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Klein predicts US$2-US$3,000/oz gold price for this time next year

Is a wave of merger and acquisition activity coming in the ASX and anywhere else for tat matter, gold space?
Barry Fitzgerald reckons so...
https://www.youtube.com/watch?v=1ql4dF7wHPM
The gold sector is about to receive a big boost from a surging price, if Evolution (ASX:EVN) boss Jake Klein’s prediction of between US$2,000-US$3,000/oz by mid-2023 is correct.
“If Klein’s view is shared by others in the industry, standby for a wave of merger and acquisition activity where the bigger companies move on the developers and explorers with 1m-plus ounce gold resources with upside,” Fitzgerald says.
“The developers and developers are looking vulnerable to low-ball bids as they have to enjoy much of a recovery from their smashed levels from the March gold price fall, notwithstanding the gold price rally since.”

Certainly some very exciting numbers in the mine exploration, and even some fo the extensional exploration around Sukari are not shabby,

Diagrams which show the scale are mandatory in under-graduate geology courses...the very difficult to see the scale in the diagrams they have in the exploration update, which is not good enough for a professional company.

Gripes aside, the thicknesses and grades are very exciting, and I think this will continue to surprise on the upside in the future,
Perhaps a long bow to draw, but there are some potential simialrities with Fosterville...the worlds highest grade underground gold mine...Mining at Fosterville has been focussed underground since 2008, with the Phoenix and
Harrier systems being the main focus of exploration and development. Mined grade from both
orebodies in the years between 2009 and 2014 achieved an average of 4.7g/t Au with
production consisting of sulphide ore from surface to an approximately 800m depth below
ground.
Fosterville Gold Mine celebrated production of its one millionth ounce of gold based firmly
within this history of refractory sulphide gold mining. Compared with other Victorian gold
mines, the disseminated nature of the sulphide gold allows for a deposit that exhibits low
estimation variance combined with systems and processes established to accurately
delineate the controlling structures. The systems in place had been established and worked
for the majority of the 1 million produced ounces.
In late 2014 diamond drilling intercepts into the Lower Phoenix system started showing
coarse visible gold hosted within quartz carbonate veins. Fosterville had several historic drill
intercepts showing visible gold. However, the occurrences were found to be localised and
were not reproducible with follow up drilling, so the initial intercept was received with some
reservations as to the significance. Drill holes continued to target the Lower Phoenix mineral
resource corridor with results continuingto reveal the presence of a coarse gold orebody, growing in magnitude with each subsequent intercept.
By the end of 2016, Fosterville Gold Mine’s Mineral Reserves increased from December 31, 2015 by 66% to 643,000 ounces of gold, with Mineral Reserve grade 9.2 g/t Au from 7.3 g/t Au (Fuller et al, 2017). These increases firmly secures Fosterville’s position as one of the highest grade gold mines in the world and is on the back of sustained
world class drill intercepts including 1,429 g/t Au over 15.15m (Estimated True Width "ETW" )

They will be mining at Sukari and surrounds for many decades to come remains my guess. Q?: Will they have a Fosterville equivalent emerge at depth???
https://smedg.org.au/wp-content/uploads/2020/07/papers-2017-pdf/3_orogenic-deposits/1_Fosterville%20Gold%20Mine_DFoulds.pdf
best
the gnome

The Inflation Reduction Act is the latest example of the trend that has transformed the U.S. government into a gigantic bank. The U.S. now lends or guarantees loans totaling over $5 trillion in areas including housing, education, small business, energy, disaster relief and transportation. This figure doesn’t include the assets of semipublic corporations such as Fannie Mae, Freddie Mac and lesser-known government-sponsored enterprises, which total more than $6 trillion. The world’s biggest bank, the Industrial and Commercial Bank of China, has slightly more than $5 trillion in assets; America’s biggest, JPMorgan Chase & Co., less than $4 trillion.

The federal government appears to have become the biggest bank in the world. How? Over the past century, Congress realized it could create programs to win allies now and absorb the costs years or decades later when the loans default. As early as the New Deal critics assailed President Franklin D. Roosevelt’s spending through lending, or “splending” policy, and warned of the dangers this practice carried for future taxpayers.

The government has endured generations of defaults on its lending programs. Solyndra, a solar manufacturing corporation, defaulted on $535 million in loans guaranteed under the 2009 stimulus act. Few remember the default of the $1.54 billion federal loan to the Great Plains Coal Gasification plant in 1985 or the multibillion-dollar losses the Farmers Home Administration incurred after farm prices dropped in the 1980s. And those defaults are trivial compared with the $188 billion bailout to Fannie and Freddie Mac after the 2008 financial crisis.

