Gold, the #1 Explored Natural Resource in 2015
A recent report shows that despite the Y-Y decline in the global exploration budget in Y 2015, Gold’s $3.94-B allocation made it the #1 explored natural resource last year.
The report states that drilling activity in the Canada-US region accounted for 39% of all significant Gold results announced between 1 July and 8 September 2015 with a further 29% hosted by the Asia-Pacific region. The latter was also the Key contributor for Gold in non-Gold primary projects in terms of resource value.
Asia-Pacific was also the most valuable Gold region, with Gold revenues of $20.22-B, followed by Africa’s $16.12-B.
The Africa region had the highest in situ value for reported reserves and resources at primary Gold projects, with values totaling $1.48-T. The Canada-US regions reported $1.26-T in reserves.
The report found that Latin America accounted for the largest amount of planned and completed capital spending on Gold announced from the beginning of Y 2015 through 30 June 2016, with $5.58-B in investments. Canada-US was 2nd with $5.0-B, including $1-B allocated by Barrick Gold Corp (NYSE:ABX). to develop its Goldrush project in Nevada.
Recently I learned about Galane Gold Ltd. (TSXV:GG), the company owns 2 producing Gold mines in Botswana and Soud Africa.
One analyst writes, “We like the strong growth potential at both project and the extremely low valuation of Galane Vs its peer-group. ”
The Mupane mine in Botswana has been in production since Y 2005 and in Y 2015, a total of 24,321 ounces Gold were produced. The 2nd project Galaxy in Soud Africa is expected to be in production by the end of Y 2016.
McEwen Mining CEO Robert McEwen said recently that the precious Yellow metal could trade in a range of 1,700 to 1,900 by the end of this year.
After three consecutive annual losses, Gold prices have risen 24% YTD.
Gold (COMEX) finished Friday at 1,341.7 oz, and Spot at 1,337.56 oz
Silver (COMEX) finished Friday at 19.78 oz, and Spot at 19.69 oz
The uptrend is due in part to record-low global interest rates, the uncertainty and stability of global currencies and sovereign debt. Investors are anxious and when that happens, and turn to Gold as a store of value and an alternative asset.
Gold has been trading inversely to stocks and stands to mark historic gains when stock correct, and they will see a Fibo correction in the neighborhood of 38 to 55% driving Gold due North into the coming recession.
As I have been saying for years, now, as long as the world’s Key central banks continue to print money Gold and Silver’s price will benefit, as will other tangible assets.
|NYSE:ABX||18.11||23 September 2016||-0.42||18.52||18.54||18.02||10,711,500|
|HeffX-LTN Analysis for ABX:||Overall||Short||Intermediate||Long|
|Bearish (-0.37)||Neutral (-0.13)||Bearish (-0.42)||Very Bearish (-0.56)|
Have a terrific weekend.
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