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Thursday, Jun 12, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
Gold producer share prices could be due for a favourable market correction
Gold producer share prices could be due for a favourable market correction
Image via Dall-e.

Gold

Gold mining share prices could be due for a favourable market correction

Multiple analysis predict a market correction favouring gold producers

Analysts at JP Morgan think that gold mining stocks are still too cheap and are due for a market correction.

The big name investment bank predicted USD$4,100 per ounce for gold in 2026 on Friday. Based on that estimate, it also sees plenty of value in gold mining shares from gold producers from large scale to small, and mid-cap companies.

Furthermore, analysts at Jefferies Financial Group concur, and point to a historic valuation gap with many gold equities still holding share prices like bullion were still ranging around USD$2,500 an ounce. In addition, as gold prices increase, other analysis are suspecting that a mining equities breakout may soon follow. This will result in attention on miners of all sizes, including RUA GOLD Inc. (CVE: RUA) (OTCMKTS: NZAUF), Great Pacific Gold Corp. (CVE: GPAC) (OTCMKTS: FSXLF).  This could also potentially affect gold producers such as NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50), and Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) (FRA: WCLA).

In addition, analysts at Goldman Sachs say central banks are driving the current gold bull market by buying around 80 metric tons monthly. That equals roughly USD$8.5 billion in gold purchases every month. This surge in demand has also helped push gold to record highs.

According to George Milling-Stanley of State Street Global Advisors, this trend makes perfect sense. With global uncertainty rising, gold continues to offer stability and protection. Investors still value gold for its long-term potential and time-tested role as a safe haven.

As market volatility grows, analysts expect central banks to keep buying. That continued support could sustain the gold rally.

Read more: Calibre Mining reports solid Q1 results; receives court approval for Equinox Gold merger

Read more: NevGold’s long intervals of antimony & gold mineralization turn heads

Critical minerals could be a generation defining factor

RUA Gold is advancing a portfolio of high-grade, district-scale gold projects in New Zealand. The country is fast becoming an exploration hotspot, offering strong historical roots and modern infrastructure.

Recently, the company announced new high-grade intercepts from its Cumberland project. Highlights include 1 metre at 26.9 g/t gold and another at 16.2 g/t. These results build on a previous intercept of 62.2 g/t gold and a standout hit of 1 metre at 1,911 g/t.

These new intercepts confirm the near-surface continuity of the Gallant vein system. Additionally, RUA identified and drill-tested Gallant using VRIFY’s AI-powered targeting platform. This marks a significant step forward in the company’s exploration efforts.

Amid a global shortage of critical minerals, antimony has emerged as a strategic resource. Often found alongside gold, antimony plays a vital role in defense, energy storage, and semiconductor technologies. Furthermore, as demand surges, its price has climbed sharply, positioning gold-antimony co-deposits as valuable assets for mining companies.

Gold producers with antimony credits can benefit from dual revenue streams. These co-products provide a natural hedge and may enhance project economics. With gold prices remaining strong, companies can prioritize gold while still capitalizing on rising antimony prices. This balance supports stronger margins and offers resilience against market volatility.

NevGold is exploring this opportunity. At its Limousine Butte project in Nevada, NevGold has identified promising antimony mineralization alongside gold. These dual-metal findings suggest untapped value and could transform the project’s long-term outlook. As antimony demand accelerates, Limousine Butte may emerge as a critical mineral hub in addition to a gold play.

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NevGold Corp and Calibre Mining are sponsors of Mugglehead news coverage

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