Bright Future for Investors & Gold Continues Gains

Company Interviews

Interview with Alex Black, Executive Chairman of Rio2 Ltd. and Hugh Agro, President & CEO of Revival Gold

Recording date: 21st March 2024

As the global economy navigates uncharted waters, gold is once again demonstrating its enduring value and appeal. In a wide-ranging discussion, two top mining CEOs – Alex Black of Rio2 Limited and Hugh Agro of Revival Gold – laid out a compelling case for why investors should be taking a shine to the yellow metal.

Gold prices have been on a tear, notching impressive gains. "In 20 years the gold price has quite tripled. In the last five years it's up some 65%, 10-15% in the last year. So look, the price of gold is performing, no question about it," noted Agro. Black pointed out that gold is trading well above the conservative price assumptions used by many banks, indicating further upside potential.

But this is no flash in the pan. The CEOs see a structural bull market for gold, driven by a combination of rising demand and constrained supply. "We're seeing step changes," explained Agro. "We were at $1,250 there for five years. We went up to $1,850 for about three years and now we breached $2,100 and who knows what the next level is. Gold's doing what it's supposed to be doing."

The supply side of the equation is equally compelling. "15 years of relatively speaking underinvestment, or at least 12 years of underinvestment in the space, and that'll boomerang back," said Agro. As gold prices rise, major producers are expected to scramble to replenish depleted reserves and project pipelines. "They will look to fill those pipelines, those cupboards that have run bare, and they'll scramble around to find projects that are either construction-ready or near to construction-ready," he added.

This is music to the ears of CEOs like Black and Agro, who are advancing high-quality development projects. Black shared that Rio2 has already been approached by potential suitors. "Since we got our approval in December we've had a few corporate approaches - not that we're for sale or anything, but people are starting to wake up to exactly what's going on in the sector."

For investors ready to heed the call, the CEOs offered some sage advice. "Be diversified, choose a portfolio of companies," counseled Agro, adding, "It's okay to have a couple of juniors, it's okay to have a couple of seniors, some royalty companies. Be diversified across the space."

Black emphasized the importance of proven management teams. "It comes down to execution and delivery," he said, pointing to Rio2's success in building Rio Alto Mining into a $1.2B company. "We executed, we delivered, we did as we said we would do, and the rest is history."

Both CEOs are bullish on their respective jurisdictions, with Agro singing the praises of Idaho, USA's mining heritage and Black expressing confidence in Chile's support for mining.

With all the stars aligning, the CEOs painted a picture of a golden opportunity for investors. Agro likened it to past bull markets in uranium and oil & gas, where early investors were richly rewarded. "Everybody's going to look for seats on the bus; there aren't going to be any. And those of us who've been in the industry, soldiered through, preserved our capital structures, we'll have a lot of winnings at the end of our journey," he colorfully remarked.

For investors looking to add some luster to their portfolios, the message is clear: the gold bull market is just getting started, and quality mining equities offer a high-potential way to play. With seasoned management teams, robust projects in mining-friendly jurisdictions, and the wind at their backs from rising gold prices, select companies are poised to deliver the Midas touch. Fortune favors the bold, and in the gold space, that just might mean those who heed the wisdom of these mining industry veterans.
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