Digging Deep

Paul Harris, Kitco Media

Join a discussion with the brightest minds in the resource investing sector and learn how to navigate the complex world of mining investment. Kitco Mining's Digging Deep, hosted by Paul Harris, is your weekly appointment to understand the key trends in the resource investment space. Paul sits with experts to dissect investment trends and understand the dynamic landscape shaping the future of natural resource extraction. Digging Deep is your guide to understanding resource investment and how to profit from it.

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Bumper Q3 will lure investors back to gold miners

Bumper Q3 will lure investors back to gold miners

With gold prices at record levels, the September quarter will post the highest average quarterly gold price ever, and “significant margin expansion,” said Neil Adshead, consultant analyst at the Commodities Discovery Fund. This week Kitco correspondent Paul Harris recorded Digging Deep with Adshead.“It'll be great to see two or three gold mining companies far exceed the expectations of what the sell-side analysts are projecting. There'll be some bumper profits and that will definitely draw some investors into the sector. Normally, during the happy days, the maximum margins you see are in the 40% range. If we start to see a few of the higher-grade producers generating +50% margins, that would be spectacular,” said Adshead.Investors are starting to warm to the gold equities again with the GDX index fund up 35% year-to-date. However, with most companies still trading at less than 1x their net asset value (NAV), Adshead believes there is more share price growth to come.“When I first started as an investment analyst, some of the hot producers of the day were trading at 2.5x NAV. To see those multiples again would be remarkable. There is certainly a lot of room for some of these producers to trade up,” said Adshead.Adshead also spoke of he would like to see gold companies allocate the additional funds they are earning to mine expansions, building new mines and acquiring new projects to build.While a number of large financings have been announced, Adshead said it is still a selective market. The sector is not yet frothy enough to be writing checks carte blanche to juniors. “We are actually in a pretty good market for financing, but it is not like every junior can raise whatever dollars they want," said Adshead. "I quite like that as in a peak bull market is when you also get peak capital misallocation: when a lot of companies get money that shouldn't be getting money in the first place, or companies take far too much money than what they really need and end up wasting it,” he said.Adshead also commented on the Guyana Shield as a hot exploration region, Iceberg’s shorting report on Newfound Gold’s Queensway orogenic gold deposit in Newfoundland, Canada, NGEx Minerals plan for its largest ever drill program at its Lunawasi copper discovery in San Juan, Argentina, a new president in Mexico and the outlook for uranium.Digging Deep is brought to you by Revival Gold. Revival Gold is one of the largest, pure gold, mine developers in the United States. The Company is advancing engineering and economic studies on the Mercur Gold Project in Utah and mine permitting preparations and ongoing exploration at the Beartrack-Arnett Gold Project located in Idaho. Revival Gold is listed on the TSX Venture Exchange under the ticker symbol “RVG” and trades on the OTCQX Market under the ticker symbol “RVLGF”. The Company is headquartered in Toronto, Canada, with its exploration and development office located in Salmon, Idaho.Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Episodes

Bumper Q3 will lure investors back to gold miners

Bumper Q3 will lure investors back to gold miners

With gold prices at record levels, the September quarter will post the highest average quarterly gold price ever, and “significant margin expansion,” said Neil Adshead, consultant analyst at the Commodities Discovery Fund. This week Kitco correspondent Paul Harris recorded Digging Deep with Adshead.“It'll be great to see two or three gold mining companies far exceed the expectations of what the sell-side analysts are projecting. There'll be some bumper profits and that will definitely draw some investors into the sector. Normally, during the happy days, the maximum margins you see are in the 40% range. If we start to see a few of the higher-grade producers generating +50% margins, that would be spectacular,” said Adshead.Investors are starting to warm to the gold equities again with the GDX index fund up 35% year-to-date. However, with most companies still trading at less than 1x their net asset value (NAV), Adshead believes there is more share price growth to come.“When I first started as an investment analyst, some of the hot producers of the day were trading at 2.5x NAV. To see those multiples again would be remarkable. There is certainly a lot of room for some of these producers to trade up,” said Adshead.Adshead also spoke of he would like to see gold companies allocate the additional funds they are earning to mine expansions, building new mines and acquiring new projects to build.While a number of large financings have been announced, Adshead said it is still a selective market. The sector is not yet frothy enough to be writing checks carte blanche to juniors. “We are actually in a pretty good market for financing, but it is not like every junior can raise whatever dollars they want," said Adshead. "I quite like that as in a peak bull market is when you also get peak capital misallocation: when a lot of companies get money that shouldn't be getting money in the first place, or companies take far too much money than what they really need and end up wasting it,” he said.Adshead also commented on the Guyana Shield as a hot exploration region, Iceberg’s shorting report on Newfound Gold’s Queensway orogenic gold deposit in Newfoundland, Canada, NGEx Minerals plan for its largest ever drill program at its Lunawasi copper discovery in San Juan, Argentina, a new president in Mexico and the outlook for uranium.Digging Deep is brought to you by Revival Gold. Revival Gold is one of the largest, pure gold, mine developers in the United States. The Company is advancing engineering and economic studies on the Mercur Gold Project in Utah and mine permitting preparations and ongoing exploration at the Beartrack-Arnett Gold Project located in Idaho. Revival Gold is listed on the TSX Venture Exchange under the ticker symbol “RVG” and trades on the OTCQX Market under the ticker symbol “RVLGF”. The Company is headquartered in Toronto, Canada, with its exploration and development office located in Salmon, Idaho.Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

