap: C$13.54 million
Share price: C$0.65
Kingsmen Resources is an exploration company working to advance its Las Coloradas polymetallic project in the Parral mining district of Chihuahua, Mexico. The 845 hectare brownfield project consists of 15 mining concessions hosting mineralized silver, zinc, lead, gold, copper and zinc deposits.
The most recent news from the project came on Monday, when Kingsmen identified a new silver-gold target at the property during a field reconnaissance program before an upcoming drill program.
The new Saddle target is between two prominent magnetic highs, where sediment and structures are prospective for precious metals anomalies. The company said geophysical data indicates the potential for significant blind mineralization, and it has added the find to its list of priority drill targets.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
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9h
Top 5 Canadian Mining Stocks This Week: O3 Mining Up 60 Percent on Agnico Eagle Takeover Deal
Welcome to the Investing News Network's weekly look at the best-performing Canadian mining stocks on the TSX, TSXV and CSE, starting with a round-up of Canadian and US news impacting the resource sector.
The S&P/TSX Venture Composite Index (INDEXTSI:JX) fell 1.12 percent on the week to close at 607.84 on Friday (December 6). Meanwhile, the S&P/TSX Composite Index (INDEXTSI:OSPTX) posted a 1.71 percent decrease to hit 25,274.3, and the CSE Composite Index (CSE:CSECOMP) sank 2.68 percent to reach 131.45.
The US Bureau of Labor Statistics released November consumer price index (CPI) data on Wednesday (December 11).
The report shows the all-items index increased by 0.3 percent monthly, compared to the 0.2 percent recorded in each of the previous four months. Core CPI was also up 0.3 percent, steady compared to the previous three months.
On an annualized basis, CPI increased by 2.7 percent, up from the 2.6 percent rise recorded in October. Core CPI, which excludes food and energy, was unchanged from October, increasing 3.3 percent.
Overall, the increase in the CPI shows some stickiness in inflation, but most analysts think the US Federal Reserve will cut interest rates by 25 points when it meets on December 17 and 18, before pausing in the new year.
In the commodities space, gold passed the US$2,700 per ounce mark midweek, but finished the period virtually unchanged at US$2,648.34; silver sank 1.43 percent to US$30.54 per ounce. Copper ended the week losing just 0.23 percent at US$4.20 per pound on the COMEX. More broadly, the S&P GSCI (INDEXSP:SPGSCI) was up 2.83 percent to close at 546.29.
Equity markets were mixed this week. The S&P 500 (INDEXSP:INX) fell 0.52 percent to end Friday (December 13) at 6,051.08, while the Nasdaq-100 (INDEXNASDAQ:NDX) gained 0.96 percent to come in at 21,780.25. Meanwhile, the Dow Jones Industrial Average (INDEXDJX:.DJI) finished the week down 1.81 percent at 43,828.07.
Find out how the five best-performing Canadian mining stocks performed against that backdrop.
Data for this article was retrieved at 4:00 p.m. EST on December 13, 2024, using TradingView's stock screener. Only companies trading on the TSX, TSXV and CSE with market capitalizations greater than C$10 million are included. Companies within the non-energy minerals and energy minerals sectors were considered.
1. Orosur Mining (TSXV:OMI)
Weekly gain: 88.89 percent
Market cap: C$28.27 million
Share price: C$0.16
Orosur Mining is an explorer focused on the development of early to advanced-stage assets in South America.
Its flagship Anzá gold project in Colombia was previously a 49/51 joint venture with Minera Monte Aguila (MMA), a corporation owned equally by Newmont (TSX:NGT,NYSE:NEM) and Agnico Eagle Mines (TSX:AEM,NYSE:AEM).
Exploration has revealed multiple gold deposits at the site, which is located 50 kilometers west of Medellin and according to Orosur sits along Colombia’s primary gold belt.
Orosur also owns several early stage projects: the El Pantano gold-silver project in Argentina, the Lithium West project in Nigeria and the Ariquemes project in Brazil, which is prospective for tin, niobium and rare earths.
Shares of Orosur jumped significantly following an announcement on November 28 that it has completed its takeover of MMA. The acquisition gives Orosur 100 percent indirect ownership of the Anzá gold project.
