Video News/Digging Deep

Neil Adshead, Consultant Analyst at the Commodity Discovery Fund, says rising geopolitical tension is colliding with record profitability in the gold sector and a wave of strategic transactions across mining. Speaking with Kitco Mining’s Digging Deep at PDAC 2026 in Toronto, Adshead said, “the gold price has already reacted,” noting that bullion moved sharply higher in weekend trading following U.S. strikes on Iran. He added that producers are coming off an extraordinary quarter, noting, “we've never seen gold miners make the margins that they've been making like they did in Q4 2025.” Adshead also discussed how escalating conflict could accelerate demand for critical minerals used in modern defense systems, including tungsten, heavy rare earths, copper, and silver, while raising questions about military stockpiles versus industrial programs. The conversation turned to a surge in financing activity ahead of PDAC, including Wheaton’s $4.3B silver stream with BHP, Lundin and BHP’s long-life copper development in Argentina, and Faraday Copper’s Arizona asset transaction with BHP, highlighting renewed confidence in strategic metals and large-scale project funding.