The New Gold Boom

Why the Yellow Metal Could Fly in 2021 - Seite 5

Since 2015, Kinross Gold Corp. (KGC) has seen its share price rise by as much as 400%. In fact, this year alone, it's already up by as much as 85%. And Kinross is showing no signs of slowing. With a healthy balance sheet, favorable earnings reports, and governments, banks, and retail investors piling into safe haven assets, it's likely to continue climbing.

Following the trend of the gold market, Kinross posted positive fourth-quarter earnings but has been weighed down by the falling price of gold. The company's share price has dropped from $7.98 on the first trading day of the year to its current price of $7.20, after falling to a low of $6.19 in early March. Because smaller miners benefit big on even the smallest moves in gold prices, if the price of the precious metal does see an uptick in the coming months, Kinross will likely be one of the biggest benefactors.

Kirkland Lake Gold (KL) is another one of Canada's tried and true gold miners. Though not quite as large as Barrick or Newmont, Kirkland is no stranger to striking headline grabbing deals in the industry. In fact, just recently, Kirkland and Newmont signed a $75 million exploration deal that could wind up being a game-changer for the industry.

This alliance will provide Kirkland with cash flow to evaluate new alternatives for the future of the mining complex, dive deeper into its existing properties, and weigh other opportunities where the two gold companies may be able to find common ground in the future.

By. Leonid Agapov

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Forward-Looking Statements

This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements.  Forward looking statements in this release include that prices for gold will retain value in future as currently expected, or could rise based on political considerations; that Starr Peak can fulfill all its obligations to acquire its Quebec properties; that Starr Peak's property can achieve drilling and mining success for gold; that historical geological information and estimations will prove to be accurate or at least very indicative; that high-grade targets exist; and that Starr Peak will be able to carry out its business plans, including timing for drilling. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information.  Risks that could change or prevent these statements from coming to fruition include that politics don't have nearly the strong effect on gold prices as expected; the Company may not complete all the property purchases for various reasons; it may not be able to finance its intended drilling programs; Starr Peak may not raise sufficient funds to carry out its plans; geological interpretations and technological results based on current data that may change with more detailed information or testing; and despite promise, there may be no commercially viable minerals or ore on Starr Peak's property. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.