Under the terms of the agreement, Newmont and Agnico will each receive a 0.75 percent net smelter royalty, plus a fixed royalty of US$37.5 per ounce of gold or gold equivalent on the first 200,000 ounces produced.
Since the transaction's completion, exploration resumed at the Pepas prospect in mid-November to test high-grade results from a 2022 drill program. Orosur announced on Friday (December 13) that initial assays had been delivered and confirmed the previous results. The samples encountered grades of 5.58 grams per metric ton (g/t) gold over 75.1 meters from the surface, including an intersection of 13.68 g/t over 13.95 meters.
2. NOA Lithium Brines (TSXV:NOAL)
Weekly gain: 80.65 percent
Market cap: C$34.59 million
Share price: C$0.28
NOA Lithium is advancing three projects in the lithium triangle area of Argentina's Salta province: the 37,000 hectare Rio Grande project, the 78,000 hectare Arizaro project and the 10,200 hectare Salinas Grandes project.
Of the three projects, Rio Grande is the most advanced. The company updated the resource estimate for the site in July, noting that measured and indicated resources had increased to 2,658,000 metric tons of lithium carbonate equivalent, with 2,039,000 metric tons of lithium carbonate equivalent in the inferred category.
Shares of NOA gained this week after the company said on Tuesday (December 10) that it had closed a C$13.5 million private placement with Clean Elements, a private holding company established to develop lithium assets. If Clean Elements exercises all warrants, it will receive 39.9 percent of outstanding common shares on a fully diluted basis.
NOA plans to use the proceeds of the offering to pay off debts and fund exploration work at Rio Grande.
3. O3 Mining (TSXV:OIII)
Weekly gain: 60.19 percent
Market cap: C$179.47 million
Share price: C$1.65
O3 Mining is a gold explorer and developer working to advance its assets in Québec, Canada.
The company’s Marban Alliance gold project is composed of 65 mining claims covering 2,189 hectares in Western Québec. Exploration at the site dates back to the 1940s and has seen drilling to a depth of 1,475 meters.
A prefeasibility study from 2022 outlines a pre-tax net present value of C$775 million for the asset with an internal rate of return of 30.2 percent and a payback period of 3.5 years.
O3 also owns the Horizon project, made up of 192 claims over 8,778 hectares directly to the northwest of Marban.
Shares of O3 jumped this week following news on Thursday (December 12) of a friendly takeover offer by major miner Agnico Eagle Mines. The offer, valued at C$204 million, will see Agnico Eagle purchase all outstanding common shares in O3 at C$1.67 per share, a 58 percent premium to the closing price on December 11.
The news was followed on the same day by a joint announcement that O3’s largest shareholder, Gold Fields (NYSE:GFI), would support the transaction through a lock-up agreement with Agnico to tender its common shares in O3. Gold Fields owns approximately a 17 percent stake in O3.
4. KWG Resources (CSE:CACR)
Weekly gain: 50 percent
Market cap: C$19.19 million
Share price: C$0.015
KWG Resources is a chromite and base metals exploration company focused on advancements of its Ring of Fire assets in Northern Ontario, Canada. It does business as the Canadian Chrome Company.
Its assets consist of the Fancamp and Big Daddy claims, along with the Mcfaulds Lake, Koper Lake and Fishtrap Lake properties. All properties are located within a 40 kilometer radius and according to the company are home to feeder magma chambers containing chromite, nickel and copper deposits.
KWG is currently working with local First Nations to improve transportation to the region through the development of road and rail links. The company announced on November 7 that it had signed a memorandum of agreement with AtkinsRealis Canada in its capacity as a contractor representing Marten Falls and Webequie First Nations.
The agreement will allow AtkinsRealis temporary access rights over some mineral exploration claims in support of work permits for an environmental assessment for the design, construction and operation of a multi-use all-season road between the proposed Marten Falls community access road and proposed Webequie supply road.
Once completed, the link will provide improved access to communities and mining companies in the region.
KWG did not release any news in the past week.
