Why Central Banks are Demanding Gold in Increasing Amounts, Pushing Miners to Ramp Up Operations

PALM BEACH, Fla., May 4, 2022 /PRNewswire/ -- FinancialNewsMedia.com News Commentary  - The Global Mining Market is projected to have a good 2022 and beyond. According to report Linker, the Global Gold Mining Market was valued at USD 197.58 Billion in the year 2021. Global Gold Mining Market witnessed healthy growth during the historical period, on account of a significant increase in disposable income of consumers across the globe. Further, major factors driving sales of gold products include increasing, changing consumer preferences coupled with the rising population of high-net-worth individuals. Additionally, different customs followed by people across the world regarding the adoption of ornaments and gems are further anticipated to boost the purchase of products significantly.  The report said: "Gold Mining Market 2020 turned out to be one of the most volatile in contemporary history, with a number of unusual events. The pace with which the COVID-19 pandemic spread, the severity of the lockdowns, the scope of global government stimulus efforts, and the extent of the equities market bounce were all major factors. Further, higher gold prices and weaker local currencies drove the domestic price of gold to historical highs, negatively impacting the demand for jewelry.  Gold mining is a global business with operations on every continent, except Antarctica, and gold is extracted from mines of widely varying types and scales. The rising demand for gold jewelry is driving the supply of gold. Many central banks, particularly in developing nations, are continuing to diversify their assets away from the dollar and euro, and are likely to increase their holdings in the near future. Gold has been considered one of the best sources of investment for centuries and is always in high demand regardless of any fluctuating economies and happenings in society. The high demand for gold ensures that Jewelry holds its value and will always be easy to liquidate when needed, thus impelling the market growth."  Active stocks in the mining markets this week include Calibre Mining Corp. (OTCQX: CXBMF) (TSX: CXB), Hycroft Mining Holding Corporation (NASDAQ: HYMC), Equinox Gold Corp. (NYSE: EQX) (TSX: EQX), Taseko Mines Limited (NYSE: TGB) (TSX: TKO), Franco-Nevada Corporation (NYSE: FNV) (TSX: FNV).

A report from Statista said that the total supply of gold worldwide amounted to some 4,490 tons in 2018, and is projected to amount to 4,533 tons in 2023. As a precious metal often used as an investment and in jewelry, gold remains an important commodity worldwide.  Yet another report from Tailor-Made Reports concluded: "Despite the fact that substantial new discoveries are rare and the production level is also constrained, the mining of gold has witnessed a significant rise in the last couple of years. Gold is one of the key factors contributing to the economic growth of various countries.

Calibre Mining Corp. (OTCQX: CXBMF) (TSX: CXB) BREAKING NEWS:  Calibre Reports Record Quarterly Gold Production at Total Cash Costs of $1,060 and All-In Sustaining Costs of $1,199 per ounce - Calibre Mining Corp. ("Calibre" or the "Company") announces financial and operating results for the three months ended March 31, 2022 ("Q1 2022"). Consolidated financial statements and management discussion and analysis for the three months ending March 31, 2022 can be found at www.sedar.com and the Company's website, www.calibremining.com. All figures are expressed in U.S. dollars.

Q1 2022 HIGHLIGHTS

• Gold sales of 52,487 ounces grossing $99.6 million in revenue, at an average realized gold price¹ of $1,897/oz;
• Consolidated total cash costs ("TCC")¹ and All-In Sustaining Costs ("AISC")¹ of $1,060 and $1,199 per ounce, respectively;
• Nicaragua: TCC $1,013 and AISC $1,108 per ounce respectively;
• Nevada: TCC $1,268 and AISC $1,283 per ounce respectively;
• Successful completion of the acquisition of Fiore Gold on January 12, 2022 creating a diversified, Americas focused, growing, mid-tier gold producer;
• Smooth integration of the Nevada assets recognizing initial synergies and savings within the broader entity and stronger balance sheet despite the current inflationary environment;
• Cash of $77.3 million as at March 31, 2022, after $19.0 million of Fiore Gold acquisition cash components;
• Net income of $11.7 million; basic net income per share of $0.03;
• Adjusted net income of $16.4 million or $0.04 per basic share in Q1 2022²;
• Nicaragua Mineral Reserves increased to 1,013,000 ounces of gold, at a record grade of 4.62 g/t (see news release dated February 23, 2022);
• Nicaragua Indicated Mineral Resources increased to 1,806,000 ounces of gold (see news release dated February 23, 2022);
• Significant exploration developments include:
• Drill results from the Pan Mine in Nevada demonstrate resource expansion and higher-grade potential, including 1.02 g/t Au over 50.3 metres, 0.83 g/t Au over 34.0 metres, 0.58 g/t Au over 41.2 metres and 0.68 g/t Au over 24.4 metres (see news release dated March 8, 2022 and April 12, 2022);
• 170,000 metre drill program underway which includes resource delineation, infill, and geotechnical drilling as well as early-stage generative exploration drilling to test numerous satellite targets around Libertad, the Eastern Borosi Project and Nevada.
• Launched the multi-year sustainability strategy (see news release dated March 15, 2022).

