Newcore Gold: Strategic Execution of Growth Initiatives in Gold Market Expansion

J.P. Morgan Private Bank sees a powerful upside case for gold, projecting prices could surpass $5,000 per ounce by late 2026. This forecast hinges significantly on sustained central bank diversification efforts, particularly from emerging markets like China, Poland, and Turkey, seeking to reduce reliance on the US dollar. While central banks added a substantial 634 tons globally in 2024-2025, their pace remains below recent historical peaks, even as the World Gold Council anticipates annual purchases between 750 and 900 tons moving forward. Supporting this bull case, investment demand surged to a record high in Q3 2025, fueled by geopolitical uncertainty, a weakening US dollar, and rising gold prices themselves, despite a significant 34% quarter-over-quarter drop in US demand in Q2 that was partially offset by strong $21 billion in ETF inflows during the first half of the year. This underlying momentum, coupled with persistent safe-haven appeal and portfolio reallocation trends, has already lifted gold prices over 50% year-to-date, reinforcing the view that significant gains could still lie ahead.

Enchi Project Funding and Progress: Catalysts for Value Creation

Newcore Gold's Enchi Gold Project in Ghana has executed key steps to advance toward near-term development milestones. The company raised $3.8 million in September 2025 through warrant exercises, boosting its cash position to $10.1 million. This funding supports a 35,000-meter drill program and the push toward a Pre-Feasibility Study (PFS) by mid-2026. Management and directors hold 15% equity, aligning interests with shareholders, and potential remains for an additional $10.2 million if remaining warrants are exercised.

However, the project's initial capital cost is estimated at US$106 million, creating a substantial funding gap relative to current cash. Technical progress remains strong, with high-grade mineralization confirmed-including a 204-gram-per-tonne gold intersection over one meter-and a 98.5% intersection rate showing consistent gold presence across drill holes. These results underpin resource expansion potential. The company aims to advance to a Pre-Feasibility Study by mid-2026, leveraging Ghana's stable environment.

While technical execution is encouraging, the significant gap between available cash and the $106 million capital requirement introduces execution risk. Further financing will be essential to progress toward production.

Capital & Price Pressures Test Project Viability

Newcore Gold's Enchi Gold Project faces two critical hurdles that could delay or reshape its development timeline. The immediate challenge is funding: the project requires $106 million to get off the ground, but the company currently holds only $10.1 million in cash according to analysis. This massive funding gap means Newcore must secure significant external investment or financing soon, a non-trivial task especially if market conditions shift or the project's prospects appear riskier. Raising this capital will be essential to advance the project towards its next milestone.

Furthermore, the project's economic viability is highly sensitive to the

price of gold. Analysts project that gold needs to sustain levels above roughly $5,000 per ounce to make the Enchi operation significantly profitable at its projected scale of 122,000 ounces per year. While J.P. Morgan forecasts gold could reach or exceed this level by late 2026, driven partly by strong central bank buying, this remains a significant forecast, not a guarantee. Prices could stall or retreat before then, which would directly impact the project's internal rate of return and overall attractiveness to investors.

The company's plan to complete a Pre-Feasibility Study (PFS) by the first half of 2026 is therefore absolutely critical. Successfully raising the necessary capital hinges on delivering robust results from this study, which should provide greater clarity on costs, resource estimates, and ultimately the project's resilience to gold price fluctuations. If the PFS doesn't sufficiently de-risk the economics or confirm strong margins at realistic gold prices, securing the remaining funds will become much harder, potentially stretching development timelines or altering the project's scope.