Early Stage Exploration still low – despite higher prices Proportion of revenue spent on early stage Gold exploration continues to decrease. The shift away from early-stage exploration is part of a larger industrywide trend with more funds directed to late-stage and minesite assets than to grassroots work, which will put pressure on the industry’s…
How expensive is gold? Following the recent consolidation in gold prices a question that is frequently asked: Is Gold (too) expensive? There are many ways to try to answer this question – today we have looked at a ratio of the value of Gold stocks above-ground to the global market cap of all equities.…
M2 Money Stock and Velocity We continue to closely monitor the velocity of the M2 money stock – when trend is reversed a key driver for inflation, real interest rates and ultimately the gold price. Looking forward to comments or questions you might have. Please see presentation slide below. #sgi79 #incometcapital #gold #goldprice #wealthprotection #inflation #interestrates Download pdf here
Explorations Budget increase for Canada Exploration budgets for Canada declined by just 1% year over year in 2020, a much better showing than the 11% fall in the global budget. The $1.29 billion allocation was, however, a second consecutive decline, marking a three-year low and keeping Canada second behind Australia for a second year.…
Gold Miners Achieving record margins The COVID-19 crisis has shifted Gold demand from consumer to investment, driving prices higher and benefiting gold miners. The Gold miners performance is also impacted by other factors, which are outlined below. #gold #investment #mining #SGI79 #goldmining #fundmanagement #incometcapital Download pdf here
Covid-19 – Implications for the next normal and beyond Good management teams have reacted very fast will generate record high profits in 2020! Remote locations are certainly benefiting. Worth to read this article. #goldmining #SGI79 #Gold #Goldequities #covid19impacts McKinsey & Company Article
Gold Needs to “Glow Up” Good article from Sprott CEO Peter Grosskopf on the future of Gold “We believe that standardization and tokenization is the next critical step for gold. #goldprice #gold #preciousmetals #incometcapital #sgi79 Article Peter Grosskopf, CEO Sprott Inc.
Impact of COVID-19 on the mining industry Impact of COVID-19 (McKinsey): Production decreased by ~42%. Planned production reduction for 2020 was ~30%. Reasons for this decrease are a reduction in demand and limited workforce. Most operating costs increased by ~16%. Reasons are additional infrastructure and transportation costs. Capital costs Half of all operations have…
Through cycle investment in mining Our team has experienced several commodity cycles in the last 25 years and we can also just emphasize the importance of disciplined investments during a down cycle (Gold: 2011-2019; Copper: 2016-2019). Our operations have been optimized in the last two years to participate in the upcoming base metal super…
Current Macroenvironment – Financial Repression or Inflation We are of the view that all preconditions for a Financial Repression Scenario and a Hyperinflation Scenario are met. 1. Deficit Spending exceeding Critical Threshold – Hyperinflation 2. Quantitative Easing – Increasing Balance Sheets of CBs and Low Interest Rates 3. Development of M2 Money Stock versus…