Why Active Gold Mines Are Being Relied Upon To Produce More Than Ever In 2021

FinancialNewsMedia.com News Commentary

PALM BEACH,  Fla., Feb. 23, 2021 /PRNewswire/ -- Despite the global pandemic; actually because of the pandemic, Gold has enjoyed a sharp rise that, experts say, should continue during 2021. They see increases in mining and all time highs in the bullion market. A report from Metals Focus in Reuters (London) said that The world's mines will produce 3,368 tonnes of gold this year, down 4.6% from 2019 and the lowest in 5 years, but high bullion prices will help to push up output by 8.8% to a record 3,664 tonnes in 2021. Metals head of mine supply, Adam Webb, said that: "Demand for gold, meanwhile, will fall 25% this year to about 3,000 tonnes before recovering 17% in 2021." Reuters continued: "The coronavirus pandemic forced many mines to close temporarily and curtailed sales of gold jewelry, but it also triggered a rush to buy gold for its perceived safe-haven status. These investors pushed prices Gold above $2,000 an ounce (in 2020), the highest level on record, and prices are likely to average more than $2,000 in 2021. It said mining companies' earnings per ounce in the second quarter of 2020 were on average $739 higher than their costs, up from about $350 in mid-2019. Production of gold by artisanal and small-scale (ASM) miners using basic technology will decline slightly this year before increasing 13% to more than 600 tonnes in 2021, the most on record", Metals Focus said. Active stocks in the mining markets this week include Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Golden Independence Mining Corp. (OTCQB: GIDMF) (CSE: IGLD), Hecla Mining Company (NYSE: HL), New Gold Inc. (NYSE: NGD) (TSX: NGD), FIRST MAJESTIC SILVER CORP. (NYSE: AG) (TSX: FR).

A report from Singapore Bullion market Association, also spoke about the Metals report saying: "Turning to 2021, Metals Focus remains bullish towards gold. We are confident that as policy rates remain low and fiscal spending persists, inflows of institutional money into the yellow metal will continue. Low rates and yields are typically positive for gold, as they minimize the opportunity cost of holding the zero-yielding metal. Moreover, given exceptionally low yields (or, in other words, high bond prices), the effectiveness of bonds as a hedge against market turmoil, and in particular equity market corrections, is hampered as it becomes harder to see yields fall much more. This forces investors towards other portfolio diversifiers, something that should continue to benefit gold. Related to this point, policy accommodation has resulted in exceptionally strong equity market performance. While this has been a boon for investors, it also amplifies their need to diversify portfolios and gold will remain an instrument to do so."

Golden Independence Mining Corp. (CSE: IGLD) (OTCQB:GIDMF)  BREAKING NEWS:  GOLDEN INDEPENDENCE INTERSECTS 1.436 G/T GOLD AND 179.5 G/T SILVER OVER 65 FEET AT INDEPENDENCE PROJECT - Golden Independence (the "Company") is pleased to announce the next series of drill results from its recently completed 2020 resource expansion drill program at the Independence project, south of Battle Mountain, Nevada. Results from these three reverse circulation (RC) holes include:

• 0.845 g/t gold and 92 g/t silver over 130 feet (39.6 metres)
• including 1.436 g/t gold and 179.5 g/t silver over 65 feet (19.8 metres)
• including 3.318 g/t gold and 581.6 g/t silver over 15 feet (4.6 metres)
• and including 1.274 g/t gold and 50 g/t silver over 20 feet (7.6 metres)
• 0.521 g/t gold and 4.7 g/t silver over 165 feet (50.3 metres)
• including 0.697 g/t gold and 7.0 g/t silver over 65 feet (19.8 metres)
• 0.438 g/t gold and 8.7 g/t silver over 170 feet (51.8 metres)
• including 1.287 g/t gold and 20.8 g/t silver over 15 feet (4.6 metres)
• and 0.746 g/t gold and 23.9 g/t silver over 20 feet (6.1 metres)

"These are three of four holes testing the oxide resource to depth which also include a nice surprise of a higher grade pocket with significant silver" commented Golden Independence President Tim Henneberry. "Long intervals of + 0.5g/t gold with higher grade intervals and some high grade pockets continue to confirm and expand the historic oxide resource," he continued.

