The gold market could see new bullish momentum as the world could see a new type of gold standard.
Friday, according to state-run RT, the Russian government has confirmed that Brazil, Russia, India, China and South Africa, also known as BRICS nations, will introduce a new trading currency backed by gold. The official announcement is expected to be made during the BRICS summit in August in South Africa.
The latest news is adding new momentum to the ongoing de-dollarization trend unfolding in the global economy. Since mid-2022, central banks worldwide have been buying gold at a historic pace in part to diversify their reserve away from the U.S. dollar.
For many analysts, a gold-backed currency is the next evolution in this process. Many analysts have seen China’s recent gold purchases as an attempt to bring international credibility to the yuan.
At the same time, the U.S. government’s weaponization of the U.S. dollar against Russia for invading Ukraine has created some geopolitical uncertainty among some nations allied with Russia.
While the prospect of a gold-backed BRICS currency will provide significant support to gold, some analysts expect that it will take time before the impact is felt in the market.
Thorsten Polleit, chief economist at Degussa, said that while the announcement is a step in the right direction, there is still a long way to go to become reality.
“At first glance, a new transaction unit, backed by gold, sounds like good money – and it could be, first and foremost, a major challenge to the US dollar’s hegemony,” he said in an exclusive comment to Kitco News.
However, Polleit added that the devil is in the details.
“For making the new currency as good as gold, a truly sound currency, it must be convertible into gold on demand. I am not sure whether this is what Brazil, Russia, India, China and South Africa have in mind,” he said. “Using gold as money, the unit of account would be a true game changer, no doubt about it. It could lead to a sharp devaluation of many fiat currencies vis-à-vis the yellow metal (including the BRICS fiat currencies), and it could catapult up goods prices in terms of fiat currencies. It could be a shock to the global fiat money system. I am not sure that this is what the BRICS wish to achieve.”
Polleit added that another option would be for the BRICS nation to create a new bank for financing foreign trade that would require holding gold as capital.
“Against this gold stock, the new bank could, say, grant financing loans to exporters, and issue the “new currency”; or BRICS exports will be sold against the “new currency” and/or gold,” he said. “I think it is fair to say that it is early to come up with a final conclusion where this will lead us to – we need more details.”
Naeem Aslam, chief investment officer at Zaye Capital Markets, said that while this could provide long-term support for gold, the precious metal continues to face short-term challenges. He added that despite the announcement, the world is still far from seeing a gold-backed currency.
“But this doesn’t mean this can’t be achieved at all,” he said. “For now, any additional positive news on this could certainly help the gold price, but more importantly, traders are now going to be focused on the US CPI data, which is due next week.”
Other analysts remain highly doubtful about the announcement.
“Talk of BRICS gold backed currency seems like an echo chamber. They do not have the gold to back a currency meaningfully,” said Marc Chandler, managing director of Bannockburn Global Forex. “Have we not learned anything from the EMU experience of monetary union without fiscal union. Color me profoundly skeptical.”
Many analysts have been speculating about a new global currency to challenge the U.S. dollar’s role as the world’s reserve currency. In late March, Former Goldman Sachs chief economist Jim O’Neill wrote in a paper published in the Global Policy Journal that the U.S. dollar’s dominance is destabilizing global monetary policies. He added that a BRICS currency, challenging the U.S. dollar’s dominance, would bring stability to the global economy.
“Whenever the Federal Reserve Board has embarked on periods of monetary tightening, or the opposite, loosening, the consequences on the value of the dollar and the knock-on effects have been dramatic,” he said.
By
Neils Christensen For Kitco News
Contact nchristensen@kitco.com www.kitco.com
Original Source: https://www.kitco.com/news/2023-07-07/Russia-confirms-BRICS-will-create-a-gold-backed-currency.html
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India is imposing a 20% refundable tax on foreign expenses made in INR. While this money will theoretically be refunded in the following tax assessment, you will lose value because of high inflation. Moreover, most people will not claim this money, for they fear audits and harassment by rapacious tax officers. This fear has been a boon for Hawala transactions, which have drained the US dollar from the streets of India. Here are my thoughts:
India is imposing a 20% refundable tax on foreign expenses made in INR. While this money will theoretically be refunded in the following tax assessment, you will lose value because of high inflation. Moreover, most people will not claim this money, for they fear audits and harassment by rapacious tax officers. This fear has been a boon for Hawala transactions, which have drained the US dollar from the streets of India. Here are my thoughts:
As time has passed, corruption has become more blatant in India, and fanaticism is rapidly increasing. Previously, the US used to hold a higher moral ground. However, today, being woke and expedient, it hosts those it once used to ban from entry. Here are my thoughts on Modi’s recent visit to the US:
On Investments
I recently had a conversation with Maurice Jackson about why most people make a horrendous mistake by conflating resource companies with the underlying commodities they represent. We also discussed several coal companies:
Here are some more companies that have my attention:
Irving Resources (IRV; C$0.72): IRV has three drill rigs, with one operating 24 hours a day at the Omu project in Hokkaido. They have over $7 million in cash. Newmont is increasing its ownership in IRV by financing it at C$1.03 per share, a significant premium to the current share price.
