Strengths
- The best-performing commodity for the week was gold, up 0.44%. Gold rose as investors sought safety amid mounting concerns over the U.S. economy and uncertainty surrounding the prolonged government shutdown. Supported by expectations of rate cuts, falling bond yields and continued central bank demand—including China’s 12th consecutive month of purchases—the metal remains on track for its best yearly performance since 1979 despite recent volatility.
- Hecla Mining surged 12% after reporting a blowout third quarter, with sales of $409.5 million (vs. $310.8 million estimated), silver output of 4.59 million ounces and adjusted EBITDA of $195.7 million, marking strong performance across its portfolio. The company raised 2025 capital guidance for Keno Hill to $48 – $54 million as mine development runs ahead of schedule, tightened Lucky Friday’s silver production range to 4.9 – 5.1 million oz, and reaffirmed 2025 cost guidance, with all four operating assets generating positive free cash flow for a second straight quarter.
- Gold steadied near $4,000 an ounce as markets digested China’s decision to end a long-standing value-added tax rebate for gold retailers, a move expected to weigh on jewelry and industrial demand in the world’s largest consumer market. While analysts see the change pressuring sentiment and margins for Chinese jewelers, gold’s broader uptrend remains supported by central bank buying and safe-haven flows, keeping prices resilient despite softer retail demand.
Weaknesses
- The worst-performing precious metal this week was palladium, which fell 2.65% amid a broader correction in the group. Prices slipped as ETFs continued to offload holdings, adding pressure to an already soft market. The sustained outflows reflected investor rotation into silver and waning speculative interest in the auto-catalyst metal amid concerns over slowing industrial demand.
- SSR Mining shares fell sharply after reporting lower-than-expected gold output at its Seabee and Marigold mines and guiding full-year 2025 production to the bottom of its range, with costs trending higher. However, the company still beat analyst consensus estimates on both revenue ($385.8 million vs. $369.8 million expected) and EPS ($0.34 vs. $0.30 expected), supported by higher realized gold and silver prices.
- B2Gold’s latest results fell short of expectations, with downward revisions heading into earnings and a miss on consensus estimates as the company underperformed both gold and silver benchmarks in revenue and free cash flow per share quarter-over-quarter. However, it posted year-over-year gains in both metrics, reflecting modest operational recovery despite near-term execution challenges and weaker quarterly momentum.
Opportunities
- The Coeur acquisition of New Gold underscores a growing trend of consolidation in the gold sector, as producers race to expand reserves and secure low-cost, long-life assets amid a constrained project pipeline. The deal is immediately accretive to Coeur’s NAV, operating cash flow and free cash flow per share, signaling renewed M&A momentum as mid-tier miners pursue scale and stronger financial positioning ahead of a potential gold upcycle.
- Founders Metals announced a C$50 million strategic investment from Gold Fields, which will acquire 12 million shares at C$4.15 each through a non-brokered private placement to fund land consolidation and exploration at the Antino Gold Project in Suriname. The agreement includes investor rights granting Gold Fields board representation and technical collaboration privileges, underscoring the project’s growing profile as one of the most advanced gold exploration assets in the Guiana Shield.
- Torex Gold unveiled its first capital return program, combining a C$0.15 quarterly dividend with ongoing share repurchases to reward shareholders following the successful ramp-up of its Media Luna project and a return to strong free cash flow. CEO Jody Kuzenko said the initiative marks the beginning of a broader capital return strategy set to expand through 2026, supported by Torex’s solid balance sheet, debt reduction goals, and continued investment in Morelos, Los Reyes and exploration growth across Mexico and Nevada.
Threats
- As of November 7, 2025, both gold and silver remain in correction, with gold stabilizing around $3,900–$4,000 per ounce and silver near $48.60 per ounce, down roughly 14% from its peak versus gold’s 9% decline. Silver’s higher beta continues to amplify moves in either direction, and with more than 80% of its value still correlated to gold, portfolios long gold and short silver remain better positioned amid ongoing volatility.
- Fortuna Mining faces mounting cost pressures, with all-in sustaining costs (AISC) rising to $1,987 per ounce in Q3 2025 from $1,932 per ounce in the prior quarter, driven by higher royalties, consumables and maintenance expenses. This trend threatens to compress margins and weaken free cash flow, particularly as the company reinvests heavily in exploration and development projects such as Diamba Sud, limiting its ability to offset escalating operating costs.
- Galiano Gold’s operations are under strain from rising tax burdens in Ghana, including a recent 2% increase to the Growth and Sustainability Levy, which is expected to raise royalties and push AISC toward $2,200–$2,300 per ounce. The temporary shutdown at the Esaase deposit further compounds pressure on margins and guidance, as lower-grade stockpiles replace mined ore, threatening near-term production stability and free cash flow.
