Junta choppers seize more gold from Barrick in Mali | 8
THE NORTHERN MINER | AUGUST 2025
GLOBAL MINING NEWS
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Deficit math shows gold’s not done, Rule says INVESTMENT
| Opportunities abound for contrarians, conference hears
BY HENRY LAZENBY BOCA RATON, FLA.
R
ick Rule has an axiom for mining investors facing turbulent markets: “You are either a contrarian or you’re going to be a victim.” This dictum set the tone early last month at the Rule Investment Symposium in Boca Raton, Fla., where mining investment veterans debated the arithmetic driving today’s resource sector bets amid rising inflation, ballooning government debt and tightening capital conditions. Now is precisely when investors should look at mining, argues Rule, the renowned mining financier who has managed hundreds of millions in investments and shaped the sector for over four decades. He says that even with economic uncertainty and the growing U.S. federal debt, which now exceeds $36.6 trillion (C$50.3 trillion) and increases by at least $2 trillion each year, there are good opportunities for contrarian investors. “When your outgo exceeds your income, your upkeep becomes your downfall,” he said, citing a short poem learned early in his career to underline his point about unsustainable spending.
Mining finance veteran Rick Rule speaks at his namesake symposium in Boca Raton, Fla. in July. HENRY LAZENBY
For Rule, mining — particularly in gold and critical minerals — represents an ideal hedge as inflation erodes the purchasing power of the U.S. dollar. Rule compares
“When your outgo exceeds your income, your upkeep becomes your downfall.” RICK RULE MINING FINANCE GURU
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the current era to the inflationary 1970s, when gold prices skyrocketed 30-fold. “The spenders owe it to the savers,” Rule said. “There are more spenders than savers. You do the math.” ‘Day of reckoning’ Other industry heavyweights at the conference tempered Rule’s bullish contrarianism with a strong dose of realism. Frank Giustra, another accomplished resource investor who is CEO of Fiore Group, agreed gold is critical in this environment but warned the risks are escalating for the very reason that Rule cites as an opportunity: America’s growing debt problem. “There will be a day of reckoning and it’s coming faster than any-
one can possibly imagine,” Giustra told The Northern Miner in an interview. He sees this showdown materializing through a potential crisis in U.S. Treasury markets, where investors could revolt, pushing yields dramatically higher and stoking financial instability. “Politicians have a Sophie’s Choice,” Giustra added, saying they must either drastically reduce non-discretionary and military spending — “which means not getting re-elected” — or maintain the status quo and continue down a path of “fiscal irresponsibility.” Access risks SCP Resource Finance Chair Peter Grosskopf further toned down Rule’s enthusiasm, highlighting significant risks, especially regarding capital access. “Junior miners are having trouble raising funds, especially those below a $500-million market cap,” Grosskopf said. “Banks have backed away significantly from smaller miners and exploration-stage companies.” Grosskopf also underlined that inflationary pressures are sharply increasing operational and capital Rick Rule 7 >
BC projects fight in court | 12
See more of the Rick Rule Symposium including McEwen and Vizsla Silver Page 7 PM44082538
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