The Globe and Mail reports in its Tuesday, June 16, edition that over the past three months, gold's attractiveness as a safe haven has been outweighed by higher real interest rates and U.S. dollar pressure, both driven by the Iran conflict. The Globe's guest columnist Brian Donovan writes in the Number Cruncher column that if the cease-fire holds, the structural drivers for gold remain bullish. Lundin Gold stands to benefit. Lundin Gold unlocked value from its silver revenue stream recently by creating a separate royalty investment for shareholders. It sold the rights to a portion of the future silver production from its Fruta del Norte mine to LunR Royalties. Instead of receiving cash, Lundin Gold received approximately 50.5 million LunR shares (valued at about $670-million (U.S.)) as consideration. It then distributed the new company shares directly rather than paying a traditional cash dividend.
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