Optionality is a key upside to the royalty and streaming business, said David Cole, president and CEO at EMX Royalty. 

On Thursday Cole spoke to Kitco Mining at THE Mining Investment Event of the North in Quebec City.

EMX Royalty (TSX-V:EMX, NYSE AMERICAN:EMX) is a precious and base metals royalty company. The company's two flagship operations are Caserones in Chile operated by Lundin Mining, and Timok in Serbia operated by Zijin Mining. In 2024 the company expects to have 11,000 to 14,000 of gold equivalent ounces and between $22,000,000 to $27,500,000 in revenue. 

"I've said for years that we're going to become a cash cow. We have actually done that, and it's great to see the assets populating and moving up towards the top of the pyramid and establishing that recurring cash flow," said Cole. 

Cole said exposure to quality assets gives the company upside. 

"Royalties are phenomenal financial instruments," said Cole. "It's because of their embedded optionality. We all want to be exposed to commodity price optionality.

Cole said the biggest driver of optionality upside is exploration and discovery. 

"If you own a royalty on a deposit, and it's getting near the end of its life, and [the operator] find a whole other deposit of equal size or greater, you know you're in the money, and that happens repeatedly throughout the world."

Coverage of the THE Mining Investment Event of the North is sponsored by EMX Royalty.

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.

Funding for critical mineral projects by private companies is taking time to arrive, said Jamie Strauss, founder and CEO of Digbee.

Strauss spoke to Kitco Mining on Tuesday at THE Mining Investment Event of the North in Quebec City.

Digbee helps companies measure, manage and disclose their ESG ratings. They also offer mining data analysis. 

Western governments have implemented critical mineral strategies with the goal to reduce reliance on single-source suppliers, particularly those with geopolitical risks. In August 2022 the Biden administration passed the Inflation Reduction Act, which provided funds for domestic energy production that promoted clean energy.

Government funding is there, but private funding is lacking, noted Stauss. He said that the capital base for the miners has fallen about 75% in the past two decades. The recent bull market in some metals like copper should spur investment. 

"There's still some inertia...in terms of getting this capital moving despite the urgency of critical minerals," said Strauss. "We're not quite there yet, but it's definitely coming."

Coverage of the THE Mining Investment Event of the North is sponsored by EMX Royalty.

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.

Developing critical mineral resiliency is absolutely critical, said Gary Stanley, founder and managing director of Global Mineral Strategies.

In early June Stanley spoke to Kitco Mining at THE Mining Investment Event of the North in Quebec City. He was joined by the CEO of  @firstphosphate , John Passalacqua. Stanley is also on the advisory board of First Phosphate. 

The shine has come off critical minerals compared to the start of the decade. Lithium prices traded up 10x before crashing. Electric vehicles are in a sales slump. Passalacqua said that volatility is expected. 

"Eventually all these materials are going to be needed," said Passalacqua. "There will be dips along the road. The trend is bullish."

First Phosphate (CSE: PHOS) is a mineral development company with plans to produce phosphate for the lithium iron phosphate (LFP) battery industry. First Phosphate holds over 1,500 sq. km of royalty-free district-scale land claims in the Saguenay–Lac-St-Jean Region of Quebec, Canada. First Phosphate properties consist of anorthosite igneous phosphate rock that generally yields high purity phosphate material. The company says that the rock is devoid of high concentrations of harmful elements.

Stanley was with the U.S. Department of Commerce before founding Global Mineral Strategies.  Stanley was lead author of the 2019 US Federal Critical Minerals Strategy. He said Western countries outside China need their own critical mineral supply chains. 

"It has to happen," said Stanley. "There has to be the kind of commitment necessary to make these supply chains not only stood up, but sustainable long term. There's going to be a premium that has to be paid for that because you're never going to be able to price compete against China. It's really incumbent upon countries like Canada and the United States to stay resilient in this process."

Coverage of the THE Mining Investment Event of the North is sponsored by EMX Royalty.

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.

Investors are not placing much value in resource companies despite the jump in metal prices, said Richard Carleton, CEO of the Canadian Securities Exchange (CSE).

Carleton spoke to Kitco Mining in early June at THE Mining Investment Event of the North in Quebec City.

The  @CSETV has offices in Vancouver and Toronto. The company has over 800 listings. 