Defaults would be less of a problem if Congress was honest about their likelihood and cost. But in 1990 lawmakers passed the Federal Credit Reform Act, which set the current lax standards for government loan accounting. A studyby the American Action Forum found that federal lending programs cost at least $90 billion more than congressional accountants estimated. One reason is that, as Lawrence Summers, then a White House economist, wrote in a 2011 email in the aftermath of the Solyndra default, “gov. is a crappy vc,” or venture capitalist. It has little incentive to make good investments.

When loans don’t default, Congress has found the political pleas of borrowers irresistible. In the early 20th century, the government began by extending payment deadlines on irrigation loans to farmers, but eventually gave up on collecting on billions of dollars in loans. The federal government later forgave many loans made to cities during the Great Depression. Demands by student borrowers for forgiveness and extension are the latest variation of an old story.
The Inflation Reduction Act would set up innumerable opportunities for defaults and forgiveness. The government would be authorized to guarantee loans of up to $20 billion for tribal energy projects,...and so on and so forth
Robust financial system eh? Believe in Gold?
GG

Its been normal practise for a long time now. The fact that its so obvious does suggest something about the regulators, and their real concern for a fair and equitable market access. Like so many things we see these days the "talk" (legislature) is seriously amiss from "the walk" (what happens in the market/world). The easy question. Who benefits from this? and why?
The point of having a public market is to have it as a fair and transparent place where equities and commodities are traded, with all sellers and buyers having equal rights including access and transaction costs, This is not the case. The gold market is one notorius case, but once you start digging away you find them all of the place. High speed traders. Here are some notes
"Yes, where “unfair” means violating the premises of free markets: many small, independent agents, free flow of information, forces of supply and demand free from intervention by government or other authority, no barriers, tariffs, taxes, monopolies, or any forms of economic privilege, monopolies and artificial scarcities. Popper, Karl (1994). The Open Society and Its Enemies. Routledge Classics. ISBN 978-0-415-61021-6

It’s not mere speed, but the special privileges and benefits which exchanges give to their “best” customers. 'Hide Not Slide' Orders Were Slippery and Hidden

Common sense says so. Banks match issuers and investors for stocks and bonds. To give issuers permanent capital BUT allow investors liquidity, banks offer trading as a follow-on service. Traders deserve a small service fee and premium for inventory risk. Anything beyond that is a zero sum game. When an HFT makes a billion, it means tens of millions of retail savers have each lost hundreds.
HFT simply cheat the system and offer nothing, no liquidity, price discovery or matching, in return."
and on the farce goes...https://www.bloomberg.com/opinion/articles/2015-01-13/hide-not-slide-orders-were-slippery-and-hidden

Be interesting to see how the DOJ goes, and how real their concerns are...my bet? toothless tiger, a few slaps and a couple of bucks fine.

Bit like the endless rubbish about democracy you see printed all over the place by the US. It does not exist, or if it does, lets have a look at the defintion again.

the gnome

Australia’s post-lockdown economic rebound has arguably been very strong, with a significant employment surge despite the continued prevalence of COVID in the community. However, CFOs face a number of new challenges as they enter the second half of 2022. CPI data last week saw annual inflation rise further to 6.1% (the highest level since the introduction of GST), while the RBA today has announced another increase in the official cash rate to 1.85% – the fourth consecutive monthly rise. Against this backdrop, the good news is that three-quarters of CFOs surveyed for Deloitte’s latest CFO Sentiment report are still optimistic about the prospects of their own business – although these new risks have made them more cautious about the state of the broader economic environment.

Persistent inflation and rapid interest rate increases are challenges CFOs have not faced in decades. As a result, net optimism about financial prospects relative to half a year ago has dropped from 37% in the last survey to -8% now. This is a significant fall in net optimism, especially when compared to much smaller falls in the last three surveys, where CFOs were grappling with more disruptive (but now familiar) COVID outbreaks and related challenges.

Such risks are also contributing to uncertainty levels, with 88% of CFOs presently considering uncertainty to be higher than normal – and contributing to a decline in risk appetite. Interestingly, the cautiousness and uncertainty CFOs are experiencing is different to that experienced in the past. Previously, even though uncertainty levels were high over the last 18 months, CFOs still felt ready to take on risk. Today, however, only 25% believe they should take on more risk now, compared to 58% at the end of last year.

