Not much left to acquire - Integra Resources' George Salamis on gold majors, M&A and permitting

The status of a developers permits is a key factor in M&A, said George Salamis, executive chair of Integra Resources.

Last week Salamis spoke to Kitco Mining at the 2024 Precious Metals Summit Beaver Creek in Colorado.

Integra Resources Corp. (TSX-V: ITR) operations are focused on the Western U.S. The company has two flagship oxide heap leach projects: the past producing DeLamar project located in southwestern Idaho and the Nevada North project in Nevada. The Nevada projects came to Integra after a merger with Millennial in 2023. Integra is working on a feasibility study for DeLamar, as well as drafting its permits.

In July Integra announced it was merging with Florida Canyon, a gold and silver producer with an open-pit mining operation located in Nevada.

Regarding the overall resource sector, Salamis explained the disconnect between the high price of gold and the stagnation in gold equities and M&A activity. He attributed this gap to the lack of confidence among gold producers about their financial health and share valuations. Historically, significant M&A activity occurs when producers feel positive about their balance sheets and are making substantial profits. This confidence, however, has been lacking recently.

Salamis indicated that the permitting process for mining projects, which varies by jurisdiction, significantly impacts attractiveness to major buyers.

"I think permitting is a big factor," said Salamis. "I used to work for major mining companies. We would wait to see what stakeholder sentiment was through the course of permitting. Is there pushback on this project or is it going to sail relatively easily through the course of permitting? There are not a lot of companies that are going through permitting right now."

Coverage of the 2024 Precious Metals Summit Beaver Creek in Colorado is sponsored by Newcore Gold.

0:00 - Why the disconnect between metal prices and mining equities?
1:54 - More M&A ahead?
3:29 - FOMO is kicking in




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