Mining's Cycle - Quinton Hennigh

An article dating back to 2012, Quinton Hennigh, an industry geologist who also writes with Brent Cook at Exploration Insights, suggests we should expect a pivot point where gold mining and exploration proliferate.

Vibrant periods in the gold world appear to commence around peak gold prices and persist as gold slides downhill. Answers to this conundrum can actually be seen in the world around us right now. The gold mining world is presently experiencing ever increasing capital costs, unpredictable and almost universally high cost of production, and other uncertainties, such as increasing taxes and royalties in countries eager to take advantage of the rising gold price. It is not a comfortable time to invest in this sector....................Mining and exploration trundle along during the "white" periods, but it is during the "yellow" times that things are really hopping. These are times when the "gold rush" mentality is alive; geologists are scouring new frontiers for fresh finds and big discoveries are made, one after another. During the period from 1980 through 1997, for example, there was a succession of world-class gold discoveries: Hemlo (15 million ounces (Moz)), Goldstrike (60 Moz), Pipeline (12 Moz), Yanacocha (35 Moz), Pierina (9 Moz) and Busang, the ultimate bubble top. These were discoveries that "made" companies.