Gold Companies Ramp Up Mining Activities Amid Consolidation On High Gold Prices

Gold is down by more than 20% from its record highs of $2072 an ounce. Amid the price slump, mining companies are still ramping up exploration and mining activities. The $1700 an ounce price level is still pretty attractive considering that the companies generated impressive results as gold prices oscillated in the $1400 an ounce level in recent years.

Franco Nevada Dividend Hike

Franco Nevada Corp (TSE:FNV) is one of the companies that have felt the full force of the record high precious metal prices going by the record financial results. Buoyed by the strength of the company’s outlook amid the current high commodity prices, management has decided to increase the quarterly dividend to $0.30 a share starting in the second quarter. A 15.4% dividend increase will mark the 14th annual dividend increase.

Gold Mining Push

Idaho Champion, on its part, is moving forth with its exploration and mining activities. The company has made a significant breakthrough on the discovery of near-surface gold at its Baner gold project in Idaho. Assay results at the 100% controlled Baner Gold project in Idaho indicated 0.83 grams per ton gold over 11 meters from 19 meters down hole.

The impressive results extend the northerly trend from 2018 discovery holes affirming strong mineralization at the flagship project. Whitehorse Gold Corp (CVE: WHG) is another company to have posted solid results as part of its 2020 drill program at Skukum Creek.

Newmont Acquisition

Amid the aggressive exploration and mining activities, a consolidation wave also appears to have gripped the industry. Newmont Corporation (NYSE: NEM, TSX:NGT) is the latest to venture into the merger and acquisition market. The company is in the process of acquiring GT Gold Corp. (TSX-V: GTT).

The company has reached an agreement to acquire 85.1% of GT Gold shares that it currently doesn’t own. Under the terms of the agreement, the company is to acquire the remaining share at a price of C$3.25 a share, translating to a C$390 million transaction.

The acquisition should expand its portfolio as GT Gold comes with a world-class portfolio that includes the Tatogga project in the highly sought-after Golden Triangle in British Columbia. The Tatogga project has the potential to contribute significant gold and copper annual production.

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