Contradiction in Gold Sector Investment and Discoveries
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy GLDG?
Source: Newsfilter
- Exploration Budget Increase: The gold sector's exploration budgets rose by 11% to $6.2 billion last year, now accounting for half of global mining exploration, yet the funds chasing new discoveries fell to a record low of just 21% of total allocations, highlighting a paradox of increased spending without corresponding discoveries.
- Central Bank Gold Purchases: In Q1 2026, central banks bought 244 tonnes of gold, surpassing both the previous quarter and the five-year average, signaling that sovereign capital views gold as a pivotal long-term reserve asset, which could further drive gold prices upward.
- Project Development Progress: Golden Goose Resources has completed the first phase of fieldwork at its Gran Esperanza gold-silver project in Argentina, covering approximately 3,950 square kilometers of geological mapping and mapping 23.6 kilometers of mineralized vein structures, laying a strong technical foundation for subsequent drilling.
- Importance of Drilling Plans: The drilling at the Gran Esperanza project will provide essential subsurface data for resource assessment, especially given its proximity to projects being drilled by major operators, further validating the geological potential of the area.
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Analyst Views on GLDG
Wall Street analysts forecast GLDG stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 1.190
Low
2.80
Averages
2.80
High
2.80
Current: 1.190
Low
2.80
Averages
2.80
High
2.80
About GLDG
GoldMining Inc. is a mineral exploration company focused on acquiring and developing gold assets in the Americas. It controls a diversified portfolio of resource-stage gold and gold-copper projects in Canada, the United States, Brazil, Colombia, and Peru. Its projects include Sao Jorge, Cachoeira, Boa Vista, Surubim, Batistao, Montes Aureos and Trinta, Whistler gold-copper, Nutmeg Mountain, Yellowknife Gold, Rea, La Mina, Titiribi, Yarumalito, and Crucero. The Titiribi project is a copper-gold exploration project located over 51 kilometers (km) from Medellin, Colombia. The La Mina project comprises two concessions covering over 3,208 hectares, located in the Department of Antioquia, Republic of Colombia. The Yellowknife Gold project is comprised of five properties: Ormsby - Bruce, Nicholas Lake, Goodwin Lake, Clan Lake, and Big Sky. Sao Jorge is a resource stage gold exploration project located four km west of the Cuiaba-Santarem Highway BR-163.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Contradiction in Gold Sector Investment and Discoveries
- Exploration Budget Increase: The gold sector's exploration budgets rose by 11% to $6.2 billion last year, now accounting for half of global mining exploration, yet the funds chasing new discoveries fell to a record low of just 21% of total allocations, highlighting a paradox of increased spending without corresponding discoveries.
- Central Bank Gold Purchases: In Q1 2026, central banks bought 244 tonnes of gold, surpassing both the previous quarter and the five-year average, signaling that sovereign capital views gold as a pivotal long-term reserve asset, which could further drive gold prices upward.
- Project Development Progress: Golden Goose Resources has completed the first phase of fieldwork at its Gran Esperanza gold-silver project in Argentina, covering approximately 3,950 square kilometers of geological mapping and mapping 23.6 kilometers of mineralized vein structures, laying a strong technical foundation for subsequent drilling.
- Importance of Drilling Plans: The drilling at the Gran Esperanza project will provide essential subsurface data for resource assessment, especially given its proximity to projects being drilled by major operators, further validating the geological potential of the area.
See More
NevGold Corp. Advances Financing and Resource Estimates
- Upsized Financing: NevGold Corp. announced an increase in its previously planned C$25 million financing to C$42,225,497 due to strong institutional demand, expected to close around May 12, 2026, which will fund the advancement of the Limousine Butte and Nutmeg Mountain projects, enhancing the company's financial flexibility.
- Significant Drill Results: At the Limousine Butte project, NevGold reported oxide antimony-gold drill intercepts of 1.93 g/t gold equivalent over 100.6 meters, including a 1.11% antimony intercept, indicating high-grade antimony potential in North America, which is expected to bolster the company's competitive position in the market.
- Successful Metallurgical Testing: The Phase II metallurgical testwork revealed gold recoveries of up to 99% from oxide antimony-gold material, demonstrating that reprocessing historical leach pads can effectively extract both antimony and gold, thereby reducing production costs and enhancing profitability.
- Resource Estimate Plans: The company aims to release its maiden antimony-gold NI 43-101 Mineral Resource Estimate in Q2 2026, targeting near-term antimony production by 2027, marking a significant milestone in resource development that could attract more investor interest.
See More
GoldMining Updates Economic Assessment for La Mina Project
- Enhanced Project Value: The updated preliminary economic assessment indicates a 265% increase in the after-tax net present value (NPV5%) of the La Mina Project to $1.0 billion, reflecting current market conditions with gold priced at $3,500/oz, copper at $4.70/lb, and silver at $40/oz.
