Developing Royalty Assets
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Nevada #1 Gold Mining State; Gold is Key Industry; Attractive Royalties From Gold Mines

Global Mining Survey Ranks Nevada at Number One Position

Did you know that Nevada is the fourth biggest gold producer in the world behind Russia, China, and Australia. Thanks to its abundant Carlin Trend deposits, Nevada is responsible for approximately three-quarters of the annual production of gold for the entire United States!

According to the 2018 Annual Survey of Mining Companies by Fraser Institute, the state is now ranked as the top mining jurisdiction in the world.

The same survey also states that Nevada jumped from 3rd place to the top spot in 2018, pushing past Saskatchewan and Finland.

The remaining top mining jurisdictions included Western Australia, Quebec, Chile, Alaska, Utah, Yukon, Arizona, and Northwest Territories. Finland – the top mining jurisdiction in the world in 2017 –dropped to 17th spot.

The survey also listed the worst mining jurisdictions in the world that included Venezuela, Neuquén, Panama, Guatemala, and Nicaragua.

There is an intriguing point to make, Canada snared the top place for the second consecutive year. In the second place was Australia, followed by America and Europe in third and fourth places respectively.

Mineral Deposits Not Enough to Attract Investors

Ashley Stedman, a senior policy analyst with the Fraser Institute says that it’s clear that mineral deposits alone don’t hold much appeal to draw the precious commodity investment funds.

He also said that competitive fiscal policies along with a solid regulatory regime are crucial to making a mining jurisdiction tempting for investors.

The survey also noted that investment appeal improved in most parts across the globe as compared to a drop in sentiment reported in 2017.

Getting back to Nevada, the growth potential of the state was a big reason for Barrick Gold Mining Company’s unsolicited hostile bid for Newmont Mining last month.

Mark Bristow, the CEO of Barrick Gold, said in a recent statement that the combination of Newmont and Barrick will create the best gold company in the world – a company with the biggest portfolio of Tier One gold assets.

He went on to say that this will also allow the company to consider their Nevada assets as a single complex.

In order to sell his proposal, Bristow also mentioned that possible synergies between Barrick and Newmont’s operations in Nevada will produce nearly $7 billion in value for shareholders.

It should be noted that Newmont has nineteen mines in Nevada, right next to the operations of Barrick.

However, Newmont Mining rejected the proposal considering it was much below their current market value. Newmont’s CEO Gary Goldberg announced that they see greater benefit in pursuing their anticipated merger with Goldcorp Inc. Instead, Barrick and Newmont formed a joint venture to combine their Nevada assets. The JV will be 61.5% Barrick and 38.5% Newmont and will still unlock $5 Billion in synergies for shareholders. The Barrick/Newmont JV and the Goldcorp merger are both scheduled to close in the coming months.

For this survey done by the Fraser Institute in 2018, nearly 291 responses were recorded, providing enough data to access 83 mining jurisdictions in total.

Disclaimer

This article contains the author's opinions. These are not investment-related recommendations. Do not consider the article as any type of commercial solicitation or an investment product offer.

About the Company

Ely Gold Royalties Inc. is a Vancouver-based emerging royalty company with development assets focused in Nevada and the Western US. Its current portfolio includes 31 Deeded Royalties and 219 Optioned Properties, and the portfolio is currently generating significant revenue.

Ely Gold’s royalty portfolio includes fully permitted mines, mines under construction, and development projects that are being permitted for mine construction.