RISK ADVERSE INVESTORS/PUNTERS....So RAISING MONEY FOR GOLD EXPLORATION HAS BECOME A VERY TOUGH GIG, ESPECIALLY IF THATS ALL YOU DO. THIS WILL PLAY OUT INTO THE FUTURE AS LESS AVAILABLE GOLD BEING FOUND, AND ... LESS TO BE MINED, AND THATS ONT HE BACK OF A PATHETIC GOLD DISCOVERY RATE OF THE LAST 10 YEARS ....GO GOLD !

The Gnome

One of the (many) injustices dealt out by the legal profession is the inequality of the sentences they hand out between those who illegally make money with a suit on, versus those that dont wear a suit.
JPMorgan is the biggest player among a small group of “bullion banks” that dominate the precious metals markets,
Recap the propoganda about bullion banks: Bullion banks are and continue to be a key pillar of the market - they build greater trust across the gold value chain, drive efficiency, provide liquidity, promote transparency and support price discovery.
"Support price discovery" What a joke!
JP Morgan Bullion Banks price discovery team summary: the business is a consistent moneymaker for JPMorgan, notching up annual profits of between $US109 million ($156 million) and $US234 million a year between 2008 and 2018. The lion’s share of that comes from trading in financial markets, but the bank does plenty of physical business as well. Trading and transporting physical precious metals make the bank about $US30 million a year on average.

Still, the profits disclosed in the trial have been overshadowed more recently: in 2020, JPMorgan made $US1 billion in precious metals as the pandemic created unprecedented arbitrage opportunities,.
JPMorgan holds tens of billions of dollars in gold in vaults in London, New York and Singapore. It is one of four clearing members of the London market, where global gold prices are set by buying and selling metal held in a few London vaults -- including JPMorgan’s and the Bank of England’s. SMELL A RAT?
In 2010, for example, 40 per cent of all transactions in the gold market were cleared by JPMorgan.
How do the employees of JP go at the trading desk?Mr Ruffo, the bank’s hedge fund salesman, was paid $US10.5 million from 2008 to 2016. Mr Smith, the top gold trader, got $US9.9 million. Mr Nowak, their boss, made the most of all: $US23.7 million over the same period.
Their pay was linked to the profits they made for the bank. FBI agent Marc Troiano, citing internal JPMorgan data, told the court that the total profit allocated to Mr Ruffo from 2008 to 2016 was $US70.3 million. Mr Smith generated about $US117 million over the same period, while Mr Nowak made the bank $US186 million, including $US44 million in 2016
Soros is a client. Another set of important clients were central banks, which trade gold for their reserves and are among the biggest players in the bullion market. At least ten central banks held their metal in vaults run by JPMorgan in 2010, according to documents disclosed in court.
SMELL A RAT.?
Q: Why do we need Bullion Banks with special privileges. What makes a cartel. What behaviours are cartels well known for.
WHAT A JOKE
Very large fines (100% of ill gotten gains), and very large jail terms please
CUI BONO is a Latin phrase that means “who benefits?”, and is used to suggest that there's a high probability that those responsible for a certain event are the ones who stand to gain

It seems to me no one knows what they are talking about when it comes to the Ukraine [and probably history more broadly]

I recall being taught the History of the British Empire, by a delightful History teacher when I was young, at High School. I actually got a high distinction I was so enthralled. It is now apparent, that what he taught was marginally short of utter rubbish, but he, and we, did not know that back then. Such was the state of knowledge, .... and other things

I once worked for a most famous Mining Company, for 15 years, and was lucky to rise through the ranks to the top, technically speaking. It got taken over, as happens. Some years later, one of the former CEO's decided that the ~70 year history of this most famous company was lost or in the process of being lost, and so he commissoned a history of the company to be written, and duly appointed himself as Editor in Chief [ with the best of intentions] The book was written and edited, and I am sure edited gain, and came out as a hard cover book which looked great and will last 100-200 years. The trouble began when one read it, with the knowledge of one had lived through some of the history, and the history written was not a lot like the history experienced? HIstory is written by the winners (as we know) but in this case it was edited by one of the losers, who did not want to own up to what he had lost. So best edit the losses out. and so on and so forth.

A little later, I started another Exploration Company, which became a Unicorn (Market Cap $1b) in about 4 years! A few more years after a lot (including myself) had moved on, the new Managing Director decided that most people did not really know the history of the company, so he commisssioned a hisotry book to be written Who should write , and who should edit etc? Well it got wrote [by an Independent Journalist], and once again I got my copy, and opened the pages. Again the history written was not that similar to the history lived. Only ~20 years had transpired, and yet the history was in tatters, and despair set in.

I realised that History is such a subjective matter, and people can argue to they are blue in the face, about the "true facts"
and who really did this, and said that...

