In a compelling interview with Kitco NEWS at the PDAC 2025 conference, Alastair Still, CEO of Gold Mining Inc., predicted a significant surge in mergers and acquisitions (M&A) within the gold sector, stating, “We’re on the tip of the iceberg sort of situation for that.” Still, a veteran with over three decades in the mining industry, including significant tenures at major operators like Kinross and Newmont, provided a detailed analysis of the current market dynamics, highlighting the stark disconnect between rising gold prices and stagnant equity valuations.
Still’s insights, delivered during Kitco NEWS’s special coverage of PDAC, focused on the factors driving this potential M&A boom. He emphasized the substantial cash reserves held by major gold producers, fueled by the recent surge in gold prices, and the increasing scarcity of high-quality projects in stable jurisdictions. This combination, he argued, is creating a perfect storm for consolidation within the industry.
“Surprisingly to see such a rapid increase in the price of gold, what we haven't seen is a catch up with the equities,” Still observed. This disconnect, he believes, presents a significant opportunity for investors. “That means opportunity for buying opportunity to capture some of this gold price which yet to be reflected in the Gold stock.”
He pointed out that while gold prices have soared to around $2,800-$2,900 per ounce, the generalist investor money has yet to flow into major producers like Newmont and Barrick. This lack of participation, according to Still, underscores the undervalued nature of gold equities.
Still’s forecast of an M&A boom is rooted in the strong financial positions of major gold producers. “Big companies now have the option they paying cash or shares which is a great option,” he explained. However, he stressed that the real driver is the “scarcity of projects and good quality project in stable jurisdictions that's what companies are going to be fighting for.” He noted that the PDAC conference itself is often a “bell weather for the year,” setting the tone for industry trends. This year, the discussions on the conference floor have been heavily focused on M&A, signaling a potential wave of deals in the coming months.
The interview also touched on the impact of geopolitical instability on the gold market. Still highlighted that gold is increasingly seen as a safe-haven asset in uncertain times. “I think there's still opportunity for increasing the price, we may see some settled in the short term but long term the fundamentals are still very much there,” he stated.
He also addressed the supply-demand dynamics, noting that physical gold retailers are struggling to keep up with demand. “Even from a retail shop or different Brokers or dealers in physical product they're having a tough time supplying their clients demand and fact restricting silver and gold sales because they just can't keep up with it,” he said.
Still discussed Gold Mining Inc.’s strategic positioning, emphasizing the company’s diversified portfolio and conservative approach to project evaluations. “We’ve created value on our balance sheet by taking those public traded equities but because we have a significant holding there should they Advance should they make discoveries we stand to benefit from that,” he explained, referring to the company’s spin-offs like Gold Royalty Corp. and US Gold Mining Inc.
He also highlighted the company’s focus on maintaining economic viability even in fluctuating gold price environments. “I always say that if I need to have a $3,000 gold price to make my project economic where does that leave room should the price go down?” he noted, emphasizing the importance of conservative resource estimations.
Alastair Still’s insights provide a clear and compelling narrative of a gold market poised for significant transformation. His prediction of an M&A boom, driven by cash-rich producers and a scarcity of quality assets, reflects a deep understanding of the industry’s dynamics. The disconnect between gold prices and equities, as highlighted by Still, presents a unique opportunity for astute investors.
His comments on geopolitical influence and market stability underscore the enduring role of gold as a safe-haven asset. As the industry navigates these complex factors, Still’s perspective offers valuable guidance for both investors and industry stakeholders.
The interview with Alastair Still on Kitco NEWS provides a crucial snapshot of the current state and future trajectory of the gold market. His prediction of an M&A surge, coupled with his analysis of the equity disconnect and geopolitical influences, paints a picture of an industry on the cusp of significant change. As the PDAC 2025 conference continues, industry watchers will be keenly observing whether Still’s predictions come to fruition, potentially ushering in a new era of consolidation and growth within the gold sector.
Watch the full interview:
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