On Monday, June gold jumped to hit another 7-year high following the easing of risk concerns and the weakening of the US dollar. For equity investors, they are now eyeing the Q1 earnings season to commence tonight with reports from Wells Fargo and JPMorgan Chase.
Interestingly the Fed has eased on the rate of monthly and daily repo operations which imply that the fed is okay with available liquidity in the financial system. June gold jumped 0.5% or $8.60 to $1,761.4 per ounce which is the highest finish since 2012.
Gold Stocks Extend Rally #1 Sibanye-Stillwater
As concerns ease gold miners are recommencing operations. Sibanye-Stillwater (NYSE: SBSW) has announced that it will recommence some operations at its mines in South Africa as of April 14th. The South African government has given approval for processing and limited mining in one of the most important industries in the country.
Las Month company placed the mines under care and maintenance following a 21-day lockdown in South Africa to combat COVID-19. The company’s executive and the board will donate 33% of their salaries in the next three months to COVID-19 relief efforts.
Gold Stocks Extend Rally #2 Barrick Gold
However, as companies shuttered their operations during this pandemic Barrick Gold (NYSE: GOLD) has been operating because they have projects in different jurisdictions. The company has assets in Africa, Saudi Arabia, Papua New Guinea as well as North and South America.
The geographic diversity enables the company to mitigate risks of being pushed to shut operations in one jurisdiction. In 2019 the company produced around 5.5 million gold ounces.
Gold Stocks Extend Rally #3 Yamana Gold
In other developments, Yamana Gold (NYSE:AUY) has announced that it has sold warrants and shares of Equinox Gold (NYSEAMERICAN:EQX) for $144.28 million. The company signed an agreement with Cormark Securities and Stifel GMP to sell 12 million shares at CA$10 per share to qualified buyers for proceeds of around CA$120 million.
For every unit, a buyer will buy they will get one common Equinox share and one and a half Yamana share purchase warrant. Yamana will use proceeds for corporate purposes.