Why It’s a Good Time to Review Gold, Gold Mining and Calibre as Investment Options in Your Portfolio
While trends in investing come and go, gold has always been a worthwhile investment. As one of the oldest investable asset classes, gold is considered one of the top three global currencies, along with the US dollar and the Euro. But unlike those currencies, gold is also a safe haven asset whose value is not affected by government policies or interest rate hikes. It’s a great asset to have in your portfolio – especially in times of economic uncertainty.
But how you invest in gold matters. There’s a difference between investing in the precious metal itself and investing in the mining companies that produce it. Both can be viable and valuable ways to strengthen, protect and grow your portfolio.
Here, Calibre’s Senior Vice President of Corporate Development and Investor Relations, Ryan King, shares the benefits of investing in both gold and gold producers.
A veritable gold mine of opportunity
Investing in a tangible asset like gold is a great way to protect your investment portfolio. As a precious metal, gold will always hold value, even though that value might fluctuate – often in conjunction with inflation. Yet for many years, it was less attractive to investors than the stock market.
“For the longest time, buying gold wasn’t needed because of the robust state of the economy – tech stocks in particular,” King says. “The Dow Jones Industrial Average went straight up for 15 years. But now we’re in a situation where we’re seeing a dilution of fiat currency,” he adds. “Every 100 days, the US debt goes up by $1 trillion. That’s why people are now buying gold. Central banks around the world are selling dollars and buying gold because the macroeconomic environment is positive for gold.”
Investing in gold vs. gold equities
Investing in gold is a great hedge against macroeconomic forces like the ones we’re seeing now, but buying safe haven investments can also limit the potential for significant returns. One way to get the best of both worlds is by investing in gold producers.
“With gold producers, there’s more risk, but there’s also more torque – the potential for big returns,” King says. “You can buy a gold bar, but if you invest in a gold producer and they find more gold, or you buy the assets when they’re low and they turn into an accretive opportunity, the potential for higher returns is significantly greater.”
Of course, picking the right gold producers in which to invest can also be challenging. King suggests looking beyond the stock price at factors such as the company’s leadership team and its cash flow. It’s equally important to gauge the company’s growth potential and asses whether its current valuation aligns with its future trajectory. “With a company like Calibre, for example, there is a huge disconnect between the stock price we’re selling at and our true value,” King says. “We’re generating significant free cash flow, which we can reinvest to grow the business. And we’re still very early in the macro-economic cycle, so there is a discount on these investments.”
Here’s why it’s a good time to review Calibre Mining as an investment option in your portfolio
If you’re looking for an undervalued gold producer with a long-standing track-record and proven potential for growth to add to your investment portfolio, here’s why you should consider investing in Calibre:
- Smart growth
Calibre started as an exploration company over 10 years ago, and through strategic acquisitions, it is evolving into a mid-tier gold producer with a focus on the Americas. The company is self-funded, generates robust cash flow and has delivered 28% year-over-year production growth.
- Geographical diversity in production assets
While well established throughout Nicaragua with four active mines, Calibre now has more than 55% of its assets located in Tier 1 mining regions. Its recent acquisition of the Valentine Gold Mine in Newfoundland, Canada (Atlantic Canada’s largest open pit mine) has expanded its reach and the opportunity to significantly increase gold production and build a multi-billion dollar company.
- Investment in exploration
In addition to the production and development of gold resources, Calibre holds significant expansion potential through land packages across all assets designated for ongoing exploration programs.
- Strong corporate leadership
Calibre’s seasoned leadership and governance team has successfully overseen the sale of several mining companies for more than US$5 billion, generating significant value for shareholders. Additionally, the team has extensive experience overseeing large operations, globally.
- Consistently strong performance
The company’s performance speaks for itself, with a YTD return of +40% and a five-year return of +158%. Last year, Calibre exceeded gold production guidance with a record 283,494 ounces produced and is on track to deliver 275,000 to 300,000 ounces in 2024.
- A meaningful ESG track record
Calibre is dedicated to establishing robust sustainable practices, trusted corporate responsibility and positive community impact. In 2022, the company distributed US$387 million in economic value, with roughly 60 cents of every dollar produced invested back in-country.
- Growing investor interest
From BMO Capital Markets to the VanEck Vectors Gold Miners ETF, Calibre is attracting the interest of institutional and retail investors alike and has achieved inclusion into impactful global indices. As the Valentine Gold Mine nears production, we expect an increase in institutional investment activity – a strong vote of confidence for investors.
To learn more about investing in Calibre, explore the Investors section of our website at www.calibremining.com, or read our latest investor presentation.