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Trump Agenda Could Cause Gold Prices to Boom

T.K, T.BTO, FCX

PR Newswire

LONDON, March 6, 2017 /PRNewswire/ --

OilPrice.com Market Commentary: As Trump sets out to 'make America great again'; gold is back on everyone's radar, gaining on widespread uncertainty and promises of high-level inflationary infrastructure spending. For our favorite precious metal, this is a euphoric time. Gold is great again, and all-American gold, even better. Mining Companies with recent performances in the markets include: B2Gold Corp. (NYSE: BTG), Kinross Gold Corporation (NYSE: KGC), Freeport-McMoRan Inc. (NYSE: FCX), Sibanye Gold Limited (NYSE: SBGL) and Stillwater Mining Company (NYSE: SWC).

The world's hottest mining belt right now is the U.S. state of Montana. With gold futures up 10 percent and spot prices up almost 7.5 percent in the first quarter, history is preparing to repeat itself with another gold rush.

And while the 'Wild West' itself has been tamed since the last gold rush, there will be nothing tame about Montana gold. The state is home to one of the world's biggest metals bonanzas, and its Silver Star Mining District is a gold belt with massive historic Gold Rush infrastructure and what Broadway Gold Mining Ltd. ( BR D.V ; BDWYF ), is eyeing as some of the most lucratively underexplored and underexploited gold territory in the world.

The Broadway dream team gets it-this is a smart move on pure American gold. But so does China. In this race to stake new claims in Montana, there is growing concern that China may get too much of a foothold here for the national security interest to stomach.

Montana will be thanking Trump for his phenomenal effect on gold. Gold thrives on chaos, and even the slight possibility of impeachment keeps gold prices up. But gold is now good in any scenario. If he remains in office, Trump will pursue highly inflationary policies, and while gold loves chaos first and foremost, inflation is its mistress.

Gold stocks are loving this. By mid-February this year, the market's largest gold stocks saw double-digit gains. Freeport-McMoRan (NYSE:FCX), up 21 percent in January, sold an impressive 1.1 million ounces of gold in 2016 and produced a whopping 4.65 billion ounces of copper. Kinross Gold (NYSE:KGC) was up more than 18 percent in the first month of 2017, and Sibanye Gold (NYSE:SBGL), also up, reported a fivefold increase in earnings. B2Gold (NYSE: BTG) was also up 21 percent in January.

So while the idea of 'making America great again', the prospect of inflation, and the overall atmosphere of uncertainty are the best positive fundamentals for gold, everyone should also be looking at the White House's emerging China policy, because any negative statements about China right now will send gold soaring even higher. A major coup for gold would come if the new administration comes out with a declaration that China is manipulating currency, or that the U.S. plans to meddle more visibly in the South China Sea.

Geopolitically, we haven't seen this level of pending global chaos in decades, and we're looking at a unique small-cap that is poised for gains in an emerging scenario that is great for gold.

In this new role, American gold is about to play in an increasingly uncertain world, it's all about Montana and a small-cap company that in the coming weeks is poised to demonstrate just how important it is in making American gold great again.

5 Reasons to keep a close eye on Broadway (BR D.V ; BDWYF) as gold enters a new era:  

#1 Brand New Listing, Massive Historic Production 

Broadway owns a 100 percent interest in the Madison Gold and Copper Mine in the heart of southwestern Montana's prolific Silver Star Mining District gold belt. This is a pure play gold and copper project in Butte, Montana-arguably one of the largest collections of metals in the entire world. It's only 50 miles from the famous Butte open pit mine.

In this acquisition, Broadway has inherited 450 acres that already have extensive underground development and facilities. It's also inherited C$9.9 million of direct expenditures already made on the mine historically, plus another C$2 million invested by former owner, Coronado Resources, since 2005.

This is a gold-copper skarn deposit associated with a deeper copper-gold porphyry deposit that already has six federal patented claims and 35 underexplored unpatented claims.