Maritime Resources (MAE; C$0.04): They are buying the Point Rousee project from Signal Gold. And I wouldn’t be surprised if they bid for the now-defunct Rambler Mines. MAE can create good value if they do this combination right. To protect my downside, I wouldn’t buy it for more than C$0.04.
Rockcliff Metals (RCLF; C$0.035): RCLF is being acquired by Hudbay. At C$0.035, there would be a 19% arbitrage upside.
Nameson Holdings (HK:1982; HK$0.47): Nameson is a small knitwear manufacturing company catering to some of the top international brands. My clients and I have been invested in it for several years. The dividend yield is >10%. I expect the next dividend to be much higher.
The next Capitalism & Morality will be held on the 9th of September 2023. If this philosophy seminar interests you, please use the following coupon code to get a 10% discount rate: 1984. The ticket price will go up next week.
Disclaimer: All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment, or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. The sole purpose of these musings is to show my thinking process when analyzing a stock, not to provide any recommendations. I will not and cannot be held liable for any actions you take resulting from anything you read here. Conduct your due diligence, or consult a licensed financial advisor or broker before making any investment decisions. Any investments, trades, speculations, or decisions made based on any information found on this site, expressed or implied herein, are committed at your own risk, financial or otherwise.
Vancouver, British Columbia–(Newsfile Corp. – June 28, 2023) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX”) is pleased to report that all proposed resolutions were approved at the Company’s Annual General and Special Meeting of shareholders held on June 28, 2023, in Vancouver, British Columbia (the “Meeting“). The number of directors was set at 6 and all director nominees, as listed in the Management Information Circular dated May 13, 2023 (the “Information Circular”), were elected as directors of the Company at the Meeting to serve for a one-year term and hold office until the next annual meeting of shareholders. According to the proxy votes received from shareholders, the results were as follows:
Director
Votes FOR
Votes WITHHELD
David M. Cole
96.58%
3.42%
Sunny Lowe
96.01%
3.99%
Henrik Lundin
96.27%
3.73%
Larry M. Okada
93.66%
6.34%
Geoff Smith
96.44%
3.56%
Michael D. Winn
99.19%
0.81%
Shareholders voted 97.22% in favour of setting the number of directors at six, 99.11% in favour of appointing Davidson & Company LLP, Chartered Accountants as auditors, 94.50% in favour of ratifying and approving the Company’s Stock Option Plan, 94.46% in favor of approving certain amendments to the Company’s Stock Options Plan; and 94.51% in favor of approving certain amendments to the Company’s Restricted Share Unit Plan.
Voting results for all resolutions noted above are reported in the Report on Voting Results as filed under the Company’s SEDAR profile on June 28, 2023.
About EMX. EMX is a precious, base and battery metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”, and also trade on the Frankfurt exchange under the symbol “6E9”. Please see www.EMXroyalty.com for more information.
North Vancouver, British Columbia–(Newsfile Corp. – June 28, 2023) – Lion One Metals Limited (TSXV: LIO) (OTCQX: LOMLF) (ASX: LLO) (“Lion One” or the “Company”) is pleased to provide an update on construction progress at its 100% owned Tuvatu Alkaline Gold Project in Fiji.
Highlights:
Mine construction is approximately 75% complete.
Earthworks and concrete works are substantially complete, structural steel is 70% complete.
The project is fully funded and on track for delivery of first gold in Q4 CY 2023.
Figure 1. Tuvatu Gold Mine Under Construction. See below for additional images.