'We're in a stealth bull market' - Nicole Adshead-Bell on generalists buying resource stocks

'We're in a stealth bull market' - Nicole Adshead-Bell on generalists buying resource stocks

Most resource companies lack good communication strategies, said Nicole Adshead-Bell, principal at Cupel Advisory.This week Adshead-Bell recorded Digging Deep with Kitco Correspondent Paul Harris at the Gold Forum Americas / XPL-DEV 2024 in Colorado.Gold is having a staller year, hitting several all-time highs, but equity performance has not matched expectations, particularly among juniors and developers. A select number of companies are doing well. Bell anticipates increased merger and acquisition (M&A) activity as companies seek growth opportunities, which would further investor interest in the resource sector."I think there's some bifurcation. I heard a very good description at the [Precious Metals Summit Beaver Creek] conference last week, which was 'we're in a stealth bull market.'" said Adshead-Bell. "We have gold at near record highs, and yet there's not the equity performance that one would expect when we've seen this very nice performance in the underlying gold price. We haven't got the marginal investor here, but for the first time I'm seeing generalists at this conference, and I'm getting incoming calls from generalists who are starting to look at the sector."Bell emphasized that commodity markets, especially gold, are cyclical, and understanding the phase of the cycle is key to making informed investment decisions.She also discussed the challenges of messaging in the mining sector, highlighting that many CEOs struggle with effective communication, which limits investor engagement. Bell observed that poor storytelling and a lack of enthusiasm from leaders are major obstacles for companies to attract investment, especially in a competitive market.She stressed the importance of strong communication skills among executives, pointing to leaders like Robert Friedland and Rick Rule as examples of excellent communicators who successfully connect with both institutional and retail investors.__________________________________________________________________Digging Deep is brought to you by Revival Gold. Revival Gold is one of the largest, pure gold, mine developers in the United States. The Company is advancing engineering and economic studies on the Mercur Gold Project in Utah and mine permitting preparations and ongoing exploration at the Beartrack-Arnett Gold Project located in Idaho.Revival Gold is listed on the TSX Venture Exchange under the ticker symbol “RVG” and trades on the OTCQX Market under the ticker symbol “RVLGF”. The Company is headquartered in Toronto, Canada, with its exploration and development office located in Salmon, Idaho. Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Gold is at an all-time high, resource stocks are jumping, so when does the market start to notice?

Gold is at an all-time high, resource stocks are jumping, so when does the market start to notice?

Good gold prices are delighting several miners, said David Erfle, founder and editor of the JuniorMinerJunky.com.On Thursday Erfle recorded Digging Deep with Kitco correspondent Paul Harris at the 2024 Precious Metals Summit Beaver Creek in Colorado. Gold hitting all-time highs is a welcoming sign. “I've spoken with several happy management teams the past few days that have been de-risking large high margin, late-stage projects and are enjoying their respective share prices bifurcating from the sector,” said Erfle.Erfle noted there had been some big equity moves in recent weeks. He wondered if the moves will catch the interest of the broader investment community. “Will we see more generalist investors finally come back into this tiny sector after leaving over a decade ago?”Erfle said gold could hit $3,000 ounce by 2025. Debt worries, war and a potentially chaotic election are tailwinds for gold. Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Mazumdar Goldco margins healthy, but ‘range is huge’

Mazumdar Goldco margins healthy, but ‘range is huge’

