Markets hate uncertainty, the old saw goes, and whether investors take that distaste out on stocks, it’s almost like clockwork that safe-haven vehicles like gold benefit the most.
With the spread of the coronavirus still very much in evidence, and the death toll growing by the hour, certainly in China, there is still that perception that the world is going through a turbulent phase. Thus, gold shines brighter, hurtling higher 1.9% on the TSX.
Among the key agents of this upward momentum: Galane Gold Ltd. (TSX-V:GG), which Monday celebrated production of 30,294 ounces of gold at its Mupane property in Botswana. What’s more, GG came out with and 2,773 tonnes of concentrate containing 2,905 ounces of gold at its Galaxy property.
Galane CEO Nick Brodie was quoted forecasting about 48,000 ounces from both properties in 2020. Brodie also projecting the commissioning of its 50,000-tonne-per-month plant by June.
GG shares gained one cent or 11.8%, to 9.5 cents, on volume of 694,000 shares.
Concerning gold companies operating in other countries, Bloomberg is telling investors Monday that AngloGold Ashanti has chosen Harmony Gold (NYSE:HMY) as the buyer for its last remaining South African operations.
The report goes on to say the companies are still finalizing the exact terms of the deal for the Mponeng mine and surface facilities.
AngloGold is selling the assets as CEO Kelvin Dushnisky focuses on more profitable mines in Ghana, Australia and the Americas, while Harmony is hunting for deals to replenish declining reserves in South Africa.
Harmony shares gained five cents, or 1.7%, to $3.03, on volume of 3.2 million.