With the economy in a tough spot, analysts have said we could see $2,500, $3,000, even $5,000 gold. After all, most of the economic issues that supported gold in 2020 have carried over into 2021. Plus, low interest rates, inflationary pressures, and an easy money policy from the Federal Reserve have all been just as supportive. There’s also no shortage of gold bulls. Analysts at Commerzbank expects for “inflation concerns to push gold to $2,000 an ounce by the end of the year, adding that inflation could remain at a very high level into the third quarter, prompting the Fed to reduce bond purchases by around the fourth quarter,” as noted by Reuters. Some of the top gold companies to watch on the gold story include TRU Precious Metals Corp. (TSXV:TRU)(OTCQB:TRUIF), Altius Minerals Corporation (TSX:ALS)(OTC:ATUSF), Newmont Corporation (NYSE:NEM)(TSX:NGT), Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX), and Kirkland Lake Gold Inc. (NYSE:KL)(TSX:KL).
TRU Precious Metals Corp. (TSXV:TRU)(OTCQB:TRUIF) Just Closed $3.5 Million Flow-Through Financing; Eric Sprott Becomes Major Shareholder
TRU Precious Metals Corp. just announced it has completed its non-brokered private placement for gross proceeds of $3,499,250, as previously announced on May 20, 2021. Pursuant to the Offering, TRU issued 12,960,186 “flow-through” units of the Company at a price of $0.27 per FT Unit. Each FT Unit is comprised of one common share of TRU that qualifies as a “flow-through share” for the purposes of the Income Tax Act (Canada) and one “flow-through” common share purchase warrant. Each FT Warrant shall be exercisable into one common share of TRU at a price of $0.35 per Share until June 17, 2024.
Joel Freudman, Co-Founder & CEO of TRU, commented: “I am very pleased to welcome Eric Sprott as a major shareholder of TRU. Mr. Sprott’s participation in this financing is a huge vote of confidence in the Company and the potential of our district-scale land package in the Central Newfoundland Gold Belt. We are also encouraged that the Offering was fully subscribed by institutional investors right from the start, including funds managed by Sprott Asset Management LP, which we consider a testament to our progress to date and our prospects going forward. This funding will allow TRU to proceed with an aggressive and comprehensive exploration program in summer 2021 and beyond, across our entire portfolio in the region, as announced on May 31st and June 15th.”
Other related developments from around the markets include:
Altius Minerals Corporation reported attributable royalty revenue of $17.8 million ($0.43 per share) for the quarter ended March 31, 2021 which was up 9% from royalty revenue of $16.3 million ($0.39 per share) reported in Q1 2020. Adjusted EBITDA for the quarter was $14.6 million or $0.35 per share, up 15% from Adjusted EBITDA of $12.7 million ($0.30 per share in Q1 2020. The adjusted EBITDA margin for the quarter was 82%. Adjusted operating cash flow of $8.8 million or $0.21 per share is down by 33% from the comparable quarter last year mainly because of the deferred timing of corporate tax installments during the prior year period.
Newmont Corporation launched its 2020 Annual Sustainability Report, part of the suite of reports on the Company’s environmental, social and governance (ESG) practices in key areas that include health, safety and security, human rights, the environment, social acceptance, governance, and inclusion and diversity. “As we celebrate our 100th year, Newmont’s commitment to sustainable and responsible mining has never been stronger. Our sustainability report provides a comprehensive review of our safety, environmental and social performance,” said Newmont’s President and CEO Tom Palmer. “With this report we offer a transparent review of how we work toward making a positive difference in the lives of our employees, stakeholders, business partners and host communities around the world.”
Barrick Gold Corporation confirmed that the per share amount of the first $250 million tranche of a return of capital distribution totaling $750 million to be paid on June 15, 2021 will be $0.1405117, based on the number of issued and outstanding shares as of the May 28, 2021 record date. This follows the approval by shareholders at Barrick’s Annual and Special Meeting on May 4, 2021 of the total $750 million return of capital distribution. The remaining distribution of $500 million is expected to be affected in two equal tranches to shareholders of record on dates to be determined in August and November 2021.
Kirkland Lake Gold Inc. announced that a quarterly dividend payment for the second quarter of 2021 of US$0.1875 per common share will be paid on July 14, 2021 to shareholders of record as of the close of business on June 30, 2021. The Q2 2021 payment represents the 17th quarterly dividend payment made to shareholders following the Company’s adoption of a dividend policy in March 2017. The Company’s quarterly dividend qualifies as an “eligible dividend” for Canadian income tax purposes. For Canadian shareholders, the US dollar dividend payment will be converted to Canadian dollars using the spot price exchange rate on July 13, 2021, the day prior to the payment date.
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