Record gold prices are outstripping inflation and helping goldcos to healthy margins, although the range “is huge” Joe Mazumdar, Editor of Exploration Insights told Kitco Mining’s Digging Deep.“The average gross margin was 45-46% for [the 20 North American listed companies he studied] which is healthy,” said Mazumdar.Mazumdar said that the net debt level of the group was about US$275 million, but again with a large range from industry leader Newmont, which post Newcrest acquisition is sitting at about $2.3 billion, to companies negative net debt. “About half of the companies have negative net debt, or very low net debt, which is very encouraging,” he said.Digging Deep is brought to you by Revival Gold. Revival Gold is one of the largest, pure gold, mine developers in the United States. The Company is advancing engineering and economic studies on the Mercur Gold Project in Utah and mine permitting preparations and ongoing exploration at the Beartrack-Arnett Gold Project located in Idaho.Revival Gold is listed on the TSX Venture Exchange under the ticker symbol “RVG” and trades on the OTCQX Market under the ticker symbol “RVLGF”. The Company is headquartered in Toronto, Canada, with its exploration and development office located in Salmon, Idaho.Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Ecclestone: ‘It is up to the investors to reinvest’

Ecclestone: ‘It is up to the investors to reinvest’

Christopher Ecclestone, principal and mining strategist at Hallgarten + Company, said gold companies should increase their dividend payments to shareholders as their margins increase due to the increasing gold price, which has grown about 20% this year.He applauded AngloGold Ashanti, which hiked its dividend from 4c a share to 22c after quintupling profits to $313 million for the six months to June 30. It been one of the best-performing gold stocks this year, up 55%. Of all the gold producers that have reported earnings, AngloGold is the only one that has increased its dividend.Ecclestone also commented on Gold Fields s looking to option the Santa Cecilia copper-gold project in Chile from Torq Resources, funding for copper juniors now Filo is being bought by BHP, Glencore keeping its coal business, Arizona Sonoran Copper's PEA on its Cactus copper project in Arizona, and Patriot Battery Metals resource estimate for its Corvette lithium pegmatite project in the James Bay region of Quebec, renamed Shaakichiuwaanaan. __________________________________________________________________Digging Deep is brought to you by Revival Gold. Revival Gold is one of the largest, pure gold, mine developers in the United States. The Company is advancing engineering and economic studies on the Mercur Gold Project in Utah and mine permitting preparations and ongoing exploration at the Beartrack-Arnett Gold Project located in Idaho.Revival Gold is listed on the TSX Venture Exchange under the ticker symbol “RVG” and trades on the OTCQX Market under the ticker symbol “RVLGF”. The Company is headquartered in Toronto, Canada, with its exploration and development office located in Salmon, Idaho. Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Copper on the cusp after $3.25 billion mega deal

Copper on the cusp after $3.25 billion mega deal

Copper M&A should heat up as a result of BHP (NYSE:BHP) and Lundin Mining (TSX:LUN) agreeing to buy Filo (TSX:FIL) for $3.25 billion (C$4.5B) and create a joint venture to develop the Josemaria and Filo del Sol deposits in San Juan Argentina, Neil Adshead, Consultant Analyst at Commodity Discovery Fund, said on Kitco Mining’s Digging Deep.This week Adshead recorded an episode of Digging Deep with Kitco Correspondent Paul Harris. “I suspect in every major mining company boardroom of the world, they will be asking questions of their own corporate development team saying, should we have done this deal? There will be pencils sharpened and people getting an email saying ‘come on, we need some growth’,” said Adshead.With gold producers reporting that June quarter financial results and the gold price at near record levels of more than US$2,400/oz, Adshead said that high prices do not necessarily translate into higher margins as companies often use high prices to lower their cut-off grades. “I don't think we're going to suddenly see 50% of the mining industry making 50% profit margins. … When commodity prices rise, cut-off grades drop, and margins roughly stay the same,” said Adshead.Higher prices continue to stimulate M&A activity with Integra Resources (TSXV:ITG) to acquire Florida Canyon Gold (TSXV:FGCV) for C$95 million in stock.Adshead said he expects Vizsla Silver (TSXV:VZLA) to become the next large silver mine in Mexico after it published a preliminary economic assessment on its Panuco project in Sinaloa, targeting production of targets 15.2Moz/y for 11 years. The project would generate an after-tax internal rate of return of 85.7% and have a nine-month payback following an initial capital investment of US$224 million.“One of my rules of thumb as an investor is if you see a payback of 12 months or less, then you definitely should have a look at the asset, the people and the study, because that type of asset is incredibly rare and usually very high quality,” said Adshead.Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Smart money coming into Newmont: Erfle

