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While the uptick in gold has benefited most of the producers, juniors still haven't seen their share of the gains, but Stephen Stewart, CEO and director of Orefinders, believes deal-making is inevitable.
"The producers started seeing the cash flow to their bottom lines in Q3, and they've been performing well ever since. I think there will be incredible pressure to deploy that capital carefully," said Stewart. "The current narrative coming from the funds is to do dividends or re-invest the capital in their own projects."
Stewart lauds the miners for listening to their investors, but he said that there is a systematic issue that people aren't realizing: miners have been depleting their resources for five to six years.
"My thesis is that M&A is inevitable, whether it is today or tomorrow. I don't know when. It is just inevitable."
By Michael McCrae
For Kitco News
