Friday Apr 12, 2024
Unearthed: Gold outlook for 2024 and beyond ft. Randy Smallwood, Wheaton Precious Metals
In this episode of "Unearthed," hosts Joe Cavatoni and John Reade speak with Randy Smallwood, President & CEO of Wheaton Precious Metals, discussing the innovative streaming business model that has significantly influenced the precious metals industry. As Wheaton celebrates its 20th anniversary, Randy shares insights into how this model has facilitated capital provision in exchange for byproduct production from mining operations, particularly gold and silver, establishing Wheaton as a major industry player. The conversation covers the robust gold market, driven by central bank purchases from BRIC countries, and the industrial demand and growth potential for silver. Challenges such as the decrease in new mining projects, stringent permitting processes, and the necessity for community support are examined, alongside the impact of automation and AI on improving mining efficiencies. Randy concludes with personal anecdotes and the unique value and recyclability of gold, offering a thorough perspective on the precious metals sector's financing models, market trends, and sustainability considerations.
[3:38] Randy hypothesizes why gold is hitting all time highs and gives insights on why that may be.
[6:37] Randy elaborates on what has impressed him about the gold demand in the past couple of years.
[11:02] The group explores the dynamic in conversation around investors expanding to other metals.
[14:35] Randy speaks about investors and what influences them the most when it comes to a decision on getting involved in a project.
Additional Resources:
Randy Smallwood LinkedIn
Notable Quotes:
"We're going to try and change that industry with what we call streaming. And streaming is a much more partnership-focused approach to working with the operators... we supply capital for a percentage, and typically of a non-core byproduct." -Randy Smallwood
"The price is reflecting that appetite, but it just hasn't made it back to the investing public, especially on the mining sector, in terms of the companies that actually produce this gold that we all need, and so, I'm hungry for that change in appetite. Let's bring it on." -Randy Smallwood
"The only alignment that we see in BRIC is a lack of appetite for the US dollar. That's the only thing that takes some very diverse countries, economies, politics, cultures, and blends them all together, and the only constant amongst that entire group of BRIC nations is a dislike of the US dollar and a distrust of the US dollar." -Randy Smallwood
"We are very selective of what we invest into. We're always looking for assets that have high operating margins. We're seeing a dearth of those. We're seeing that dramatically drop off. There's just not as many new projects coming into play." -Randy Smallwood
About World Gold Council
We are a membership organization that champions the role gold plays as a strategic asset, shaping the future of a responsible and accessible gold supply chain. Our team of experts builds understanding of the use case and possibilities of gold through trusted research, analysis, commentary, and insights. We drive industry progress, shaping policy and setting the standards for a perpetual and sustainable gold market.
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