Correction: Trump's Reflation Polices Will Be Good For Gold In 2017 - Rob McEwenBy Neils Christensen of Kitco News
Thursday January 19, 2017 13:42
Editor's Note: The article incorrectly stated that McEwen mining expects it could be included in the S&P 500 Index in 2017. This is actually one of the company's long-term goals.
(Kitco News) - McEwen Mining and its chairman Rob McEwen may be setting up for another successful year as President-elect Donald Trump prepares to be sworn into office.
In an interview with Kitco News, McEwen said that he is optimistic on gold in 2017 thanks to Trump’s economic and tax proposals that are expected boost the nation’s growth.
“I expect that people will start to see signs of a reflating economy and they might start saying ‘well maybe I should have a little exposure to gold or silver or other hard assets,’” he said.
However, McEwen added that it won’t be an easy road for gold as the U.S. dollar remains strong, particularly if Trump’s policies bring corporate offshore profits back to America.
“These companies that bring back their profits will have to buy U.S. dollar and we are talking about billions of dollars in profits,” he said.
According to the veteran miner, Trump’s policies will be beneficial for U.S. mine production, which could be significant for McEwen Mining’s Gold Bar project in Nevada. McEwen said that they are expecting to get all their permits this year and hopes to start construction in the fourth quarter of 2017.
The company will also spend 2017 to further its goal to eventually be included into S&P 500 index, McEwen highlighted.
“We continue to look for strategic partnership that will help boost our production and lead to get into the S&P 500, a feat 99.9% of companies aren’t able to achieve,” he said.
These plans come on the heels of what was a profitable 2016, which saw the company double its liquid assets to $64 million as a result of higher gold prices and in-line production, he added.
At the start of the week, McEwen Mining announced that it met its 2016 production guidance, producing 145,530 equivalent gold ounces. The company said that it produced 101,482 ounce of gold and 3,303,709 silver ounces.
Last year was also a significant for the mining magnate, who was inducted into the Canadian Mining Hall of Fame. Among Kitco readers, he was also named the top CEO of 2016 and one of the most fascinating people, just behind Trump.
“It is very humbling to join the ranks of my heroes in the mining industry. I was also very honored to be named by Kitco as CEO of the year. That was a pretty surprising way to end the year,” he said.