Gold Mining Sector Sees Strategic Communications Expansion

In a June 28 news release, Goldshore Resources Inc. (TSXV: GSHR; OTCQB: GSHRF ; FWB: 8X00) announced a comprehensive communications program by engaging multiple service providers to manage market communications and investor relations. Independent Trading Group (ITG), Inc., based in Toronto, has been engaged to offer market-making services with the objective of maintaining a reasonable market and enhancing the liquidity of Goldshore's common shares. ITG, an independent broker-dealer, will receive a monthly fee of US$6,000 for these services.

Additionally, Earthlabs Media Inc. has been contracted to develop articles and videos detailing the company's activities over a six-month period. Based in Toronto, Earthlabs will provide these services for a total fee of US$75,000. DCWL Media Ventures Ltd. of Vancouver will produce a video describing the company's activities for a fee of US$7,500. Furthermore, Conrad Orzel will manage inbound and outbound communications, as well as investor meetings, on a monthly basis from July to December 2024 for a fee of US$2,500 per month.

OGIB Corporate Bulletin has been engaged for nine months to execute digital marketing services, including content creation and market awareness campaigns, for a fee of US$40,000. National Inflation Association (NIA) will provide email distribution, website hosting, blog posts, and technical updates to raise awareness about the company's activities for a three-month term starting July 1, 2024, with a total fee of US$30,000.

The Golden Age

The gold sector has continued to attract substantial interest and investment due to its enduring value and stability, especially amid global economic uncertainties.

In a June 28 Kitco Report, Ryan McIntyre of Sprott highlighted the current investment potential in gold mining stocks, stating, "Gold mining stocks are actually a great spot to be. They haven't kept up to even the gold price this year." He further elaborated, "If you're looking to invest today, gold mining stocks are actually a great spot to be." McIntyre noted that despite gold hitting several all-time highs, the gold miners have not rallied as strongly, which presents a favorable investment opportunity. "We really haven't seen that yet, which is actually good," he said, suggesting that the current underperformance of gold miners relative to gold prices is advantageous for new investors.

Barry Dawes of Martin Place Securities also provided a positive outlook on the gold sector. In his June 28 commentary, he remarked, "The resiliency of gold is very impressive," and emphasized the strong performance of gold stocks, stating, "Gold stocks remain quite resilient as well." Dawes predicted a robust performance for gold stocks in the latter half of 2024, asserting, "Gold stocks versus gold are performing very constructively and should be very strong in the December half of 2024." He described the technical indicators as highly favorable, "This wedge has broken to the upside and should produce another strong move very soon," and underscored the positive long-term trend, "The longer-term trend, of course, is extremely positive."

The sector has also been bolstered by significant endorsements from financial experts. Matthew Piepenburg, in his June 19 report, underscored gold's recognized status as a Tier-1 asset. Piepenburg stated, "Gold, now recognized as a Tier-1 asset, is being bought by central banks and sophisticated investors at objectively rising (historical) levels because it is a measurably superior store of value than any fiat currency or sovereign I.O.U." This recognition has reinforced gold's appeal as a safe haven, particularly during economic uncertainties. Piepenburg also pointed out the increasing accumulation of gold by central banks, "The evidence is undeniable: more global central banks prefer to save in physical gold rather than U.S. debt obligations," reflecting a growing preference for tangible assets.

Stewart Thomson, in his June 19 report on 321 Gold, predicted a significant breakout in the gold market, "Technically, an upside breakout is favored, with a US$2,600 target for gold." He highlighted critical support levels, stating, "The US$2,150-$1,985 area is arguably the most important support zone in the entire history of the U.S. gold market," which underscores the market's resilience and strong foundation.

The increasing demand for gold has also been driven by global economic shifts. Piepenburg observed, "Dozens of BRICS+ countries are conducting trade outside the U.S. dollar, using local currencies for local goods, and then settling any net surpluses in physical gold — which is priced more fairly in Shanghai compared to London or New York." This move toward de-dollarization and the use of gold for settlements signifies a pivotal shift in global trade practices, further enhancing gold's status as a reliable store of value.

Thomson also highlighted the immense buying opportunities in the current gold market, "The US$1,228-$1,033 price area was a gargantuan buy zone . . . and US$2,150-$,1985 is even bigger!" This statement emphasized the significant growth potential and investor interest in gold at these price levels.

Moreover, the current market conditions have presented strategic investment opportunities. According to a June 18 report on Katusa Research, "The gold price is high, but mining stocks are still cheap. It's the perfect time to get a list of gold stocks on your radar right now." Despite the rising gold prices, the relative affordability of mining stocks has presented a timely entry point for investors. Additionally, the forecasted growth in the global space industry, expected to double by 2030, indicated a potential surge in gold demand due to its use in advanced technologies.

Company Catalysts

Goldshore Resources Inc.'s recent engagements aim to strengthen market communications and investor relations, which are expected to positively impact the company's market presence and shareholder value. The contract with Independent Trading Group (ITG) is designed to enhance the liquidity of Goldshore's shares, which can lead to a more stable market environment for investors.

As specified by the company, the partnership with Earthlabs Media Inc. and DCWL Media Ventures Ltd. is anticipated to increase Goldshore's visibility through high-quality content that highlights Goldshore's ongoing activities and achievements. Jonathan Brazeau from Earthlabs and David Lin from DCWL bring expertise that will likely result in more engaging and informative content for current and potential investors.

Moreover, the involvement of Conrad Orzel for communication management and OGIB Corporate Bulletin for digital marketing underscores Goldshore's commitment to maintaining transparent and effective communication with its investors. OGIB's comprehensive digital marketing strategy is expected to broaden Goldshore's reach and enhance investor engagement.

Lastly, the engagement with the National Inflation Association (NIA) is set to expand the company's exposure through various online channels, including email distribution and blog posts, potentially attracting a wider investor base. Gerard Adams will oversee NIA's efforts to ensure consistent and impactful dissemination of information about Goldshore's activities.

Ownership and Share Structure

The company provided a breakdown of its ownership, where 38% of Goldshore is held by management and insiders. 

Institutions own approximately 15% of the company.

The rest is with retail investors. 

Goldshore also noted that 54% of the in-the-money warrants are held by management, insiders, and strategic partners, representing CA$4.94 million in potential funding. 

The company reports that there are around 261 million shares outstanding, while the company has a market cap of CA$64 million and trades in the 52-week period between CA$0.09 and CA$0.28.

Important Disclosures:

1. Goldshore Resources Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Goldshore Resources Inc.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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