Smart money coming into Newmont: Erfle

With analysts expecting another strong earnings quarter from Newmont (NYSE:NEM) when it announces its June quarter results on 24 July, main street investors should start taking notice of gold stocks, Junior Miner Junky editor David Erfle told Kitco Mining's Digging Deep. "I see smart money coming into Newmont. ... The Newmont share price is the big boy, the bellwether, the one that everybody looks at. ... Since the end of February, they've been leading the gold stocks up," said Erfle. In anticipation of better days ahead, major mining houses such as Agnico Eagle Mines, Zijin Mining and Barrick Gold continue to take foothold positions in junior explorers and developers with both gold and copper projects. "The world's biggest mining companies are all seeking to expand in copper in anticipation of rising prices as demand for clean power and data centers are forecast to outstrip supply in the future," said Erfle. Recent days have seen Zijin Mining buy a 9.9% stake in African gold developer Montage Gold for C$57.3 million, South African mining firm Assore invest C$68 million for a 14.99% stake in Chilean copper developer Marimaca Copper, Agnico Eagle Mines invest another C$99 million to maintain its 9.9% stake in Canadian copper developer Foran Mining and take a 13.3% stake in Finland gold explorer First Nordic Metals, and market rumors of BHP and Lundin Mining potentially double-teaming to buy Filo.Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Will the gold miners embark on M&A or just do dividends? Joe Mazumdar on what to watch in Q2

Will the gold miners embark on M&A or just do dividends? Joe Mazumdar on what to watch in Q2

If the markets don't show appreciation for a quarter that should be quite favorable for the gold miners, cashflow could just go to dividends instead of growth and M&A, said Joe Mazumdar, editor of Exploration Insights. This week Mazumdar recorded an episode of Digging Deep with Kitco Correspondent Paul Harris at the Rule Symposium in Boca Raton, Florida. The two noted the upcoming second quarter. It is important that the miners show they are containing costs, said Mazumdar. Margins need to grow, and the miners need to build cashflow. With gold hitting several all-time highs this year, profitability should be good, but will the markets care? "If they're not getting any love, then [the money] is probably going into dividends," said Mazumdar.The two also discussed developments in artificial intelligence and its impact upon the resource sector. Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

“Ugly” financing likely in Victoria Gold’s future – Adshead-Bell

“Ugly” financing likely in Victoria Gold’s future – Adshead-Bell

“Ugly” equity financing likely on the way as Victoria Gold grapples with the aftermath of a heap leach failure at its Eagle gold mine in Yukon, Canada, which could be an existential threat to the company, Nicole Adshead-Bell, principal at Cupel Advisory said on Kitco Mining’s Digging Deep show. Adshead-Bell looked at some of the reasons why heap leach pads fail, the impact they have on single asset gold producers and broader impacts on the industry at large.Adshead-Bell also discussed Skeena Resources' success in financing its Eskay Creek gold project in British Columbia, the positive impacts Argentina's new fiscal legislation would have on the mining sector, Rio Tinto potentially getting permission to build the Jadar lithium mine in Serbia, Agnico Eagle Mines plans to develop an underground mine at its Detour Lake mine in Ontario, taking it to 1Moz/y of production, and Snowline Gold's maiden resource at the Valley target at its Rogue project in Yukon.Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Looking for doubles and triples - why 20% to 30% gains aren't good enough for resource investors

Looking for doubles and triples - why 20% to 30% gains aren't good enough for resource investors

Equity financings continue to roll in the resource sector, noted Kitco Correspondent Paul Harris. This week Harris was joined by John Feneck, Founder & CEO of The Feneck Commodities Report. The two discussed green and red flags of gold developers, and why few of them hit it out of the park. Key green flags are the network effect of key investors, like the Lundin Group and Frank Guistra, and management bench strength like US Gold with George Bee, although with the caveat of not knowing what their exit strategies are.Equity finance continues to flow to the sector with upsized bought deals for Gold Royalty and Faraday Copper, and Centerra Gold making a strategic investment to take a 9.9% position in Kenorland Minerals.Feneck also discusses why the silver metal and silver stocks are flying high, and looking like they have more room to grow as the gold:silver ratio narrows.And, the USA implements 25% import tariffs on a number of critical minerals from China, which is likely to boost North American critical minerals explorers and developers.Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

