Gold Producers Deliver Strong Q1 2025 Results, M&A Activity Accelerates as Companies Seek Growth

Gold continues to demonstrate its enduring appeal as a strategic investment in 2025, with prices maintaining strength above $3,000 per ounce amid significant market volatility. As tariff tensions, geopolitical uncertainties, and shifting monetary policies create turbulence across global markets, gold has reinforced its status as a reliable safe haven asset. This resilience comes alongside strong operational performances from major gold producers, who are capitalizing on favorable pricing to generate substantial cash flows and fund ambitious growth plans.

Market experts Derek Macpherson and Sam Pelaez of Olive Resource Capital noted gold's resilience during the recent market turmoil:

"Despite a race to liquidity, which we often see in these volatile times, gold's really held up."

Derek Macpherson & Sam Pelaez of Olive Resource Capital

This performance highlights gold's traditional role as a safe haven during periods of uncertainty. The supply-demand fundamentals for gold appear supportive heading into the remainder of 2025. CPM Group projects global mine production in 2025 to be around 88.6 million ounces, following an increase of around 0.5% in 2024.

The first quarter of 2025 has shown impressive production figures from several key players in the gold mining sector, setting a solid foundation for the remainder of the year. As economic and geopolitical factors continue to support gold prices, investors are presented with compelling opportunities in both physical gold and gold equities.

Q1 2025 Production Results

The first quarter of 2025 has demonstrated strong operational performance across the gold mining sector, with several key producers reporting solid production figures:

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Calibre Mining reported a record first quarter production for 2025, delivering 71,539 ounces of gold coming from multiple operations - 64,469 ounces from Nicaragua and 7,070 ounces from Nevada. Calibre ended the quarter with a strong cash position of $214.5 million. The company‘s Valentine Gold Mine in Newfoundland & Labrador is also expected for first ore processing in early Q3 followed by a steady ramp up to nameplate capacity of 2.5 million tonnes.

Perseus Mining reported impressive results for the December 2024 half-year (H1 FY25), with gold production of 253,709 ounces, placing the company in the upper half of its guided production range. For the remainder of FY25, Perseus has provided production guidance of 215,000-250,000 ounces for the June 2025 half-year, with estimated all-in site costs of US$1,360-1,435 per ounce.

Fortitude Gold reported preliminary Q1 2025 gold production of 1,780 ounces, reflecting mining of lower-grade ore from the Civic Cat portion of the Isabella Pearl mine and residual leach during the quarter. CEO Jason Reid added:

"While we are ready and anxious for the Trump Administration to fully address and rectify the permit backlog created by the past Biden Administration, Biden's legacy of anti-resources unfortunately continues to weigh on our company's original business plan by prohibiting and delaying the layering of multiple mining operations and associated production on top of one another."

Integra Resources has successfully transitioned from a development-stage company to a producer with its Florida Canyon mine delivering 19,323 ounces of gold in Q1 2025. This production transformation has strengthened the company's financial position, with a cash balance of $61.1 million and working capital of $68.3 million, enabling a self-funded growth strategy across its three-asset portfolio.

The company's strategy involves leveraging Florida Canyon's cash flow to develop the DeLamar project in Idaho and the Wildcat project in Nevada, creating a clear path to reaching 300,000 ounces of annual production. CEO George Salamis explained the company's approach:

"The simple concept here is one asset pays for the second which pays for the third. The cumulative effect of which is 300,000 ounces of annual production." He added, "No more fundraising. You have no idea the stress that it takes off of management, to not have to think about where's the next dollar coming from. It frees up so much bandwidth from a management perspective to be in that position."

Currently trading at approximately 0.35x P/NAV versus a peer average of 0.6x, Integra offers investors significant revaluation potential as it executes its growth strategy in a strong gold price environment.

George Salamis, President & CEO of Integra Resources

Gold Production Outlook

While not a direct producer, Elemental Altus Royalties is projecting significant growth in 2025. The company expects its revenue to nearly double from $21.6 million in 2024 to approximately $45 million in 2025, driven by the AlphaStream portfolio acquisition and the Karlawinda royalty with Allied Gold. CEO Frederick Bell outlined the company's financial trajectory:

"This year Q1 is going to be a record, Q2 is going to be a record by a large margin. We're forecasting all in about 100% increase in revenue from 2024 to 2025."

Frederick Bell, CEO of Elemental Altus Minerals

Nuvau Minerals is working to revitalize Quebec's historic Matagami mining camp. The company has nearly completed an earning agreement with Glencore that will give them 100% ownership of a 1,300 sq km property with 60 years of copper-zinc production history.

CEO Peter van Alphen highlighted the significant infrastructure advantages. Nuvau estimates that restarting the Bracemac-McLeod mine, including getting the mill operational, would cost approximately $50 million, with production potentially beginning by 2027.

Peter Van Alphen, President & CEO of Nuvau Minerals

Advancing toward becoming a gold producer in H2 2025, West Red Lake Gold Mines making steady progress on multiple fronts as it. The successful mill restart, increasing underground development rates, near-completion of the Connection Drift, and establishment of camp facilities demonstrate operational execution and readiness.

In the company update, President and CEO Shane Williams, expressed the success of this major start,

"Turning on the Madsen Mill to process the bulk sample was a very exciting moment for the entire West Red Lake Gold team, who have been working tirelessly in recent months as we push towards production. With gold prices trading at record levels, it is an exciting and fortuitous time to be making the transition from developer to producer."

Luca Mining is set to significantly increase production in 2025, with guidance of 85,000-100,000 gold equivalent ounces and anticipated free cash flow of $30-40 million before working capital adjustments. The company is focused on operational improvements at both its Campo Morado and Tahuehueto mines, with efforts to increase throughput and enhance metal recoveries.