- Strong Economic Fundamentals: The project boasts an after-tax internal rate of return (IRR) of 32.2% and an initial payback period of approximately 2.7 years, indicating robust investment return potential under current metal prices.
- High Capital Efficiency: Initial capital expenditures are estimated at $523 million, resulting in a capital to NPV5% ratio of 0.5, highlighting the project's attractive return on investment and enhancing its development appeal.
- Strong Production Profile: The project is expected to average annual production of 152.4 koz Au equivalent over the first five years, with total life of mine production of 1.5 million ounces Au equivalent, underscoring its significance in resource development and potential market competitiveness.
See More
Gold Exploration Budgets Surge Amid Production Declines
- Surge in Exploration Budgets: Global gold exploration budgets reached $6.2 billion in 2025, marking an 11% increase and accounting for 50% of all exploration spending, highlighting the pressure on major miners facing production declines due to depleting reserves.
- Emergence of Junior Companies: With major miners under pressure, five junior companies are conducting early-stage discovery work in underexplored areas, positioning themselves strategically within the supply chain to capitalize on the growing demand for gold.
- Gran Esperanza Project Progress: Golden Goose Resources has initiated the first phase of fieldwork at its Gran Esperanza gold-silver project in Argentina, aiming to establish the strength and consistency of gold and silver grades through systematic sampling and geological mapping, setting the stage for future drilling.
- Strategic Importance of Drilling Plans: Companies like First Mining Gold and GoldMining are actively advancing drilling programs, with First Mining reporting significant results from its Duparquet project and GoldMining launching an 8,000-meter drill campaign at its São Jorge project in Brazil, underscoring the market's strong demand for gold resources.
See More
GoldMining Initiates New Exploration Drill Program
- Drill Program Launch: GoldMining has commenced an 8,000-meter drill program at its São Jorge Project in Brazil's Tapajós gold district, aimed at following up on high-priority targets from 2025, which is expected to significantly enhance mineral resource estimates.
- High-Priority Targets: The drilling will focus on the William South area, located 2 km from the existing deposit, with initial results indicating 2.38 g/t gold at a depth of 13 meters, suggesting substantial mineralization potential in the region.
- Geophysical Coverage Expansion: An ongoing IP survey covering 49 kilometers is significantly expanding existing geophysical coverage, further confirming surface geochemical anomalies in a 12 km by 7 km area surrounding the deposit, highlighting broader exploration potential.
- Infrastructure Advantage: The project area benefits from excellent infrastructure, including grid power, highway access, and a fully operational 50-person camp, allowing more funds to be directed towards the expansion of mineral resources.
See More
GoldMining Inc. Reports FY GAAP EPS of -C$0.07
- Financial Overview: GoldMining Inc. reported a FY GAAP EPS of -C$0.07, indicating significant financial challenges that could undermine investor confidence and lead to stock price volatility.
- Historical Performance Comparison: This negative EPS compared to historical data suggests that the company is under pressure regarding profitability, necessitating operational improvements to restore earnings.
- Market Reaction Expectations: The negative earnings per share may raise concerns about the company's future profitability, prompting investors to reassess their investment strategies in the gold mining sector, potentially putting downward pressure on the stock price in the short term.
- Analyst Rating Impact: According to Seeking Alpha's Quant Rating, GoldMining Inc.'s financial performance may influence analysts' expectations for its future performance, thereby affecting its market positioning and investment appeal.
See More
Contradiction in Gold Sector Investment and Discoveries
- Exploration Budget Increase: The gold sector's exploration budgets rose by 11% to $6.2 billion last year, now accounting for half of global mining exploration, yet the funds chasing new discoveries fell to a record low of just 21% of total allocations, highlighting a paradox of increased spending without corresponding discoveries.
- Central Bank Gold Purchases: In Q1 2026, central banks bought 244 tonnes of gold, surpassing both the previous quarter and the five-year average, signaling that sovereign capital views gold as a pivotal long-term reserve asset, which could further drive gold prices upward.
- Project Development Progress: Golden Goose Resources has completed the first phase of fieldwork at its Gran Esperanza gold-silver project in Argentina, covering approximately 3,950 square kilometers of geological mapping and mapping 23.6 kilometers of mineralized vein structures, laying a strong technical foundation for subsequent drilling.
- Importance of Drilling Plans: The drilling at the Gran Esperanza project will provide essential subsurface data for resource assessment, especially given its proximity to projects being drilled by major operators, further validating the geological potential of the area.
