Resource World Magazine

A P R I L / M A Y 2 0 2 0 www.resourceworld.com 9 GOLD Gold and gold stocks looking good by Ellsworth Dickson President Donald Trump's $2 trillion post- COVID-19 economic stimulus package jump-started the gold price and by April 14 it was US $1,733/oz – a record high. This had an immediate positive effect on the bottom line of gold producers and their share prices. However, on the other side of the coin so to speak, the COVID-19 pandemic has caused economic havoc around the world. "It is very likely that this year the global economy will experience its worst recession since the Great Depression, surpassing that seen during the global financial crisis a decade ago," said International Monetary Fund Chief Economist Gita Gopinath in the latest World Economic Outlook report. With such dire predictions, it appears that gold stocks may be the best place for investors. In a recent forecast, CPM Group analysts foresee gold prices to continue on their upward path this year and to reach new record highs in the medium term thanks to ongoing central bank buying, gold's safe haven status, low to negative interest rates, the COVID-19 virus, mounting global debt, strong gold ETF buying and now Trump's stimulus package. Below are five gold stocks that are already recovering and deserve to be watched. Equinox Gold Corp. [EQX-TSX, NYSE] shares are experiencing a recovery after falling to about $6.50. The recent merger with Leagold Mining has transformed the company into a premier gold producer with a portfolio of six mines in the Americas, two growth projects and two expansion projects. Equinox temporarily suspended mining at its Los Filos Mine in compliance with a Mexican government decree. The company will continue processing solution from the heap leach pads and expects gold production will continue at a reduced level through the temporary suspen- sion. The company also temporarily suspended operations at its Pilar Mine in Brazil. Operations have resumed at the RDM mine in Brazil. Equinox Gold provided its 2020 production and cost guidance of 540,000-600,000 ounces of gold at all-in-sustaining costs of $1,000 to $1,006/oz. Guidance for the Los Filos, Fazenda, RDM and Pilar mines reflects production expectations from March 10, 2020, the closing date of the merger with Leagold Mining, to December 31, 2020. Total consolidated 2020 production, including gold produced by Leagold in 2020 before completion of the merger, is estimated at 615,000-680,000 oz of gold. All dollar amounts are in US dollars. On April 14, Equinox shares were $10.55. Liberty Gold Corp. [LGD-TSX; LGDTF-OTC] is exploring the Great Basin of the western United States. The company's flagship projects are Black Pine in Idaho and Goldstrike in Utah, both past producing open-pit mines, where previous operators "only scratched the surface". On April 14, Liberty Gold shares were trading at $1.13. Teranga Gold Corp. [TGZ-TSX; TGCDF-OTCQX], since its initial public offering in 2010, has produced more than 2 million ounces of gold at its Sabodala operation in Senegal, West Africa. Its objective is to become a mid-tier producer. To that end, the company recently announced commercial production at its second gold mine, Wahgnion, in Burkina Faso, and is carrying out exploration programs in three West African countries: Burkina Faso, Ivory Coast and Senegal. "Consolidated first quarter production is likely to be between 85,000 and 90,000 ounces as expected," said Paul Chawrun, COO. On April 14, Teranga shares were $9.65. Eldorado Gold Corp. [ELD-TSX; EGO-NYSE] is a mid-tier gold and base metals producer that includes mining, development and exploration projects in Turkey, Canada, Greece, Romania, Serbia and Brazil. Key operations include the Kisladag and Efemcukuru mines in Turkey, the Olympias Mine in Greece, and the Lamaque Mine in Québec. Together they produced 395,331 ounces of gold last year, includ- ing 113,940 ounces from Lamaque where operations have been temporarily minimized to comply with provincial government-mandated restrictions to address the COVID-19 pandemic. On April 14, Eldorado Gold shares were $11.96. Skeena Resources Ltd. [SKE-TSXV; SKREF- OTCQX] is exploring two prospective, formerly producing precious metal properties in the Golden Triangle region of northwest British Columbia, Canada. The company's primary activities are focused on the past-producing Eskay Creek Mine and Snip Mine. The company just raised $20 million. On April 14, Skeena shares were $0.97. n

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