Dig Deep Building and Growing Mining Companies: Strategies and Secrets from David Garofalo
In todays episode we have a returning guest who appeared back in Sept 2020 (Ep 98), David Garofalo is an experienced c-suite executive with over 3 decades in the precious metals space and is the former President and CEO of Goldcorp to form the bigest gold mining company in the world.
David’s passionate and focused in the creation and growth, of multi-billion dollar sustainable mining businesses, across multiple continents and is the CEO of many companies including Gold Royalty Corp, Marshall Precious Metals Fund, Gold Mining and Aris Gold Corporation.
Today we talk about the various companies he is involved in, monetary policy, the inflation cycle and mining equities in general so there’s a lot to cover and unpack.
Hope you enjoy the episode and appreciate if you can share this with other professionals you know in the industry and with people outside of mining who want to learn about investing in gold as a safe haven to fiat currencies.
KEY TAKEAWAYS
- Gold is seen as a form of insurance against the debasement of fiat currencies, which have been continuously devalued since the decoupling of the US dollar from the gold standard in the 1970s.
- The current monetary policy of easing and low interest rates is likely to continue, as central banks are limited in their ability to tighten rates due to high levels of global debt.
- The gold mining junior sector has faced significant challenges, including a lack of consistent access to capital and a decline in exploration and new discoveries. This has led to a decline in reserves and production levels.
- Consolidation and mergers and acquisitions are expected to continue in the gold mining industry, as major producers seek to sustain declining production and reserve levels and attract generalist investors.
- The industry is facing a shortage of talent, with a wave of retirements expected in the coming years. Attracting new talent will be crucial for the industry's future success.
BEST MOMENTS
"Gold is the one currency you can't print. It's a very finite quantity. We produce very small amounts of it as an industry every year."
"The juniors haven't had access to capital for a long period of time. And they're the ones that do all the heavy lifting in exploration to find new ounces in the ground, new deposits."
"There's been a flow of capital out of the mining equities. In particular, the junior sector was seeing a significant deterioration in valuations over the last year or two."
"Gold is at all-time highs in every other major currency in the world. That's reflective of the fact that monetary policy is not tightening. It's continuing to ease."
"The sector is underinvested in that end of the food chain for too long. And so I do believe there's going to be a wave of capital as the gold price gathers momentum into those earlier stage opportunities out of existential necessity for the sector."
VALUABLE RESOURCES
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Rob Tyson is the Founder and Director of Mining International Ltd, a leading global recruitment and headhunting consultancy based in the UK specialising in all areas of mining across the globe from first-world to third-world countries from Africa, Europe, the Middle East, Asia, and Australia. We source, headhunt, and discover new and top talent through a targeted approach and search methodology and have a proven track record in sourcing and positioning exceptional candidates into our clients' organisations in any mining discipline or level. Mining International provides a transparent, informative, and trusted consultancy service to our candidates and clients to help them develop their careers and business goals and objectives in this ever-changing marketplace.