Mine construction is approximately 75% complete and remains on track for delivery of first gold in Q4 2023. Earthworks and concrete works are substantially complete, with over 3,500 m3 of concrete poured to date. Structural steel is 70% complete and is progressing rapidly. All the components required to commission the processing plant are on site and a team of 350 contractors and employees are working together to bring the project towards completion. Once complete, Lion One plans to operate the processing plant at an initial production capacity of 300 tonnes per day for the first 18 months of operations before increasing the capacity to 500 tonnes per day in mid-2025. Lion One is fully funded to complete mine construction and bring the Tuvatu Alkaline Gold Project into production by the end of the year.
Videos of construction progress can be viewed on the company’s website (www.liononemetals.com). A summary of construction items that are in progress or complete is shown in Table 1 below.
Site Infrastructure
A large portion of the site infrastructure is complete, including the site office, the mine changeroom, the mine workshop, the fresh water supply system, the sewage treatment plant and the waste rock crusher and screener, all of which are commissioned and in use. The construction of the power plant, which consists of six 800 KW generators and one 1,500 KW generator for a total 6.3 MW, is in progress.
Crushing and Conveying
The Lion One processing plant will treat material using a two-stage crushing process, with a primary jaw crusher and a secondary cone crusher. A system of three conveyor belts will transport material between the two crushers and on to the processing plant. The jaw crusher, cone crusher, conveyor belt 1 and conveyor belt 2 are all in place while conveyor belt 3 has been fabricated and needs to be lifted into place. Piping and electrical work remains to be completed. The ROM pad has also been constructed and is in use, with minor upgrades remaining to be completed.
Grinding, Concentrating, Leaching and Recovery
Material from the crushing process will be fed to a two-stage grinding circuit, followed by an integrated two-stage gravity concentration circuit. Some concentrates will then be treated by an intensive cyanide leaching reactor and the remainder of the concentrates will be leached using conventional cyanide Carbon in Leach (CIL) technology. Gold will be recovered from the gold laden carbon using conventional absorption desorption recovery (ADR) technology and smelted on site to produce gold doré bars. Construction is advancing rapidly on the grinding, concentrating, and leaching circuits, as well as on the necessary supporting infrastructure such as warehouses and workshops. Ball Mills 1 and 2 are in place, the leaching tanks are in place, and Reagent Warehouse 1 is nearing completion. All other components of the processing plant are in progress at varying levels of completion. Electrical and piping work remains to be completed.
Tailings Storage Facility (TSF)
Tailings from the processing plant will be treated using the SO2/air process to remove any residual cyanide and will be filtered to produce filtered tailings which will then be transported to the TSF for storage. Stage 1 of the TSF will consist of a dam with a finish level at 115 m elevation, and a pond with enough capacity for 18 months of operation. The tailings dam has currently been built to an elevation of 107 m. TSF construction has been ongoing since June 2022 and the TSF is anticipated to be in operation in Q4 of 2023. Other components of the TSF, such as diversion channels, dam spillway, and liner installation are advancing simultaneously.
Underground Developments
Underground mining of the URA1 , URW1a and URW1b lodes is ongoing. The main decline has reached a vertical depth of 99.4 m below surface and a total length of 344 m from the mine portal. The link drive connecting the main decline to the historical exploration decline has been completed and measures 140 m from the junction with the main decline to the junction with the historical exploration decline. The link decline was driven from the main decline to the exploration decline and broke through the exploration decline on June 21st, 2023.
The completion of the link drive is a major milestone in the development of the mine as it enables the Stage 1 primary ventilation system to be installed. The Stage 1 primary ventilation system consists of four 55KW exhaust fans that are being installed at the entrance to the historical exploration decline, and which will provide ventilation throughout the mine. The Stage 1 primary ventilation system will provide sufficient ventilation to mine all the way down to the 500 zone, which is part of the high-grade feeder zone underlying Tuvatu and which comprises a major component of the mine plan. The completion of the link drive also enables mineralized lodes to be mined both from the historical exploration decline as well as from the main decline, thereby increasing the number of faces available to mine and adding considerable flexibility to the mining operations.
In addition to the link drive and ventilation system, a high voltage power plant and an underground compressor are also being installed to support underground mining operations.
Table 1. Status of Major Mine Components Under Construction.