I realised that if one has so much trouble trying to catch the history of a company of 70 years old, or 20 years, what hope does one have of trying to understand what really happened to a country, in a 500 year history, with may winners and losers through those years.

I think not a lot...

Great to read the history, but believing it is another country. Not my country any more. There are more important things to do with ones few more days on the planet, than to read and argue the delusions and lies of others.

Go gold

best
the Gold Gnome.

My weekend reading of the non main stream hysteria, led me to an interesitng web site. Just thought I would share
https://www.nber.org/

One article perhaps of interest....
The Economics of Aging?

When the NBER’s Program on the Economics of Aging began in 1986 under the direction of David Wise, the baby-boom generation was between the ages of 22 and 40. Long-run projections at the time forecast that the United States would transition to an older population distribution. Today, with baby boomers ranging in age from 58 to 76, that projected future is the ongoing reality of our nation. One-fifth of the population will be age 65 or older in the next decade.

Since its inception, the Economics of Aging Program’s underlying focus has been the study of the health and financial well-being of people as they age and the larger implications of a population that is increasingly composed of older people. The program continues this broad focus as new and ongoing challenges emerge ....

another

New COVID-19 Working Papers: July 25, 2022
NEWS ARTICLE

Three new working papers distributed this week report on the economic, health, and related consequences of the COVID-19 pandemic and public policies that respond to it. One, drawing on data from many countries, evaluates the efficacy of social media campaigns in increasing demand for vaccines and knowledge about where to get them (30273). Another documents a sharp rise in the closure rate of small businesses early in the pandemic (30285). Yet another investigates the effect of working from home on worker productivity and quit rates (30292).

another
Gita Gopinath, the first deputy managing director of the International Monetary Fund, delivered the 2022 Martin Feldstein Lecture, on “Managing a Turn in the Global Economy.” She described the policy challenges facing emerging markets, many of which have experienced rising debt-to-GDP ratios in the last decade, as global interest rates increase. She highlighted the need to integrate a range of policy instruments, including but not limited to the flexible exchange rates and domestic interest rates that are the focus of the conventional analysis, in designing a policy response.

Some good, some abysmal...the economists have a lot of fun at the tax payers expense ...LOL
best

the GOLD Gnome

Great article about Chat/billboards,
https://www.afr.com/markets/equity-markets/magnis-seeks-court-order-to-reveal-hotcopper-users-identities-20220727-p5b503
(THERE is MORE SO VISIT THE WEB SITE, BUT I LIKE THIS.
Magnis seeks court order to reveal HotCopper users’ identities

ASX-listed battery manufacturing group Magnis Energy Technologies has lodged a federal court application demanding penny stock message board HotCopper disclose the identity of 15 anonymous posters it believes disparaged the company. Grief!

The July 22 application against HotCopper operator Report Card Pty Ltd seeks an order to force HotCopper to disclose the full name and address of each poster in addition to email addresses, any internet protocol (IP) address, the internet service provider, and any social media accounts linked to the HotCopper accounts.
Magnis Energy Technologies aims to build battery manufacturing plants in Townsville and New York.

Magnis refused to comment on the court application, although it’s believed the company is furious over what it sees as a series of malicious and false statements anonymously posted to HotCopper message boards about Magnis’ management and operating performance.

Some posters named in the court application use anonymous HotCopper accounts, including Mondrian, Fritzl, Clare69, Rat1973, Sunrock, and Johnyb26. The Market Herald, parent company of HotCopper, did not immediately respond to a request for comment.

According to court documents, the lawyer for HotCopper operator Report Card agreed to provide the identification details of the posters in compliance with any court order. However, by July 22, K&L Gates, the lawyers for Magnis, sent further correspondence reiterating the identification request and putting Report Card on notice.
Magnis’ chairman Frank Poullas is named as an applicant in the court request as seeking to pursue a defamation claim.

Australian Securities and Investments Commission has previously made inquiries with Magnis over the trading of its shares. In November 2021, the company issued an ASX statement in response to media coverage denying it was being investigated by ASIC, but conceded inquiries had been made.

The battery tech play reached a share price high of 73¢ on a market value of around $714 million on December 11 as retail investor enthusiasm for anything associated with lithium or electric vehicles peaked, but the stock had crashed back to 31¢ on Wednesday.

Magnis owns New York-based company Imperium3, which it says operates a lithium-ion battery manufacturing project. For the nine months to March 31, it reported zero revenue and an operating cash loss of $17.9 million. Investing cash outflows totalled $23.6 million, with the company reporting cash on hand of $81.8 million as at March 31....GL GN

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