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Barrick Unveils 10-Year Plan to Become World’s Most Valued Gold Miner SPONSOR: Loncor Resources $LN.ca $ABX.ca $TECK.ca $RSG $NGT.to $GOLD $NEM

Posted by AGORACOM at 11:24 AM on Monday, March 30th, 2020

Sponsor: Loncor, a Canadian gold explorer controlling over 2,400,000 high grade ounces outside of a Barrick JV. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 800,000 ounces of gold in 2018. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting their Tier One investment criteria. Newmont $NGT $NEM owns 7.8%, Resolute $RSG owns 27% Click Here for More Info

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Barrick unveils 10-year plan to become world’s most valued gold miner
  • Barrick unveiled a 10-year production plan aimed at becoming the most valued bullion company
  • Increasing production to 5 million ounces of gold a year
  • Boosted production at Kibali, Congo’s biggest gold mine, which last year beat its production guidance of 750,000 ounces of gold by a substantial margin, delivering a new record of 814,027 ounces.

Barrick Gold (TSX: ABX) (NYSE: GOLD), the world’s second largest gold miner, has unveiled a 10-year production plan, boosting Barrick’s production to about 5 million ounces of gold a year

The strategy, outlined in its first annual report since its merger with Randgold Resources, includes boosting Barrick’s production to about 5 million ounces of gold a year, with the bulk coming from its North American operations.

President and chief executive officer, Mark Bristow, said Nevada Gold Mines — its recent joint venture with Newmont (NYSE: NEM) — would be the “value foundation” of its business moving forward.

“Already the world’s largest gold mining complex, it holds enormous potential for growth,” Bristow said.

Bristow warned the new guidance might be impacted if operations were disrupted due to efforts to slow the spread of the covid-19.  He called the pandemic “a global disaster which is changing the way we work and live in a radically disruptive process with currently no clear end in sight.”

In the past year, Barrick has been focusing on its tier one assets and has reported strong performance across the group, particularly at Cortez mine in Nevada and Veladero in Argentina.

It has also boosted production at Kibali, Congo’s biggest gold mine, which last year beat its production guidance of 750,000 ounces of gold by a substantial margin, delivering a new record of 814,027 ounces.

Porgera in Papua New Guinea has tier one potential but faces many challenges in the form of legacy issues and an unruly neighbourhood,” Bristow said, adding the mine had exceeded guidance and the company continued to negotiate a 20-year lease extension with the government.

The executive, who took the helm in January 2019, said the work done over the past year had equipped Barrick to move to the next level.

“All in all, I am confident that we are more than capable of delivering on our promise: to build the world’s most valued gold company,” he said.

Bristow noted that Barrick’s definition of value was more wide-ranging and included factors such as economic benefits, the care with which it treated its people, communities and environments, its strategic focus on long-term sustainability and returns for investors.

Barrick unveils 10-year plan to become world’s most valued gold miner

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Posted in All Recent Posts, Lomiko Metals | Comments Off on Barrick Unveils 10-Year Plan to Become World’s Most Valued Gold Miner SPONSOR: Loncor Resources $LN.ca $ABX.ca $TECK.ca $RSG $NGT.to $GOLD $NEM

Loncor Increases Interest In Adumbi Mining To 76.29% $LN.ca $ABX.ca $TECK.ca $RSG $NGT.to $GOLD $NEM

Posted by AGORACOM at 8:26 AM on Wednesday, March 25th, 2020
  • Loncor has acquired an additional 5.04% interest in its subsidiary Adumbi Mining
  • Adumbi holds six exploitation licences in the Ngayu Greenstone Belt including the Imbo exploitation licence, where an Inferred Mineral Resource of 1.675 million ounces of gold (20.78 million tonnes grading 2.5 g/t Au

TORONTO, March 25, 2020 (GLOBE NEWSWIRE) — Loncor Resources Inc. (“Loncor” or the “Company“) (TSX: “LN”; OTCQB: “LONCF”) announces that it has acquired an additional 5.04% interest in its subsidiary Adumbi Mining SARL (“Adumbi Holdco”) pursuant to a private transaction with one of the former minority shareholders of Adumbi Holdco.  This acquisition increases Loncor’s interest in Adumbi Holdco from 71.25% to 76.29%.  “Loncor continues to consolidate its dominant position in the Ngayu Goldbelt.  Over the next twelve months we intend to drill the Adumbi gold deposit and several other highly prospective areas of the Imbo license,” said Founder and CEO, Arnold Kondrat.

Adumbi Holdco, which recently changed its name from KGL Somituri SARL, holds six exploitation licences in the Ngayu Greenstone Belt including the Imbo exploitation licence, where an Inferred Mineral Resource of 1.675 million ounces of gold (20.78 million tonnes grading 2.5 g/t Au,) was outlined in January 2014 by independent consultants Roscoe Postle Associates Inc on three separate deposits, Adumbi, Kitenge and Manzako.  76.29% of this gold resource is now attributable to Loncor.

About Loncor Resources Inc.
Loncor is a Canadian gold exploration company focussed on the Ngayu Greenstone Belt in the Democratic Republic of the Congo (the “DRC”).  The Loncor team has over two decades of experience of operating in the DRC.  Ngayu has numerous positive indicators based on the geology, artisanal activity, encouraging drill results and an existing gold resource base.  The area is 200 kilometres southwest of the Kibali gold mine, which is operated by Barrick Gold (Congo) SARL (“Barrick”).  In 2019, Kibali produced record gold production of 814,000 ounces at “all-in sustaining costs” of US$693/oz.  Barrick has highlighted the Ngayu Greenstone Belt as an area of particular exploration interest and is moving towards earning 65% of any discovery in 1,894 km2 of Loncor ground that they are exploring.  As per the joint venture agreement signed in January 2016, Barrick manages and funds exploration on the said ground at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Barrick.  In a recent announcement Barrick highlighted six prospective drill targets and are moving towards confirmation drilling in 2020.  Subject to the DRC’s free carried interest requirements, Barrick would earn 65% of any discovery with Loncor holding the balance of 35%.  Loncor will be required, from that point forward, to fund its pro-rata share in respect of the discovery in order to maintain its 35% interest or be diluted.