Gold has hit several all-time highs in 2024, but resource companies are not seeing much of a lift, noted Carleton. 

"The index of gold exploration companies, even the later stage companies that have extended their projects to quite a considerable degree...still haven't gotten the love from the markets in terms of the valuations at this point," said Carleton. 

In the spring, the Canadian federal government proposed a rise in the capital gains tax. Starting June 25, the capital gains inclusion rate would be increased from one-half to two-thirds for capital gains of over $250,000 per year for Canadians, and on all capital gains for corporations and most types of trusts, according to a statement by the Canadian finance ministry. 

Carleton said the proposed changes will have “a devastating impact on flow-through financing and other means of direct investment into exploration and mining” in Canada.

Coverage of the THE Mining Investment Event of the North is sponsored by EMX Royalty.

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 miners could use a little more conviction in the product they sell, said Frank Holmes, CEO and chief investment officer at  @USGlobalInvestors .

In early June, Holmes spoke to Kitco Mining. 

Gold has been hitting all-time highs in 2024, but the gold mining companies have lagged behind. The GDX, the gold mining index, is only up 12% year-to-date. Some enthusiasm for the metal the miners produce could help, said Holmes. 

Holmes said gold miners are holding less gold on their books, unlike cryptocurrency companies.

"I think gold miners—like Bitcoin miners—have to show investors their conviction that they really like the product, and that they're going to own it," said Holmes. "You have many more crypto mining companies [that] actually own Bitcoin." 

Coverage of the THE Mining Investment Event of the North is sponsored by EMX Royalty.

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.

British Columbia's northwest is seeing heightened interest from resource companies, said Ken Konkin, CEO and president of Tudor Gold.

In early June Konkin spoke to Kitco Mining at THE Mining Investment Event of the North in Quebec City. 

 @tudorgoldcorp.1829   (TSX:TUD) is an exploration and development company advancing its Treaty Creek gold and copper project, situated in the Golden Triangle. Treaty Creek project hosts the Goldstorm deposit, which the company says is one of the largest gold discoveries in the last three decades.

The Golden Triangle is seeing renewed focus, says Konkin, due to the infrastructure and safe jurisdiction, as well as the many development projects that are advancing in B.C. The world's largest gold miner, Newmont, has made the region a top priority since taking out Newcrest and acquiring both its Pretium and Red Chris mining operations in the Golden Triangle. 

"Clearly, there's blood in the water," said Konkin. 

Coverage of the THE Mining Investment Event of the North is sponsored by EMX Royalty.

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.

Greenstone Mine is very rare asset, said Greg Smith, president and CEO of Equinox Gold. 

On Thursday Smith spoke to Kitco Mining. 

Equinox Gold (TSX: EQX) is a Canadian mining company with seven operating mines. The company is forecasting 780,000 ounces of gold production in 2024 at an all-in sustaining cost between $1,565 to $1,675 per ounce. 

This month the company announced first pour at Greenstone Mine, what the company calls its flagship asset. When operating at capacity, the Greenstone Mine is expected to produce approximately 400,000 ounces of gold annually for the first five years, and average 360,000 ounces of gold per year for its initial 14-year mine life, making Greenstone one of Canada’s largest gold mines, according to Equinox. Last month Equinox Gold paid $995 million to acquire Orion’s 40% interest in the Greenstone Mine. 

"Greenstone is a large-scale gold mine in Canada—large reserve, lots of potential in the open pit and the underground," said Smith. "Those types of assets are very rare, especially with that kind of production profile."

So far gold mining equities haven't had that big a run in 2024 despite the metal hitting several all-time highs. The GDX, an index of gold miners, is only up 16% year to date. Smith said huge demand for just physical gold in Asia has been driving up the price of the metal, which also explains part of the disconnect with the miners. With inflation starting to tamp down, margin expansion at the gold miners should spark interest in the sector. 

"We're seeing inflation easing off," noted Smith. "The gold price is running, and the operating gold companies are going to produce a lot of cash flow."

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.

Minera Alamos will see a big step up in production over the next handful of years, said Doug Ramshaw, the company's director and president. 

On Tuesday Ramshaw spoke to Kitco Mining. 

Minera Alamos (TSX.V: MAI) is a Mexican-focused gold miner. The company's expertise is in heap leach operations. Its Santana operation will produce 2,000 ounces this year. The company's two other projects, Cerro De Oro and La Fortuna, are scheduled to start production over the next few years. The company expects to be producing 140,000 ounces annually by 2027. 

