Is Recent Uncertainty in the Markets a Big Catalyst for Higher Gold Prices Going Forward

FinancialNewsMedia.com News Commentary 

PALM BEACH, Fla., June 8, 2022 /PRNewswire/ -- Gold always seems to be projected in the long term irrespective of short-term ups and downs. For example, Gold prices hit an all-time high in 2020 as the coronavirus pandemic wreaked havoc and the resulting uncertainty supported the precious metal but it has fallen and risen since then. Here is what expert analysts see what 2025 will look like. An article in Market Realist discussed where it would be in 2025. It said: "Fed Chair Jerome Powell indicated that the U.S. job market still has some way to go on the recovery path. Therefore, it might be some time before the Fed starts tightening again. Lower interest rates and a dovish monetary policy are usually positive for gold prices. According to the consensus compiled by S&P Global, the price prediction for gold by 2025 is $1,675.7 per ounce. This is 8 percent lower than the prediction for 2022, which is $1,812.4 per ounce. The improving risk appetite and prospects of stimulus tapering down the line have capped the upgrades of gold going forward. World Bank forecasts that the nominal gold prices should decline by 2025 before they trend higher again through 2030 and 2035. There are a lot of factors that could lead to weaker gold prices four to five years down the line. Most of the bearish analysis leans on factors like the continuing post-pandemic recovery, a stronger U.S. dollar, and a Fed taper. However, there are a lot of factors that could propel gold prices much higher in the next three to five years. While people are highlighting factors like higher interest rates going forward, they're ignoring some concomitant factors. The Fed is taking a look at the recent inflation data, which has remained strong. Even going forward, economists are forecasting higher inflation for many years to come."  Active companies in the markets this week include Osceola Gold Inc. (OTC: OSCI), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), New Gold Inc. (NYSE: NGD) (TSX: NGD), IAMGOLD Corporation (NYSE: IAG) (TSX: IMG), B2Gold Corp. (NYSE AMERICAN: BTG) (TSX: BTO).

Market Realist added: "According to economists surveyed by The Wall Street Journal, inflation should see an annual increase of 2.58 percent from 2021 to 2023, which puts inflation at levels last seen in 1993. Higher inflation lowers the real interest rates. Also, higher inflation lowers the value of fiat money. Therefore, people like holding gold in times of higher inflation, which could be a big catalyst for higher gold prices going forward. Therefore, there are still a lot of uncertainties and factors that will support higher gold prices in the long term. The currency debasement and massive money printing by central banks are still the main concerns that can propel gold to greater heights in the long term and should keep on providing tailwinds to gold come 2025."

Osceola Gold Inc. (OTC: OSCI) BREAKING NEWS: Osceola Gold Advances into Full Production as Operations Gain Momentum - Osceola Gold Inc., a precious metal mining company that focuses on the development and exploration of gold and other precious metal mining projects, is fully open and has advanced into full operational status.

All necessary on-site preparation has been completed and the initial target testing is concluded. Mav G and Solomon #6 were tested and have begun producing. 

The additional equipment now being delivered to enhance production includes the Volvo A25E Haul Truck, Caterpillar 966F Loader and an additional Excavator.

The crew has been strengthened with additional personnel for the rotation of multiple shifts to maximize usage of the current and additional equipment. This will allow for greater efficiency and maximized results.

To keep shareholders fully engaged, the WST TV production crew will be on site the week of June 27^th to showcase the process and demonstrate the scope of Operations. On-site video updates will be made available online from the footage for shareholders to view.

The production schedule that Osceola Gold has set in place will yield an estimated 150 tons of dirt per hour which will generate approximately ½ to 1 ½ grams per ton. Within these projections we should be yielding 2.41 ounces per hour contained by the capacity of the machinery. CONTINUED... READ THIS FULL RELEASE FOR OSCI AT: https://www.financialnewsmedia.com/news-osci/

Additional recent developments in the mining industry include:

New Gold Inc. (NYSE: NGD) (TSX: NGD) recently reported first quarter results for the Company as of March 31, 2022. The Company will host a conference call and webcast today at 8:30 am Eastern Time to discuss the first quarter consolidated results (details are provided at the end of this news release). For detailed information, please refer to the Company's First Quarter Management's Discussion and Analysis (MD&A) and Financial Statements that are available on the Company's website at www.newgold.com and on SEDAR at www.sedar.com. The Company uses certain non-GAAP financial performance measures throughout this news release. Please refer to the "Non-GAAP Financial Performance Measures" section of this news release and the MD&A for more information. Numbered note references throughout this news release are to endnotes which can be found at the end of this news release.

