Kitco MINING

Despite gold hitting several all-time highs in 2024, margins have been a drag on mining equities, said Peter Marrone, chairman and CEO of Allied Gold. 

In early June, Marrone spoke to Kitco Mining at THE Mining Investment Event of the North. 

Marrone noted that gold spiked at the start of the decade to around the $2,020 level and then stayed relatively flat until recently. Marrone said that during that time, margins amongst gold miners declined from about $750 to $575. The VanEck Gold Miners ETF (GDX) has come anywhere near its highs from the start of the decade.

"That run-up in gold price is quite dramatic, and I think it will continue," said Marrone. "And now, as an industry will we be able to demonstrate that we can deliver improvements to margins, increase in EBITDA, increase in cash flow? And that's where the rubber hits the road because, at that point, I think that's where the multiples begin to come back." 

Allied Gold (TSX:AAUC) has both producing and development stage properties in Africa, including countries such as Mali, Côte d’Ivoire and Ethiopia. The company is targeting about 800,000 gold production by 2029. 

Coverage of 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 will return to mining as commodity prices climb, said Sean Roosen, chairman and CEO of Osisko Development. 

In early June Roosen spoke to Kitco Mining at THE Mining Investment Event of the North. 

Osisko Development (TSX-V:ODV) is advancing the Cariboo project, an advanced-stage feasibility gold project located in central British Columbia in the historic Wells-Barkerville mining camp. The feasibility study from last year showed an underground operation expected to produce approximately 1.87 million ounces of gold over a 12-year mine life, with an after-tax NPV5% of C$502 million and 20.7% IRR at a US$1,700/oz gold price.

An environmental assessment certificate for Cariboo was received in the fall of 2023. The company said it expects to receive its permits this year. 

When Cariboo is built, Roosen said the mine will utilize a lot of high tech. 

"We expect this mine to operate at about 80% on green power," said Roosen. "We're currently underground mining [at Cariboo] with a road header, which is a fully electric machine. It's a relatively new technology in the gold-mining sector for Canada."

Roosen noted that investors are still not actively invested in the resource sector, despite a yawning gap between where governments want to get for critical minerals and what's needed. 

"The pendulum needs to swing back, and I think it is," said Roosen. "It will be led by higher commodity prices. 

Coverage of 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.

The Madsen project is unusual since a lot of work can be done in parallel, speeding up time to production, said Gwen Preston, vice president of investor relations at West Red Lake Gold Mines. 

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

West Red Lake Gold Mines (TSXV: WRLG) is advancing its Madsen gold mine in the Red Lake gold district of Ontario. The mine was previously owned by defunct PureGold, and Madsen has had over $350 million in investment. Infrastructure includes a brand-new mill that can 800 tonnes per day with a tailings facility that has capacity. There are two ramp portals and a 1,275m shaft. The mill was constructed and commissioned in 2020.

Madsen is located in a storied mining district. The Red Lake gold district of Northwest Ontario has yielded over 30 million ounces of gold from high-grade zones and hosts some of the world’s richest gold deposits. 

Preston said the company has attracted a lot of mine builders, such as Anthony Makuch and Duncan Middlemiss​. The company’s CEO is Shane Williams. 

"Our goal is to have this mine turned on in the second half of next year," said Preston. "To get there, there's the usual path to turning a mine on, which is resource studies, permitting, feasibility study, engineering, financing, start construction, and then turn it on.”

“We're doing things all in parallel, and that's because a huge amount of this mine is already built."

Coverage of 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.

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.