In addition to the Barrick JV, certain parcels of land within the Ngayu project surrounding and including the Makapela and Adumbi deposits have been retained by Loncor and do not form part of the joint venture with Barrick.  Barrick has certain pre-emptive rights over the Makapela deposit.  Loncor’s Makapela deposit (which is 100%-owned by Loncor) has an Indicated Mineral Resource of 614,200 ounces of gold (2.20 million tonnes grading 8.66 g/t Au) and an Inferred Mineral Resource of 549,600 ounces of gold (3.22 million tonnes grading 5.30 g/t Au).  Adumbi and two neighbouring deposits hold an Inferred Mineral Resource of 1.675 million ounces of gold (20.78 million tonnes grading 2.5 g/t Au), with 76.29% of this resource being attributable to Loncor via its 76.29% interest.   

Resolute Mining Limited (ASX/LSE: “RSG”) owns 25% of the outstanding shares of Loncor and holds a pre-emptive right to maintain its pro rata equity ownership interest in Loncor following the completion by Loncor of any proposed equity offering. 

Additional information with respect to Loncor and its projects can be found on Loncor’s website at www.loncor.com. 

Qualified Person
Peter N. Cowley, who is President of Loncor and a “qualified person” as such term is defined in National Instrument 43-101, has reviewed and approved the technical information in this press release. 

Technical Reports
Certain additional information with respect to the Company’s Ngayu project is contained in the technical report of Venmyn Rand (Pty) Ltd dated May 29, 2012 and entitled “Updated National Instrument 43-101 Independent Technical Report on the Ngayu Gold Project, Orientale Province, Democratic Republic of the Congo”.  A copy of the said report can be obtained from SEDAR at www.sedar.com and EDGAR at www.sec.gov. 

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Posted in All Recent Posts, Loncor | Comments Off on Loncor Increases Interest In Adumbi Mining To 76.29% $LN.ca $ABX.ca $TECK.ca $RSG $NGT.to $GOLD $NEM

Bob Moriarty Discusses Loncor Resources: The Fed, the Coronavirus and Investing SPONSOR Loncor Resources $LN.ca t $ABX.ca $TECK.ca $RSG $NGT.to $GOLD $NEM

Posted by AGORACOM at 3:02 PM on Wednesday, March 11th, 2020

Sponsor: Loncor, a Canadian gold explorer controlling over 2,400,000 high grade ounces outside of a Barrick JV. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 800,000 ounces of gold in 2018. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting their Tier One investment criteria. Newmont $NGT $NEM owns 7.8%, Resolute $RSG owns 27% Click Here for More Info

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Maurice Jackson of Proven and Probable speaks to Bob Moriarty of 321gold about his thoughts on the current financial markets and investment opportunity

  Excerpt: Maurice Jackson:……Staying in the Southern Hemisphere, let’s visit the Congo, where you just introduced Loncor Resources (TSX:LN). Sir, who is Loncor Resources, and what is the opportunity they present to the market?

Bob Moriarty: Here’s what’s absolutely amazing, I’m glad you brought that up. Loncor Resources approached me, I had never even heard a whisper of the name, I had no clue as to who they were. I went looking into it, they have an incredibly massive land position, in the Democratic Republic of Congo, the DRC.

Barrick Gold has several gold mines there, in the Greenstone Belt, and across the border in Tanzania. Barrick Gold has some of their other really giant mines. Loncor has, in their wholly owned properties, resources of about 2.4 million ounces. They’ve got joint venture with Barrack, on a big piece of their property, like 3000 square kilometers, which is a really big project. Barrick is funding it to feasibility, they’re paying everything. Barrick runs the project, and Barrick spends the money. There are no particular limits on what Barrick can spend, they can spend anything they want to. They’ve got a drill program that’s literally starting right now.

If you look at any stock, you want to figure out what the basement is, what is the lowest price the stock can go to? If you ignored the JV with Barrick, which would be a foolish thing to do, but if you ignored it, you’re buying ounces of gold, in the ground, for $19 an ounce, U.S. So, I don’t think there’s any downside to it. Approximately 70% of shares are in the top three or four shareholders. I think Loncor Resources is a great stock, because if you like gold, and I think after all of the things that I’ve said over the last 15 years, anybody who doesn’t like gold right now is economically illiterate.

Maurice Jackson: You know, you said that lightly, $19 an ounce.

Bob Moriarty: Yeah, yeah. How can you go wrong? At the stage they’re operating, they should be getting $50 or $60 bucks an ounce.

Now, one of the things that we haven’t gotten into, and we need to get into is, one, the T-bond, and, two, what I see happening to gold and gold shares. The T-bond Daily Sentiment Index (DSI), on Friday, hit 98. That is the highest rating I’ve seen, on the Daily Sentiment Indicator for any commodity, ever. Therefore, the T-bond’s going to crash, it’s probably going to take gold with it. Gold had a DSI of 96 a couple of weeks ago.

Everybody hates it. They act like, “Oh my God, you say that gold’s going down. My God, I hate you!” The corrections are perfectly normal, and we’re going to have a correction in gold, and we’re going to have a correction in palladium, and we’re going to have a correction in rhodium. We’re going to go into the biggest financial crash in world history, and most asset classes are going to get sold off. That’s not a bad thing, that creates opportunity, but you’ve got to be flexible, and hopefully liquid.

Now, I am not saying, “Go out and sell everything you’ve got.” Every time I say we’re going to have a correction, “Oh my God, you told me to sell everything.” Well, that’s not what I said, not at all. I said we’re going to have a correction. At the end of the correction, gold and silver and platinum are going to be a lot more valuable. We’re going to do exactly what we did in 2008. A lot of stocks were down 70% or 80%. Most of the big ones, the ones that I like, Lion One Metals, Novo Resources, Irving Resources, Barksdale Capital, these stocks are down 30 or 40% since the first of the year, when I said, “Beware of the stock market.”

I’m not saying something’s going to change on Monday with gold shares, gold shares have been going down for two months.

Maurice Jackson: You referenced Jake Bernstein’s work on the Daily Sentiment Index. What are the parameters that you referenced regarding buy and sell indicators?

Bob Moriarty: The DSI measures sentiment. Most investor look at fundamentals, technicals, worry about the interest rates, worry about the Fed. That’s all bull. People buy stocks because of emotions, and they sell stocks because of emotions. If you can measure those emotions accurately, you’d make a lot of money.

When 98 out of 100 people say something is going to go up, and it doesn’t make any difference what it is, or what the fundamentals are, or what the Fed does, or what the economy does, or what interest rates do, when 98 out of 100 people say something is going to go up, the next move is down. That is the highest number I’ve ever seen. Anything above 90 says the top is near, and anything below 10 says the bottom is near. 98 is such an extreme measure, that I’m perfectly comfortable saying that, you and I are talking on Saturday, and on Monday, T-bonds are going to go down.

