(Kitco Mining) The junior mining sector has entered a new phase of momentum, with capital flowing back into equities as gold and silver test new highs, says JuniorMinerJunky.com founder David Erfle. “Gold futures hit $3,700 and silver now is back over $42 in the futures market as we’re speaking right now,” Erfle told Kitco Mining’s Digging Deep in mid-September, adding that “It’s really nice to see a lot of those frowns from the last couple of years turned upside down.” Gold has continued on its all-time high, while silver pushes towards $50.
Erfle pointed to consolidation as one of the defining themes of the moment, suggesting the recently proposed $53 billion Anglo–Teck copper merger could reshape the industry and invite rival bids from Glencore, Rio, or other majors. Barrick’s $1 billion sale of the Hemlo mine in Ontario highlights the creation of new single-asset mid-tiers, while New Found Gold’s acquisition of Maritime Resources underscores how shifting valuations are redrawing the junior landscape.
On the royalty side, Erfle highlighted early September’s $450 million Elemental Altus–EMX merger, which will form a mid-tier valued at roughly $1 billion and is backed by a $100 million investment from Tether. “That seems to suggest that more transactions will follow,” he said.
Juniors are also adjusting strategies, with companies such as Integra, Discovery, and Heliostar having acquired producing mines to secure cash flow and reduce dilution, moves that Erfle said have driven strong share price performance. He noted that share consolidations, which were once seen as negative, are now increasingly viewed positively, particularly when paired with moves to secure U.S. big-board listings.
After a year of strong gains, Erfle says he “expected to uncover at least five or six or seven opportunities that had yet to be discovered by the market,” but instead sees fewer undervalued opportunities. He believes the bull cycle has room to run, adding that long-term resistance levels recently broken by the GDX and GDXJ could soon act as support. He also expects silver to play a bigger role going forward, noting that it has lagged gold but is starting to catch up.
Watch on the Kitco Mining YouTube channel here: Catch the full, unedited conversation where David Erfle explains why sentiment has flipped, what the new wave of M&A means, and how juniors are positioning for the next phase of the cycle.