A Key Argument for Potential Upside in Gold Prices

August 29, 2022 - Baystreet.ca


Gold prices pulled back on Federal Reserve Chairman Jerome Powell’s comments, but don’t write off the metal or miners off just yet. As noted by MarketWatch, “gold remains a key asset for long-term portfolio diversification and has outpaced the performance in the U.S. stock market.” In addition, according to George Milling-Stanley, chief gold strategist at State Street Global Advisors, as quoted by MarketWatch, investors are “exaggerating the potential adverse impact of higher interest rates,” adding that “during the last two periods of sustained Fed tightening, gold prices actually rose strongly, ‘countering the conventional wisdom that higher rates hurt gold investment because they raise the opportunity cost of investing’ in it.” With that, investors may want to consider gold stocks, such as Benchmark Metals Inc. (TSXV: BNCH) (OTCQX: BNCHF), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Newmont Corporation (NYSE: NEM) (TSX: NGT), B2Gold Corp. (TSX: BTO) (NYSE: BTG), and Equinox Gold Corp. (TSX: EQX) (NYSE: EQX).

Look at Benchmark Metals Inc. (TSXV: BNCH) (OTCQX: BNCHF)

Benchmark Metals Inc. announced that Co-Founder and Chief Financial Officer, Sean Mager, and Qualified Person, Michael Dufresne, P. Geol., have resigned as directors of the Company, in order to welcome the appointments of two new independent directors to the board of directors, Keith Peck and Peter Gundy, in their place. Sean Mager will continue to act as the Chief Financial Officer of the Company.

Keith Peck is Chair and CEO of Lincoln Peck Financial Inc., a financial advisory firm focused on the resources sector, and a Chartered Business Valuator with over 35 years of investment banking experience, including as vice-president and director of RBC Dominion Securities Inc., Haywood Securities Inc. and vice-chair of Yorkton Securities Inc. Mr. Peck has significant public company experience, including acting as the chair of Camino Minerals Corporation. Mr. Peck was a founder of Centenario Copper Corporation which was acquired by Quadra Mining Ltd. in 2009. Mr. Peck was more recently chair of Orezone Gold Corporation and was a director and audit committee chair of Bluestone Resources Inc.

Peter Gundy was a co-founder of Potash Corporation of Saskatchewan (a predecessor to Nutrien) and the founder of Neo Material Technologies Inc., serving as NEM’s chief executive officer and chair from 1992 to 2008. NEM became a global leader in the production of advanced rare earth metals also used in the electronics industries and automotive sectors. In 2012, NEM was sold to Molycorp for $1.1 billion. Mr. Gundy has served as a director with numerous publicly traded companies, and currently serves on the board of Andean Precious Metals, where he is chair of both its audit committee and nomination and corporate governance committee.

In addition to changes in the composition of the Board, the Company has appointed Keith Peck as the independent Lead Director of the Board. John Williamson will remain as executive Chairman and CEO. As Lead Director, Mr. Peck will provide leadership to the Board and the independent directors and facilitate the functioning of the Board independently of management, working together with the executive Chairman. The Company has also reconstituted its Audit Committee to be comprised solely of independent directors, within the meaning of National Instrument 52-110 – Audit Committees. Effective immediately, the members of the Audit Committee are Mr. Peck, Mr. Gundy and Mr. Toby Pierce. Mr. Gundy has been appointed Chair of the Audit Committee. In accordance with best governance practices, the reconstituted Board has also resolved to form an independent Governance, Nominating and Compensation Committee, comprised of Mr. Peck, Mr. Gundy and Mr. Pierce. The new GNC Committee will assist the Board with respect to governance, nominating and compensation matters relating to the Company.

John Williamson, Chairman and CEO, said: “We are very pleased to welcome Keith and Peter to Benchmark’s Board. As seasoned veterans with proven track records in the resources sector, and deep expertise in public company governance, strategy, capital markets and strong financial and business acumen, we are confident these changes and governance enhancements will complement the existing Board structures and help strengthen Benchmark’s performance and long-term value for the benefit of all of the Company’s shareholders and key stakeholders. On behalf of the Board, I’d also like to thank Michael and Sean for their past Board service.”

Other related developments from around the markets include:

Barrick Gold Corporation announced the declaration of a dividend of $0.20 per share in respect of performance for the second quarter of 2022. The dividend, which is unchanged from Q1, is consistent with the Company’s Performance Dividend Policy announced at the start of the year. The Q2 2022 dividend will be paid on September 15, 2022 to shareholders of record at the close of business on August 31, 2022. “On the back of our strong operating performance, we are once again able to provide a leading dividend yield to our shareholders, whilst still maintaining a strong balance sheet,” says senior executive vice-president and CFO Graham Shuttleworth.

Newmont Corporation announced Peter Toth as Chief Strategy and Sustainability Officer following the retirement of Chief Sustainability & External Affairs Officer Stephen Gottesfeld after 25 years of dedicated service to the Company. Newmont has long been a leader in sustainable and responsible mining, and considers environmental, social and governance (ESG) practices to be fundamental to the way in which it operates. With the appointment of Peter Toth, the Company will further incorporate these critical elements into its future strategy. In October 2021, Newmont announced that Peter Toth, a 25-year veteran of the industry, would join the Company as Executive Vice President, Strategic Development. Peter has extensive experience with integrating sustainability practices into broader corporate strategies, having led the development of Rio Tinto’s 10-year climate strategy in support of their ambition of reaching net zero by 2050.

B2Gold Corp. announced its operational and financial results for the second quarter and first half of 2022. The Company previously released its gold production and gold revenue results for the second quarter and first half of 2022. Total gold production of 223,623 ounces (including 14,765 ounces of attributable production from Calibre Mining Corp., slightly above budget by 1% (2,154 ounces), and consolidated gold production of 208,858 ounces from the Company's three operating mines, in line with budget. Consolidated gold revenue of $382 million on sales of 205,300 ounces at an average realized gold price of $1,861per ounce.

Equinox Gold Corp. announced that Christian Milau will be leaving Equinox Gold to pursue a new opportunity in the global carbon finance industry. Equinox Gold’s Board of Directors has unanimously appointed Greg Smith to succeed Christian as Chief Executive Officer and a Director of Equinox Gold. Ross Beaty, Chair of Equinox Gold, commented: “Greg Smith has been President of Equinox Gold since we founded the Company in 2017 and has always been considered the designated successor when Christian retired. Greg brings the right corporate knowledge; industry experience and skill set to effectively manage current operations and advance our long-term strategy. He has the full support of the Board and the executive team, and I look forward to working with him as we focus on achieving our vision of being the premier Americas million-ounce gold producer.

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Benchmark Metals Inc. by Benchmark Metals Inc. We own ZERO shares of Benchmark Metals Inc. Please click here for full disclaimer.

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