See More
NevGold Corp. Advances Financing and Resource Estimates
- Upsized Financing: NevGold Corp. announced an increase in its previously planned C$25 million financing to C$42,225,497 due to strong institutional demand, expected to close around May 12, 2026, which will fund the advancement of the Limousine Butte and Nutmeg Mountain projects, enhancing the company's financial flexibility.
- Significant Drill Results: At the Limousine Butte project, NevGold reported oxide antimony-gold drill intercepts of 1.93 g/t gold equivalent over 100.6 meters, including a 1.11% antimony intercept, indicating high-grade antimony potential in North America, which is expected to bolster the company's competitive position in the market.
- Successful Metallurgical Testing: The Phase II metallurgical testwork revealed gold recoveries of up to 99% from oxide antimony-gold material, demonstrating that reprocessing historical leach pads can effectively extract both antimony and gold, thereby reducing production costs and enhancing profitability.
- Resource Estimate Plans: The company aims to release its maiden antimony-gold NI 43-101 Mineral Resource Estimate in Q2 2026, targeting near-term antimony production by 2027, marking a significant milestone in resource development that could attract more investor interest.
See More
GoldMining Updates Economic Assessment for La Mina Project
- Enhanced Project Value: The updated preliminary economic assessment indicates a 265% increase in the after-tax net present value (NPV5%) of the La Mina Project to $1.0 billion, reflecting current market conditions with gold priced at $3,500/oz, copper at $4.70/lb, and silver at $40/oz.
- Strong Economic Fundamentals: The project boasts an after-tax internal rate of return (IRR) of 32.2% and an initial payback period of approximately 2.7 years, indicating robust investment return potential under current metal prices.
- High Capital Efficiency: Initial capital expenditures are estimated at $523 million, resulting in a capital to NPV5% ratio of 0.5, highlighting the project's attractive return on investment and enhancing its development appeal.
- Strong Production Profile: The project is expected to average annual production of 152.4 koz Au equivalent over the first five years, with total life of mine production of 1.5 million ounces Au equivalent, underscoring its significance in resource development and potential market competitiveness.
See More
Gold Exploration Budgets Surge Amid Production Declines
- Surge in Exploration Budgets: Global gold exploration budgets reached $6.2 billion in 2025, marking an 11% increase and accounting for 50% of all exploration spending, highlighting the pressure on major miners facing production declines due to depleting reserves.
- Emergence of Junior Companies: With major miners under pressure, five junior companies are conducting early-stage discovery work in underexplored areas, positioning themselves strategically within the supply chain to capitalize on the growing demand for gold.
- Gran Esperanza Project Progress: Golden Goose Resources has initiated the first phase of fieldwork at its Gran Esperanza gold-silver project in Argentina, aiming to establish the strength and consistency of gold and silver grades through systematic sampling and geological mapping, setting the stage for future drilling.
- Strategic Importance of Drilling Plans: Companies like First Mining Gold and GoldMining are actively advancing drilling programs, with First Mining reporting significant results from its Duparquet project and GoldMining launching an 8,000-meter drill campaign at its São Jorge project in Brazil, underscoring the market's strong demand for gold resources.
See More
GoldMining Initiates New Exploration Drill Program
- Drill Program Launch: GoldMining has commenced an 8,000-meter drill program at its São Jorge Project in Brazil's Tapajós gold district, aimed at following up on high-priority targets from 2025, which is expected to significantly enhance mineral resource estimates.
- High-Priority Targets: The drilling will focus on the William South area, located 2 km from the existing deposit, with initial results indicating 2.38 g/t gold at a depth of 13 meters, suggesting substantial mineralization potential in the region.
- Geophysical Coverage Expansion: An ongoing IP survey covering 49 kilometers is significantly expanding existing geophysical coverage, further confirming surface geochemical anomalies in a 12 km by 7 km area surrounding the deposit, highlighting broader exploration potential.
- Infrastructure Advantage: The project area benefits from excellent infrastructure, including grid power, highway access, and a fully operational 50-person camp, allowing more funds to be directed towards the expansion of mineral resources.
See More
GoldMining Inc. Reports FY GAAP EPS of -C$0.07
- Financial Overview: GoldMining Inc. reported a FY GAAP EPS of -C$0.07, indicating significant financial challenges that could undermine investor confidence and lead to stock price volatility.
- Historical Performance Comparison: This negative EPS compared to historical data suggests that the company is under pressure regarding profitability, necessitating operational improvements to restore earnings.
- Market Reaction Expectations: The negative earnings per share may raise concerns about the company's future profitability, prompting investors to reassess their investment strategies in the gold mining sector, potentially putting downward pressure on the stock price in the short term.
- Analyst Rating Impact: According to Seeking Alpha's Quant Rating, GoldMining Inc.'s financial performance may influence analysts' expectations for its future performance, thereby affecting its market positioning and investment appeal.
See More
