Why This Gold Bull Market ‘Still Has Legs’ & The Big Problem In Mining

Photo by Shane McLendon on Unsplash Stijn Schmitz welcomes Ross Beaty to the show. Ross Beaty is a Renowned Geologist, Serial Mine Builder & Conservation Advocate. Beaty provides a comprehensive overview of the current gold market and mining industry landscape. He suggests that while gold is currently at record highs around $4,300, the market still has potential for growth, driven by strong macro and supply-demand fundamentals. Beaty anticipates a wave of new gold mine production in 2025-2027 that might eventually dampen prices, but remains optimistic about the sector’s near-term prospects.Drawing from his extensive experience building successful mining companies like Pan American Silver and Equinox Gold, Beaty emphasizes the importance of understanding specific commodity dynamics and investing in projects with significant scale and potential. He highlights the critical factors for successful mining investments, including geological potential, project location, commodity demand-supply fundamentals, and management quality.Beaty candidly discusses the mining industry’s inherent risks, noting that even well-planned projects can face unexpected challenges from geological complexities, political instability, community tensions, and volatile metal prices. He advocates for diversification and strategic portfolio management, as demonstrated by Equinox Gold’s recent divestment of Brazilian assets to focus on tier-one projects and manage debt. Beyond his mining endeavors, Beaty is deeply committed to environmental conservation through his philanthropic work.Video Length: 00:31:24Timestamps:00:00:00 – Introduction00:00:58 – Gold Bull Market Phase00:03:04 – Exploration Under-Investment00:05:09 – Lessons from Past Cycles00:06:40 – Investment vs Mining Differences00:09:49 – Ross’s Company Categories00:11:40 – Spotting Special Projects00:13:20 – Project Evaluation Criteria00:16:28 – Commodity Fundamentals Analysis00:21:30 – Common Mining Pitfalls00:23:00 – Growth and Debt Risks00:24:05 – Industry Dilution Problems00:26:30 – Equinox Brazil Divestments00:29:10 – Future Plans Philanthropy00:30:23 – Concluding ThoughtsGuest Links:Website: https://www.equinoxgold.comFoundation: https://sitkafoundation.orgRoss Beaty is a renowned Canadian geologist, mining entrepreneur, and philanthropist with over 50 years of experience in the international minerals and renewable energy sectors. Born in Vancouver in 1951 to a forestry entrepreneur father and a teacher mother, Beaty earned degrees in geology and law from the University of British Columbia, followed by an MSc in geology from Imperial College London. His career began in the 1970s, blending scientific expertise with business acumen to build a legacy of resource innovation.Beaty founded Pan American Silver Corp in 1994, where he serves as Chair Emeritus, growing it into a global leader in silver production. He is currently Chair of Equinox Gold Corp’s Board of Directors, a position he has held since its inception in 2017. Over four decades, he has founded and divested more than a dozen public companies, including Equinox Resources (sold in the 1990s) and Alterra Power Corp, a clean energy firm, generating an estimated $6 billion in shareholder value. A former President of the Silver Institute in Washington, DC, Beaty is a Fellow of the Geological Association of Canada, Society of Economic Geologists, and Canadian Institute of Mining.Beyond business, Beaty is a passionate environmental advocate. He co-founded and presides over the Sitka Foundation, focusing on biodiversity conservation in British Columbia through strategic grants and impact investing. He chairs the BC Parks Foundation, serves as a director for Panthera and the Pacific Salmon Foundation, and is Patron of the Beaty Biodiversity Centre at UBC. His accolades include induction into the Canadian Mining Hall of Fame (2018), the Order of Canada (2017), and an honorary Doctor of Laws from UBC (2018).An optimist at heart, Beaty champions a shift from consumerism to conservation. Married to physician Trisha Beaty, he enjoys beekeeping, cider production, and sea kayaking in Howe Sound. His journey from mining magnate to green evangelist exemplifies resilient entrepreneurship.More By This Author:First Innings For Gold, Hyper Stagflation & Why Platinum Will Outperform Silver Gold Can Be Used To Rebalance The Global Economy Without A World War Thinly Traded Markets Can Leave Gold Investors In A Vulnerable Spot