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    Gold’s Pullback Could Hit Mining Cash Flow | Joe Mazumdar



    Gold’s Pullback Could Hit Mining Cash Flow | Joe Mazumdar

    Gold miners face shrinking margins as bullion prices retreat and operating costs rise, while labor shortages and permitting delays threaten to make new mines more expensive to build, according to Joe Mazumdar, Editor of Exploration Insights.

    Speaking with Kitco Mining’s Paul Harris on October 30, 2026, Mazumdar examines the Federal Reserve’s decision to hold interest rates at 3.75% to 4% and the outlook for gold. He warns that “margins will decline” as energy and labor costs rise, although producers could remain free-cash-flow positive.

    Mazumdar also highlights the industry’s shortage of experienced workers, warning that “there’s a sort of lost generation of technical people in the mining industry.” The challenge is evident at West Red Lake Gold’s Madsen Mine, where lower grades and labor constraints have accompanied a reduction in 2026 production guidance.

    In British Columbia, he assesses whether the Conservative election victory could accelerate mining permits and infrastructure development. He also examines Boroo’s proposed C$140 million acquisition of Yukon’s Eagle Gold Mine, including its restart costs and environmental obligations.

    The discussion concludes with growing mining investment in Idaho, Hercules Metals’ C$45 million financing announcement, and the implications of AI-driven demand for copper and critical minerals.

    00:00 – Introduction: Halloween Edition of Digging Deep
    00:28 – Fed Holds Rates: Gold Price Reaction and Outlook
    02:43 – Gold Miners Face Shrinking Margins and Higher Costs
    04:12 – Rio Tinto CEO Pay and Mining’s Labor Shortage
    08:25 – Middle East Politics and Oil Price Volatility
    10:40 – Inflation, the Petrodollar and Copper Supply Risks
    13:53 – B.C. Election: Mining Permits and Infrastructure
    18:13 – AI Bubble Risks and Critical Minerals Demand
    22:01 – Eagle Gold Mine: C$140M Sale and Restart Risks
    24:45 – Madsen Mine Restart: Lower Grades and Rising Costs
    28:13 – Idaho Mining Boom: Perpetua and Hercules Metals
    31:03 – Hercules Metals: C$45M Financing and Growth Plans
    33:54 – Closing Remarks
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