The Federal Reserve Just Made the Bulls Case for $4000 Gold
Distributed on behalf of Equinox Gold Corp.
Now trading at $3,405, gold test a record high of $3,500 shortly. Some analysts, including those at GSC Commodity Intelligence, say $4,000 may be in the cards, too. All of which could have a substantial impact on gold stocks, including Equinox Gold Corp. (NYSE American: EQX) (TSX: EQX), Newmont Corporation (NYSE: NEM) (TSX: NGT), Barrick Mining (NYSE: B) (TSX: ABX), Royal Gold (NASDAQ: RGLD), and Kinross Gold (NYSE: KGC) (TSX: K).
In fact, as noted by FXEmpire.com, “Lower interest rates erode the U.S dollar, diminish the appeal of bonds and turbo-charge demand for safe-havens. According to analysts at GSC Commodity Intelligence, this is precisely the backdrop in which Gold historically delivers its most parabolic upside moves. Institutional positioning is already shifting. ETFs are recording renewed inflows. Central Banks remain steady buyers and traders are betting that Gold will not only retest $3,500 but smash through to $4,000 an ounce in the months ahead.”
We also have to consider that gold ETF inflows soared to 170 tonnes in the second quarter of 2025. That combined with first quarter inflows resulted in the strongest first half for gold inflow since the pandemic-fueled inflows of 2020.
One of the Companies Benefiting is Equinox Gold Corp. (NYSE American: EQX) (TSX: EQX)
Equinox Gold Corp. provided an update on its cornerstone Canadian mining operations, the Valentine Gold Mine located in Newfoundland & Labrador, and the Greenstone Gold Mine located in northern Ontario.
Darren Hall, Chief Executive Officer of Equinox Gold, commented: “I am pleased to announce that our Valentine Gold Mine has begun processing ore through its 2.5-million-tonne-per-annum facility. We expect to pour first gold within the next month, marking another important milestone for Equinox Gold as we bring our second cornerstone Canadian mine into production (see new video here). With a skilled operating team, with proven commissioning expertise, established systems and procedures and critical spares in place, the team is well positioned to ramp-up to nameplate capacity during Q2 2026. At that point, Valentine is expected to produce between 175,000 and 200,000 ounces of gold annually for the first 12 years of its 14-year reserve life.
“Equinox Gold is entering a pivotal phase of growth, with production and cash flow expected to increase meaningfully as Valentine ramps up and Greenstone approaches nameplate capacity.
“At Greenstone, the ramp-up continues to advance, supported by new leadership and technical expertise. Bryan Wilson has been appointed Vice President of Operations and will start on September 3, bringing more than 37 years of experience in both open pit and underground mining to the team. Bryan has a proven track record of safe, efficient, and profitable operations and is widely recognized as a change agent who drives performance improvements while upholding the highest safety standards. Bryan was most recently Vice President of Operations at IAMGOLD’s Côté Gold Mine, where he led the transformation of the operation through commissioning, optimization, and into steady-state delivery. We also welcomed Roger Souckey as Director, External Relations. With 35 years of global mining experience at both the site and corporate levels, Roger will lead stakeholder and community relations at Greenstone.”
“The Company has also strengthened its executive leadership team with the appointment of Daniella Dimitrov as Executive Vice President of Sustainability, People & Strategy. With more than 25 years of leadership experience in strategy, finance, and governance, Daniella adds valuable expertise that will advance our vision of building a top-quartile gold producer anchored by long-life Canadian mines.”
“Additionally, holders of the Company’s 2020 Convertible Notes elected to convert their notes into common shares at the conversion price of US$6.50 per share and on August 18, 2025, Equinox Gold issued 21.4 million shares to fully settle the US$139.2 million principal amount of the notes. The retirement of the 2020 Convertible Notes marks another step in the Company’s objective to reduce overall leverage.”
Valentine Gold Mine Update
Equinox Gold’s second cornerstone Canadian asset, the Valentine Gold Mine located in Newfoundland & Labrador, Canada, is a conventional crush-grind carbon-in-leach operation expected to produce between 175,000 and 200,000 ounces of gold annually for the first 12 years of its 14-year reserve life. Once fully operational, it will be Equinox Gold’s second-largest mine, the largest gold mine in Atlantic Canada, and a significant contributor to the Newfoundland & Labrador economy.
