Investors Remain Keen on Gold as a Potential Hedge to Inflation

USA - English

• USA - English

NEW YORK, July 13, 2021 /PRNewswire/ -- The gold market held steady at around USD 1,805 an ounce on Monday. Additionally, the U.S inflation data from June is indicating that gold prices may benefit from the current economic environment. "It is possible that the U.S. inflation data will give prices a boost when they are released tomorrow. They are likely to show that consumer prices once again rose sharply month-on-month in June," said Commerzbank analyst Carsten Fritsch, according to Kitco. "This could make market participants focus more on gold's role as an inflation hedge again. This at least would be the case assuming that the expectations of Fed rate hikes do not increase at the same time." Falcon Gold Corp. (TSX-V: FG) (OTC: FGLDF), Agnico Eagle Mines Limited (NYSE: AEM), B2Gold Corp. (NYSE: BTG), Sandstorm Gold Ltd. (NYSE: SAND), Kinross Gold Corporation (NYSE: KGC)

Going forward, inflation is expected to play a major role in deciding the future of gold. According to the International Monetary Fund (IMF), USD 12 Trillion has been pumped into global financial markets as governments and central banks worldwide have tried to stabilize the economy that was devastated by the pandemic. Investors are now speculating that the fallout will be seen in higher inflation, especially when the economic activity picks up in the second half of the year. When prices rise and the value of the dollar falls, gold is often seen as a hedge against inflation.

Falcon Gold Corp. (TSX-V: FG) (OTC: FGLDF) just announced breaking news that, "it has acquired a significant land position within the Hope Brook Area, Newfoundland. Falcon has now staked a total of 996 claims (24,900 hectares) which are strategically located and contiguous to First Mining Gold, Sokoman Minerals-Benton joint venture, and Marvel Discovery Corp.

Falcon's Chief Executive Officer, Karim Rayani commented, 'Exploration activity within Newfoundland continues to accelerate with no sign of slowing down. We are thrilled to position Falcon Gold in this very strategic land position. The Hope Brook mine was and is a very significant gold deposit intimately associated with structure. Falcon's land is situated in a very active structural corridor giving us a tremendous opportunity for success.  This key acquisition covers 996 claims totaling 24,000 hectares and is directly tied onto First Mining; Sokoman & Benton's JV and now Marvel Discovery.'

Within this immediate aera, the most significant deposit is the Hope Brook gold mine which was in production from 1987 to 1997 producing 752,163 ounces of gold. The Hope Brook deposit is now owned by Coastal Gold Corp who have outlined an additional 6.33 million tonnes at an average grade of 4.68 gpt Au for 954,000 ounces of gold in the indicated and inferred categories (https://firstmininggold.com/projects/partnerships/hope-brook-project/).

Falcon's new land acquisition is hosted within the Exploits Subzone of the central Newfoundland gold belt. The property covers extensions or is proximal to two major structures linked to significant gold prospects (Cape Ray, Matador Mining) and deposits (Hope Brook, First Mining) in southern Newfoundland (Figure 2). Rock lithologies and structures on the property are also related to those associated with Marathon Golds Valentine Gold Deposits, Sokoman's Moosehead gold project and New Found Gold's Queensway gold project.  Falcon's land position straddles both the eastern and western extents of recent land acquisitions by the Sokoman/ Benton JV partnership with Falcon now controlling areas of considerable structural complexity marked by large scale fold and fault structures which provide important structural controls (traps) for gold mineralization within this area.

Qualified Person - Mr. Mike Kilbourne, P. Geo, an independent qualified person as defined in National Instrument 43-101, has reviewed, and approved the technical contents of this news release on behalf of the Company. The QP has not completed sufficient work to verify the historic information on the properties comprising the Hope Brook property, particularly regarding historical exploration, neighboring companies, and government geological work. The information provides an indication of the exploration potential of the Property but may not be representative of expected results."

Agnico Eagle Mines Limited (NYSE: AEM) provided last week an update on exploration activities at several projects and select mine sites. The Company's exploration focus remains on pipeline projects, near-mine opportunities and mineral reserve and mineral resource replacement and growth. "Last year, the Company generated strong exploration results at several of its key projects. As a result, in 2021, we embarked on the most ambitious exploration program in Agnico Eagle's 64-year history to investigate the full potential of existing operations and key projects in the Company's pipeline," said Sean Boyd, Agnico Eagle's Chief Executive Officer. "At mid-year, we are continuing to see positive results from this initiative, with drilling encountering a new parallel gold zone at East Gouldie, significant high-grade mineralization that further expands the Footwall Zone at Upper Beaver, and results confirming the potential to expand the Doris Deposit at Hope Bay. In addition, we continue to generate significant exploration results at key production assets such as Kittila and Meliadine," added Mr. Boyd.

B2Gold Corp. (NYSE: BTG) reported back ion April its gold production and gold revenue for the first quarter of 2021. All dollar figures are in United States dollars unless otherwise indicated. Total consolidated gold production in the first quarter of 2021 was 220,644 ounces (including 15,001 ounces of attributable production from Calibre), above budget by 9% (18,542 ounces), with solid performances from the Company's three operating mines which all exceeded their budgeted production for the quarter. The Fekola Mine in Mali continued its strong operational performance through the first quarter of 2021, producing 125,088 ounces of gold, 7% (8,088 ounces) above budget, as the Fekola processing facilities continued to outperform.

Sandstorm Gold Ltd. (NYSE: SAND) reported last week that the Company sold approximately 18,000 attributable gold equivalent ounces and realized preliminary revenue of USD 32.4 Million during the three months ended June 30th, 2021, both representing a record for the Company. Preliminary cost of sales, excluding depletion for the three month period was USD 4.1 Million resulting in cash operating margins1 of approximately USD 1,570 per attributable gold equivalent ounce. Sandstorm Gold Royalties is a gold royalty company that provides upfront financing to gold mining companies that are looking for capital and in return, receives the right to a percentage of the gold produced from a mine, for the life of the mine.

Kinross Gold Corporation (NYSE: KGC) announced back in May its results for the first-quarter ended March 31st, 2021. Three largest producing mines – Paracatu, Kupol and Tasiast – accounted for 60% of production and were the lowest cost mines in the portfolio. J. Paul Rollinson, President and CEO, made the following comments in relation to 2021 first-quarter results: "Our diversified portfolio of mines performed well to start the year, as we continued to mitigate the impacts of COVID-19 across all our operations and projects. The Company delivered a 51% year-over-year increase in adjusted net earnings, with margins increasing 25% to $1,031 per ounce sold, once again outpacing the increase in the average realized gold price. We are well-positioned to continue generating strong cash flow through the year, are on track to meet our annual guidance, and we are in an excellent financial position. Our three largest producing mines – Paracatu, Kupol and Tasiast – delivered our lowest costs for the quarter, with Paracatu and Tasiast achieving record quarterly throughput. Development at our Tasiast 24k and La Coipa projects advanced well and both projects remain on schedule. Our studies at Udinsk, Manh Choh and Lobo-Marte are all proceeding as planned."

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