Maurice Jackson: Mark the words, there. Which metals have your attention, and why?

Bob Moriarty: Silver and platinum, strange enough, you sent me some information (click here). There was a fire, an explosion at a platinum processing place in South Africa, and the real story is the price of platinum is so far below the cost of production, they’ve got to shut production.

Nobody wants to admit this, everybody’s got their own pet theory, but the fact is supply and demand does work. You cannot have the price of any commodity below the cost of production for very long, or things are going to happen. People are going to shut down production whether it’s wheat, whether it’s gold, or anything else. The silver gold ratio got above 100 to 1, that’s the highest it’s ever been. I think it got up to 102, intraday, a week ago. Silver was very cheap, relative to gold, but that doesn’t mean silver couldn’t correct. I own a lot of silver, and I own a lot of platinum, and a little bit of gold.

SOURCE: https://www.streetwisereports.com/article/2020/03/10/the-fed-the-coronavirus-and-investing.html

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Posted in All Recent Posts, Loncor | Comments Off on Bob Moriarty Discusses Loncor Resources: The Fed, the Coronavirus and Investing SPONSOR Loncor Resources $LN.ca t $ABX.ca $TECK.ca $RSG $NGT.to $GOLD $NEM

Loncor JV in the DRC with Barrick: SPONSOR Loncor Resources $LN.ca t $ABX.ca $TECK.ca $RSG $NGT.to $GOLD $NEM

Posted by AGORACOM at 11:09 AM on Thursday, March 5th, 2020

Sponsor: Loncor, a Canadian gold explorer controlling over 2,400,000 high grade ounces outside of a Barrick JV. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 800,000 ounces of gold in 2018. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting their Tier One investment criteria. Newmont $NGT $NEM owns 7.8%, Resolute $RSG owns 27% Click Here for More Info

This image has an empty alt attribute; its file name is Loncor-Small-Square.png

What if you gave a party and no one came? The Fed found themselves in that embarrassing position on Tuesday as they dumped a .5% drop in the Fed Funds rate onto a startled market. The market wasn’t startled at the interest rate decline, the market was startled because when the Fed spiked the punch one more time no one would drink the Kool Aid.

I’ve said for months the Fed would stick another Band-Aid on a fatally wounded financial system yet they would fail. I felt that way because I spent almost two years fighting a useless and pointless war.

You see we are all raised to believe that governments are all powerful. But if you watch a squadron of 27 B-52s each loaded with 117 bombs carpet sweep an area and your enemy armed only with a bolt action rifle gets up and shoots back at you, you begin to understand that government only think they are all powerful. There is always a limit to power. The Fed just reached it.

The Fed found that out on March 3rd. And it wasn’t even a tiny virus from a laboratory in Wuhan that defeated the Fed. It was a totally dysfunctional financial system where outright frauds such as Tesla can double in a week.

I’ll say it again. The Everything Bubble just burst, some because of the virus, some because of an out of balance useless financial system and a lot because of a now broken Just in Time manufacturing system totally dependent on China.

The metals are going to be included for a period as the margin clerks man their phones and whisper sweet words of doom to their clients. Everything is going to get sold. We are going into a massive period of deflation. At the end all those million dollar MacMansions will be going for pennies on the dollar. Gold might be $500 an ounce but will buy ten times what it does today. We have sailed off the edge of the known world.

I cannot predict the price of gold; many believe in error that they can. I can just say that after many trials and tribulations the world will realize that an honest monetary system is the only cure to what ails us. It will include a jubilee and a metals based currency.

So it would behoove investors to be looking around for production or near production stories.

Someone came to me a week ago with a compelling story of a company effectively off the radar screens of investors. Part of the reason is that the founder of Loncor Resources (LN-T) Arnold Kondrat owns 29% of the shares. Resolute Mining owns another 27% and Newmont 7.6%. With 64% of the shares in the strongest of strong hands, there hasn’t been all that much inclination to tell their story.

Loncor operates in the DRC, the Democratic Republic of the Congo. The company has such a massive land position that it’s fairly hard to understand why they have been so far off the radar of investors.

Loncor has 43-101 gold ounces of over 2.4 million. To use USD figures, at today’s stock price Loncor is worth $19 per ounce in the ground of gold. That no doubt will tend to set a floor under the price. At their stage of development they should be getting more like $50-$60 USD an ounce.

It’s pretty hard to fathom the incredible size of Loncor’s land position in the DRC. They hold 3,534 square km in the Ngayu greenstone belt with similar endowment and geology with the greenstone belt to their east in Tanzania home to several big gold mines. Within their Ngayu land position they have a joint venture with Barrick on 1,894 square km of the total property. Barrick has an active trenching and ground sampling program and is preparing to drill some of the six drill ready targets already identified. Drilling begins this month.

The JV with Barrick is interesting. First of all, Barrick knows the greenstone belt with big mines both in the DRC and in Tanzania. Barrick wants at least four million ounces and would prefer high grade. Barrick funds and runs the exploration program across the 1,894 square km all the way to completion of a pre-feasibility study.

The DRC has a 10% carried interest and Barrick will have 65% of the remainder with Loncor getting the remaining 35% of what is left after the DRC gets their cut. At that point Loncor pays their own way on their piece of the pie.

In Loncor’s fact sheet they mention something interesting. Loncor’s Ngayu Greenstone belt is home to a 130 km BIF. (Banded Iron Formation) Readers with a really good memory may recall me writing about BIF before when I was talking about where the gold showed up in the Western Australia Pilbara Basin, also near the giant iron projects of WA.

Basically the iron was dissolved in seawater. When single cell cyanobacteria began to produce oxygen some 3 billion years or so ago, as the chemistry of the water changed, the iron precipitated out of solution. Quinton Hennigh came up with the theory years ago that that is how the world’s biggest gold properties got their gold. Gold and BIF are similar in age and where you find one, you almost always find the other.

Loncor is cheap. Yes, they may get cheaper but I find them attractive enough that I bought some shares in the open market. Investors are probably going to find it difficult to pick up a large position. The shares pretty much trade by appointment. With a Barrick JV and with gold in the ground at $19 an ounce in USD I don’t expect them to remain cheap for long.

Loncor is an advertiser. I own shares. That makes me biased. I don’t share in your gains or losses so take some responsibility for your own trading decisions. It’s your money after all.

