It's a show-me market - Artemis Gold's Steven Dean on generalist investors and mining equities

Costs in the resource sector appear to be easing, said Steven Dean, chairman and CEO of Artemis Gold. 

Last month Dean spoke to Kitco Mining at the Gold Forum Americas/XPL-DEV 2024 in Colorado.

Artemis Gold Inc. (TSX-V: ARTG) is developing the Blackwater Mine in central British Columbia, about 160 km southwest of Prince George. Dean expects the first gold pour by the end of this year. The company’s stock has doubled year-to-date, most recently trading at $12.63 per share. With favorable metal prices, Artemis is considering expansion. Phase 2 is projected to produce an average annual gold equivalent of 561,000 ounces and generate average annual after-tax free cash flow of C$544 million between years three and six.

Despite gold hitting multiple all-time highs, many miners have not experienced significant gains. Dean attributes this to lingering investor skepticism toward the sector.

"It's still a 'show me' market," said Dean. "The key to closing that value gap lies in more consistent performance across the sector—meeting guidance, hitting cash flow targets."

Dean noted that cost pressures are easing, which should help boost margins.

"Labor pressures aren’t as tight as they were," he said, adding that other costs are also showing signs of easing. "This should allow us to improve cash flow margins and deliver the kind of cash generation I believe the sector is capable of."

The Gold Forum Americas/XPL-DEV 2024 coverage is sponsored by Metalla Royalty.

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