Mining Stock Monkey – Trends In Gold Producers And Royalty Companies, Takeaways From The Equinox – Calibre Merger, And Mexico As A Mining Jurisdiction
Jordan, the Mining Stock Monkey, joins me to outline the 2025 trends that he sees in the valuations of gold and silver producers and royalty companies, the key takeaways from the Equinox / Calibre merger, and thoughts on Mexico as a mining jurisdiction. It’s a nuanced conversation that really covers a lot of ground for investing in the resource sector.
We start off diving in the string of recent Q4 and full-year earnings reports and the trend he noticed for stocks to track their EBITA or ability to generated revenues and cashflows as more germane than their jurisdiction, whether or not they had exploration or production growth, and even whether they were a higher-cost or lower cost producer. He lays out a number of data points and methods that investors can focus on to do better due diligence on gold and silver mining stocks.
Next we take a deeper dive into the Equinox Gold Corp. (TSX: EQX) (NYSE American: EQX) and Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) merger news, and Jordan lays out a number of positive factors and synergies he sees in the deal for both sets of shareholders, in particular for the Calibre shareholders. This is a more bullish take on their business combination than we’ve heard out in the marketplace chatter or in other analysts comments, and he provides some interesting food for thought about how he analyzes M&A deals. One of the community royalties in debate at Equinox’s Los Filos mine, opens up into a larger discussion on the value of royalties, the niche that royalty companies fill in the sector, and the strengths of the business model and why Jordan likes investing in royalty companies.
Wrapping up we get into a discussion of the environment and sentiment towards mining in Mexico, and he provides some measured comments on the jurisdiction as someone that lives in country and is balancing out the political administration changes with the societal and social sentiment towards foreign investment in-country.
