Kitco MINING

The gold trade has moved from West to East, said Florian Grummes, managing director of Midas Touch Consulting.

On Wednesday, Grummes spoke to Kitco Mining at the 2024 Precious Metals Summit Beaver Creek in Colorado. 

Despite a recent consolidation phase, Grummes believes that gold's uptrend remains intact, with a potential target of $3,100 per ounce.

Grummes highlighted several factors supporting his bullish outlook: Gold has formed a strong cup-and-handle pattern, suggesting further upside. Growing physical demand from Asia, particularly China and Russia, is a significant driver. Gold is appealing as a safe-haven asset in uncertain economic times. 

“I think gold has been completely ignored in the West. I mean, it's no secret that for years, gold basically has been moving from the West towards the East,” noted Grummes. 

Despite high metal prices, Grummes noted that mining stocks have been disappointing with limited upside. He said the AI frenzy was much more exciting to Western investors. 

“It's all about the latest apps, the latest software. I think gold mining stocks are just very much an old-fashioned investment to many people,” said Grummes. 

“This rally over the last 11 months has been driven by geopolitical events and driven by physical demand from China primarily,” noted Grummes. “And the Western investors have been focusing on AI and a few stocks in the tech sector, right? There was no interest in safe-haven assets like gold and silver.“

Grummes said there is the potential for a rapid and significant price increase in gold, similar to what occurred during the COVID-19 pandemic.

When Grummes met with Harris a year ago, he forecast $2,500 ounce gold in 12 months.

“I think I missed it by four dollars,” noted Grummes. 

Coverage of the 2024 Precious Metals Summit Beaver Creek in Colorado is sponsored by Newcore 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.

opportunities in the resource space. One metal is of particular interest.  

“My whole life I have wanted to do a pure primary silver play,” said Giustra. “I've never been able to pull it off because I haven't found the right assets.”

Gold has hit several all-time highs in 2024. Giustra is waiting for the broader market to take notice. 
 
“I've never seen a market where there is such a difference between the gold price and mining stocks,” said Giustra. “Investment banks offer us financing...then they go look for investors, and they don't exist. We end up having to place all of those shares ourselves."
 
Giustra said that being a miner with one asset does not work. Giustra said buy and build is better. 

“You have way too many small developers, single asset companies that are getting absolutely no investor interest," said Giustra. “Our style of business…has been based upon building multi-assets. Start with something that's smallish and build it and build it. We call it the ‘buy and build strategy.’”

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 not yet at the euphoria stage, but the metal’s rally has legs, said Ronald-Peter Stoeferle, managing partner at Icrementum AG. 

On Tuesday, Stoeferle spoke to Kitco Mining at the 2024 Precious Metals Summit Beaver Creek in Colorado. 

Incrementum AG is an independent fund and asset management company based in Liechtenstein. Every end of May, Incrementum publishes the report In Gold We Trust. 

In 2024, gold has hit several all-time highs, with prices currently holding initial support above $2,500. Even with its 20% rally, Stoeferle said the metal should run higher. 

“Whenever I do keynotes and say, ‘gold is cheap,’ people just shake their heads and cannot believe what I'm saying, because most people are considering selling their gold at this moment,” said Stoeferle.

Stoeferle noted that gold is climbing without any big retracements, which is supportive of the metal. 

“$4,800 dollars is our target price,” said Stoeferle. “And I can tell you we're right on track. We're climbing this wall of worry. We're definitely not in the euphoria stage.”

Stoeferle said the current rally has legs, but he expects the metal to take a “breather” over the next couple of weeks. 

While gold is up, a lot of the other commodities are down, like oil, copper and iron ore, noted Stoeferle. Silver is off, too. 

“Silver is massively underperforming the price of gold.”

Coverage of the 2024 Precious Metals Summit Beaver Creek in Colorado is sponsored by Newcore 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.

Gold hitting $3,000 ounce in 2025 would not surprise Keith Neumeyer, president and CEO of First Majestic Silver.