It's also home to the Broadway Gold Mine-from whence the newly listed company takes its name. The Broadway Gold Mine is a historic producer dating back to the 1880s. Between 1880 and 1950, the mine yielded some 450,000 tons from 6,000 feet of underground workings.

What's different today? Quite simply, water and technology. Historic exploration was shallow, sticking to 400 feet at most because getting down to the water was too expensive and technically challenging.

The best part: It's never been fully explored or exploited, and Broadway has already identified a series of high-grade gold and copper zones for expansion.

In the meantime, Montana is fast becoming the hottest mining venue in the world, and the competition is fierce. Sibanye, which is 20 percent owned by the Chinese, is trying to win approval for the US$2.2-billion takeover of Stillwater Mining Co. (NYSE:SWC) and its two Montana mines, which are the biggest platinum operations in the U.S., and even the biggest outside of South Africa and Russia.

#2 The Lucrative Copper Upside 

This isn't just about gold. There's a huge copper upside here, as well. Broadway's new acquisition is undoubtedly one of the largest copper mines in the U.S., and with copper prices jumping over 9 percent in January, there has never been a better time to get in on this metal.

The copper prospects here are just as exciting, and it makes the lucrative gold that much more attractive. Broadway (BRD.V; BDWYF) is looking forward to finding deep-seated copper porphyry, common to the classic Butte copper porphyry, copper-gold multi-element system. So while, the company is chasing down near-surface skarn material right now, just 600-700 feet deep, it's going much deeper in the near future.

And timing is everything with a small-cap that's got a stellar management track record: It has already drilled eight holes and lab results from the first three will come out possibly within a week.

#3 Advanced Stage Exploration 

Broadway's gold-copper play is an advanced-stage exploration project. Because they have all the underground mine workings already and have already rehabilitated it, they can gain access to the areas that the previous owners were bulk sampling. That means they have access to material immediately. At the same time, its surface drilling program that is already into Phase 2 is working toward Broadway's maiden 43,000+ resource calculation.

#4 Fu lly Capitalized, and Hitting Drilling Hard 

Though Broadway (BRD.V; BDWYF) is a brand new listing, as of late 2016 it's already fully capitalized after two successful fund-raising series. The first phase raised US$900,000, and the second, US$2.1 million. The first phase was used for the acquisition and then the second will be applied to an aggressive field program of underground mine rehabilitation, deep IP geophysics and surface drilling. They've already finished the Phase 1 drill program, and Phase 2 launched last week.

#5 Billion-Dollar Background 

For small-caps, it's all about management, and Broadway has a dream team that's nothing short of legendary in the oil and gas and mining sectors. Chairman Duane Parnham spent his career founding and developing attractive resource-focused companies, including Temex Resources, Giyani Gold and Canoe Mining Ventures. He started UNX Energy as a US$2-million shell focused on offshore oil and gas in Namibia and raised US$60 million in equity against a US$6-million acquisition cost before he sold the company for US$730 million. After that, in 2011, Parnham started Giyani Gold, exploring in South Africa's Giyani Green Stone Belt. Again, he turned a US$1-million start-up into a gold mine, raising US$9 million in equity and turning it into a US$350-$400-million market cap.

Junior resource companies with huge overheads and exorbitant consultant and management fees don't last too long, but Broadway has a small team of experts with proven multi-million-dollar track records and they don't need expensive consultants and they don't believe in big overheads. On the contrary, they are a low-burn company with key figures who don't need a day-to-day paycheck. They're fully focused on adding value to an exciting project. And this company is truly motivated to get to the finish line first-that's why it's so closely held by insiders.

There has never been a more promising time in the commodity price cycle to get in on gold and copper, and as Trump continues to boost gold no matter what he does or how long he lasts, demand seems certain and prices brilliant. Broadway (BRD.V; BDWYF) gets it.

By Charles Kennedy of Oilprice.com

Legal Disclaimer/Disclosure from OilPrice.com: This piece is an advertorial and has been paid for. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Oilprice.com only and are subject to change without notice. Oilprice.com assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.

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SOURCE OilPrice.com



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