Gold may be the ‘king of bling’, but is it overbought? As prices surge, so do costs for miners – by Gabriel Friedman (Financial Post – August 27, 2020)

For years, Clive Johnson, chief executive of B2Gold Corp., was frustrated by all the investors and analysts who looked at his company, noticed more than half its gold came from the Fekola mine in Mali, and discounted the value of the whole enterprise as too risky.

“We were stuck between three and four dollars forever, despite the success of Fekola, which drove me crazy,” Johnson told the Financial Post.

But times have changed and so have attitudes towards gold mining companies now that the spot price of gold has surged 22 per cent since March, near to an all-time high above US$1,900 per ounce.

So when the political risk materialized last week after a military junta toppled the government in Mali last week, and investors pushed B2Gold’s stock down 20 per cent in two days, Johnson hardly blinked. He was holed up in the beach community of Tofino on Vancouver Island at the time, and noted his shares were still trading safely above $8, a “healthy” level.

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