Artemis Gold Stock: Looming First Gold Pour, While Gold Is Bullish

This Analysis Recommend a “Hold” Rating For Artemis Gold Inc.

This analysis confirms the recommendation given in the previous analysis for the shares of Artemis Gold Inc. (OTCPK:ARGTF) (TSXV:ARTG:CA) and therefore reiterates the rating “Hold”.

The previous “Hold” rating supported the view that, despite its technically high valuation, the stock still offered the opportunity to benefit from further increases in the price of safe-haven gold ahead of a risk of recession in 2024.

The Hold rating involved waiting for a dip in the share price, which emerged on January 22 after a nearly 15% price correction, as then-withered market pricing centered on the Federal Reserve’s rate cut as early as March temporarily weighed on non-yielding gold, and on US-listed stocks. Over that week, as a benchmark for the US stock market, U.S. equity ETFs recorded the bulk of outflows driven by information technology (XLK), which was perceived to be on the downside, moderately offset by consumer discretionary (XLY) and energy (XLE)’s above-average inflows.

Higher interest rates raise the risk of a significant slowdown in consumption and investment activity, pushing the Fed toward its goal of reducing inflation, or the rate at which shopping prices increase. While fears of an economic slowdown drive demand for gold as a safe haven and set the stage for a trend toward robust gold prices, the fears, when they sit in, lead to the assumption that the weaker economic conditions are not reflected in the valuation of U.S.-listed equities. It happens that market sentiment for US-listed stocks temporarily deteriorates, and since securities linked to the safe-haven gold price are not exempt from the rest of the market trading in a bearish mood, Artemis Gold shares may also experience sudden corrections.

Artemis Gold benefited from the impact of the Fed’s “Higher for Longer” interest rate policy on long-term demand for gold as a safe-haven investment strategy. After the dip, the stock price resumed its uptrend, rising 60.19 percent since the last article, while the change in the S&P 500 was 12.48 percent.

About Artemis Gold Inc. and its Goal of Pouring the First Gold in the Second Half of 2024

Artemis Gold Inc. is based in Vancouver, Canada, and is engaged in the gold and silver mining and exploration industry as it aims to bring a project called the “Blackwater Project” or simply “Blackwater” into gold production. Artemis Gold Inc. (hereinafter simply “Artemis”) is the sole owner of the Blackwater project, and this project is expected to deliver its first gold in the second half of 2024. The fully permitted Blackwater Project is located 110 km southwest of Vanderhoof, British Columbia, Canada. This is a country with mining-friendly legislation, which, according to the Sprott ESG Mining Risk Heat Map 2024, results in minimal investment risk, and this is as true for Artemis as it is for its investors and shareholders. Key communications infrastructure connects Blackwater to potential markets and upcoming gold production will be okay from an environmental and decarbonization perspective. In Canada, mining permits are granted an average of two years after application, while in the United States and Australia, which are also known for their openness to this type of sector, it can take up to ten years, as indicated by North American and European experts, contributing to the minimal risk of Blackwater compared to other projects of peer companies.

Blackwater Mine: A Gold Equivalent Production Facility Moving Through Fully Funded Phases

Blackwater is a 22-year mine life gold equivalent deposit that projects a viable expansion to the 500,000 gold equivalent ounces (or “GEO”) that the asset would produce on average in each of the first 10 years of expanded production at an average All-In-Sustaining Cost (or “AISC”) of $712 per ounce.

Blackwater’s total operating life consists of three phases:

• During the first of the two years of Phase 1, the open pit mine will produce just over 300,000 GEOs, and in the second year a little bit under 400,000 GEOs, with the processing plant capable of processing 6 million tonnes per year (or “tpa”).
• After Phase 1, Blackwater will reach the 500,000 GEO target sometime in year 3 of Phase 2 (that is the first year of this phase), once this phase is completed, in the sense that the plant will be able to process a throughput of up to 15 million tonnes per annum (or “tpa”). Thus, the plant is expected to reach approximately 580,000 GEOs by the end of Year 3 of Phase 2, which runs through Year 6.

During phase 2, production will fluctuate between 500,000 and 600,000 GEOs.

• Phase 3 then begins immediately…