Pasofino Gold Limited (TSXV: VEIN)
Re-defining the Dugbe Gold Project
The Global Precious Metals Monthly Metals Index (MMI) surged strongly from mid-May to mid-June, with prices for gold, silver, platinum, and palladium all rising collectively. This rally was driven by a combination of safe-haven investment inflows and robust industrial demand. Geopolitical tensions, notably in the Middle East, further intensified market risk aversion, continuously boosting gold and silver prices.
Platinum emerged as the leader in the precious metals complex, posting significant monthly gains. Technically, platinum broke through a three-year triangular consolidation pattern, confirming a bullish trend. While short-term pullback risks exist due to overbought conditions, the metal is still considered in the early stages of its bull market. Furthermore, inflation-adjusted platinum prices ($1,227) are less than half their late 1970s and late 2000s peaks (around $3,000). Platinum is also at its cheapest level relative to gold since the 1960s.
This strength stems primarily from tight supply and diversified demand support. Despite concerns about platinum’s automotive demand due to EV adoption, industrial demand has remained strong over the past five years (accounting for 30% of total demand). Meanwhile, supply-demand imbalances have led to consecutive annual deficits of nearly one million ounces in the platinum market for the past two years, with expectations for this to continue in the current year. Given this fundamental backdrop, metals strategists generally expect platinum to maintain its upward trajectory. Platinum’s broad demand base positions it for potential further gains alongside rising gold and silver prices.
Silver’s gains have been even more dramatic, recently outperforming gold. July COMEX silver futures climbed in tandem, showing minimal contango versus spot prices, indicating robust near-term demand. The Silver Institute forecasts the 2025 deficit at approximately 118 million ounces, only slightly narrower than last year’s. However, a reversal in gold prices or a resurgence in the US dollar could cap silver’s short-term upside.
August Comex gold futures largely tracked spot prices, with recent settlement prices maintaining a high range. A slight contango reflects carrying costs. Over the past month, gold gained approximately 5%, with a remarkable year-on-year increase of 45%.
In June 2025, West Red Lake Gold （TSXV: WRLG）‘s President and CEO, Gwen Preston, shared the company’s latest developments and next steps during an interview on METALS 100. Due to strong results, West Red Lake Gold Mines Ltd. is advancing its Madsen Gold Mine and expanding drilling at the Rowan target to 25,000m. On May 21, West Red Lake Gold approved an early restart of the Madsen Mine, ahead of schedule, setting the stage for a strong second half 2025. Also, West Red Lake highlights two new exploration targets at its Rowan Property, reinforcing its growth potential beyond a single-asset company.
A softening economic outlook and persistent US dollar weakness support gold prices. On the demand side, a global central bank buying spree is providing a solid floor – Q1 2025 purchases reached a record quarterly high of 244 tonnes, putting this year on track to potentially exceed 1,000 tonnes again. This “insatiable” official sector demand, combined with stable jewelry and investment buying, continues to offset mine supply. Most analysts expect gold to trade within the $3,200 to $3,400 range over the next two months. Based on its performance year-to-date, major investment banks are racing to raise their gold price forecasts.
Palladium has recovered from spring lows but significantly underperformed, with its current price remaining well below peaks seen several years ago. The core issue is weakening demand – over 85-90% of palladium is used in catalytic converters for gasoline vehicles, a segment facing sustained pressure from accelerating EV adoption. Some automakers are even reducing palladium loadings or substituting platinum in combustion vehicles to cut costs. On the supply side, after a decade of persistent deficits, the palladium market is projected to achieve a supply-demand balance for the first time in 2025.