G2 Goldfields continues to expand its new surface gold discovery located 10 kilometers north of its Oko-Ghanie deposits in Guyana. Recent drilling has established a strike length of nearly 500 meters with the mineralized zone remaining open in multiple directions. Significant intercepts include 42m @ 1.4 g/t Au, 41m @ 1.2 g/t Au, and 50.5m @ 1.1 g/t Au, with all mineralization found in near-surface, heavily oxidized zones. This exploration success complements G2's existing 3.1 million ounce resource at the Oko property. With exploration ongoing and further results expected from the Peters Mine drilling, G2 represents a compelling opportunity for investors seeking exposure to high-grade gold discoveries in the underexplored Guiana Shield.

Maple Gold Mines recently announced significant drill results from its Douay project in Quebec, validating management's strategic pivot and exploration methodology. Notable intercepts include approximately 100 meters grading 2 g/t gold at the Nika zone, representing a 300-meter step-out from previous drilling. This success builds on the company's existing 3-million-ounce resource, which management believes has clear potential to expand to 5 million ounces.

The company has restructured its joint venture with Agnico Eagle, rebuilt its technical team, and implemented a systematic exploration approach. President & CEO Kiran Patankar emphasized, "Success to us always has looked like showing the path to get from 3 million to 5 million ounces thereabouts, while also de-risking and while also showing that there are high-quality ounces that could potentially form part of a viable mine plan."

Kiran Patankar, CEO Maple Gold

Favorable Macro Tailwinds for M&A Activities

The gold market has provided significant tailwinds for mining operations, with prices reaching historical highs in early 2025. Several macro factors continue to support strong gold prices, creating an environment where producers can generate substantial cash flows while expanding operations.

Persistent geopolitical tensions, including ongoing conflicts in Ukraine and the Middle East, have enhanced gold's appeal as a safe-haven asset. Meanwhile, central bank purchases remain robust, with many countries continuing to diversify reserves away from traditional fiat currencies toward gold. This trend, particularly pronounced among emerging market central banks, provides structural support for gold demand.

The gold sector is seeing increased merger and acquisition activity as companies seek to build scale and diversification.

Michael Hodgson of Serabi Gold indicated openness to M&A opportunities:

"Always looking. We've continued to look as we've been doing... The door is always open. The phone is always available. M&A opportunities in the [Palito] region where there are a number of private deposits are also ripe to fit into this model."

Mike Hodgson, CEO of Serabi Gold

This consolidation trend provides potential value creation opportunities for investors as major gold discoveries have become increasingly scarce and average grade of gold mines declining globally.

At Campo Morado, Luca aims to achieve consistent mill feed above 2,000 tonnes per day by late 2025, while at Tahuehueto, infrastructure upgrades including a spare parts warehouse are prioritized to improve operational resilience. The company has committed to eliminating debt by July 2026, potentially accelerated by strong operational cash flow.

CEO Dan Barnholden stated:

"In 2025, we anticipate a significant increase in production, strengthened cash flow, and the advancement of highly strategic initiatives. With two operating mines generating robust free cash flow, we are well positioned to enhance our performance while identifying new growth opportunities, including potential M&A activity."

Calibre Mining announced a merger with Equinox Gold in February 2025. Darren Hall characterized this as a transformative milestone as the combined entity of Canadian assets expected to produce approximately 590,000 gold ounces annually. In a press release, Calibre Mining stated:

“This merger marks a transformative milestone for both companies and will result in a diversified portfolio of operating mines across five countries anchored by Greenstone and Valentine, two high-quality, long life, low-cost, Canadian gold mines. Together, we will become Canada’s second largest gold producer.”

Gold presents a compelling investment case in 2025, supported by both macroeconomic tailwinds and strong operational performance across the mining sector. With prices maintaining strength above $3,000 per ounce, producers are generating substantial cash flows while advancing ambitious growth plans. The first quarter production results from key gold miners demonstrate operational momentum that positions the sector for continued success throughout the year.

As market expert Sam Pelaez advised:

"Don't allow the short-term events take the long-term views away from you."

This perspective seems particularly relevant for gold investors in 2025, as the fundamental supply-demand dynamics and gold's traditional role as a safe haven asset remain intact despite market volatility. With ongoing economic uncertainties and geopolitical tensions likely to persist, gold's appeal as both a portfolio diversifier and a store of value appears well-supported for the foreseeable future.

The Investment Thesis for Gold

• Safe Haven Characteristics: Gold has demonstrated resilience during market turbulence, maintaining values above $3,000/oz while other assets experienced significant drawdowns.
• Favorable Macro Environment: Persistent geopolitical tensions, central bank buying, and inflation concerns continue to support gold prices through 2025.
• Strong Production Outlook: Major gold producers are delivering solid operational performance, with potential for increased production throughout 2025.
• Significant Cash Generation: High gold prices are enabling producers to build substantial cash reserves while still funding growth initiatives.
• Potential Shareholder Returns: With strengthening balance sheets, many gold companies are considering or implementing dividend and buyback programs.
• Resource Expansion Potential: Significant exploration investments across the sector could extend mine lives and increase future production capacity.
• Strategic Consolidation: M&A activity could create larger, more diversified entities with improved capital market profiles.
• Portfolio Diversification: Gold continues to provide effective diversification against equity market volatility and inflation risks.
• Actionable Advice: Consider allocating 5-10% of investment portfolios to gold through a combination of physical gold, gold ETFs, and select gold producers with strong operational performance and growth prospects.