Precious Metals Sector Shows Elevated Prices, Central Bank Demand, and Consolidation Trends
Kitco News reported on February 16 that gold prices had traded in a narrow range during quiet holiday conditions, noting that “gold prices have been unable to hold gains above US$5,000 an ounce in relatively quiet trading.” The report stated that spot gold last traded at US$4,978.1 per ounce, down 1.25% on the day, as several major markets were closed for holidays. According to Kitco, analysts had indicated that trading activity remained subdued, with Elior Manier of OANDA stating that “gold prices remain well supported around US$5,000 an ounce as geopolitical uncertainty remains elevated.”
Kitco also cited Daniel Hynes, Senior Commodity Strategist at ANZ, who stated that “the long-term story for gold also remains positive,” adding that “geopolitical and economic uncertainties will likely persist,” and that such conditions had supported demand for real assets. The publication noted that silver prices had also traded quietly, with spot silver last at US$75.96 per ounce, down 1.75% on the day.
Stewart Thomson wrote on February 17 that gold had been trading within a defined range, stating that “a range trade between US$4400 and US$5600 is forming.” He also wrote that gold had “burst above that channel and appears to be consolidating the breakout now,” while noting that price softness during the Chinese Spring Festival period had historically occurred. Thomson described broader demand dynamics, stating that he had “described an emerging ‘gold bull era’ that is focused on the economic rise of China and India.”
Richard Mills wrote on February 18 that gold had experienced volatility following macroeconomic developments, noting that the metal had dropped 9.5% on January 30 after reaching a record peak of US$5,594 per ounce. He also cited central bank demand trends, stating that the People’s Bank of China had increased its gold reserves to 2,308 tonnes, marking “the 15th consecutive month of gold reserve accumulation.” Mills further referenced global central bank buying, noting that the World Gold Council had reported net purchases totaling 52 tonnes through November, with year-to-date figures reaching 297 tonnes.
Mills also cited commentary from analysts at UBS, who stated that “a further decline in real U.S. rates will help support investor demand for gold exchange-traded funds,” while noting that central banks had been expected to continue adding to reserves. He further referenced ETF demand trends reported by The Kobeissi Letter, which stated that global gold ETFs had recorded US$19 billion in inflows in January, and that “retail is going all-in on gold and silver.”
Third-Party Commentary on Rowan Drilling Results and Development Progress
Analysts had provided commentary on recent operational and development progress at West Red Lake Gold. In a November 18 note, Craig Stanley of Raymond James reported that ore production increased during the third quarter after mined waste was stored underground to free haulage capacity for ore. He wrote that 35.7 kilotonnes of ore were mined at an average grade of 5.4 g/t Au, with daily production rates rising from 435 tonnes per day in July to 463 tonnes per day in August and reaching 1,400 tonnes per day later in September. Stanley maintained an Outperform 2 rating with a CA$1.75 target and stated that a Pre Feasibility Study combining the Rowan and Madsen projects was expected in the third quarter of 2026.
Paul O’Brien of Velocity Trade Capital wrote in a November 26 research note that he had maintained an Outperform rating and a CA$2.05 price target. He described the Fork deposit as “a shallow resource of approximately 80,000 ounces of gold” and stated that “the capital required [was] modest (less than CA$3 million).” He also noted that “WRLG’s NAV [was] highly sensitive to gold price changes, with a +/-17% change for each +/-10% fluctuation in gold prices.”
Matthew O’Keefe of Cantor Fitzgerald wrote on January 12 that the company’s announcement of commercial production represented “a significant milestone,” stating that it demonstrated “a successful transition from construction and commissioning to stable operations.” He reported that the company poured 20,000 ounces of gold and generated US$73 million in sales, while maintaining a Buy rating and a CA$2.50 price target.
In a January 13 note, Taylor Combaluzier of Red Cloud Securities reiterated a Buy rating and a CA$2.30 target. He reported fourth quarter production of 7,379 ounces at an average grade of 5.06 g/t Au with 95% recovery and stated that the company ended the year with CA$46 million in cash and receivables. Combaluzier also cited “ongoing infill and regional drilling assays and continued ramp-up of the Madsen mine” as key near-term developments.
In the January 13 edition of What Is Chen Buying? What Is Chen Selling?, Chen Lin stated that “WRLG.v, the up and coming producer, reached commercial production,” and wrote that the company had “40+ million in the bank and looks like the most challenging period of the company.” He added that “the next key news is free cash flow from operations” and stated that he believed the company could become “an easy takeover target if their share price does not appreciate fast from here.” No formal rating or price target was disclosed.
Robert Sinn wrote in a January 14 article that the Madsen Mine achieved commercial production as of January 1, with the mill averaging 689 tonnes per day in December, representing 86% of permitted throughput. He stated that “3,215 ounces of gold [were] poured and an average of 689 tons per day throughput at the mill,” and noted that recent gold sales had been transacted “north of US$4,600/oz.” No rating or target price was provided.
In a January 29 portfolio update for TheGoldAdvisor.com, Jeff Clark and Daniel Flynn highlighted new drilling results from the Rowan project, noting that initial assays from the first six holes confirmed high-grade continuity across the system. They reported that Hole RLG-25-192b returned 1 meter grading 141.5 g/t gold from Vein 013, describing it as “well beyond our key 100 gram-meter benchmark,” with additional intercepts including 1 meter grading 17.55 g/t gold from Vein 011. The authors stated that the results prompted the company to expand the program by an additional 1,000 meters to a total of 6,000 meters and noted that the drilling was focused on upgrading inferred resources to indicated categories while expanding the resource. They also referenced the project’s prior economic study, which outlined a post-tax net present value of US$125.3 million and a 41.9% internal rate of return based on an underground operation producing approximately 35,000 ounces per year over five years at an average grade of 8 g/t gold.