Video News/Digging Deep

Joe Mazumdar, editor of Exploration Insights, says record gold prices are driving strong cash flow and shareholder returns across the mining sector, but production growth remains constrained. Speaking with Kitco Mining’s Digging Deep, Mazumdar said higher prices have not translated into meaningful gains in output, noting, “Their growth in their ounces hasn't done a lot.” He said rising costs and capital risks are shifting how companies approach growth, with acquisitions often more attractive than building new mines. “Why take the permitting risk? Why take the capital escalation risk that we're seeing in some of these underground projects when you could just get a producing asset that you like?” Mazumdar said. The discussion also covered exploration spending, drilling constraints, uranium, and asset rationalization trends.