On Monday Neumeyer spoke to Kitco at the Vancouver studio. 

Last week First Majestic Silver Corp. (NYSE:AG) announced that it entered into a definitive merger agreement with Gatos Silver whereby First Majestic will acquire all of the issued and outstanding common shares of Gatos.

Gatos is a silver-dominant producer with a 70% interest in the Los Gatos Joint Venture, which owns the producing Cerro Los Gatos underground silver mine in Chihuahua, Mexico.

“We're very happy to get a deal done with Gatos,” said Neumeyer. “It was a very competitive process. It took a lot of hard work on our end.”

The combined annual production of the new entity will be 30-32 million ounces of silver-equivalent, including 15-16 million ounces of silver at all-in sustaining costs of $18.00-$20.00 per silver-equivalent ounce. 

Regarding gold hitting several all-time highs in 2024, Neumeyer said central banks have been propelling the metal. 

“There's this bid under the gold market,” said Neumeyer. “It hasn't shown up really that much in silver yet. And that's one of the conundrums.”

Neumeyer said gold looks good. 

“It doesn't appear buyers are lightening up. I wouldn't be surprised to see $3,000 gold in 2025.”

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 junior resource space is facing competition from other sectors of the economy that offer high risk, high reward investment opportunities, said Ken Armstrong, president and CEO of North Arrow Minerals. 

On Thursday Armstrong spoke to Kitco Mining. 

North Arrow Minerals (TSX-V:NAR) is a Canadian based exploration company focused on the identification and evaluation of exploration opportunities in Canada. 

This month North Arrow Minerals announced an option agreement to earn up to an 80% interest in Kraaipan Greenstone Belt Property in southern Botswana. 

North Arrow has a well-known exploration team. A Director of the company is Grenville Thomas, discoverer of the Diavik Diamond Mine and Canadian Mining Hall of Fame inductee. Eira Thomas is chair; she previously led Lucara Diamond. 

"We like the jurisdiction and getting a chance to explore on a regional basis," said Armstrong "An entire belt of rocks that is highly prospective is really tough to find—and in such a good jurisdiction, so we jumped on this one." 

Armstrong said that it has been a tough junior market with a lot of high-risk, high-reward options for investors, such as cannabis and crypto. 

"There's more competition," said Armstrong. "The best way to address that and fix it would be with some discoveries that make investors 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.

Increased supply and poor economic conditions over the short term could hurt copper, said Scott Pollan, president of Emergency Material Services. 

On Thursday Pollan spoke to Kitco Mining. 

Pollan predicts a near-term decline, potentially reaching below $3.50 by the end of the year, and a possible revisit of 2022 lows in early 2025. He attributed the decline to weakening demand and increasing supply. However, Pollen remains bullish on copper long-term, citing the millennial consumption cycle and the ongoing electrification trend as key drivers for future demand. He also highlights the challenges in building new copper mines, which could further constrain supply and push prices higher.

Despite challenging headwinds for the metal over the short term, that hasn’t diminished M&A. In 2024, there were some monster copper deals. This summer BHP Group and Lundin Mining bought Filo in a $3 billion copper deal. Earlier this year BHP Group tried to acquire Anglo American for its South American copper assets. The offer size reached $49 billion. 

Pollan said there is a rush for tier-one copper assets as the big miners try to show investors they have a long-lasting, reliable supply. 

"[It's a] rush to buy tier one assets by major producers," said Pollan "They need to assure their investors that they have secured a supply of raw material for the long-term future. In my opinion, we'll see more [M&A] for smaller producing facilities as tier one producers really try to build up their book of supply."

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.

Slowing electric vehicle sales and new tech are both contributing to lithium sector woes, said Daniel Jimenez, partner at iLiMarkets. 