Loncor Resources Inc
LN-TO $.60 (Mar 04, 2020)
LONCF-OTCBB 102.2 million shares
Loncor website

Courtesy of Bob Moriarty, 321gold
Archives
Mar 5, 2020

Source: http://www.321gold.com/editorials/moriarty/moriarty030520.html

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Posted in All Recent Posts, Loncor | Comments Off on Loncor JV in the DRC with Barrick: SPONSOR Loncor Resources $LN.ca t $ABX.ca $TECK.ca $RSG $NGT.to $GOLD $NEM

Loncor $LN.ca Announces Appointment of John Barker as Vice President of Business Development $ABX.ca $TECK.ca $RSG $NGT.to $GOLD $NEM #PDAC2020

Posted by AGORACOM at 10:09 AM on Tuesday, March 3rd, 2020
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Loncor Resources Inc. (“Loncor” or the “Company“) (TSX: “LN”; OTCQB: “LONCF”) is pleased to announce the appointment of Mr. John Barker as Vice President of Business Development for Loncor.

Arnold Kondrat, Chief Executive Officer of Loncor, commented: “We welcome John Barker as Vice President of Business Development for Loncor.  Mr. Barker has over 30 years of global mining experience encompassing many key elements of the mining world, and I look forward to working with him and the team to unlock the potential evident in the Ngayu gold belt.” 

Mr. Barker has 15 years’ experience as a leading mining analyst, including with RBC DS heading up their Global Gold Mining initiative and focussing on African mining equities.  Subsequently, he was Vice President Corporate Development for TSX-listed SouthernEra Resources, which was taken over by Lonmin, and was instrumental in the Guinor Gold sale to Crew Gold.  More recently he has been involved in various copper, diamond and platinum initiatives in Southern Africa.  During his career he has been involved in numerous asset sales and equity issues raising over US$600m in Canada, Australia, Europe and RSA.  Mr. Barker commented: “Loncor offers the chance to get involved in a region of the world that is only now starting to show its true gold producing potential through the success of the Barrick-operated Kibali gold mine.  The Ngayu belt holds the potential of similar discoveries and I am excited on helping the company utilise its vast in-country experience to realise value for all.” 

About Loncor Resources Inc.
Loncor is a Canadian gold exploration company focussed on the Ngayu Greenstone Belt in the Democratic Republic of the Congo (the “DRC”).  The Loncor team has over two decades of experience of operating in the DRC.  Ngayu has numerous positive indicators based on the geology, artisanal activity, encouraging drill results and an existing gold resource base.  The area is 200 kilometres southwest of the Kibali gold mine, which is operated by Barrick Gold (Congo) SARL (“Barrick”).  In 2019, Kibali produced record gold production of 814,000 ounces at “all-in sustaining costs” of US$693/oz.  Barrick has highlighted the Ngayu Greenstone Belt as an area of particular exploration interest and is moving towards earning 65% of any discovery in 1,894 km2 of Loncor ground that they are exploring.  As per the joint venture agreement signed in January 2016, Barrick manages and funds exploration on the said ground at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Barrick.  In a recent announcement Barrick highlighted six prospective drill targets and are moving towards confirmation drilling in early 2020.  Subject to the DRC’s free carried interest requirements, Barrick would earn 65% of any discovery with Loncor holding the balance of 35%.  Loncor will be required, from that point forward, to fund its pro-rata share in respect of the discovery in order to maintain its 35% interest or be diluted.

In addition to the Barrick JV, certain parcels of land within the Ngayu project surrounding and including the Makapela and Adumbi deposits have been retained by Loncor and do not form part of the joint venture with Barrick.  Barrick has certain pre-emptive rights over the Makapela deposit.  Loncor’s Makapela deposit has an Indicated Mineral Resource of 614,200 ounces of gold (2.20 million tonnes grading 8.66 g/t Au) and an Inferred Mineral Resource of 549,600 ounces of gold (3.22 million tonnes grading 5.30 g/t Au).  Adumbi and two neighbouring deposits hold an Inferred Mineral Resource of 1.675 million ounces of gold (20.78 million tonnes grading 2.5 g/t Au), with 71.25% of this resource being attributable to Loncor via its 71.25% interest. 

Resolute Mining Limited (ASX/LSE: “RSG”) owns 25% of the outstanding shares of Loncor and holds a pre-emptive right to maintain its pro rata equity ownership interest in Loncor following the completion by Loncor of any proposed equity offering.  Newmont Goldcorp Corporation (NYSE: “NEM”; TSX: “NGT”) owns 7% of Loncor’s outstanding shares. 

Additional information with respect to Loncor and its projects can be found on Loncor’s website at www.loncor.com

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Posted in All Recent Posts, Loncor | Comments Off on Loncor $LN.ca Announces Appointment of John Barker as Vice President of Business Development $ABX.ca $TECK.ca $RSG $NGT.to $GOLD $NEM #PDAC2020

Loncor $LN.ca Provides Update on Exploration Activities at Its Ngayu Project $ABX.ca $TECK.ca $RSG $NGT.to $GOLD $NEM

Posted by AGORACOM-JC at 9:04 AM on Tuesday, February 18th, 2020

  • Loncor recently received the quarterly exploration report from joint venture partner Barrick for the fourth quarter of 2019
  • As announced in November 2019, joint venture partner and operator Barrick has identified a number of priority drill targets within the 1,894 square kilometre joint venture land package at Ngayu and that are planned to be drilled during the current dry season, commencing next month.

TORONTO, Feb. 18, 2020 — Loncor Resources Inc. (“Loncor” or the “Company“) (TSX: “LN”; OTCQB: “LONCF”) is pleased is pleased to provide an update on its activities within the Ngayu Greenstone Belt, where the Company has a dominant foot-print through its joint venture with Barrick Gold (Congo) SARL (“Barrick”) and on its own majority-owned exploration licences and exploitation concessions including the Imbo exploitation concession.

The Ngayu Archean Greenstone Belt of northeastern Democratic Republic of the Congo (the “DRC”) is geologically similar to the belts which host the world class gold mines of AngloGold Ashanti/Barrick’s Kibali mine in the DRC and AngloGold Ashanti’s Geita mine in Tanzania.

Barrick Joint Venture

Loncor recently received the quarterly exploration report from joint venture partner Barrick for the fourth quarter of 2019. As announced in November 2019, joint venture partner and operator Barrick has identified a number of priority drill targets within the 1,894 square kilometre joint venture land package (the “JV Areas”) at Ngayu and that are planned to be drilled during the current dry season, commencing next month. Drill targets include Lybie, Salisa and Itali in the Imva area as well as Anguluku in the southwest of the Ngayu belt and Yambenda in the north (see Figure 1 below).