$1.2B in financings and four bought deals show financing window open

$1.2B in financings and four bought deals show financing window open

A spate of financings show mining is gaining favor, noted David Erfle, founder of JuniorMiningJunky.com.This week Erfle recorded Digging Deep with Kitco correspondent Paul Harris. The two discussed $1.2B of financings announced on one day, including raises by Cameco, Hudbay Minerals, IAMGOLD, Patriot Battery Metals, Solaris Resources and Faraday Copper, including four bought deals. In copper news, Goldman Sachs trader Pierre Andurand out-Friedland’s perma-copper bull Robert Friedland by stating the copper price could reach $40,000/t, or $18/lb in old money, almost four times the record $11,000/t the metal recently hit. Friedland has offered a comparatively tame $15,000/t price.The two also discussed the divorce between hot metal prices and mining equity prices that shows no signs of healing, which means all those junior miner valuation gap charts could be relabeled reality perception gap charts.And does Rob McEwen’s poker face mean he is looking to use McEwen Mining’s 270% share price gain to leverage into other assets?Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

The miners who are winning while gold is spiking - Joe Mazumdar warns you need to watch margins

The miners who are winning while gold is spiking - Joe Mazumdar warns you need to watch margins

Copper is attracting investor interest from the Middle East, noted Joe Mazumdar, editor of Exploration Insights. On Thursday Mazumdar recorded Digging Deep with Kitco correspondent Paul Harris. With copper prices hitting $5 pound recently, interest in the metal is spiking. However sizeable funding is coming a non-traditional player in the resource sector. Mazumdar noted Saudi Arabia has been investing heavily, noting the Kingdom's state mining company, Manara Minerals, is nearing a $1 billion deal for stake in Barrick’s Reko Diq. Mazumdar and Harris also looked at Teck earnings. The company divested its metallurgical coal business. CEO of Teck is Jonathan Price. "It did seem that Jonathan Price was trying to put a positive spin on the company, having sold...the best and most profitable part of its business," said Mazumdar, adding that the company wanted to have more exposures to copper and attract more interest from ESG investors. The two also looked at gold. Despite high gold prices, major gold producers haven't seen significant margin expansion due to increased costs and lower grades. Mid-tier gold miners are outperforming majors in terms of margins, with some achieving sub $1,000/oz all-in sustaining costs.Troilus Gold's feasibility study for its Quebec project was poorly received due to lower grades, increased throughput, and higher capital intensity. Osino Resources' acquisition by Yintai Gold marks a significant approval of Chinese investment in the Canadian mining sector.Red Pine Exploration's assay manipulation scandal raises concerns about trust and chain of custody in the junior mining sector, and New Gold's buyback of cash flow interest in the New Afton mine from the Ontario Teachers' Pension Plan is a positive move, potentially making the company a more attractive takeover target.Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Sometimes its a bolt on, sometimes it doesn't make sense - Luc ten Have on 2024's mining deals

Sometimes its a bolt on, sometimes it doesn't make sense - Luc ten Have on 2024's mining deals

Some M&A in the mining sector made sense while some other deals are puzzling, observed Luc ten Have, founder of GoldDiscovery.com. This week Ten Have spoke to Kitco correspondent Paul Harris to record an episode of Digging Deep at Deutsche Goldmesse in Frankfurt, Germany. Some notable deals in 2024 were Osino Resources getting taken out by Yintai Resources for $272 million; Alamos Gold buying Argonaut Gold for $325 million; and Zijin Mining paying $130 million for a 15% stake in Solaris Resources. The headline deal is BHP Group attempting to buy Anglo American with a price tag estimated at $32 billion. To date, Anglo has rebuffed BHP Group. Ten Have said the industry as a whole has been insisting on more M&A. Some deals he likes. Other deals are a puzzle. "Sometimes you have like a clear project synergy," said Ten Have. "Two projects really add on to each other. It's a bolt on, in some cases. Sometimes the merger doesn't make sense."Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

M&A takes off, groupthink coming as the race for assets is on - Adhsead-Bell

M&A takes off, groupthink coming as the race for assets is on - Adhsead-Bell

BHP's bid for Anglo American indicates a heating M&A cycle: the race for assets is on.On Friday Kitco correspondent recorded Digging Deep with guest Nicole Adshead-Bell from Cupel Advisory. Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Ecclestone: No copper shortage, but companies want giant deposits

