The rally in the gold price recently peaked at USD 4,350 and then came to a halt for the time being. However, the current technical setback to around USD 4,000 does not change the strong medium-term prospects or the fact that gold mines worldwide are operating at production costs of between USD 1,150 and USD 1,650 per ounce. Gross margins have therefore never been higher. This provides a great incentive to reactivate historic properties or even to accelerate the development of new mines. Tight inventories on the futures markets are currently unsettling the precious metals sector, with the shortage of physical silver recently coming to a dramatic head. This environment is an Eldorado for speculators, but also for investors looking to find the right entry point now, as investment banks are forecasting gold prices of up to USD 6,000. Formation Metals Inc. (CSE: FOMO; FSE: VF1; OTCQB: FOMTF) is well-positioned with its properties in the Abitibi Greenstone Belt in Québec. In the heart of this historic mining region, well-known players such as Agnico Eagle Mines (LaRonde and Val-d'Or regions) and Osisko Mining (in the Malartic area) are mining. The resulting peer effect suddenly turns well-financed explorers like Formation Metals into liquid market participants with comparable visibility. With excellent infrastructure, historical mine production, and technologically highly skilled personnel, every new drill section offers a significant catalyst opportunity.Den vollständigen Artikel lesen ...
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