Four targets have been identified within the Lybie – Salisa block, which is approximately 6 kilometres in length, with Lybie (formerly known as Matete east) the priority. Lybie is characterized by a strongly brecciated cherty BIF (“Banded Ironstone Formation”) unit in the footwall of unmineralized magnetic BIF with a strong soil anomaly (generally >140ppb Au), along an east-northeast trending hill with dispersion downslope where artisanals mine the colluvium. The Salisa target is defined by 3 source lines of +80ppb Au over 2 kilometres in residual soils. It is associated with a northeast trending interpreted structure and anomalous lithosamples in the south. Work in Q4 2019 was focused on infill trenches towards the southwest (Salisa) of the trend to close the gap and test continuity of the 6 kilometre long anomalous soil trend, which has been confirmed by in-situ mineralization in wide spaced trenches to northeast of the trend. The completed phase one trenching programme at Lybie has outlined both narrow high grade and lower grade mineralised zones along a northeast-southwest trending, gold bearing shear zone over a strike length of 1.5 kilometres. The gold system is still open in all directions.

At Itali, trench extensions on the Medere trend defined three discrete zones hosted within sheared basalts. Overall results combining the three discrete zones indicate an average of 103.75 metres grading 0.71g/t Au in trench ITTR008 (including 12 metres grading 3.32g/t Au). The depth of the regolith with extensive cover has presented limiting factors with some trenches not reaching saprolite (oxidized bedrock). Part of the Itali target was previously identified and drilled by Loncor with the first core hole intersecting 38.82 metres (true width 37.97 metres) grading 2.66 g/t Au with the depth of oxidation exceeding 100 metres from surface (see Company press release dated January 26, 2012).

At Bakpau, initial surface work was completed and drill motivation was submitted for approval. Bakpau displays multiple contrasting lithologies, competencies (BIF, volcano-sedimentary package, granitoids, monzonite), alteration (sericite, chlorite, ankerite, silica, sulphides) and complex structural settings.

In January of this year, a LIDAR survey was completed on priority targets including Anguluku, Bakpau, Itali and Lybie-Salisa.

Imbo Exploitation Permit (Loncor 71.25%)

Outside of the Barrick joint venture, exploration activities have focussed on the Imbo exploitation concession in the east of the Ngayu belt where an Inferred Mineral Resource of 1.675 million ounces of gold (20.78 million tonnes grading 2.5 g/t Au, with 71.25% of this Inferred Mineral Resource being attributable to Loncor via its 71.25% interest) was outlined in January 2014 by independent consultants Roscoe Postle Associates Inc. on three separate deposits, Adumbi, Kitenge and Manzako. Further exploration activities have been undertaken on updating the Adumbi database as well as reconnaissance fieldwork on the Maiepunji prospect, 12 kilometres west-southwest of Adumbi where several artisanal workings occur over a strike length of 4 kilometres to the east of the Imbo river.

Based on previous studies by Barrick on regional, belt sized geochronological age dating and airborne VTEM, radiometric and magnetics of the Ngayu belt, it was found that a major structural, mineralised fracture zone separates an older volcano-sedimentary domain in the northern part of the belt from a younger, predominantly sedimentary basin in the south. At Barrick’s Kibali mine, a similar geological setting has been determined with the gold deposits spatially related to a major structural break between an older volcano-sedimentary domain and a younger predominantly sedimentary basin.

At Ngayu, the major structural fracture trends east-northeast through the Imva area where a number of targets are located and then trends southeast through the Imbo exploitation permit where the Adumbi, Kitenge and Manzako deposits are located and then across the Imbo river to the Maiepunji prospect. In total, this major structural break extends for 16 kilometres within the Imbo permit and will require further exploration to fully evaluate this prospective trend. Recent reconnaissance to the east of the Imbo river at the Maiepunji prospect has substantiated the potential of this structural trend with several artisanal workings being located over 4 kilometres of strike. Mineralization is found within steeply dipping metasediments with or without quartz veins with silica, sericite and graphitic alteration and mainly limonitic boxworks after pyrite. These metasediments are found immediately southwest of a prominent range of BIF. Assay results from 40 lithological grab samples recently taken are awaited. A detailed soil sampling, geological mapping and systematic channel sampling program is to be undertaken on the entire Maiepunji mineralized trend which will be aided by the recently completed LIDAR survey over the Imbo permit.

About Loncor Resources Inc.
Loncor is a Canadian gold exploration company focused on two projects in the DRC – the Ngayu and North Kivu projects.  Both projects have historic gold production. Exploration at the Ngayu project is currently being undertaken by Loncor’s joint venture partner Barrick Gold Corporation through its DRC subsidiary Barrick Gold (Congo) SARL (“Barrick”). The Ngayu project is 200 kilometres southwest of the Kibali gold mine, which is operated by Barrick and in 2019 produced 814,027 ounces of gold. As per the joint venture agreement signed in January 2016, Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Barrick. Subject to the DRC’s free carried interest requirements, Barrick would earn 65% of any discovery with Loncor holding the balance of 35%. Loncor will be required, from that point forward, to fund its pro-rata share in respect of the discovery in order to maintain its 35% interest or be diluted. 

Certain parcels of land within the Ngayu project surrounding and including the Makapela and Yindi prospects have been retained by Loncor and do not form part of the joint venture with Barrick. Barrick has certain pre-emptive rights over these two areas. Loncor’s Makapela prospect has an Indicated Mineral Resource of 614,200 ounces of gold (2.20 million tonnes grading 8.66 g/t Au) and an Inferred Mineral Resource of 549,600 ounces of gold (3.22 million tonnes grading 5.30 g/t Au). Loncor also recently acquired a 71.25% interest in the KGL-Somituri gold project in the Ngayu gold belt which has an Inferred Mineral Resource of 1.675 million ounces of gold (20.78 million tonnes grading 2.5 g/t Au), with 71.25% of this resource being attributable to Loncor via its 71.25% interest. 

Resolute Mining Limited (ASX/LSE: “RSG”) owns 27% of the outstanding shares of Loncor and holds a pre-emptive right to maintain its pro rata equity ownership interest in Loncor following the completion by Loncor of any proposed equity offering. Newmont Goldcorp Corporation (NYSE: “NEM”; TSX: “NGT”) owns 7.8% of Loncor’s outstanding shares.

