Gold Outlook: JP Morgan's Bullish Forecast And Central Bank Reserves Boost Calibre Mining's Prospects

JP Morgan just forecast $2,000 gold prices by the end of 2023, and $2,175 by the fourth quarter of 2024, as noted by SchiffGold.com. 

In fact, according to JP Morgan’s executive director of global commodities research, Greg Shearer, “there is even further upside potential for the yellow metal if the US economy falls into a recession. The deeper the recession, the more the Fed will have to cut interest rates, which is more supportive of gold.”

In addition, central banks ramped up gold reserves in the first half of the year. 

“Despite a year-on-year decrease of 103 tons in purchases during the second quarter, net purchases by central banks worldwide still hit a record-breaking 387 tons in the first six months of the year, according to the latest data compiled by the World Gold Council (WGC),” as noted by Global Times.  The WGC also added that central bank gold buying will remain strong throughout the year, especially with ongoing geopolitical tensions and challenging economic conditions around the world. 

Even better, “according to the 2023 Central Bank Gold Reserve Survey released by the World Gold Council, 24% of central banks plan to add more gold to their reserves in the next 12 months. Seventy-one percent of central banks surveyed believe the overall level of global reserves will increase in the next 12 months. That was a 10-point increase over last year.”

All of which is great news for gold companies, like Calibre Mining Corp. CXB CXBMF.

Calibre Mining Corp. (TSE: CXB) CXBMF is a Canadian-listed, Americas focused, growing mid-tier gold producer with a strong pipeline of development and exploration opportunities across Nevada and Washington in the USA, and Nicaragua. 

With a diverse portfolio of assets – including three operating mines in Nicaragua and Nevada – the company just recorded gold sales of 69,009 ounces with $139.3 million total revenue, at an average realized gold price of $1,974/oz; consolidated Total Cash Costs of $977, and All-In Sustaining Costs of $1,178 per ounce; and record adjusted net income of $33.6 million; $0.07 per basic share, a 133% increase over Q2 2022; free cash flow of $15.9 million reflecting strong operating results; and cash on hand of $77.0 million, a 32% increase over Q1 2023.

In addition, the company just announced additional near surface, resource expansion drill results from its 2023 program at the Pan Gold Mine, located on the prolific Battle Mountain – Eureka gold trend in Nevada. 

Results at the Dynamite North and Palomino targets located immediately north and south of the current open pit operation, respectively, continue to expand zones with grades higher than Pan’s stated Mineral Resource grade of 0.4 g/t gold. 

These additional higher-grade results, in combination with the newly discovered Coyote target announced earlier this year, located south of the operation, continue to demonstrate the potential to increase resources, grade, and confidence around the Pan mine. 

Learn more about Calibre Mining here.

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