China Starts Hoarding Gold Again, What Happens Next To Price? | Gwen Preston

Summary

Gwen Preston, VP Communications of West Red Lake Gold Mines, discusses why gold has been strong and why she expects support in 2025, focusing on Chinese central bank and Asian/Middle Eastern buying, Western investor risk awareness, and gold's changing correlation with the S&P 500. She also expects more M&A in the gold mining sector, potentially drawing investors to junior miners, and details West Red Lake Gold's pre-feasibility study, funded path to production, and upcoming bulk-sample catalysts.

• China's central bank resumed gold purchases in December, extending reserve increases.
• Gwen argues non-Western buyers have been less price-sensitive and are driving gold, while Western investors may add hedges on debt and geopolitical risks.
• Gold has outperformed the S&P 500, but Gwen says correlation is not causation and does not give a clear relative trade.
• She expects stronger M&A in gold mining in 2025 as majors and mid-tiers have strong cash flows and balance sheets.
• Junior gold miners could attract interest if majors or mid-tiers acquire development projects.
• West Red Lake Gold released a PFS for Madsen with a 7.2-year mine life, about 70,000 oz/year, roughly $70 million average annual free cash flow, and a 25% IRR.
• WRLG says it is funded to production and expects bulk-sample and reconciliation results as next catalysts.