October 12, 2023 -- InvestorsHub NewsWire -- via NetworkNewsWire Editorial Coverage: In uncertain economic times, stability is a rare commodity. Historically, one of the most stable spaces during fragile economies is gold, a highly liquid asset that carries no credit risk and preserves its value over time. The precious metal also benefits from diverse sources of demand: as an investment, a reserve asset, gold jewelry, or a technology component. These attributes mean gold can enhance a portfolio in three ways: delivering long-term returns, improving diversification and providing liquidity. Many gold mining companies, including GEMXX Corp. (OTC: GEMZ) (Profile), are seeing significant growth and success during the recent volatile economy. Quickly graduating past startup phase and seeing global growth in mere months, GEMXX is now eyeing vertical integration — a noteworthy differentiator in the gold sector. In addition to gold, the company mines ammolite, a gemstone similar to black opal. With colored gems sparking a hot jewelry trend, this added offering distinguishes GEMXX from many in the gold space. Other mining companies seeing notable success in the gold sector include Wheaton Precious Metals Corp. (NYSE: WPM)McEwen Mining Inc. (NYSE: MUX)Fortitude Gold Corp. (OTCQB: FTCO); and Gold Fields (NYSE: GFI).

  • Through time, gold "has proved, over hundreds and even thousands of years, to be a reliable store of value."
  • The pending acquisition of the Yukon Gold Project would significantly increase GEMXX's gold asset portfolio.
  • A leading producer of high-quality finished ammolite jewelry, GEMXX is the only publicly traded ammolite company in the world.
  • GEMXX has achieved significant milestones recently, and the company controls each stage of its production.

Click here to view the custom infographic of the GEMXX editorial.

Proven Reliable 'Store of Value'

A recent "U.S. News & World Report" article stated that "gold has proved, over hundreds and even thousands of years, to be a reliable store of value." The article went on to note that "whatever events happen, gold has a robust value that stays relatively consistent over time in terms of its purchasing power." The precious metal gold can compete against other relatively safe investments such as the U.S. dollar and treasuries, the article notes, but "because the Fed's efforts to combat inflation appear to be working, gold looks increasingly attractive compared to assets like [treasuries]."

With that in mind, the astonishing progress made by GEMXX Corp. (OTC: GEMZ) in the past several months may prove to be even more significant than at first glance. In 2022, the company, which has no long-term debt, reported a 170% increase in revenues year over year, with assets totaling $19,215,841, an increase of more than a $1 million. GEMXX began this year with more than 1,400 acres already in its gemstone and gold resource portfolio, including the Snow Creek gold mine site, consisting of 498 acres with 80% mineable, and the Rosella Creek gold mine site, consisting of 240 acres with 90% mineable.

In September, GEMXX signed a binding letter of intent ("LOI") to acquire an initial 50% stake in the Yukon Gold Project, which consists of 145 full Yukon quartz claims located in Canada's Yukon Territory. "In addition to our Snow Creek and Rosella Creek Gold deposits, the acquisition of the Yukon Gold Project will significantly increase the company's gold asset portfolio," said GEMXX CEO Jay Maull. "Our plan to derisk revenues through production of the world's most sought-after commodity is happening fast.

"By adding up to four million ounces of gold to the company's assets, GEMXX will increase shareholder value and provide a long-term, stable and profitable investment for years to come," Maull continued. "We will not only enjoy a significant reduction in the cost of goods for our entire gold jewelry line, but this acquisition will bring the company closer to our goal of becoming vertically integrated."

The Ammolite Distinction

The vertical integration GEMXX is focused on is ammolite. Along with its $300 million in gold reserves, GEMXX has more than $600 million in ammolite reserves, including its 360-acre Northern Block, a proven resource, and its 217-acre Southern Blocks, both in southern Alberta, Canada. The only publicly traded ammolite company in the world, GEMXX is a mine-to-market gold, gemstone and jewelry producer that specializes in this gem-quality material that is cut from the fossilized shells of extinct sea creatures known as ammonites. Extremely rare, ammolite is found only along the eastern slopes of the Rocky Mountains in Alberta, Canada — where GEMXX's ammolite reserves are located.

Leading independent market research companies such as Data Monitor and GIA estimate the worldwide market for luxury or premium lifestyle products, which include gems and jewelry, at more than $90 billion annually and growing. Ammolite sales around the world have seen unprecedented growth over the past 20 years. Worldwide retail sales are now estimated to top $100 million, and with colored gems sparking a new trend in the jewelry space, that number appears certain to increase. The organic gemstone boasts a dazzling range of colors and patterns and is highly desired for freeform natural cabochons and assembled jewelry pieces; the iridescent gem could be a top contender in the growing market.

A recent Fashionisto article reported that while diamonds are unspeakably timeless, they are losing their popularity to colored gemstones. "Diamonds have dominated the markets for decades, especially in engagement rings," the article states. "[But] gemstones are back in focus to revel in their colorful glory. The fascination and love for gemstone jewelry isn't new. Since antiquity, they have been believed to carry talismanic properties, divine powers and healing abilities by several civilizations. The rising trends of these stones over diamonds show that they are still as magnanimous and vibrant as ever.

"While gemstone jewelry isn't a new trend, it certainly is the most sustainable one," the article concludes. "People have preferred colored jewels since antiquity for protection, fortune, good health and love. You can expect the similar favoritism in the future too. The market has significantly grown in the past ten years and expected to go even higher in the next decades."

Tried, Tested Management

The success of any company often lies in the hands of its management team — and GEMXX leaders have proven to be expert, proficient and successful in what they do. GEMXX team members have together accumulated more than 160 years in gold, gemstone and jewelry production expertise along with extensive global operations and sales experience. Team members possess extensive backgrounds in every facet of the gold and gemstone business.