Processing Plant
Item
Construction/Installation Progress
ROM Pad
Nearing Completion
Jaw Crusher
Complete
Cone Crusher
Complete
Conveyor Belt 1
Nearing Completion
Conveyor Belt 2
Nearing Completion
Conveyor Belt 3
In Progress
Ball Mill 1
Complete
Ball Mill 2
Complete
Gravity Circuit
In Progress
Intensive Leaching Circuit
In Progress
Leaching Tanks
Nearing Completion
Filter Press System
In Progress
Reagent Warehouse 1
Nearing Completion
Reagent Warehouse 2
In Progress
Electrowinning and Carbon Regeneration Workshop
In Progress
Gold Room
In Progress
Main Power Plant
In Progress
Supporting Infrastructure
Item
Construction/Installation Progress
Mine Changeroom
Complete
Mine Workshop
Complete
Site Office
Complete
Surface Magazine Storage
Complete
Mill Maintenance Workshop
Planning
Site CCTV and Fibre Optic Cable Installation
Nearing Completion
Fresh Water Supply System
Complete
Sewage Treatment Plant (STP)
Complete
Diesel Generator Power Plant Installation
In Progress
Waste Rock Crusher and Screener
In Production
Water Retention Pond
Complete
Coreshed Expansion
Complete
Tailings Storage Facility (TSF)
Item
Construction/Installation Progress
Tailings Dam (Stage 1)
In Progress
North Diversion Channel
Complete
South Diversion Channel
In Progress
TSF Basin Excavation
In Progress
TSF Dam Spillway
In Progress
HDPE Liner Installation
In Progress
Underground Developments/Upgrades
Item
Construction/Installation Progress
Link Drive Connecting Main and Exploration Declines
Complete
HV Power Plant
In Progress
UG Compressor Installation
In Progress
Stage 1 Primary Ventilation
In Progress
Images
Figure 2. Oblique aerial view of mine site under construction, June 16, 2023.
Figure 7. Location of link drive in relation to the main decline and the historical exploration decline. Mineralized lodes are shown in transparent grey. Connecting the main decline to the exploration decline enables the Stage 1 primary ventilation system to be installed and enables mining of the lodes accessed through the exploration decline.
About Tuvatu The Tuvatu Alkaline Gold Project is located on the island of Viti Levu in Fiji. The January 2018 mineral resource for Tuvatu as disclosed in the technical report “Technical Report and Preliminary Economic Assessment for the Tuvatu Gold Project, Republic of Fiji”, dated September 25, 2020, and prepared by Mining Associates Pty Ltd of Brisbane Qld, comprises 1,007,000 tonnes indicated at 8.50 g/t Au (274,600 oz. Au) and 1,325,000 tonnes inferred at 9.0 g/t Au (384,000 oz. Au) at a cut-off grade of 3.0 g/t Au. The technical report is available on the Lion One website at www.liononemetals.com and on the SEDAR website at www.sedar.com.
Qualified Person In accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43- 101”), Patrick Hickey, Chief Operating Officer, is the Qualified Person for the Company and has reviewed and is responsible for the technical and scientific content of this news release.
About Lion One Metals Limited Lion One’s flagship asset is 100% owned, fully permitted high grade Tuvatu Alkaline Gold Project, located on the island of Viti Levu in Fiji. Lion One envisions a low-cost high-grade underground gold mining operation at Tuvatu coupled with exciting exploration upside inside its tenements covering the entire Navilawa Caldera, an underexplored yet highly prospective 7km diameter alkaline gold system. Lion One’s CEO Walter Berukoff leads an experienced team of explorers and mine builders and has owned or operated over 20 mines in 7 countries. As the founder and former CEO of Miramar Mines, Northern Orion, and La Mancha Resources, Walter is credited with building over $3 billion of value for shareholders.
On behalf of the Board of Directors of Lion One Metals Limited “Walter Berukoff“, Chairman and CEO
Neither the TSX Venture Exchange nor its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this release
This press release may contain statements that may be deemed to be “forward-looking statements” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects Lion One Metals Limited’s current beliefs and is based on information currently available to Lion One Metals Limited and on assumptions Lion One Metals Limited believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports, assessment reports, and other geological reports or prior exploration results. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Lion One Metals Limited or its subsidiaries to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the stage development of Lion One Metals Limited, general business, economic, competitive, political and social uncertainties; the actual results of current research and development or operational activities; competition; uncertainty as to patent applications and intellectual property rights; product liability and lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting mining, timing and availability of external financing on acceptable terms; not realizing on the potential benefits of technology; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Although Lion One Metals Limited has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Lion One Metals Limited does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