Additional information with respect to Loncor and its projects can be found on Loncor’s website at www.loncor.com. 

Qualified Person
Peter N. Cowley, who is President of Loncor and a “qualified person” as such term is defined in National Instrument 43-101, has reviewed and approved the technical information in this press release. 

Technical Reports
Certain additional information with respect to the Company’s Ngayu project is contained in the technical report of Venmyn Rand (Pty) Ltd dated May 29, 2012 and entitled “Updated National Instrument 43-101 Independent Technical Report on the Ngayu Gold Project, Orientale Province, Democratic Republic of the Congo”.  A copy of the said report can be obtained from SEDAR at www.sedar.com and EDGAR at www.sec.gov. 

Certain additional information with respect to the Company’s recently acquired KGL-Somituri project is contained in the technical report of Roscoe Postle Associates Inc. dated February 28, 2014 and entitled “Technical Report on the Somituri Project Imbo Licence, Democratic Republic of the Congo”. A copy of the said report, which was prepared for, and filed on SEDAR by, Kilo Goldmines Ltd., can be obtained from SEDAR at www.sedar.com. To the best of the Company’s knowledge, information and belief, there is no new material scientific or technical information that would make the disclosure of the KGL-Somituri mineral resource set out in this press release inaccurate or misleading. 

Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission (the “SEC”) permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Certain terms are used by the Company, such as “Indicated” and “Inferred” “Resources”, that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in the Company’s Form 20-F annual report, File No. 001- 35124, which may be secured from the Company, or from the SEC’s website at http://www.sec.gov/edgar.shtml.  

Cautionary Note Concerning Forward-Looking Information
This press release contains forward-looking information.  All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding drill targets, exploration results, mineral resource estimates, future drilling and other future exploration, potential gold discoveries and future development) are forward-looking information.  This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.  Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company.  Factors that could cause actual results or events to differ materially from current expectations include, among other things, the possibility that the planned drilling program by Barrick will be delayed, uncertainties relating to the availability and costs of financing needed in the future, risks related to the exploration stage of the Company’s properties, the possibility that future exploration (including drilling) or development results will not be consistent with the Company’s expectations, failure to establish estimated mineral resources (the Company’s mineral resource figures are estimates and no assurances can be given that the indicated levels of gold will be produced), changes in world gold markets or equity markets, political developments in the DRC, gold recoveries being less than those indicated by the metallurgical testwork carried out to date (there can be no assurance that gold recoveries in small scale laboratory tests will be duplicated in large tests under on-site conditions or during production), fluctuations in currency exchange rates, inflation, changes to regulations affecting the Company’s activities, delays in obtaining or failure to obtain required project approvals, the uncertainties involved in interpreting drilling results and other geological data and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s annual report on Form 20-F dated April 1, 2019 filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov.  Forward-looking information speaks only as of the date on which it is provided and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.  Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

For further information, please visit our website at www.loncor.com, or contact: Arnold Kondrat, CEO, Toronto, Ontario, Tel: + 1 (416) 366 7300.

Figure 1 Ngayu Infrastructure & Motivated Drill Targets for 2020

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Barrick Gold Boosts Dividend by 40% After Earnings Beat Highest Analyst Estimate SPONSOR: Loncor Resources $LN.ca $ABX.ca $TECK.ca $RSG $NGT.to $GOLD $NEM

Posted by AGORACOM at 12:40 PM on Thursday, February 13th, 2020
This image has an empty alt attribute; its file name is Loncor-Small-Square.png

Sponsor: Loncor is a Canadian gold explorer that controls over 2,400,000 high grade ounces outside of a Barrick JV. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 800,000 ounces of gold in 2018. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Barrick. Newmont $NGT $NEM owns 7.8%, Resolute $RSG owns 27% Click Here for More Info

On Wednesday, Barrick Gold Corp boosted its quarterly dividend by 40 per cent as it reported adjusted earnings of 17 cents a share for the fourth quarter, beating the highest analyst estimate.Barrick Gold

  • The company boosted its quarterly dividend by 40 per cent as it reported adjusted earnings of 17 cents a share for the fourth quarter, beating the highest analyst estimate.

Barrick Gold Corp., the world’s second-largest producer of the metal, will exceed its target of selling US$1.5 billion in assets by the end of this year, chief executive Mark Bristow said.

“We’re going to beat it,” Bristow said Wednesday in an interview following the release of the miner’s fourth-quarter earnings. “We still have some work to tidy up the portfolio.” The company has roughly US$450 million in sales to go to reach the US$1.5 billion mark, but expects to sell more than that this year, he said.

The Toronto-based company had announced the initial asset-sales target in the wake of its US$5.4 billion acquisition of Randgold Resources Ltd. last year. Barrick sold a number of assets in 2019 including a 50 per cent stake in its Kalgoorlie mine in Western Australia.

The sales have forced Barrick to narrow its five-year annual production range to 4.8 million to 5.2 million ounces. “This is our base plan and of course there are upsides that we’re working on.” In November, Barrick had said it expected to maintain its five-year gold production within a range of 5.1 million to 5.6 million ounces, based on its portfolio at the time.

The company plans to release 10-year production guidance at its annual general meeting later this year, Bristow said. Barrick is thinking about what the company should look like long-term, including its mix between copper and gold production.

In December, Bristow said Barrick may some day look into a possible merger with Freeport-McMoRan Inc., the largest publicly traded copper producer. On Wednesday, Bristow said that idea is still at a conceptual stage, but could include anything from a merger to the acquisition of Freeport assets. “Copper is the most strategic metal,” Bristow said.

On Wednesday, the company boosted its quarterly dividend by 40 per cent as it reported adjusted earnings of 17 cents a share for the fourth quarter, beating the highest analyst estimate.

Barrick is benefiting from rising bullion prices, reporting fourth-quarter revenue of US$2.88 billion that also topped analysts’ estimate. Spot gold averaged about US$1,483 an ounce in the fourth quarter, 21 per cent more than a year earlier, and the metal has extended gains this year as the coronavirus weighs on expectations for economic growth.

