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Managing capital discipline while unlocking future growth
The 2025 risks and opportunities for the gold mining sector highlight a bullish outlook for gold prices, driven by rising geopolitical uncertainty and increased investment in safe-haven assets.
Despite higher gold prices, valuations of gold mining companies are not reflecting this trend, emphasising the need for cost management to achieve better valuations. Capital discipline is crucial as companies unlock future growth and manage escalating costs. The sector faces challenges such as rising resource nationalism, with countries like Mali and Burkina Faso increasing local ownership and tightening tax regulations.
Exploration spending has shifted towards brownfield opportunities. New gold discoveries have been smaller, leading companies to acquire tier-1 assets to boost project pipelines.
Social value creation through environmental, social, and governance (ESG) initiatives is becoming increasingly important, with companies adopting voluntary standards and principles. Innovative technologies are being implemented to reduce costs and improve productivity. The sector is also focusing on long-term fair wage agreements to streamline labour costs and boost productivity.
Overall, the gold mining sector's long-term outlook remains robust, with companies that embrace innovation and maintain resilient project pipelines being well positioned to navigate risks and seize opportunities.