What Gold Investors Should Know in 2025

Gold vs. S&P 500

So far in 2025, market uncertainty has pushed gold prices to record highs.

In addition, gold equities have outperformed the S&P 500 as investors seek safe-haven assets.

This charticle, sponsored by Tectonic Metals, explores how gold explorers are undervalued and present a unique opportunity for investors.

Junior Miners Undervalued

While major gold producers have seen their stock prices rise, exploration companies—often referred to as juniors—remain overlooked.

The gap between the spot gold price and the TSX Venture Exchange (TSXV), the main hub for junior mining companies, has reached its widest point in years.

In fact, physical gold has outperformed shares of junior mining companies over the past three years by the largest margins in decades.

Gold-to-Equity Ratio

As shown in the graphic below, the gold-to-equity ratio—which indicates the value of gold relative to an index or company—has reached a peak in 2025.

Here, we compare gold with Canada’s TSX Venture Composite Index, which tracks the performance of junior companies typically in the early stages of development.

A Looming Reserve Crisis

With strong share prices, major gold producers have used their free cash flow to boost M&A budgets, focusing mainly on projects in Canada and the United States.

Target	Buyer	Deal Value (USD)	Project	Country
Calibre Mining	Equinox Gold	$1,820M	Valentine project	Canada
Osisko Mining	Gold Fields	$1,570M	Windfall project	Canada
Great Bear Resources	Kinross Gold	$1,341M	Dixie project	Canada
Continental Gold	Zijin Mining	$1,020M	Buriticá project	Colombia
Sabina Gold & Silver	B2Gold	$824M	Black River project	Canada
Reunion Gold	G Mining Venture	$647M	Oko West project	Guyana
Romarco Minerals	OceanaGold	$641M	Haile Gold project	USA
Papillon Resources	B2Gold	$570M	Fekola project	Mali
Queenston Mining	Osisko Mining	$518M	Upper Beaver project	Canada
Cardinal Resources	Shandong Gold Mining	$462M	Namdini Project	Ghana
Probe Mines	GoldCorp	$439M	Borden project	Canada
Integra Gold	Eldorado Gold	$431M	Lamaque project	Canada
Dalradian Resources	Orion Resource Partners	$407M	Curraghinalt project	UK (N. Ireland)
Kaminak Gold	Goldcorp	$398M	Coffee Gold project	Canada

Despite these deals bringing more gold upstream, the increased annual production by these amalgamated miners is rapidly depleting their reserves—which ultimately has a negative impact on free cash flow.

“The prospect of a serious reserve crisis is looming.”
— Barrick Gold CEO Mark Bristow

What’s Next for Gold Producers

To avoid a reserve crisis, major producers are expected to double down and increase budgets for exploration and M&A.

The primary target for these next deals is Tier-1 projects—world-class assets with exceptional characteristics:

• Annual production of at least 500,000 ounces of gold and a minimum 10-year mine life
• Located in countries with an average rating of A or B by Moody’s, S&P, or Fitch
• Average all-in sustaining cost (AISC) per ounce in the lower half of the industry cost curve

The Next Gold Opportunity

Partnered with one of Alaska’s largest Native Corporations, Doyon Limited, Tectonic Metals’ Flat Gold Project has the potential to become one of the largest gold deposits in the United States.

Alaska has attracted over $13 billion in exploration and development since 1981, establishing itself as one of the top mining hotspots in the United States. The state is home to seven producing mines and ranks as the second-highest gold producing state in the country.

In 2023 alone, $740 million was invested in exploration and development by Alaska’s mines and projects.

The state also fosters business partnerships with supportive Native Corporations through royalty-sharing programs—strengthening local ties and long-term project sustainability.

With low geological risk, Alaska ranks third out of 120 global mining jurisdictions on the Global Investment Risk Index.

Tectonic Metals is poised to be one of the top exploration stories—at exactly the right time.

Take a virtual tour of the Flat Gold Project.