Gold Stocks Remain the Safest Bet With Widespread Vaccine Still Months Away
FN Media Group Presents Microsmallcap.com Market Commentary
NEW YORK, Nov. 17, 2020 /PRNewswire/ -- Pfizer and BioNTech's potential vaccine announcement may have knocked gold off of its high horse temporarily, but analysts say the lasting effects of the global health crisis and the timeline for a widely available vaccine will continue to support gold prices. Even if the virus goes away, the economic damage has already been done. Since the beginning of the pandemic, the Fed's balance sheet has ballooned to over $27 trillion and is expected to continue growing as the virus rages on. The dip in gold prices hasn't had a detrimental effect on gold stocks, with producer Barrick Gold (TSX:ABX) (NYSE:GOLD) recently beating earnings per share (EPS) estimates by 48%. In Q3 2020, IAMGOLD Corporation (TSX:IMG) (NYSE:IAG) experienced a 45% increase in operating cash flow quarter-over-quarter, while Agnico Eagle Mines Ltd. (TSX:AEM) (NYSE:AEM) increased its dividend by 75%. Kirkland Lake Gold (TSX:KL) (NYSE:KL) also posted strong earnings for Q3 2020 and is ramping up its exploration efforts. Then, there is junior gold explorer GoldON Resources (TSXV:GLD) (NCMBF), which has secured funding and continues to advance exploration at its four discovery-stage properties in the prolific Red Lake Gold Camp of northwestern Ontario.
GoldON's immediate focus is on its flagship West Madsen Project, which is quite literally surrounded by recent high-grade gold discoveries. The original claim package is an option/JV with Great Bear Resources and adjoins the Pure Gold Red Lake mine project where they are gearing up for the first gold pour by Christmas.
Pure Gold's reserves and resources are hosted in a seven-kilometer-long gold system that follows the major crustal break or contact between the Balmer and Confederation rock assemblages. This same Balmer-Confederation contact has been exposed in outcrop 1.6 kilometers (km) west of the Pure Gold property boundary and is interpreted to continue for ~8 km across GoldON's property. In fact, GoldON's West Madsen property boundary is just 270 meters away from one of Pure Gold's most recent discoveries, the Wedge zone, where previous drilling has intersected bonanza-grade gold, including 108.5 g/t gold over 1.0 meter.
Barrick Gold Corporation Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de
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