Gold Near $3,000: Why Mining Stocks Aren't Soaring

02/24/25 • 19 min

Is the mining industry facing a crisis of investor confidence? Kitco’s Senior Mining Editor and Anchor Paul Harris interviews Kevin Murphy, Research Director for Metals and Mining at S&P Global Market Intelligence, at the 2025 Mines and Money Conference in Miami. Murphy discussed the current state of the commodity cycle. He highlights the divergence in commodities, with gold prices flirting with $3,000 an ounce while others like nickel and zinc struggle. Murphy also addresses the difficulties junior mining companies face in securing financing and the impact of past debt and changing investor attitudes. Murphy touches on M&A activity, shareholder returns, and the need for the mining industry to better advocate for itself to attract generalist investors.
Key Points:
- Commodity divergence: Gold and copper perform well, others lag
- Junior financing: Raising capital remains a challenge
- Investor trends: Lack of interest in mining, need for better advocacy
- M&A: Cautious approach expected
- Gold market: Poised for a potential breakout
Special thanks to our sponsor, Goldshore Resources, for making this coverage possible. Visit https://goldshoreresources.com/ to learn more.
00:00 Introduction: Understanding S&P Global Market Intelligence
00:57 Current State of the Commodity Cycle
02:21 Trends in Mining Finance
03:21 Challenges for Junior Miners
08:02 Debt and Financing in the Mining Sector
10:02 Mergers and Acquisitions in Mining
12:58 Returns to Shareholders and Industry Challenges
16:01 Future Trends and Predictions for 2025
Follow Paul Harris on X: @PaulHarrisGold (https://x.com/paulharrisgold)
Follow Kitco Mining on X: @KitcoMining(https://x.com/kitcomining)
#mining #investing #gold #commodities

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.

Previous Episode

'All the Dominos Tumble' with 10% Stock Market Correction

Is the stock market due for a correction? See how this could affect your investments in commodities. Kitco’s Senior Mining Editor and Anchor Paul Harris interviews Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, at the Mines and Money Miami conference. McGlone shares his insights on the commodity cycle, with a close watch on crude oil and copper, and discusses the potential impacts of tariffs, especially concerning China's influence on copper demand. McGlone also explores gold's performance, noting its outperformance against the S&P 500 and the influence of central bank buying, while expressing caution about an overvalued U.S. stock market and its potential effects on commodities. McGlone suggests that U.S. Treasury long bonds may be a strong trade.
Key Points:
- Copper's price is closely tied to China's economic trends and is vulnerable to deflationary pressures.
- Gold has been outperforming stocks but may face resistance around $3,000 an ounce.
- A U.S. stock market correction could significantly impact commodity prices.
- Central bank buying is currently supporting gold prices.
- U.S. Treasury long bonds may be a strong trade
Special thanks to our sponsor, Goldshore Resources, for making this coverage possible. Visit https://goldshoreresources.com/ to learn more.
00:00 Welcome: Commodity Cycle Overview - Crude Oil and Copper
01:14 Impact of Tariffs on Copper Prices
04:11 Copper's Relationship with Interest Rates and Global Demand
05:18 China's Economic Influence on Copper
14:36 Gold's Meteoric Rise and Market Dynamics
17:59 Speculation and Future Predictions for Gold and Copper
23:12 Key Themes for 2025
Follow Paul Harris on X: @PaulHarrisGold (https://x.com/paulharrisgold)
Follow Kitco Mining on X: @KitcoMining(https://x.com/kitcomining)
Follow Mike McGlone on X: @mikemcglone11 (https://x.com/mikemcglone11)

Next Episode

Equinox Gold & Calibre Mining Merge: A New Gold Giant is Born

What's next for Equinox Gold after the Calibre merger? Kitco’s Senior Mining Editor and Anchor Paul Harris interviews Ross Beaty, Chair of Equinox Gold, at the 2025 BMO Global Metals, Mining & Critical Minerals Conference. Beaty discusses the recent merger of Equinox Gold with Calibre Mining, a CAD$7.7 billion transaction that will create one of the largest gold producers in the Americas. He highlights the synergies between the two companies, the benefits of a zero-premium deal, and the expected positive re-rate for the combined entity. Beaty also touches on the company's strategy for deleveraging and rationalizing its asset portfolio.
Key points:
- Merger of Equinox Gold with Calibre Mining to create a leading gold producer.
- Zero-premium deal and its advantages for shareholders.
- Expected positive re-rate due to increased size and liquidity.
- Focus on deleveraging and enhancing the asset portfolio.
- Anticipated closing of the transaction around May.
Special thanks to our sponsor, First Majestic, for making this coverage possible. Visit https://www.firstmajestic.com/ to learn more.
00:00 Introduction: Major M&A Announcement: Equinox Gold and Calibri Mining
00:32 Details of the Merger Deal
01:49 Synergies and Management Integration
03:14 Market Impact and Investor Expectations
04:15 Challenges and Opportunities in the Gold Market
05:42 Future Plans and Strategic Goals
13:04 Financial Strategies and Debt Reduction
13:46 Closing Remarks and Future Outlook
Follow Paul Harris on X: @PaulHarrisGold (https://x.com/paulharrisgold)
Follow Kitco Mining on X: @KitcoMining (https://x.com/kitcomining)
#mining #investing #gold #commodities