Ramshaw said Minera Alamos is built to operate in a low-cost environment. 

"Build mines that can work in whatever gold price environment is thrown at you," said Ramshaw. 

Ramshaw was surprised by gold's move. He expected gold to go up in 2024, but towards the end of the year. The metal has already hit several all-time highs. 

"I think there's still probably upside on gold," said Ramshaw. "If you're building mines that can't make money at these prices, then you're probably building the wrong kinds of mines."

Ramshaw has 25 years as a mineral analyst and mining executive. He was a former director of Great Bear Resource, which was acquired for $1.8 billion. 

Ramshaw said that Mexico is a very prospective country to operate. 

"We want to build many more mines in Mexico."

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.

As more money comes into mining, this will push dollars down to the juniors, said David Garofalo, chair and CEO of GoldRoyalty.

Garofalo has a multi-decade career leading large mining companies. He was CEO of Goldcorp prior to its sale to Newmont for about $10 billion in 2019. He was also CEO of Hudbay Minerals. Garofalo is now at GoldRoyalty (NYSE:GROY), a streaming and royalty company. Some of its key assets are the Odyssey Mine, the Cote gold project and the Borborema project. The company forecasts revenue of about $15 million mid-decade, growing to three times that level by 2029. 

Garofalo spoke to Kitco Mining on May 21. He said that despite gold hitting several all-time highs this year and copper futures hitting their own record last week, gold equities are still underperforming. 

"We're starting to see profitability and margins starting to expand," said Garofalo. "But the big overhang for the producer universe is the fact that reserves have been declining steadily for a dozen years. We haven't seen the leverage to the gold price that equity should be providing."

Garofalo said broader interest in resources is needed for the sector to be healthy again. He believes a good Q2 performance by the major gold miners resulting from high metal prices and better cost control could see generalists return to the sector. 

"I know the juniors are waiting for the seniors," said Garofalo. "Hopefully [we] see some generalist capital come into the space and buy the most liquid names. If that happens, the specialists who are kind of hiding out among the large caps will start to come down the food chain and start to invest in juniors.

Mining needs more money coming into the sector, he said. 

"The specialists have been hiding out because they face significant redemption pressure, so they've had to stay in large liquid names,” said Garofalo. “But when generals start coming in and displacing them, then we'll start to see some risk capital put the work in the juniors. And that's an existential necessity for the industry."

Garofalo said the uptick in mining M&A points to a poor pipeline of projects. 

"Juniors have had very inconsistent access to capital, and they're the ones that do all the heavy lifting when it comes to grassroots exploration," said Garofalo. "They make the major discoveries. The bigger producers build and operate those mines, but they don't discover them. And that's resulted in a 40 percent decline in gold reserves over the last dozen years. So, you have a shrinking pie, and that's led to cannibalization. That's led to merger activity."

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 has hit several all-time highs this year, but the metal has further to go, said Simon Marcotte, president and CEO of Northern Superior Resources. 

Last week Marcotte spoke to Kitco Mining. 

Marcotte attributes the recent rise in gold prices to central bank buying and increased demand from Asia, particularly due to the weakening yen. He predicts that as real rates decline, gold will gain further momentum, leading to increased equity valuations in the sector.

"I don't even think this is the first inning," said Marcotte. "We're going to see gold do well. Gold is going up right now because central banks are buying...and also there's been a lot of the Asian demand for gold. [The yen] is deflating very rapidly. I don't want to say it's collapsing, but it's breaking down. The central bank of Japan is having a hard time maintaining its currency. 

"Real rates starts going down, and that's where the equity price will play catch up. [The] real estate market is not going to be able to sustain higher rates, therefore real rates go down and gold goes up."

Marcotte also talked about the recent surge in M&A activity in the mining sector, driven by increased profitability and the need for larger companies to replenish reserves. Marcotte sees this trend as indicative of a new commodity cycle and a positive outlook for the industry.

Northern Superior Resources (TSX-V: SUP) is a Quebec-focused company with the goal of consolidating the Chibougamau gold camp. The company has a land package of about 62,000 hectares. The company also spun off a new business, ONGold Resources that is focused on the TPK property in Ontario. 

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.