SOURCE: https://business.financialpost.com/commodities/mining/barrick-gold-ceo-expects-to-beat-1-5-billion-asset-sale-targe

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Mining Stocks Are Setting Up For Another Run SPONSOR: Loncor Resources $LN.ca $ABX.ca $TECK.ca $RSG $NGT.to $GOLD $NEM

Posted by AGORACOM at 1:10 PM on Tuesday, February 11th, 2020
This image has an empty alt attribute; its file name is Loncor-Small-Square.png

Sponsor: Loncor is a Canadian gold explorer that controls over 2,400,000 high grade ounces outside of a Barrick JV. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 800,000 ounces of gold in 2018. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Barrick. Newmont $NGT $NEM owns 7.8%, Resolute $RSG owns 27% Click Here for More Info

The Fed is trapped.  If it stops adding money to the money supply, the stock market will crash.  It’s already extended the repo money printing program twice. The first extension was to February and now it has extended it again to April.

What was billed as a temporary “liquidity problem” in the overnight repo market is instead significant problems developing in the credit and derivative markets to an extent that it appears to be putting Too Big To Fail bank balance sheets in harm’s way.  That’s my analysis – the official narrative is that “there’s nothing to see there”.

The delinquency and default rates for below investment grade corporate debt  (junk bonds) and for subprime consumer debt are soaring.   Privately funded credit,  leveraged bank loans,  CLO’s and subprime asset-backed trusts (credit cards, ABS, CMBS)  are starting to melt down. The repo money printing operations is a direct bail out of leveraged funds, mezzanine funds and banks, which are loaded up  on those subprime credit structures.    Not only that,  but  a not insignificant amount of OTC credit default derivatives is “wrapped around” those finance vehicles, which further accelerates the inevitable credit meltdown “Minsky Moment.”

The point here is that I am almost certain, and a growing number of truth-seeking analysts are coming to the same conclusion, that by April the Fed will once again extend and expand the repo operations. As Milton Friedman said, “nothing is so permanent as a temporary government program.”

Gold will sniff this out, just like it sniffed out the September repo implementation at the beginning of June 2019.  I think there’s a good chance that gold will be trading above $1600 by this June, if not sooner.

Eventually the market will discover the junior exploration stocks and the share prices will be off to the races. This is part of the reason Eric Sprott continues to invest aggressively in the companies he considers to have the highest probability of getting enough “wood on the ball to knock the ball out of the park” (sorry, baseball is right around the corner).

Precious metals mining stocks are exceptionally cheap  relative to the price of gold (and silver).   Many of the junior exploration stocks  have sold down to historically cheap levels  in the latest pullback in the sector.   As such, this is a good opportunity to add to existing positions in these names or to start a new position.

 SOURCE: http://news.goldseek.com/GoldSeek/1581435213.php

Dave Kranzler

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No Way Out – Sprott Gold Report SPONSOR: Loncor Resources $LN.ca $ABX.ca $TECK.ca $RSG $NGT.to $GOLD $NEM

Posted by AGORACOM at 1:30 PM on Tuesday, February 4th, 2020
This image has an empty alt attribute; its file name is Loncor-Small-Square.png

Sponsor: Loncor is a Canadian gold explorer that controls over 2,400,000 high grade ounces outside of a Barrick JV.. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 800,000 ounces of gold in 2018. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Barrick. Newmont $NGT $NEM owns 7.8%, Resolute $RSG owns 27% Click Here for More Info

  • We believe that there is a strong case to expect gold mining shares to outperform the metal in the years ahead…

On September 17, 2019, overnight repo rates spiked 121 basis points, climbing from 2.19% to 3.40%, providing yet another crucial buttress for the bullish rationale for gold. The spike signaled that the U.S. Federal Reserve (“Fed”) had lost control of the price of money. Without subsequent massive injections of liquidity by the Fed into the repo market, out of control, short-term interest rates would have undermined the leverage that underpins record financial asset valuations. Going forward, unless the Fed continues to expand its balance sheet, it risks a meltdown in equity and bond prices that could exceed the damage of the 2008 global financial crisis. Despite consensus expectations, there appears no escape from this treadmill.

The Fed must monetize deficits because non-U.S. investors are no longer absorbing the growing supply of U.S. debt. Ultra-low, short-term interest rates do not compensate foreign investors for the cost of hedging potential foreign currency (FX) losses (see Figure 1). The U.S. fiscal deficit is too high and the issuance of new U.S. treasuries is too great for the market to absorb at such low interest rates. In a free market, interest rates would rise, the economy would stall and financial asset valuations would decline sharply.

Figure 1. Treasury Issuance Goes Up, Foreign Purchases Go Down (2010-2019)

Source: Bloomberg. Data as of 12/31/2019.

The predicament facing monetary policy explains why central banks are buying gold in record quantities, as shown in Figure 2. It also explains the fourth quarter “melt-up” in the equity market, even with Q4 earnings that are likely to be flat to down versus a year ago (marking the second quarter in a row for lackluster results) and the weakest macroeconomic landscape since 2009 (as shown by Figure 3).

Figure 2. Central Banks Purchases of Gold are 12% Higher than Last Year

Source: World Gold Council; Metals Focus; Refinitiv GFMS. Data as of 9/30/2019.

Figure 3. The U.S. ISM PMI Index Indicates Economic Contraction

The U.S. ISM Manufacturing Purchasing Managers Index (PMI)1 ended the year at 47.2, indicating that the U.S. economy is in contraction territory (a reading above 50 indicates expansion, while a reading below 50 indicates contraction).

Source: Bloomberg. Data as of 12/31/2019.

Liquidity injections will result in more debt, both public and private sector, but not necessarily enhanced economic growth:

“As these forms of easing (i.e., interest rate cuts and QE [quantitative easing]) cease to work well and the problem of there being too much debt and non-debt liabilities (e.g., pension and healthcare liabilities) remains, the other forms of easing (most obviously currency depreciations and fiscal deficits that are monetized) will become increasingly likely …. [this] will reduce the value of money and real returns for creditors and will test how far creditors will let central banks go in providing negative real returns before moving into other assets [including gold].”

– Ray Dalio, Paradigm Shifts, Bridgewater Daily Observations, 7/15/2019

Gold Bullion and Miners Shine in 2019

Though overshadowed by the rip-roaring equity market, precious metals and related mining equities also had significant gains in 2019 (up 43.49%)2. Gold’s 18.31% rise last year was its strongest performance since 2016. More significantly, after two more years of range-bound trading, the metal closed out 2019 at its highest level since mid-2013, and within striking distance of $1,900/oz, the all-time high it reached in 2011.

