Make Kitco Your Homepage

$1,800 gold puts M&A projects ‘on the table,’ but gold’s price will go higher – Alastair Still

Kitco News

(Kitco News) The price of gold will rise due to worries about inflation, said Alastair Still, CEO of GoldMining Inc. He added that even a price of $1,800 per ounce offers many opportunities for mergers and acquisitions.

“I think the gold price is going to go higher,” he said. “We are all talking about inflation. That’s on the tip of everyone’s tongues these days. And I think that as the markets get turbulent… we’ll seek out gold as a safe haven.”

Still spoke with David Lin, Anchor and Producer at Kitco News, at the PDAC 2022 Convention in Toronto.

GoldMining Inc.

GoldMining Inc (TSX: GOLD) is a junior miner focused on acquiring and developing gold mines across the Americas. Despite the recent crashes in stocks and cryptocurrencies, Still said that GoldMining has strong fundamentals.

“GoldMining is better positioned than most [miners]… because we have such a strong balance sheet,” he said. “We’re sitting on almost $10 million in cash. We have strong financing available to us. We’ve got strong institutional investors. We’ve got strong retail investors.”

Still also pointed to GoldMining’s “strong equity portfolio,” most of which consists of shares in Gold Royalty Corp, yielding “close to 1 million Canadian dollars per year in dividend income.”

GoldMining Inc, said Still, has a “diverse portfolio” of projects across the Americas, with “close to 32 million gold-equivalent ounces,” which consists of 16 million ounces of indicated gold, and 16 million of inferred gold.

Gold’s Price and Mining

“We’re very much still bullish on the price of gold,” said Still. “Our Chairman-Founder, Amir Adnani, has been very successful at purchasing properties when there were dips and downturns in the market, and he picked up a lot of the properties we have, right now, when gold was close to $1,200 or $1,300 per ounce.”

He added, “from an M&A perspective, [a $1,800 price of gold] puts a lot of projects on the table… If we can maintain that price, a lot of operations will stay in play.”

Still said that there is “runway for gold to increase,” due to inflationary pressures and stock market disruptions.

When asked about the benefit of holding a gold mining stock, as opposed to physical gold, Still responded, “I would say that creates a buying opportunity… The gold equities have moved in step with the broader market. They’ve decoupled a bit from the gold price. The gold price is still over $1,800 per ounce. As we’re speaking, we think it can go higher. I think that’s a buying opportunity… it’s one thing to invest in the physical metal, but if you’re highly levered to it as well [through a gold miner], that’s an even better investment opportunity in my opinion.”

To find out more about GoldMining Inc., and its assets, watch the above video.

Follow David Lin on Twitter: @davidlin_TV

Follow Kitco News on Twitter: @KitcoNewsNOW

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.