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Gold Price Surpasses $2200, Canadian TSXV Gold Stocks Finally Gaining Momentum

Canadian TSXV Gold Stocks Finally Gaining Momentum
Published on: Mar 25, 2024
Author: Sunlight Xiang

Last week, the Federal Reserve decided to keep the benchmark interest rate unchanged at 5.25-5.5%. While inflation remains stubborn, it is still expected to see three rate cuts before the end of 2024. Boosted by this news, the price of gold surged past $2,200 per ounce last week. However, following the release of February’s new housing starts data in the US, the US dollar index rose to a monthly high last Friday (March 22), causing a retreat in the price of gold.

In Canada, the Consumer Price Index (CPI) released by Statistics Canada last Tuesday showed a continuing downward trend in inflation. The year-over-year growth rate declined from 2.9% in January to 2.8% in February, marking the second consecutive month below expectations. This further solidifies expectations for a rate cut by the Bank of Canada in mid-2024.

Suggested Opportunity

Dynacor Group Inc.

Dynacor Group Inc. (TSX: DNG)

Dynacor Group Inc. is a gold production corporation headquartered in Montreal, Canada. The corporation is engaged in production through its government licensed ore processing operations. At present, Dynacor produces and explores in Peru where its management team has decades of experience and expertise.

Despite recent strong performance in gold prices, gold stocks have struggled to keep up. However, the breakthrough of the $2,200 mark last week finally stimulated this sector. The following 5 gold stocks listed on the TSX Venture Exchange in Canada saw significant price increases last week, leading the mining sector.

  1. Awalé Resources Ltd (TSXV:ARIC): Stock price rose by 113.89% to $0.385 CAD last week, with a market value of $21.92 million CAD. The company’s flagship project is the Odienné project in Côte d’Ivoire (covering 2,462 square kilometers) and holds 2 mining licenses with 5 more pending, including two joint projects with Newmont Corporation (TSX:NGT) (NYSE:NEM). Positive exploration results from the BBM target area in the Odienné project were disclosed last Monday (March 18), with drilling set to start in April and assay results from the Charger target area expected soon.
  2. Hannan Metals Ltd (TSXV:HAN): Stock price increased by 64% to $0.41 CAD last week, with a market value of $39.39 million CAD.The San Martin project in Peru includes a joint project with the Japanese government agency JOGMEC, with the latter having the option to acquire 75% ownership after meeting all financing goals.A new sedimentary copper-silver discovery was made by Hannan at the San Martin project last Wednesday.
  3. Compass Gold Corp (TSXV:CVB): Stock price rose by 53.85% to $0.10 CAD last week, with a market value of $10.92 million CAD. The company’s Sikasso project in Mali, covering 1,176 square kilometers, has identified 4 open-pit mining potential zones. Results from the Massala target area were released on February 5.
  4. Strikepoint Gold Inc (TSXV:SKP): Stock price increased by 41.67% to $0.085 CAD last week, with a market value of $17.10 million CAD. Assets under Strikepoint Gold include the Cuperite project in Nevada, USA (with a gold resource of 1.4 million ounces), and the Willoughby and Porter projects in British Columbia, Canada. The company announced the commencement of drilling in Cuperite and completed a private placement last Monday, raising a total of $2 million CAD over two rounds.
  5. Golconda Gold Ltd (TSXV:GG): Stock price grew by 33.33% to $0.26 CAD last week, with a market value of $17.11 million CAD. Golconda Gold operates in South Africa and the state of New Mexico in the US, acquiring the Galaxy mine in South Africa in 2015 and the Summit mine and Banner mill in New Mexico in 2021. The company produced 5,025 ounces of gold in the first three quarters of 2023, with the third quarter alone seeing the sale of 1,814 ounces of gold, generating $3 million in revenue.

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