{"id":1045364,"date":"2018-09-26T23:45:15","date_gmt":"2018-09-26T23:45:15","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=1045364"},"modified":"2018-09-26T23:45:15","modified_gmt":"2018-09-26T23:45:15","slug":"brace-for-more-sideways-gold-movement-says-this-ceo-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1045364","title":{"rendered":"Brace for More Sideways Gold Movement, Says This CEO"},"content":{"rendered":"

By Charlotte McLeod<\/a><\/span> <\/p>\n

\"gold<\/a><\/div>\n

The gold price has traded between about $1,200 and $1,350 per ounce this year, and one CEO says market participants may want to get used to these levels. <\/strong><\/p>\n

\u201cIf you look at the 1980s, gold spent 10 years going sideways,\u201d Ian Ball, president and CEO of Abitibi Royalties (TSXV:RZZ<\/a>), said via phone. \u201cIt seems like the environment that we find ourselves in from an economic standpoint is very similar to the 1980s.\u201d<\/p>\n

He sees the yellow metal potentially dropping as low as $1,000 and rising as high as $1,500, but doesn’t anticipate movement outside of that. \u201cThe last couple of years we’ve been going sideways \u2026 [and] I think there’s certainly a case to be made that gold could go sideways for a considerable period of time.\u201d <\/span><\/p>\n

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Is it a good time to buy gold stocks?<\/h2>\n

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Learn to profit from gold’s low price this year!<\/h4>\n

Give me my free report! <\/a><\/p>\n<\/div>\n<\/div>\n

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That’s not the type of news most investors want to hear. But Ball said for him it’s not a bad situation. \u201cIf your view is that gold’s going to be going sideways, you’d rather be buying [assets] at $1,200 or $1,000 vs. the high end of the range,\u201d he explained.<\/p>\n

Ball’s company Abitibi Royalties has already made some acquisitions this year. The company, which was spun out of Golden Valley Mines<\/a> (TSXV:GZZ<\/a>) in 2011, purchased several royalties over the summer, with all of them being around Canada’s largest gold mine, Canadian Malartic in Quebec.<\/p>\n

Those deals were likely no surprise to those that have been following Abitbi Royalties. The company’s assets consist of royalties directly on Canadian Malartic<\/a>, plus royalties on areas near the mine<\/a> \u2014 and that’s exactly how Ball wants to keep it.<\/p>\n

\u201cOur whole thesis is that \u2026 we’re not trying to compete in an auction process [with other companies] to go buy a stream or a royalty or a package of royalties,\u201d he said. \u201cI think our investors are aligned with the strategy that we’re trying to play out, which is not to compete against the other royalty companies.\u201d<\/span><\/p>\n

Abitibi Royalties’ focus on Canadian Malartic stems from a belief in the asset and its owners, major miners Yamana Gold (TSX:YRI<\/a>,NYSE:AUY) and Agnico Eagle (TSX:AEM<\/a>,NYSE:AEM). \u201cRight now [Canadian Malartic is] growing every quarter,\u201d he said. \u201c[Yamana and Agnico are] drilling a new record amount of drill holes and meters.\u201d<\/p>\n

Ball’s company is already receiving cashflow from royalties, with $3 to $3.5 million expected to come in this year. Next year cashflow is scheduled to rise to $4 to $4.5 million, \u201cbut that excludes any contributions from our main royalties, East Malartic and Odyssey,\u201d said Ball.<\/p>\n

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\n\"gold<\/a><\/div>\n
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\n<\/a><\/p>\n

Is it a good time to buy gold stocks?<\/h2>\n

<\/p>\n

Learn to profit from gold’s low price this year!<\/h4>\n

Give me my free report! <\/a><\/p>\n<\/div>\n<\/div>\n

<\/p>\n<\/div>\n

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The company has a 3-percent NSR<\/a> on those areas, and Yamana and Agnico are currently spending $20 million to start ramp construction for them. Ball continued, \u201cwhen those start to enter production we would think that we’re going to see multiples of our cashflow from where it is this year or next year.\u201d<\/p>\n

He added, \u201cthe cash that we’re getting right now is very much non-core to the main deposits that are just entering into that development phase.\u201d<\/span><\/p>\n

Another key future catalyst for Abitibi Royalties will be drilling at East Malartic. \u201c[The partnership is] going to be doing some deep drilling,\u201d he said, adding, \u201cI think that there’s a good probability that the rate of discovery could in fact increase as they go deeper on that project just based on the historical data<\/a>. I think the best of the discoveries is yet to come.\u201d<\/span><\/p>\n

In closing, Ball touched briefly on the state of the gold market once again, commenting, \u201cI’m generally not a huge fan of acquisitions, but I do think if I was running a senior gold producer right now I would be taking a pretty hard look at some of these companies that are currently struggling\u201d<\/p>\n

He named TMAC Resources (TSX:TMR<\/a>) and New Gold (TSX:NGD<\/a>,NYSEAMERICAN:NGD) as examples. \u201cIf you’re a senior gold stock and your operational team can pinpoint why these mines are experiencing teething problems \u2014 I would certainly be doing a lot of due diligence if I was a senior gold company.\u201d <\/span><\/p>\n

Don’t forget to follow us @INN_Resource<\/a> for real-time updates!<\/em><\/p>\n

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n

Editorial Disclosure: <\/strong>The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in contributed article. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.<\/strong><\/p>\n

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\n\"gold<\/a><\/div>\n
\n

\n<\/a><\/p>\n

Is it a good time to buy gold stocks?<\/h2>\n

<\/p>\n

Learn to profit from gold’s low price this year!<\/h4>\n

Give me my free report! <\/a><\/p>\n<\/div>\n<\/div>\n

<\/p>\n<\/div>\n

<\/div>\n

The post Brace for More Sideways Gold Movement, Says This CEO<\/a> appeared first on Investing News Network<\/a>.<\/p>\n

…read more<\/a> <\/p>\n

From:: Investing News Network<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Charlotte McLeod The gold price has traded between about $1,200 and $1,350 per ounce this year, and one CEO says market participants may want to get used to these levels. \u201cIf you look at the 1980s, gold spent 10 years going sideways,\u201d Ian Ball, president and CEO of Abitibi Royalties (TSXV:RZZ), said via phone. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[359],"tags":[],"class_list":["post-1045364","post","type-post","status-publish","format-standard","hentry","category-inn"],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1045364","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1045364"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1045364\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1045364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1045364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1045364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}