'Finally, they'll start producing real cash' - George Salamis on the mining sector turnaround

Описание: A general mining recovery begins with producers, said George Salamis executive chair of Integra Resources (‪@integraresourcescorp.1721‬)

On Tuesday Salamis spoke to Kitco Mining.

Integra Resources is focused on the Great Basin of the Western USA. The company has two flagship oxide heap leach projects: the past producing DeLamar project located in southwestern Idaho and the Nevada North project in Nevada.

The Nevada projects came to Integra after a merger with Millennial in 2023. In 2024 Integra will be working on a feasibility study for DeLamar, as well as drafting its permits.

A recent flurry of M&A and gold hitting record highs have all been good for the resource sector, but there is still a long road to recovery. The gold miner index (GDX) is up only 13% year to date and still well below highs earlier this decade.

"There's been a lot of value destruction in the last four years in the mining space," said Salamis. "There's a bit of a crisis of confidence in the way investors look at the mining sector. A lot of that I
believe is related to hindsight: inflationary pressure and compression of margins."

In last few years, miners benefited from high metal prices, but energy and labor costs squeezed margins. When miners can control costs, Salamis sees a recovery.

"I think what it's going to take to turn that around is we need to see the producers start to make real money. The gold price is going to help that. Finally, they'll start producing real cash."

0:00 - DeLamar project updates
1:00 - DeLamar project
1:40 - Permitting challenges in the U.S.
2:30 - Cost inflation at mines
3:40 - Labor challenges
4:30 - New benchmark for gold and silver prices
6:40 - M&A in the mining space
7:55 - General investors returning to mining

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