5. Vior (TSXV:VIO)
Weekly gain: 47.06 percent
Market cap: C$48.91 million
Share price: C$0.25
Vior is a gold exploration company with a portfolio of assets located in Québec, Canada.
The company’s main focus has been advancing its flagship Belleterre project in southwestern Québec. The property consists of 635 claims covering an area of 350 square kilometres and hosts the past-producing Belleterre gold mine, which produced 750,000 ounces of gold and 95,000 ounces of silver between 1936 and 1959.
The mineralization trend at the property extends for 6 kilometers, and in addition to gold and silver, it has demonstrated the presence of copper, lead, and zinc.
On September 24, Vior commenced a fully funded 60,000 meter drill program at Belleterre, which will operate through mid-2025. The company says it’s the largest drill program at the site since the mine closed in 1959.
The first assays were announced on November 12, and the company reported high-grade gold at depth. The results include highlighted intercepts of 9 g/t gold over 1.2 meters from the Belleterre area, and 4 g/t gold over 1.2 meters from the Aubelle area. Vior said the results confirm the continuity and potential for expansion of mineralization at the site.
The company’s most recent announcement came on Thursday when it announced that Mathieu Savard, Osisko Mining's former president, will become Vior's new president and CEO. He will be joined by Pascal Simard, who was Osisko’s vice president of exploration. Simard will hold the same role with Vior.
FAQs for Canadian mining stocks
What is the difference between the TSX and TSXV?
The TSX, or Toronto Stock Exchange, is used by senior companies with larger market caps, and the TSXV, or TSX Venture Exchange, is used by smaller-cap companies. Companies listed on the TSXV can graduate to the senior exchange.
How many companies are listed on the TSXV?
As of June 2024, there were 1,630 companies listed on the TSXV, 925 of which were mining companies. Comparatively, the TSX was home to 1,806 companies, with 188 of those being mining companies.
Together the TSX and TSXV host around 40 percent of the world’s public mining companies.
How much does it cost to list on the TSXV?
There are a variety of different fees that companies must pay to list on the TSXV, and according to the exchange, they can vary based on the transaction’s nature and complexity. The listing fee alone will most likely cost between C$10,000 to C$70,000. Accounting and auditing fees could rack up between C$25,000 and C$100,000, while legal fees are expected to be over C$75,000 and an underwriters’ commission may hit up to 12 percent.
The exchange lists a handful of other fees and expenses companies can expect, including but not limited to security commission and transfer agency fees, investor relations costs and director and officer liability insurance.
These are all just for the initial listing, of course. There are ongoing expenses once companies are trading, such as sustaining fees and additional listing fees, plus the costs associated with filing regular reports.
How do you trade on the TSXV?
Investors can trade on the TSXV the way they would trade stocks on any exchange. This means they can use a stock broker or an individual investment account to buy and sell shares of TSXV-listed companies during the exchange's trading hours.
Article by Dean Belder; FAQs by Lauren Kelly.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
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12 December
Lawrence Lepard: "Big Print" Coming — Fully Expect US$5,000 Gold, US$200,000 Bitcoin
Speaking to the Investing News Network, Lawrence Lepard, managing director at EMA, voiced his thoughts on the outlook for gold and Bitcoin as the debt doom loop intensifies in the US.
"I call it a doom loop — it's a vicious circle in the wrong direction, which I believe will ultimately lead to the government having to say, 'Okay, this isn't going to work. We are going to institute yield curve control or QE, or we're going to buy the bonds,'" he explained on the sidelines of the New Orleans Investment Conference.
Lepard believes it's important to hold both gold and Bitcoin, noting that the only wrong allocation is zero.
"I fully expect Bitcoin's going to go to US$200,000, and I fully expect gold's going to go to US$5,000 (per ounce) in the next couple of years," he said. "All the suffering gold stock holders out there ... we're going to be very pleasantly surprised."
Watch the interview above for more from Lepard on gold and Bitcoin, as well as silver. You can also click here to view the Investing News Network's New Orleans Investment Conference playlist on YouTube.
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: 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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12 December
Chris Temple: Gold's Next Leg Higher, Plus Uranium and Natural Gas in 2025
Chris Temple, founder, editor and publisher of the National Investor, outlined the main factors he sees impacting the gold price heading into 2025, saying the yellow metal will undoubtedly move higher.