The investment world has taken little notice. Despite gold’s strong performance, GDX3, the best ETF (exchange-traded fund) proxy for precious metals mining stocks, saw significant outflows over the year as shares outstanding declined from 502 million to 441 million (or 12%) over the twelve months, despite posting a 39.73% gain, well ahead of the 31.49% total return for the S&P 500 Total Return Index.4 We believe that there is a strong case to expect gold mining shares to outperform the metal in the years ahead…

It has been our long-held view that until mainstream investment strategies run aground, interest in precious metals will continue to simmer on low, notwithstanding the likelihood that 2020 may be another very good year for the precious metals complex. The many reasons why mainstream investment strategies could unravel are not difficult to imagine. They include the emergence of meaningful inflation, further slippage of the U.S. dollar’s nearly exclusive reserve currency status, and market-driven interest rate increases or a recession. Any or all of these could disrupt the continued expansion of the Fed’s balance sheet, triggering a rapid reversal in financial asset valuations. Each possibility deserves a more complete discussion than space here allows, but evidence strongly suggests that none can be ruled out. While timing the zenith in complacency is risky, we feel confident that a reversal of fortune for high financial asset valuations awaits unsuspecting investors sooner than they expect.

We are even more confident that a bear market will generate far broader investment interest in gold. Considering that institutional exposure to gold and related mining stocks hovers near multi-decade lows, the slightest uptick could easily drive the metal and related precious metals mining shares to historic highs. Today, the aggregate market capitalization of precious metals equity shares is $400 billion, an insignificant speck on the current market landscape.

Investors outflows from precious metals mining stocks in 2019, even as gold rose 18.31%, suggests skepticism that the current rally is sustainable — perhaps hardened by the wounds of years of middling performance. Contrarian analysis would regard such bearishness as grounds to be very bullish. In our opinion, investors have overlooked that the 2019 rise in gold prices has restored financial health to sector balance sheets, earnings and cash flow. Gold stocks offer both relative and absolute fundamental value and growth potential that compares very favorably to conventional investment strategies

We believe that there is a strong case to expect gold mining shares to outperform the metal in the years ahead by a substantially wider margin than they outperformed in 2019. With continued advances in precious metals prices, the return potential from these still unloved orphans and pariahs of the investment universe should prove to be very compelling.

SOURCE:https://www.sprott.com/insights/sprott-gold-report-no-way-out/

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How Effective Is Gold As a Hedge? History Has an Empirical Answer SPONSOR: Loncor Resources $LN.ca $ABX.ca $TECK.ca $RSG $NGT.to $GOLD $NEM

Posted by AGORACOM at 3:20 PM on Monday, February 3rd, 2020
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Sponsor: Loncor is a Canadian gold explorer that controls over 2,400,000 high grade ounces outside of a Barrick JV.. The Ngayu JV property is 200km southwest of the Kibali gold mine, operated by Barrick, which produced 800,000 ounces of gold in 2018. Barrick manages and funds exploration at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Barrick. Newmont $NGT $NEM owns 7.8%, Resolute $RSG owns 27% Click Here for More Info

Gold has been a safe haven for literally thousands of years.

But how effective is it as a “hedge”?

A hedge is an asset that tends to rise when others fall. For example, an investor holding common stocks might find it advantageous to hold some gold too, since it has historically been strong during the worst stock market crashes.

But in the big picture, does it really pay to always have some gold in one’s portfolio?

History provides some clear answers. We analyzed several historical scenarios to see how a theoretical portfolio performed with various amounts of gold (including zero).

The Portfolios

Our base portfolio starts with a 60% stock/40% bond mix. We used the S&P 500 for stocks, and the 10-year Treasury for bonds. As gold was added the prevailing spot price was used.

The research runs from January 1999 through September 2019, just shy of 21 years. This includes bull and bear markets in all assets, and thus offers accurate insight into gold’s value through various market environments.


We ran four portfolio scenarios, each starting with $100,000. As the amount of gold was gradually increased, the funds devoted to stocks and bonds were reduced in equal percentages.

  • Zero Gold Portfolio (60% stocks/40% bonds)
  • 3% Gold Portfolio (3% gold/58.5% stocks/38.5% bonds)
  • 5% Gold Portfolio (5% gold/57.5% stocks/37.5% bonds)
  • 10% Gold Portfolio (10% gold/55% stocks/35% bonds)

No adjustments were made for inflation, and exclude commissions, dividends, and tax implications.

The Results

The first chart shows the value of each portfolio at the end of each year. The blue bar represents zero gold (60% stocks/40% bonds), while the gold bar represents a portfolio with the maximum 10% gold allocation.

Portfolio Values by Year

As can be seen, the total value of each portfolio rises as the amount of gold is increased. A portfolio with 10% gold has performed better over the past two+ decades than ones with less amounts of gold.

After 20 years, only the portfolio with 10% gold reached a $250,000 value. This is not surprising considering gold acts as a hedge against stock market declines and recessions, while at other times can provide profit.

This chart shows the annual performance of each portfolio.

Portfolio Returns by Year

While all portfolios frequently rose and fell in tandem, the data show that those containing gold tended to fall less in bear markets and rise more in bull markets.

The exceptions were 2013 through 2015 where portfolios with gold underperformed those with no gold (the differences in 1999 and 2000 were less than 1%). In all other years gold improved portfolio returns.

On a cumulative basis, portfolios with gold have outperformed those with little to no gold.

Long-Term Growth by Portfolio

The statistical differences between portfolios did not show up the first few years, but over time a portfolio with gold has clearly provided a greater return than a portfolio with little to no gold.

The Verdict

As research shows, an allocation to gold in a typical stock/bond portfolio has provided better returns than those with little or no gold. It also lowers your risk.

Portfolios that include gold have fallen less in bear markets and risen more in bull markets. The long-term value of a portfolio is clearly enhanced by including gold.

It should be pointed out that the research specifically uses gold, not “commodities”. Most commodity funds have only a small allocation to gold, so similar results should not be expected when including a mixed fund.

The Gold Advantage is Your Advantage

Research shows that adding gold to a portfolio enhances overall returns.

Gold…

Can hedge against systemic risk, stock market pullbacks, and recessions.

Lowers the risk in a portfolio.

Can provide liquidity to meet liabilities during times of market stress.

Can hedge not just stocks but all paper assets. Since gold is a real hold-in-your-hand asset, it carries advantages almost no other asset can provide.

The message from history is clear: meaningful exposure to gold can improve your overall portfolio performance.

SOURCE: https://goldsilver.com/blog/how-effective-is-gold-as-a-hedge-history-has-an-empirical-answer/

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