Newcore Gold tanks as Enchi pre-feasibility disappoints

Gold and silver futures surged sharply, with gold above $4,713/oz and silver near $75.50/oz, alongside gains in platinum, palladium and copper. In contrast, crude oil and Brent sold off more than 3% and 4%, respectively, while natural gas was little changed. The article also highlights a company-specific catalyst in the gold sector: Newcore Gold plunged after its Enchi pre-feasibility study in Ghana showed weaker economics than expected despite much higher gold prices. The project’s after-tax NPV dropped to $496 million and IRR to 37% under a $3,800/oz gold assumption, while initial capex jumped to $351 million. The disappointing study sent Newcore shares to an 18-month low. Overall, the market backdrop is constructive for precious metals prices, but the Newcore story underscores that higher gold prices do not automatically translate into stronger project economics for miners.