That expertise was tried and tested during the COVID-19 pandemic. While many companies had to ultimately scale down or restructure, GEMXX doubled its production volume to meet demand while continuing to grow operations and remain cash flow positive. This often-overlooked asset — a team rich with expertise — allows GEMXX to excel in product development, maintain rigorous quality control measures, and maximize profitability. GEMXX leverages its collective leadership wisdom to drive innovation, deliver exceptional products and optimize business strategies to achieve both short-term and long-term objectives.

Currently the company is focused on its goal of raising $6 million in investment funding through a fully qualified Reg-A offering. This funding will enable GEMXX to begin work on a new, large-scale ammolite mine while also expanding current gold mine operations as it works to meet the rising global demand for its products. The company is also working to complete SK-1300 resource reports on already owned gold-producing assets as well as recently acquired gemstone resources. GEMXX management anticipates that these reports could increase the company's resource base to as much as $976 million and resource book value from $14.7 million to $97.6 million, or 6.6 times its current value.

In addition, GEMXX is preparing for financial audits with the intention of initially trading on the OTCQX and ultimately uplisting to the New York Stock Exchange or NASDAQ. That upward movement could create more opportunities for growth and provide even better shareholder value.

Long-term, GEMXX is committed to the sustainable and environmentally responsible development of its resources. Mining companies operating in Canada earn a stronger ESG score than all other mineral-rich countries because of the country's stringent environmental regulations, strong governance, and commitment to safety and community.

Clearly, GEMXX has achieved significant milestones recently, and it's worth noting that the company controls each stage of its production, including gold mining, gemstone production, jewelry manufacturing, and global distribution. "We are tremendously pleased with the development of the company over the past several months, and we are extremely excited for the anticipated growth," said Maull. "We look forward to updating shareholders as we move into full gold and gemstone production. We intend to do everything necessary to drive shareholder value."

The Quest for Mining Success

Other mining companies are also in the quest for mining success.

Wheaton Precious Metals Corp. (NYSE: WPM) is the world's premier precious metals streaming company with the highest-quality portfolio of long-life, low-cost assets. The company's most recent operational results included the generation of more than $200 million of operating cash flow, primarily driven by significant sequential improvement at the recently commissioned expansion at its largest asset, Salobo. The company also continues to see momentum on the corporate development front with the addition of a new gold stream on Lumina Gold's Cangrejos project and the expansion of our existing gold stream on Artemis Gold's Blackwater project.

McEwen Mining Inc. (NYSE: MUXis a gold and silver producer with operations in Nevada, Canada, Mexico and Argentina; in addition, it owns approximately 52% of McEwen Copper, which owns the large, advanced stage Los Azules copper project in Argentina. The company just reported new assay results from its Stock property, which is part of the Ontario-based Fox Complex. According to the report, geological investigations have identified two principal plunge directions (or vectors) controlling mineralization at Stock with two additional "intriguing results," which suggest other directions for the Stock resource to grow.

Fortitude Gold Corp. (OTCQB: FTCO) is a U.S.-based gold producer targeting projects with low operating costs, high margins and strong returns on capital. The company has announced multiple oxide gold drill intercepts at and near surface along the Isabella Pearl trend. "Intercepting additional oxide gold mineralization at and near surface along our trend speaks to the exciting potential of finding additional gold deposits and operational longevity at Isabella Pearl," said Fortitude Gold CEO and president Jason Reid. "We look forward to the next round of drilling with several goals in mind

Gold Fields (NYSE: GFI) is focused on becoming the preferred gold mining company delivering sustainable, superior value. Gold Fields announced that is has committed to driving positive social and environmental change by embedding ambitious targets in a new sustainability-linked loan backed by a syndicate of 10 Australian and international banks. The sustainability-linked indicators are the same as those being used by Gold Fields in its five-year $1.2 billion revolving credit facility (RCF) announced in May this year. They are also aligned to the company's strategy and its 2030 ESG targets, which prioritize gender diversity, decarbonization and water stewardship.

With the economy in almost constant flux, there may never be a better time to look at investing in mining, either gold or gemstones — or even both. With uncertainty being the one certain thing looking forward, a space known for being stable and reliable is a rare option.

For more information about GEMXX, please visit GEMXX.

About NetworkNewsWire

NetworkNewsWire ("NNW") is a specialized communications platform with a focus on financial news and content distribution for private and public companies and the investment community. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today's market, NNW brings its clients unparalleled recognition and brand awareness. NNW is where breaking news, insightful content and actionable information converge.

To receive SMS text alerts from NetworkNewsWire, text "STOCKS" to 77948 (U.S. Mobile Phones Only)

For more information, please visit https://www.NetworkNewsWire.com

Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: https://www.NetworkNewsWire.com/Disclaimer

NetworkNewsWire
New York, NY
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com

NetworkNewsWire is powered by IBN

DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by NNW are solely those of NNW. Readers of this Article and content agree that they cannot and will not seek to hold liable NNW for any investment decisions by their readers or subscribers. NNW is a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, NNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment.

NNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and NNW undertakes no obligation to update such statements.

SOURCE: NetworkNewsWire Editorial Coverage

Fortitude Gold (QB) (USOTC:FTCO)
Historical Stock Chart
From Jan 2024 to Feb 2024 Click Here for more Fortitude Gold (QB) Charts.
Fortitude Gold (QB) (USOTC:FTCO)
Historical Stock Chart
From Feb 2023 to Feb 2024 Click Here for more Fortitude Gold (QB) Charts.