Ross Beaty has been building mining companies for 50 years. From Pan American Silver to Equinox Gold, his name is synonymous with the Canadian resource sector. In this episode of In the Money with Amber Kanwar the legendary mining entrepreneur explains why gold’s surge past $3,300 may have plenty of room left. He breaks down how central banks, geopolitical chaos, and a growing distrust of the U.S. dollar are driving demand—and why tight supply could keep prices elevated.
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Gold Price Surge and Outlook
- Unexpected Rally: Predicted a rise from $1,050/oz in 2015-16 but was surprised by the parabolic surge driven by Trump’s policies and the Russia-Ukraine war, with the dollar’s geopolitical use boosting demand.
- Bullish Future: Sees “great legs” for gold due to central banks’ de-dollarization (e.g., China, India) and global uncertainty; expects sustained bullishness for a “substantial period.”
- Risks: A shift to central bank selling could trigger a “calamitous” price drop, but Beaty considers this unlikely.
Equinox Gold’s Challenges and Turnaround
- Mistakes Made: Admits Equinox underperformed due to a “disaster” merger with Leagold, a Mexico mine (Los Filos) shutdown over community issues, and a rocky Greenstone mine startup with lower-than-expected grades.
- Turnaround Plan: Mines stabilizing (Brazil, California, Greenstone); new Valentine mine opening soon; projects $1B+ cash flow, debt reduction, and potential dividends. At a 40% NAV discount, Beaty predicts a potential stock doubling.
- Not a Takeout Target: Equinox’s $5-6B size and 1M oz/year production (top 15 globally) make it less appealing for M&A; focus is on digesting the recent Calibre Mining deal, likely its last major acquisition.
Political Views and Market Impact
- Trump’s “Chaos”: Labels Trump the “king of chaos,” criticizing tariffs (e.g., 35-50% on copper) as inflationary, predicting stagflation that’s “great for gold.”
- Critical Minerals Critique: Calls government restrictions on Chinese investment in Canadian mining “wrongheaded,” arguing they misunderstand supply chains; advocates funding production over exploration.
- Renewables Setback: Slams Trump’s rollback of renewable energy incentives as unscientific, warning of climate chaos; sees it as a temporary but harmful policy for the planet.