 Darren Hall, President and Chief Executive Officer of Calibre, stated: "Calibre had an excellent start to the year, responsibly delivering record gold production at a total cash cost of $1,060 per ounce and AISC of $1,199 per ounce positioning the Company well to deliver on full year guidance, despite the current inflationary environment.

During the quarter we continued making excellent progress advancing the higher-grade open pit mines at Pavon Central (reserve grade of 6.5 g/t Au) and Eastern Borosi (reserve grade of 6.8 g/t Au) which will fuel grade driven production growth in 2023 and 2024.

The integration of the Nevada assets solidifies our position as a fiscally responsible and growing mid-tier gold producer with the ability to self-fund exploration and organic growth from operating cash flow."  CONTINUED… Read this entire release with full financial disclosures for the Calibre Mining Corp. at:  https://www.calibremining.com/news/calibre-reports-record-quarterly-gold-production-a-4186/     

Other recent developments in the mining markets include:

Hycroft Mining Holding Corporation (NASDAQ: HYMC) recently provided preliminary operating results for the first quarter of 2022 and general corporate update.  Diane Garrett, President and CEO, commented: Hycroft continues to be one of the largest gold and silver resources in the world located in the Tier 1 mining jurisdiction of Nevada, USA. We are working diligently to conclude our technical studies for the milling operation and fully understanding the potential to increase estimated silver in the resource model. In addition, we are very excited to be implementing an exploration and drill program for 2022. In addition to the drill targets identified within the known resource area, we have also identified multiple targets outside the known resource area which have high-grade intercepts drilled by predecessor companies and promising geophysics. There remains untapped potential at Hycroft and some of our findings during 2021 support this opportunity.

We are also continuing to work on a number of fronts, including our capital structure, to ensure that Hycroft is well positioned for the future. When we announced the private placement of Hycroft shares to each of AMC Entertainment and Eric Sprott, we also disclosed we would be authorizing an additional 1.0 billion shares of common stock under our charter. The Company's authorized share capital did not provide us with the necessary flexibility to improve our capital structure and it was prudent to increase the authorized share capital for a variety of corporate purposes. These purposes may include financing transactions as well as adopting additional stock plans or reserving additional shares for issuance under existing plans.

Equinox Gold Corp. (NYSE American: EQX) (TSX: EQX) recently announced positive drill results from 2021 exploration drilling in the 70-km-long greenstone belt in Bahia State, Brazil that hosts the Company's 100%-owned Fazenda and Santa Luz gold mines ("Bahia Belt"). Exploration has identified multiple near-mine and regional discoveries that highlight growth potential in the Bahia Belt.

"The 2021 exploration program in the Bahia Belt has led to the discovery of significant gold mineralization at multiple targets within haulage distance to our existing mines," said Scott Heffernan, EVP Exploration for Equinox Gold. "Drilling at the Canto 2 target adjacent to our Fazenda Mine was particularly important, intersecting very high grades and clearly highlighting the potential for both open pit and underground resource growth and mine life extension at Fazenda. Equinox Gold also secured exploration permits covering an additional 323 square km, bringing the total land package in the Bahia Belt to nearly 1,300 square km covering the majority of this highly prospective but underexplored greenstone belt.

Taseko Mines Limited (NYSE: TGB) (TSX: TKO) recently announced that it will release its first quarter 2022 financial results after market close on Wednesday, May 4, 2022. 

The Company will host a telephone conference call and live webcast on Thursday, May 5, 2022 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific) to discuss these results. After opening remarks by management, there will be a question and answer session open to analysts and investors.

The conference call may be accessed by dialing 416-764-8688 in Canada, 888-390-0546 in the United States, 08006522435 in the United Kingdom, or online at tasekomines.com/investors/events.  The conference call will be archived for later playback until May 19, 2022 and can be accessed by dialing 416-764-8677 Canada, 888-390-0561 in the United States, or online at tasekomines.com/investors/eventsand using the passcode 489947#.

Franco-Nevada Corporation (NYSE:FNV) (TSX: FNV) recently reported its best results ever," stated Paul Brink, CEO. "We achieved record annual top-line and bottom-line results. GEO sales growth was driven by an increased contribution from Cobre Panama, outperformance by Antamina and contributions from new acquisitions. The advantage of our diverse portfolio was again demonstrated in 2021. High iron ore prices during the year boosted revenues from our iron ore holdings and rising energy prices resulted in our energy revenues more than doubling. Following 2021's rapid GEO growth, we expect slightly lower GEOs in 2022 and then to continue our growth through 2026. With limited exposure to inflation, our top-line growth translated directly into expanded margins and record earnings. Franco-Nevada is debt-free, is growing its cash balances and has a strong pipeline of growth opportunities."

2021 was a year of significant growth for Franco-Nevada, with record revenue and a 27.0% year-over-year increase in total GEOs. In 2022, we anticipate a slightly lower production profile in comparison to 2021, with our attributable GEOs expected to range between 680,000 and 740,000 GEOs. Of this, our Precious Metal assets are expected to contribute between 510,000 and 550,000 GEOs. The outlook reflects an expected lower contribution from our Guadalupe-Palmarejo stream and expected lower grades at Antamina and Antapaccay in 2022.

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