In his view, its rise will come as market participants realize how many problems the US economy is facing.
"I think that once that reality sets in, gold will get its next big lease on life and the stock market is going to bog down. I think we're going to see a lot of rotation in the market that will start to favor real assets and real value — away from everybody chasing the same relative handful of stocks as we've seen," Temple explained.
Aside from gold, Temple spoke about natural gas and uranium, his other two favorite commodities in the near term.
He also discussed the potential implications of Donald Trump's second presidency, saying it will be key to watch how he develops the US' relationship with China, especially as the Asian nation grapples with internal problems.
"This is the most important thing that consumers and investors and policy makers need to watch in 2025 — is Trump smart on how he deals with all of this and rebuilds our own industries to compensate for years down the road? Or is he going to be ham-fisted about it and cause more problems than he solves?" Temple questioned.
Watch the video above for more from Temple on what's to come in 2025.
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: 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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12 December
WGC: Gold to Face Complex Drivers in 2025, Price Likely to Cool After Record-Breaking Year
The World Gold Council (WGC) has released its 2025 gold outlook, highlighting various macroeconomic factors, geopolitical risks and central bank activity as pivotal forces influencing demand and prices.
While 2024 saw gold achieve a stellar performance with a 28 percent annual increase, the outlook for 2025 is characterized by a mix of opportunities and challenges stemming from both global and regional developments.
The yellow metal has benefited from its historical role as a hedge against uncertainty, but the WGC forecasts that its performance next year will depend on other key variables as well.
Gold to face complex drivers next year
Looking back at 2024, the WGC outlines multiple factors that drove gold's strong performance.
For instance, central bank demand reached significant levels, underscoring the metal's enduring role as a safe-haven asset. Central banks have now been net buyers of gold for nearly 15 years.
Meanwhile, investor interest surged amid geopolitical instability and market volatility, particularly in the third quarter, when western investors returned to the market, driven by lower yields and a weakening US dollar.
Asian demand, a critical component of the gold market, played a supportive role in the first half of the year.
Indian demand was buoyed by favorable policy changes, including a reduction in import duties, while Chinese investors turned to gold amid concerns about economic growth.
Heading into 2025, the complex global economic picture is creating uncertainty for gold.
In the US, Donald Trump is expected to introduce policies that stimulate domestic economic growth during his second term as president, potentially driving risk-on sentiment in the short term. However, these policies could also create inflationary pressures and disrupt supply chains, leading investors to seek the stability of assets like gold.
Central banks, including the US Federal Reserve, are anticipated to continue cutting interest rates. Market consensus suggests the Fed will cut by 100 basis points in 2025, with similar actions expected in Europe.
The WGC forecasts in its report that a dovish monetary policy environment could be supportive for the gold price, particularly if inflation remains above target levels. On the other hand, any reversal in monetary policy or a prolonged pause in rate cuts could present challenges for gold, as higher opportunity costs may deter investors.
Similarly, subdued economic growth could limit consumer demand, particularly in Asia, where gold plays a dual role as an investment and a cultural staple.
Asia and central banks to lead gold buying
In 2025, the WGC predicts that Asia will remain a cornerstone of the global gold market. The continent accounts for over 60 percent of annual demand, excluding central bank activity.
Chinese consumer demand, which has been relatively muted, is likely to hinge on the country’s economic policies and growth trajectory. Trade tensions and domestic stimulus measures could sway demand either way, while gold may face increased competition from alternative investment avenues such as equities and real estate.
For its part, India is better positioned to sustain gold demand. With economic growth projected to remain above 6.5 percent and a smaller trade deficit compared to other US trading partners, the WGC believes Indian consumers are likely to continue purchasing gold both for investment and cultural purposes.
Central bank activity will remain a critical driver for gold in 2025. While demand may not reach the heights of recent years, it is expected to surpass long-term averages, providing a consistent source of support for the market.
Central bank purchases are influenced by geopolitical risk, sovereign debt levels and portfolio diversification. These drivers are unlikely to wane, ensuring that central banks will continue to play a stabilizing role in the gold market.
