Chart 1 - There are only two price points that matter with a gold mine. The price of gold and the price of oil are the two key factors. The revenue is gold, with oil (diesel and petrol) being the major expense. Labor is normally variable with the revenue produced. The ideal economic conditions, often referred to as Goldilocks conditions, for gold mine profitability occur when gold prices are rising while oil prices remain stable.
Chart 2 - XAU earning per share is booming proving gold stocks are enjoying a goldilocks time.
Chart 3 - Historic trends of gold and oil show (yellow shade) history is repeating good times for gold miners.
Chart 4 - What can stop this train? Well, higher trends in the oil price would strangle profits. We are currently at cycle lows for oil, which means price can only go one way, and that is higher. But this will take some time into the middle of 2026, plenty of time for gold stocks to shine.
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