Evolution Mining chairman Jake Klein is optimistic that gold will remain robust in the long term despite prices dipping following positive news towards the development of a COVID-19 vaccine.
Gold prices dropped by more than $US100 ($136) an ounce within less than a month, from $US1965.55 on Nov 9 to $US1807.6 on Nov 25, according to ABC Bullion.
Klein, speaking at the company’s annual general meeting today (Thursday), said that gold’s long-term strength needed to be propped up by government support across the world’s major economies.
While certain that the rule of law can be relied upon in Australia and Canada – Evolution’s choice of jurisdictions – countries such as Indonesia, Tanzania and Papua New Guinea had been subjects to an unanticipated government intervention, Klein said.
“Avoiding these risks is at the core of Evolution’s decision to exclusively focus on the Tier 1 jurisdictions of Australia and Canada where the rule of law can be relied on,” he added.
Evolution acquired the Red Lake mine in Canada in April this year.
The operation had driven the company’s mineral resource to 11 million ounces.
Red Lake is now the largest and highest grade asset in Evolution’s portfolio, targeted to produce 300,000-500,000 ounces a year, according to Klein.
“At Evolution we have a strong clarity of our vision and purpose,” he said.
“… We are confident in our belief that we have a clear strategy and pathway for the ongoing success of Evolution Mining.”