Video News/Digging Deep

David Erfle, founder of Junior Miner Junkie, joins Kitco Mining’s Digging Deep with Paul Harris to break down the latest wave of mergers and acquisitions reshaping the mining sector. Coeur Mining’s US$7 billion all-share deal to acquire New Gold will create a US$20 billion North American precious metals company, but Erfle says the market’s reaction shows investor fatigue. “If I were a shareholder of either Coeur or New Gold, I wouldn’t be happy with this deal at all,” he said, citing a long-running pattern of growth through dilution and no dividend returns for investors. Erfle also weighs in on Fresnillo’s C$780 million bid for Probe Gold, calling it “a criminally low price” that could trigger a bidding war from majors like Agnico Eagle or Kinross. He discusses growing strategic investments from Gold Fields and B2Gold, the emerging copper supply crunch, and what record third-quarter earnings reveal about the next stage of the gold bull market. “This has been par for the course as far as the correction on the downside,” he said, describing gold’s pullback as a healthy pause rather than a reversal. Despite strong results, Erfle adds that general investors still have not fully returned to the sector, suggesting there is more upside ahead as capital rotation continues.