As a star of the Lost Treasure Hunters television show that debuted in India and Southeast Asia in 2012, Newbery was the geologist on a team that sought to find diamonds in India. His 30-year career in mining has also taken him to Australia, Russia and Sweden.
When Harris and Newbery met, the geologist already had an option to buy assets in Tanzania. He took ownership of the projects in 2015 and sold the stake in the newly formed GRB to Montreux. The venture benefited as the value of its holdings increased based on technical studies. And as the price of gold rallied, the company kept production costs between $300 to $400 an ounce. Gold traded at $1,260 an ounce on Friday, up 0.9 percent from a day earlier.
"It was twofold: an improvement in both the quality of grade and the quantity, and also the large rally in the gold price," Harris said.
First Pour
Montreux’s capital infusion allowed GRB to expand in Tanzania. Now the team expects to complete its first major gold pour in September, Newbery said in a telephone interview.
Gold is benefiting this year as concerns ranging from the threat of the breakup of the European Union to President Donald Trump’s policies keep investors on edge. An index of global economic policy uncertainty is at the highest level since records began in 1997, which bodes well for haven assets like bullion.
To be sure, faster economic growth, higher yields and record highs for the stock market could lure investors from precious metals.
Montreux isn’t concerned, and Newbery believes gold still has room to rally as the metal outperforms both stocks and bonds this year with a 9 percent gain.
For gold, "there will be a lot of upside in the next one to two years," he said.
This article was provided by Bloomberg News.