Americas Gold and Silver: Gold to Rise Strongly, Equities to Follow

TL;DR

Gold price volatility is increasing as investors seek ways to protect against potential losses amid the Coronavirus outbreak and a potential recession. America's Gold and Silver, a mining company, remains confident due to their ability to produce gold at a profitable rate. They have recently achieved significant milestones, such as pouring the first gold at the Relief Canyon project in Nevada and increasing production at the Galena complex through exploration efforts.

Transcript

I'm Charlotte McLeod with the investing news network and here today with me is Darrin Bisutti president and CEO of America's gold and silver thanks so much for being here today my absolute pleasure great and we're here at PDC it's day two I want to start off by talking about some of the price activity we've seen in the markets what's your explanati... Read More

Key Insights

• 🏅 Gold prices have been fluctuating due to increasing concerns over the Coronavirus outbreak and potential economic recession.
• 😘 America's Gold and Silver has remained profitable despite the volatility, as their production costs are lower than the current gold prices.
• 🫗 The company has achieved significant milestones, pouring the first gold at the Relief Canyon project and increasing production at the Galena complex through exploration efforts.
• 🛟 Exploration efforts remain a crucial focus for the company as they aim to discover additional reserves to further enhance production.
• 🖕 Consolidation is expected in the mining sector, particularly among smaller and mid-tier companies, as they seek to achieve larger economies of scale and reduce management costs.
• 😤 The recent success of Equinox, a third quartile gold asset with a strong management team, reflects the potential for smaller companies to thrive in the current market conditions.

Questions & Answers

Q: Why are investors turning to gold amidst the current market volatility?

Investors are seeking the safety of gold as other investments, such as equities, experience significant losses. Gold has shown consistent profitability and acts as a hedge against economic downturns.

Q: How does gold price volatility impact America's Gold and Silver as a mining company?

Despite substantial fluctuations in gold prices, America's Gold and Silver remains profitable due to their ability to produce gold at a cost lower than the current market price. The company's CEO and directors have shown confidence by purchasing company stock during volatility.

Q: What milestones has America's Gold and Silver recently achieved?

The company successfully poured the first gold at the Relief Canyon project in Nevada within nine months of construction. They also increased production at the Galena complex by focusing on exploration efforts, which has resulted in a 20% production increase in the first quarter.

Q: How does America's Gold and Silver plan to further enhance the Galena complex's production?

The company plans to continue drilling efforts to discover untapped silver reserves below the current mine. By expanding the resource base, they aim to transform the complex into a giant mine.

Summary & Key Takeaways

• The recent price activity in the gold market reflects investors' concerns over potential economic downturns due to the Coronavirus outbreak and fears of a recession.

• America's Gold and Silver has observed investors pulling out of other investments and turning to gold as a way to protect against losses.

• The company remains confident in their ability to weather gold price volatility and has achieved important milestones, including pouring the first gold at the Relief Canyon project and increasing production at the Galena complex.