Why Experts See Gold Remaining A Haven Into 2021 And Beyond

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Apr 13, 2021, 09:20 ET

PALM BEACH, Fla., April 13, 2021 /PRNewswire/ -- Wealth Managers and many investors are hopefully anticipating a more positive year in 2021. COVID-19 is still with us, but with vaccines being distributed and inoculating more and more people, things are looking up. Along with government stimuli and businesses adapting to this "new normal", recoveries are occurring in various sectors and regions. However, new infection waves and new COVID strains have created obstacles for already stretched economies. Nevertheless, experts view gold and other precious metals as havens for wealth protection and growth, whichever way markets and economies respond in 2021. If instability reigns, gold and silver have shown throughout the COVID crisis of 2020 that they can withstand turmoil better than most other investments. And if markets recover, gold will remain an excellent hedge for any fluctuations that may come. A report from wealth managers, J. Rotbart & Co. said that: "Not only did gold and silver perform better than many other investments in 2020, but gold prices broke records as well. COVID-19 threw the global economy into turmoil as supply chains slowed down or halted and every industry felt the impact directly or indirectly. Governments and central banks responded with lower interest rates and quantitative easing measures. This created the ideal environment for gold and other precious metals to shine, so to speak. And they did, even as other markets recovered, gold increased and maintained its value." Active mining stocks mentioned in today's commentary include: Ridgestone Mining Inc. (OTCQB: RIGMF) (TSX-V: RMI), Freeport-McMoRan Inc. (NYSE: FCX), Hudbay Minerals Inc. (NYSE: HBM) (TSX: HBM), Vale SA (NYSE: VALE), Capstone Mining Corp. (TSX: CS) (OTCPK: CSFFF).

The report continued that The US Dollar could be an indicator of gold's future, saying that: "Specific to the US, which remains the major economic influence worldwide, gold prices will also depend on the dollar index. The US Federal Reserve's monetary policy determines this. Discussions from the most recent Federal Reserve meeting indicated an optimistic outlook, leading to an upgraded growth forecast for the US economy. If COVID containment and control continues, the dollar may strengthen as the Fed scales back its recovery measures to let the economy stand on its own two feet. This strengthening could bolster the stock markets, causing lower demand for gold and a price drop. This drop, if any, however, we feel may not be impactful. As other central banks are planning on increasing their gold reserves as a protective measure in case of a new COVID strain or second wave of infections, so will more prudent investors follow their lead."

Ridgestone Mining Inc. (TSX-V: RMI) (OTCQB: RIGMF) (FSE: 4U5) BREAKING NEWS - RIDGESTONE COMMENCES EXPLORATION AT ITS HIGH-GRADE REBEICO COPPER-GOLD PROJECT IN MEXICO - Ridgestone Mining ("Ridgestone") is pleased to announce a phased exploration plan at its wholly-owned Rebeico project in Mexico. Work to date has been positive and indicates that the identified copper-gold mineralization on the Rebeico claims may be part of a much larger mineralized system and is most likely related to this system.

The current exploration phase will be comprised of geologic mapping, sampling and prospecting with the aim of delineating additional targets for follow-up exploration drilling. Specifically, the program will focus on the New Year Zone, the Santa Elena outcrop, and the El Cobre mine. In addition, the program will evaluate a number of copper and gold prospects identified on the project.

"We are excited to remobilize to the Rebeico project specifically given the significant past exploration efforts which have already delineated a number of high-grade copper and gold opportunities within the expansive property package" stated Jonathan George, Ridgestone's CEO and Director. "Our focus of this next phase of exploration is to refine and prioritize the numerous copper and gold targets within the project area for a follow-up drill program and extend the areas of known mineralization." CONTINUED…. Read this full release more news for Ridgestone Mining by visiting: https://www.financialnewsmedia.com/news-rmi/

In other mining news of note:

Freeport-McMoRan Inc. (NYSE: FCX) recently announced that its Board of Directors ("Board") declared a cash dividend of $0.075 per share on FCX's common stock payable on May 3, 2021, to stockholders of record as of April 15, 2021. As previously reported on February 2, 2021, the Board adopted a financial policy for the allocation of cash flows aligned with FCX's strategic objectives of maintaining a strong balance sheet, increasing cash returns to shareholders and advancing opportunities for future growth.

The policy includes a base dividend of $0.30 per share per annum and a performance-based payout framework to be implemented following achievement of a net debt target in the range of $3-$4 billion, excluding project debt for additional smelting capacity in Indonesia. Under the performance-based payout framework, up to 50 percent of available cash flows generated after planned capital spending and distributions to noncontrolling interests would be allocated to shareholder returns and the balance to debt reduction and investments in value enhancing growth projects.

Hudbay Minerals Inc. (NYSE: HBM) (TSX: HBM) recently announced that the final land user agreement for Pampacancha has been completed and Hudbay now has full access to the site to begin pit development activities. "We are very pleased to have completed the final land user agreements at Pampacancha and we remain on track for first production in the second quarter of 2021, in line with guidance," said Peter Kukielski, Hudbay's President and Chief Executive Officer. "This major milestone was achieved due to collaboration between the community and the Constancia team, which further demonstrates Hudbay's strong social license to operate in Peru."

In January 2021, the company commenced pre-development activities, including haul road construction and site preparation work, which will allow Hudbay to commence pre-stripping activities shortly. Pampacancha is a high-grade copper and gold satellite deposit located approximately seven kilometres from Hudbay's Constancia mine and processing facilities in Peru. Pampacancha is expected to contribute to an increase in copper and gold production at Constancia from 2022 to 2025 as the higher grades enter into the mine plan.

Samarco Mineracao SA, a joint venture between Brazilian miner Vale SA (NYSE: VALE) and BHP Group Ltd, has recently filed for bankruptcy protection to prevent creditors' claims from affecting its operations, Vale said in a Friday securities filing.

The collapse of a dam at the Samarco mine complex in 2015 killed 19 people and severely polluted the Doce River with mining waste, one of Brazil's worst environmental disasters. The facility, which resumed production in December, is the focus of significant litigation from bondholders holding nearly $5 billion in debt.

"The (judicial reorganization) filing is necessary to prevent legal actions already underway ... from affecting Samarco's ability to produce, ship, receive for its exportations and to fund the normal course of its activities," the company said.

Capstone Mining Corp. (TSX: CS) (OTC: CSFFF) recently announced that it has entered into three separate agreements to advance Santo Domingo in Region III, Chile, ("Santo Domingo" or "the Project") as described in the Santo Domingo Project, Region III, Chile NI 43-101 Technical Report and Preliminary Economic Assessment¹ (the "Technical Report"), to construction targeted by year-end 2021.

"The gold stream and port agreements are key steps in our reduced capital strategy which aims to decrease the capital required by a target of $700 million. The consolidation of 100% ownership of the project allows Capstone to efficiently engage in discussions with potential strategic partners," said Darren Pylot, President and CEO of Capstone, "KORES is a large shareholder and they believe the company is at the forefront of significant copper growth." Jason Howe, Capstone's SVP Corporate Development stated, "this is another strong technical and financial endorsement from Wheaton and speaks to the potential of this fully permitted project in Chile. The Port deal is a partnership with a leading port services company whose track record is internationally recognized."

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