- GEMXX expects the growing demand for Ammolite, coupled with the positive outlook for gold prices, to support significant growth over the next 24 months
- Last year, GEMXX moved to complement its Ammolite operations with the purchase of gold assets in Canada
- The price of gold has held steady above US$2,000 per ounce, coming off a record-breaking 2023 when it rallied to a record-high year-end close
- The future looks promising for gold because it is projected to reach new highs in the coming months, according to GEMXX
The price of an ounce of gold rallied to a record high year-end close last year, ending 2023 at US$2,078.4, according to the World Gold Council (“WGC”). To get to this price, the value of the precious metal, which is considered a traditional safe-haven asset, had increased by 15% over 12 months, as indicated by its annual rate of return. Moreover, the average 2023 gold price of US$1,940.54/oz, also a record, was 8% higher than the average 2022 gold price, with the WGC noting that this price rally reflected strong demand (https://nnw.fm/nSRHo).
Today, the gold price has held steady above US$2,000 per ounce and is projected to reach new highs in the coming two years, according to GEMXX (OTC: GEMZ), a market-to-market gold, gemstone, and jewelry producer with global reach that owns mining resources, production facilities, and operating assets. GEMXX used this sustained upward trajectory in gold prices as well as the burgeoning demand for Ammolite jewelry to found an ambitious forecast: the company anticipates robust growth over the next 24 months (https://nnw.fm/93xSL).
GEMXX expanded into the mining of gold last year to complement its long-standing Ammolite production. In March, GEMXX acquired a 50% interest in Crazy Horse Mining Inc. (“CHMI”), a Canadian exploration company whose assets include a 100% interest in Snow Creek and Rosella Creek gold projects located in British Columbia (https://nnw.fm/xadDw). Later in September, the company announced it had signed a letter of intent to acquire a 50% interest in a property that could add up to 4 million ounces of gold to its assets (https://nnw.fm/sSLGZ).
In the January 23 press release announcing the forecast of robust growth, GEMXX describes its entry into gold mining as “a new and welcomed asset to the company’s balance sheet,” with gold adding considerable support to its mine-to-market business model in “three core elements affecting long-term sustainable profitability.”
First, GEMXX says it can cut its raw material costs by about 60% by mining its own gold for its jewelry segment. The company expects these cost savings to not only reduce the cost of goods but also lead to higher and more predictable profit margins. Second, GEMXX anticipates that the mining of the gold reserves will enable it to accumulate cash reserves that will fund its future needs, thus helping the company avoid additional dilutive fundraising by issuing stock or taking debt to fund operations. “Third, investors will be able to participate in a stock based on precious metals and gemstones,” the company explains.
The press release also describes the growing demand for Ammolite jewelry, which has been driven by the rapidly growing recognition of Ammolite as a rare gemstone. Ammolite’s rarity stems from its limited availability – it is only found in southern Alberta, Canada – as well as its iridescent characteristics. GEMXX says the company has experienced additional demand throughout India and Asia, given Ammolite “appeals to a discerning clientele seeking exclusive and collectible pieces.”
With GEMXX standing out “as the leading producer of top-quality finished Ammolite, surpassing all other competitors in terms of quality and production capacity,” according to its website (https://nnw.fm/t7L0J), the company is expected to benefit significantly from the burgeoning demand.
“We are excited about the tremendous potential for growth in both the Ammolite and gold markets,” comments GEMXX President Richard Clowater. “Our commitment to quality, craftsmanship, and our ability to adapt to market dynamics position us for sustained success. We are confident we will be able to deliver strong returns to our shareholders.”
The company remains committed to expanding its product offerings, enhancing operational efficiency, and exploring strategic partnerships to maximize shareholder value while capitalizing on the positive market trends that support the realization of its strong financial outlook. Investors and stakeholders are encouraged to stay updated on GEMXX’s performance as it navigates the ever-changing jewelry and precious metals landscape.
Those interested in participating through Reg A financing are encouraged to visit the company’s investor page (https://nnw.fm/umXVl) or contact company officials for more information ([email protected] – 702-930-1815).
For more information, visit the company’s website at www.GEMXX.com/investors.
NOTE TO INVESTORS: The latest news and updates relating to GEMZ are available in the company’s newsroom at https://nnw.fm/GEMZ
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