Gold mines are measured in terms of decades. The process of 1st discovery to initial production takes 30 years or more. Once in production, a mine can produce for two decades or longer. Permitting has always been the most frustrating part of the cycle, with no set timeline, often hung up in the political process and red tape for a decade or more.
Some of the major Gold miners hold projects on “patented” land that is owned by the US Government and managed by the US forestry service. Gold mining projects on patented land have been lying dormant for years due to the byzantine permitting process.
Permitting a mine is also challenging due to local pushback (or indigenous tribes in Canada). Large mines are worth billions of dollars, and everybody wants their share. An official protest by any local group can tie up a project for years. Often, the opposition is simply blackmail, dressed up as environmental activism, hoping to extort the Miner for a larger share of the mining project.
Well, those days of red tape and endless political process are over for the Gold mining industry.
President Trump invoked wartime powers and sign an executive order yesterday to increase American production of critical minerals. Trump said “By encouraging streamlined and transparent permitting processes, combined with financing support to counter foreign market manipulation, we can finally challenge China’s mineral extortion.”
The defense production act passed in 1950 during the Korean War, gives the government more control during emergencies to direct industrial production. Defense Secretary Pete Hegseth has the authority to advance domestic mineral production.
The act contains many important clauses that will jump start the Gold mining industry.
Also, Former Newmont Mining executive David Copley was selected yesterday to oversee the mining portfolio for the U.S. National Energy Dominance Council (USNEDC), two sources familiar with the appointment said, making him the highest-ranking federal official shaping domestic minerals policy. Mr. Copley is now the top government official overseeing Mining.
Mr. Copley was the Head of Strategy Development and Evaluation at Newmont for over 10 years. He still lists his role at Newmont as current on Linkedin. GP assumes he will step down to run the USNEDC.
Created last month by President Donald Trump, the council’s mandate is to boost not only U.S. oil and gas production, but also the extraction and processing of lithium, copper and other critical minerals used widely across the economy.
As they say time is money. That is especially true in the Mining industry where project value is measured by Net Asset Value (NAV) process where Free Cash Flow (FCF) profits are discounted more for every future year. This Trump executive order significantly pushes the timeline up for major Gold mining projects across America, which lowers the discount applied, immediately increasing total project value regardless of what the Gold price does. Also, a great deal of money will be saved as the previously onerous permitting process is simplified and expedited.
One owns a share of the largest Gold Mining project located in Nevada that already holds a resource of 16 million ounces of Gold. The mine will produce over 2 million ounces of Gold per year when in production, making it the world’s largest Gold mine with first production seen in 2029. Due to this new legislation, this project will likely be prioritized, and the timeline will be expedited, making the mine worth a great deal more as cash profits will be brought forward. Trump also previously announced that large capex projects in the US of $1 billion or more will receive expedited permits, which further pushes this massive project to the top of the list.
Another GPIV holding boasts a resource of nearly 5 million Gold ounces located in war-torn DRC Congo. This Gold developer trades at a massive discount to fair value to to DRC political risk. Trump international foreign policy has shifted to either you are with the US, and we will protect you, or you are on your own. Part of this deal includes financial support of the US dollar system. Foreign trade partners have been dumping dollars and favoring Gold over US treasuries. If you want US military protection, you will buy treasuries and support the US dollar system, or you will face increasing tariffs that will make it uneconomic to sell your goods to the US. Look for the DRC to trade mineral wealth for US military aid. Talks with Trump are already underway. Look for Miners with DRC based assets to explode in value when the US military officially supports the DRC which will dramatically reduce the political risk.
Trump’s plan to revalue gold and decrease the US debt burden is causing a major dislocation in four small gold miners. Some 30 million ounces of gold have left London for the US. If you want to know why – and why four little-known gold miners are up 136% in just the last 12 months while major gold ETFs have barely moved…
Discover Garrett Goggin’s Top 5 picks for the coming gold mania.In the end you just need to follow the money. Trump is simple. Profits that drive economic growth are good. Wasteful spending is bad. The US holds vast amounts of mineral resources worth billions that have been lying dormant tied up by government red tape. Trump is unlocking the minerals value by slashing the red tape and bureaucracy that have been holding these projects back. Gold Miner’s are trading at a massive discount to fair value based on FCF profits and the current Gold price of $3,000/oz. Trump policies are creating a Golden Age for Commodities that will drive a surge of production, profits and investment that will drive Gold miners much higher. Follow the Golden Portfolio to learn more about the massively undervalued Gold Developers that will explode in value as Trump’s Golden Age unfolds.