However, any significant deceleration in central bank demand could exert downward pressure on the gold price, particularly if combined with other bearish factors such as higher interest rates or reduced investment flows.
Overall, the WGC predicts that in 2025 the gold market is likely to be shaped by the interplay of four primary drivers: economic expansion, risk, opportunity cost and momentum.
Economic growth, though expected to remain positive, will likely be below trend, limiting the scope for consumer demand growth. Geopolitical risks, including ongoing tensions in regions like South Korea and Syria, may prompt investors to increase their allocations to gold as a hedge against uncertainty.
The opportunity cost of holding gold, determined by interest rates and yields, will be a critical factor. Lower rates should support gold, but any unexpected tightening of monetary policy could dampen investment demand.
Finally, market momentum, influenced by technical factors and investor sentiment, will play a role in determining gold’s short-term performance. A strong start to the year, fueled by initial risk-on sentiment, could pave the way for a more stable or even bullish trajectory, provided macroeconomic conditions remain favorable.
How will the gold price perform in 2025?
Market consensus suggests gold will remain rangebound in 2025, potentially seeing modest gains.
However, the WGC reminds investors that the market is not without risks. A rapid deterioration in financial conditions, unexpected geopolitical developments or a sharp rise in central bank demand could provide upside surprises.
Conversely, a reversal in monetary policy or subdued demand from key markets could cap gold’s performance.
Either way, both investors and analysts will closely monitor developments related to the key regions and variables mentioned to gauge the direction of the gold market this coming year.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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12 December
Increased M&A Activity a Win-Win for Gold Sector, Brightstar Resources Exec Says
Following the completion of its acquisition of Alto Metals, Brightstar Resources (ASX:BTR) plans to conduct 50,000 metres of reverse-circulation and diamond drilling, beginning next year, at Alto Metals' approximately 900 square kilometre Sandstone gold project in Western Australia.
In an interview with the Investing News Network, Brightstar Managing Director Alex Rovira outlined the next steps for merging Alto Metals with Brightstar’s assets and the strategy for moving forward.
“From an exploration perspective … it's really focusing on the Sandstone package. We will do near-mine brownfields exploration at our Menzies and Laverton gold projects. And really, the aspiration there is to take a number of those mines toward development decisions,” he said.
Brightstar’s Alto Metals acquisition is one of an increasing number of mergers and acquisitions within the gold space in recent years, fueled by a strengthening gold price and a desire to boost gold production.
In 2024 alone, Brightstar has acquired three companies — Linden Gold, Gateway Mining and Alto Metals — boosting the company’s gold resources and bringing it closer to production.
Rovira added that Brightstar’s global resources have grown from 400,000 ounces to 3 million ounces to date through a combination of M&A and resource exploration.
“For us in our business, it made a lot of sense to conduct some of this M&A, because it was almost cheaper at times to be acquiring ounces than it was to raise the money and explore for them. So we managed to consolidate a number of mispriced or undervalued opportunities in Western Australia,” he said.
Rovira offered his insight on the trend of increasing M&A in the gold sector, calling Northern Star Resources' (ASX:NST,OTC Pink:NESRF) planned US$5 billion acquisition of De Grey Mining (ASX:DEG,OTC Pink:DGMLF) a “win-win.”
“What that does is it frees up capital in the sector so investors can monetise those positions and they can look to reinvest that in other gold-mining companies. So it is good for liquidity, it's good for investors (and) ultimately for the companies as well. It provides access to capital whether there's operational synergies, different teams coming in and looking at different projects,” Rovira said.
Watch the full interview with Alex Rovira, managing director of Brightstar Resources, above.
Disclaimer: This interview is sponsored by Brightstar Resources (ASX:BTR). This interview provides information which was sourced by the Investing News Network (INN) and approved by Brightstar Resources in order to help investors learn more about the company. Brightstar Resources is a client of INN. The company’s campaign fees pay for INN to create and update this interview.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Brightstar Resources and seek advice from a qualified investment advisor.
This interview may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, receipt of property titles, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The issuer relies upon litigation protection for forward-looking statements. Investing in companies comes with uncertainties as market values can fluctuate.
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