Valentine currently boasts Proven and Probable Mineral Reserves² of 2.7 million ounces grading 1.62 g/t gold, exclusive of Measured and Indicated Mineral Resources² of 1.3 million ounces grading 1.45 g/t gold, and an Inferred Mineral Resource of 1.1 million ounces grading 1.65 g/t gold. Encompassing a 250 km2 land package, Valentine has the potential to emerge as a new gold district. The existing deposit is located within a highly prospective 32-km mineralized trend offering strong exploration upside, sharing geological similarities with the well-known Val d’Or and Timmins camps in the Abitibi gold belt in Ontario.
Valentine Exploration Highlights
The Valentine mining operation consists of three open pits: Marathon, Berry, and Leprechaun. Recent drilling efforts at Valentine have focused on an area outside of defined mineral resources southwest of the Leprechaun open pit called the Frank Zone. Drilling continues to intersect significantly broad-width and near-surface gold mineralization that remains open to both the southwest and north for over one kilometre along strike and to a vertical depth of 500 metres, highlighting the potential for a new open pit development. Some of these results include 2.43 g/t gold over 172.8 metres estimated true width, 2.12 g/t gold over 95.4 metres ETW, 3.08 g/t gold over 48.2 metres ETW, and at-surface results of 97.87 g/t gold over 3.9 metres ETW (see Calibre news releases dated November 24, 2024 and February 11, 2025).
The geological characteristics of these results are consistent with those of the proven open pits. Moreover, exploration to date at Valentine has concentrated on only the 8-km corridor between the Leprechaun and Marathon open pits in what is known as the Valentine Lake Shear Zone. This shear zone extends for 32 kilometres and offers substantial potential for additional gold discoveries.
Other related developments from around the markets include:
Newmont announced that the Parliament of Ghana has ratified the renewal of the Akyem East Mining Lease. Per Newmont’s definitive agreement to divest its Akyem operation in the Republic of Ghana, Zijin Mining Group Co., Ltd. agreed to pay Newmont $100 million upon receipt of the Lease Ratification. The payment has been received, bringing total after-tax cash proceeds from the sale of Akyem to approximately $770 million. With today’s announcement, Newmont now expects to generate $3.1 billion in after-tax cash proceeds from its divestiture program in 2025, including $2.6 billion from divested assets and approximately $470 million from the sale of equity shares in Greatland Resources Limited and Discovery Silver Corp. The proceeds will support Newmont’s capital allocation priorities, which include reducing outstanding debt and returning capital to shareholders.
Barrick Mining announced the declaration of an enhanced dividend of $0.15 per share for the second quarter of 2025. The dividend is consistent with the Company’s Performance Dividend Policy announced at the start of 2022. The Q2 2025 dividend will be paid on September 15, 2025 to shareholders of record at the close of business on August 29, 2025. In addition to the enhanced quarterly dividend, Barrick repurchased 13.50 million shares during Q2 under the share buyback program that was announced in February 2025. As of the end of Q2, Barrick has repurchased approximately 21.19 million shares under this year’s program, or approximately 1.2% of Barrick’s issued and outstanding shares at the time the program was announced, for net cash of $411 million, including $268 million paid during Q2.
Royal Gold announced that its Board of Directors has declared its fourth quarter dividend of $0.45 per share of common stock. The dividend is payable on Friday, October 17, 2025, to shareholders of record at the close of business on Friday, October 3, 2025. In addition, according to Bill Heissenbuttel, President and CEO of Royal Gold, “Royal Gold produced another quarter of excellent financial results, with record revenue, earnings and operating cash flow, demonstrating again the leverage in our business to strong precious metal prices. We always seek to improve our business and we saw opportunities recently to take significant steps to position Royal Gold as a premier growth company in the streaming and royalty sector. "The acquisitions of Sandstorm Gold and Horizon Copper will bring scale, growth and diversification to Royal Gold and make us the most diversified and gold-focused company in our sector."
Kinross Gold announced that the Company’s Board of Directors has declared a dividend of US$0.03 per common share for the second quarter of 2025. The dividend is payable on September 4, 2025, to shareholders of record as of the close of business on August 21, 2025. This dividend qualifies as an “eligible dividend” for Canadian income tax purposes while dividends paid to shareholders outside Canada (non-resident investors) will be subject to Canadian non-resident withholding taxes.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Equinox Gold Corp. by Equinox Gold Corp. We own ZERO shares of Equinox Gold Corp. Please click here for disclaimer.
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