"The first quarter saw New Gold continue to advance our objectives with a focus on delivering on our 2022 plan and securing and extending the Company's longer-term future," stated Renaud Adams, President & CEO. "We delivered solid total gold production at Rainy River, despite an increase in COVID-19 cases and during a quarter in which capitalized waste stripping was prioritized. While we faced the inflationary challenges experienced across the industry, our teams remained disciplined with their objectives and with the benefit of a weaker Canadian dollar, delivered strong operating cash flow in the first quarter. We currently expect to deliver on our 2022 guidance, and our operations continue to review optimization opportunities and assess cost reduction initiatives to mitigate against inflationary pressures. We also continued to advance our longer-term priorities, including advancing the development of the Intrepid underground zone at Rainy River and the B3 ramp-up and C-Zone development at New Afton."

IAMGOLD Corporation (NYSE: IAG) (TSX: IMG) recently reported its financial and operating results for the first quarter ended March 31, 2022, the appointment of current Chair of the Board, Maryse Bélanger, as Interim President and CEO and an update to the Côté Gold Project.

Maryse Belanger, Chair of the Board and incoming Interim President and CEO, said: "The Company delivered good results in the first quarter of 2022, resulting primarily from solid operating performance at Essakane. However, preliminary cost estimates from the ongoing risk analysis at our Côté development project, coupled with the need for additional liquidity represent significant near- and mid-term challenges.

Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX) recently announced that it would spend $6 for every ounce of gold sold by its two mines in the country on improving healthcare, education, infrastructure and access to potable water in the communities around them.

At the same time, it has committed up to $70 million for investment in value-adding national projects, including mining-related training, skills development and scientific facilities at Tanzanian universities, as well as road infrastructure.

This is in accordance with the conditions underlying Barrick's framework agreement with the government, which included the establishment of their Twiga joint venture. Twiga oversees a 50/50 split of the economic benefits generated by the mines as well as their management.

B2Gold Corp. (NYSE AMERICAN: BTG) (TSX: BTO) recently announced that it has entered into a definitive Scheme Implementation Agreement ("Agreement") with Oklo Resources Limited (ASX: OKU) ("Oklo") pursuant to which B2Gold has agreed to acquire 100% of the fully paid ordinary shares of Oklo (the "Oklo Shares") in consideration for 0.0206 of a common share of B2Gold (each whole share, a "B2Gold Share") and A$0.0525 in cash for each Oklo Share held ("Scheme Consideration"). The Scheme Consideration represents a purchase price of approximately A$0.1725 for each Oklo Share and values the transaction at approximately A$91.3 million (including up to approximately A$27.4 million cash consideration). The transaction as contemplated by the Agreement (the "Transaction") will be implemented by way of a scheme of arrangement pursuant to Part 5.1 of the Australian Corporations Act 2001 (Cth) ("Scheme"). Upon implementation of the Scheme, in addition to the cash consideration, B2Gold expects to issue up to 10,754,284 B2Gold Shares to Oklo shareholders, representing approximately 1% of the B2Gold Shares on an undiluted basis.

The acquisition of Oklo is expected to provide B2Gold with an additional landholding of 1,405 km2 covering highly prospective greenstone belts in Mali, West Africa, including Oklo's flagship Dandoko Project (550 km2). The Oklo properties are located on a subparallel, north-trending structure east of the prolific Senegal-Mali Shear Zone, approximately 25 kilometres from the Fekola Mine and approximately 25 kilometres from the Anaconda area, where B2Gold is currently conducting a 2022 Mali drill program of approximately 225,000 metres of drilling with a budget of US$35.5 million.

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