Tom welcomes back a past guest, Ravi Sood. Ravi is the Chairman of Galane Gold Ltd., an unhedged gold producer, and explorer.
Time Stamp References:0:40 - Stock market valuations.4:35 - Fundamentals and sentiment.9:45 - Outlook for mining equities.15:50 - Paper vs. Physical price disparity.21:40 - Valuations in a rising gold environment.27:50 - Jurisdictions in Southern Africa.31:00 - Cost of labor in different jurisdictions.34:15 - Environmental costs of green energy.
Ravi discusses how valuations of companies can reach heights where there is little remaining upside. Today's markets don't bode well for most stocks, and plausible growth scenarios are doubtful from here.
Gold has had a good rally over the last couple of years, but the fundamentals have been decades in the making. Until now, most investors have not given gold any attention. When gold moves higher, the valuations for gold producers can move exponentially.
Ravi expects a new round of M&A, which should extend to smaller companies. The coming mining cycle could rival the tech bubble of the 1990s. We are going to see a severe detachment between the paper markets and physical soon.