"This third set of assay results further supports our belief that we will be able to significantly expand the historic oxide resource at the Independence project in the near term." remarked Golden Independence CEO Christos Doulis. "In addition to significant higher grade gold intercepts, recent drill results such as hole AGEI-28, demonstrate the Independence project's potential to host significant silver mineralization as well." Read this entire release for the Golden Independence news at:  https://www.financialnewsmedia.com/news-igld/ 

Other recent developments in the mining markets include:

Hecla Mining Company (NYSE: HL) recently announced fourth quarter and full year 2020 financial and operating results. The COVID pandemic provided significant challenges to Hecla and the mining industry; however, due to our people and the jurisdictions we operate in, Hecla exceeded the high end of our pre-COVID silver guidance by 1.4 million ounces," said Phillips S. Baker, Jr., President and CEO. "We saw modest disruptions in Quebec and Mexico; however, these did not materially impact our business. During the year we refinanced our long-term debt now due in 2028, and through solid free cash flow generation, added cash to the balance sheet, reduced our net debt, and increased dividends."

Baker continued, "As we look to 2021, we see three significant value drivers. First, with Lucky Friday running at full production, positive results from the work at Casa Berardi, and the continued consistency of Greens Creek, we expect to grow silver production and generate significant free cash flow. Silver production from our United States silver mines is expected to go from 8 million ounces in 2018 to almost 15 million ounces by 2023, further increasing Hecla's position as the most significant US silver producer."

New Gold Inc. (TSX: NGD) (NYSE American: NGD) recently reported fourth quarter and annual results as of December 31, 2020, achieving the mid-range of the revised annual production and cash cost guidance, with All-in Sustaining Costs ("AISC") below revised annual guidance. An earnings conference call and webcast will begin on February 19, 2021 at 8:30 am Eastern Time to discuss the fourth quarter and year-end financial results (details provided at the end of this news release).

The Company ended the year repositioned for long-term success and is expected to transition to positive free cash flow in 2021. Operational and cost performance has improved, strategic capital projects have been advanced, the balance sheet was restructured, and our liquidity position has significantly improved. The focus in 2021 has now shifted to driving further operational and cost optimizations at Rainy River and advancing B3 and C-Zone development at the New Afton Mine.

FIRST MAJESTIC SILVER CORP. (NYSE: AG) (TSX: FR) recently announced the consolidated financial results for the Company's fourth quarter and year ended December 31, 2020. First Majestic finished 2020 with strong silver production and solid financial results despite the early challenges related to the COVID-19 global pandemic," stated Keith Neumeyer, President and CEO of First Majestic. "We generated 87% of our $105.1 million in operating earnings in the second half of 2020 primarily due to higher silver production and an improved metal price environment. This significant increase in profitability helped to lift our cash balance to a record $238.6 million at the end of the year. We also announced our inaugural dividend policy at the end of 2020 which was a major milestone and something I am particularly proud of as this has been a long-term objective of the Company. Looking ahead, we continue to expect higher prices as silver supplies tighten due to increases in investor demand and the longer-term global transition to greener energy and electric vehicle solutions."

Full year revenues totaled $363.9 million as higher silver and gold prices were offset by reduced production rates due to Mexico's national COVID-19 suspensions and reduced worker availability. The average realized silver price increased 29% to $21.15 per ounce during the year compared to $16.40 in 2019. However, strong silver production from La Encantada and San Dimas in the second half of 2020 helped to also offset some of the production losses resulting from the COVID-19 shutdowns in the second quarter of 2020. At the end of 2020, approximately 9% of the Company's workforce at its three operating mines remained vulnerable under Mexico's national decree, an improvement from 18% at the end of the second quarter.

Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) recently released its annual reserve and resource declaration with its Q4 and year-end results to December 31, 2020. Attributable mineral reserves reflect a 76% replacement of depletion, with a consistent reserve grade maintained year-on-year, after adjustment for the disposal of Massawa. Similarly, excluding the impact of Massawa, the net reduction in reserves year-on-year is approximately 2%. Attributable group reserves, reported at $1,200/oz, stand at 1,300 million tonnes at 1.66g/t for 68 million ounces of gold.

Armed with the introduction of on-site mineral resource management and an intensified focus on geology, Barrick has spent the two years since the Randgold merger improving knowledge of its orebodies. At the same time, it has transferred ownership and responsibility for the orebodies to the mines, empowering and integrating the on-site mineral resource, geology and planning teams.  Barrick's mineral resource management and evaluation executive, Rod Quick, says the company has made significant progress in developing Life of Mine optimizations based on high-confidence geological models as well as operating plans, ounce profiles and cost forecasts.

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