Ecclestone: No copper shortage, but companies want giant deposits

The copper industry has got itself into a bind in that it's obsessed with big to giant mines, when smaller copper deposits should be tapped as well, is Christopher Ecclestone, Principal and mining strategist at Hallgarten + Company, told Kitco Mining’s Digging Deep.Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Stocks moving as gold heads higher

Stocks moving as gold heads higher

Some precious metals equities have more than doubled since the start of the year as gold continues its surge.Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Higher gold prices should trigger more M&A

Higher gold prices should trigger more M&A

Cost inflation is hitting the gold space but with gold pushing higher, deep discounts on gold equities may present good buying opportunities, says Joe Mazumdar, editor of Exploration Insights newsletter.Mazumdar spoke to Paul Harris, host of Kitco Mining’s Digging Deep, on April 4.Harris gave the example of IAMGOLD (TSX:IMG) recently pouring first gold at its Côté mine in Ontario, Canada. The capex (capital expenditures) on the project is a $2.965 billion. Gold Fields (NYSE:GFI) finally achieved production at its Salares Norte project in Chile following years of development plagued by skyrocketing costs and technical delays.With gold up more than 10% since the start of the year, Mazumdar said the incentive to build new projects outweighs the costs; the opposite was happening in 2023. A higher gold price is also likely to bring about more mergers and acquisitions (M&A).“Companies are seeing that the price is going to go up and it's best to get projects now,” he said.Financings are another positive sign for the gold sector. The Yukon’s Snowline Gold (TSXV:SGD) this week did a $25 million bought deal financing, increasing its cash position to more than $70 million. Meridian Mining (TSX:MNO) also announced a $17.5 million bought deal.Mazumdar said a lot of investors are playing gold by investing in physical metal or gold ETFs, rather than the juniors. Institutional funds have stayed away from a sector they see as under-capitalized and too small. Lack of liquidity is also a problem.Harris countered that “investors are really still open to the power of drilling results,” giving the example of Awalé Resources (TSXV:ARIC), which last week hit 32 metres at 45.7 grams per tonne gold at its Odienné project in Côte d’Ivoire.“The story jumped more than 100 percent,” he said, noting the share price has risen from 18 cents to more than a dollar since mid-March.Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Gold continues to break barriers - David Erfle

Gold continues to break barriers - David Erfle

The gold price continues to set new all-time highs, with gold equities starting to get in on the action as M&A activity increases, Junior Miner Junky, David Erfle, told Kitco Mining's Digging Deep.Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

'We're not making any more money' - why gold miners are stuck despite all-time metal highs

'We're not making any more money' - why gold miners are stuck despite all-time metal highs

Gold prices are at all-time highs, but rising costs at the miners have tempered an equity upside, noted Neil Adshead, consultant analyst at Commodity Discovery Fund.On Friday Kitco Mining Correspondent Paul Harris recorded Digging Deep. Harris noted that despite the gold prices hitting all-time highs in 2024, the gold miners have not rallied. Year-to-date the gold miners index, the VanEck Gold Miners ETF, is down 3% to $29.60 a share. Adshead noted that the big, diversified miners have much larger market capitalizations. The gold miners are not keeping pace, because they just don't make the same margins as the large copper and iron ore miners. "[Gold miners] are not generating huge margins, so they tend to under-perform financially," said Adshead. "I even spoke to a gold company this week and he said: 'Yeah, it's all well and good that [golds at] $2,200 an ounce, but our costs have actually kept pace with the rise in the gold price, so we're not actually making any more money.'" Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Copper's looming structural shortage comes into focus, says Cupel's Nicole Adshead-Bell

Copper's looming structural shortage comes into focus, says Cupel's Nicole Adshead-Bell

Copper prices are at the beginning of a big run, said Cupel Advisory Director Nicole Adshead-Bell. On Thursday Adshead-Bell recorded Digging Deep with Kitco Correspondent Paul Harris. Copper had a good week, hitting a seven-month high on news that China plans to mothball loss-making smelters. Reduced supply strengthens the long-term bull case for copper, noted Adshead-Bell. "The price is moving now [because] market participants are finally starting to realize that there is a very material, looming structural-shortage in primary copper supply," said Adshead-Bell. She added that the copper breakout has been a long time coming. Energy transition and artificial intelligence is going to require a lot more copper, and years of sub-$4 a pound copper has not been enough incentive to get miners to invest in new mines. "I think this is the very beginning of what I would say is a parabolic rise in the copper price," said Adshead-Bell. "We need that [price] rise to incentivize new supply. Copper is the critical commodity. Without copper none of the green energy, net zero and energy transition occurs."Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.