Last week Jimenez spoke to Kitco Mining. 

iLiMarkets is a business consulting firm, specialized in the lithium industry. Jiminez worked 28 years at SQM, one of the world's biggest lithium producer. Jiminez was responsible for production and commercialization of lithium carbonate and lithium hydroxide to Asia, Europe and North America, as well as developing SQM's commercial offices. 

After the lithium market was up 10x at the start of the decade, the market is now experiencing a downturn. Prices have fallen 80% over the past two years. Overcapacity and declining electric vehicle sales have led to a significant drop in lithium prices.

Jiminez said there are other factors adding to depressed lithium prices: increasing popularity of plug-in hybrid electric vehicles, which have smaller batteries than full EVs, and growing use of LFP cathode material, which requires less lithium than NMC.

Some of the large lithium giants are cutting. Lithium giant Albemarle announced job cuts deferred spending. Other miners have been expanding despite the slump. SQM is ramping up its refinery in northern Chile. The investment would take the facility to 300,000 tons, according to Reuters. In August Pilbara Minerals announced plans to acquire Latin Resources for $369 million. 

Jiminez was critical of the West's efforts to build its own critical mineral supply chain, namely through Biden''s two-year old Inflation Reduction Act. Focusing on developing battery manufacturing capabilities is crucial for establishing a competitive supply chain.

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 is increasingly viewed as a critical asset in the global energy transition. A looming supply crunch driven by high demand is elevating prices to record highs.
 
Hosted by Paul Harris, the Kitco Copper Masters Panel brought together industry leaders Robert Friedland, Kathleen Quirk, and Colin Hamilton to explore why copper is positioned as one of the most crucial resources in the coming decade.
 
This live segment aired on YouTube on August 22, 2024 at 3 PM EDT / 12 PM PDT.
 
Coverage brought to you by Coppernico Metals.
To learn more, visit https://coppernicometals.com

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.

Silver prices will move higher, said Randy Smallwood, the CEO of Wheaton Precious Metals. 

On Wednesday Smallwood spoke to Kitco Mining. 

Wheaton Precious Metals is a top precious metals streaming company. In its Q2 released early in August, the company generated $234 million in operating cash flow, resulting in record cash flows of over $450 million for the first half of the year. 2024 production guidance is 550,000 to 620,000 gold equivalent ounces. Wheaton Precious Metals is up 29% year-to-date. 

Smallwood is a fan of gold, but he feels the strongest pull from silver. 

"I did spend the last three years as the chair of the World Gold Council," said Smallwood. "It didn't change my perspective that silver is my favorite metal."

Smallwood noted the metals versatility. It is a precious metal, but it is also a critical mineral used for solar panels and electronics. 

"I do think we'll see a rapid move in a higher price of silver," said Smallwood. "It always outperforms."

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 finally getting some attention from the mainstream press, noted John A. McCluskey, president and CEO of Alamos Gold. 

On Wednesday McCluskey spoke to Kitco Mining. 

Alamos Gold (NYSE:AGI) is a Canadian-based intermediate gold producer with production from three operating mines in North America: Young-Davidson and Island Gold mines in northern Ontario, Canada and the Mulatos mine in Sonora State, Mexico.

Alamos Gold expects to produce between 485,000 and 525,000 ounces of gold in 2024. The gold production forecast doesn't include Argonaut Gold. In the spring Alamos announced it was acquiring Argonaut Gold in a friendly acquisition. The deal is expected to close in September. 

Investors appear to like the growth story. Alamos is up 55% year-to-date, doubling the performance of the GDX, which up about 25% over the same period. 

Talking generally about gold, McCluskey said investors are starting to notice the metal. Gold has hit several all-time highs in 2024 and recently broke through $2,500 ounce.  

"I've probably seen more articles on gold in the last week than I've seen in the last three months," said McCluskey. "You know, even though gold was running, the press was largely ignoring it. And suddenly, the Financial Times has got an article on gold, the Wall Street Journal has got an article on gold. Everybody's talking about gold all of a sudden"

McCluskey speculated that $2,500 was the "...magic number they were all waiting for." 

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.