Market Update – Precious Metals and Mining Equities

Recent market movements have led to a corrective phase in both gold and silver prices after the strong rally that took place in January, when gold traded above USD 5,400 per ounce and silver exceeded USD 116 per ounce. Mining equities have followed this pullback, declining alongside the underlying metals.

From a long-term investment perspective, such periods of consolidation have historically offered constructive entry points within the precious metals cycle. Corrections of this nature often help rebalance market positioning and bring valuations back to more attractive levels ahead of the next upward phase.

The recent weakness appears to have been driven primarily by profit-taking. Subsequent market commentary pointed to the likely nomination of Kevin Warsh as the next Chair of the US Federal Reserve as a potential explanation for the correction. In our view, this narrative reflects a short-term market interpretation rather than a genuine change in underlying fundamentals.

Regardless of the individual appointed, structural constraints linked to elevated US deficits, rising interest payment burdens, and long-term fiscal imbalances are unlikely to be materially altered. As a result, the broader environment of negative real rates and currency debasement pressures remains intact, a backdrop that continues to support the long-term case for precious metals.

Our positive long-term outlook for the precious metals sector remains intact, as the structural drivers underpinning the bull market in gold and silver remain firmly in place. Continued geopolitical uncertainty and macroeconomic volatility reinforce gold’s role as a strategic reserve asset, particularly for central banks. At the same time, persistent inflationary pressures and the structural challenges associated with elevated levels of US federal debt point toward a prolonged environment of financial repression. Historically, such conditions have supported investment demand for precious metals as a means of preserving purchasing power. In parallel, industrial demand dynamics are also favourable, notably the growing use of silver in photovoltaic solar technologies, while supply conditions for both gold and silver remain constrained.

Looking back over the past two years, similar pullbacks in gold, silver and mining equities have repeatedly proved to be healthy pauses within a broader upward trend. These corrections have typically been shorter and less severe than many market participants anticipated, with prices recovering as underlying fundamentals reasserted themselves. During the previous trough in gold prices in October 2025, the market took just 19 days to reach its low. A sharper correction in the current episode could, therefore, be consistent with a faster subsequent recovery.

In this context, Apis Asset Management is using the current market weakness to position portfolios for the next phase of the metals and mining cycle. We continue to see attractive opportunities across the precious metals mining sector, where companies are benefiting from improved margins, disciplined capital allocation and tighter cost control, leading to stronger profitability. Beyond precious metals, we are also identifying value in other segments of the metals universe that may have been indiscriminately affected by the broader market sell-off.

With mining equities appearing attractively valued, both in historical terms and relative to underlying metal prices, our approach remains focused on selective, active stock picking. This disciplined process is designed to navigate periods of volatility while capturing long-term upside potential as the fundamental backdrop continues to improve.

We remain at your disposal for any further information.

Kind regards,
Apis Asset Management

Patience and Discipline: The Forgotten Virtues of Wealth Management

In an environment dominated by immediacy and volatility, patience and discipline remain the forgotten pillars of successful wealth management. APIS Asset Management embodies these essential virtues as precious metals regain their central role in resilient, long-term portfolios.

Time as an Ally to Performance
Daily market fluctuations frequently encourage reactivity rather than consistency. Yet history shows that the most successful investors share two common traits: patience and discipline.

A Coherent, Long-Term Approach
Wealth management is not a race for speed but a commitment to coherence — understanding market cycles and maintaining direction despite short-term fluctuations. In this perspective, time becomes an ally rather than an adversary.

Gold as a Symbol of Stability
Gold and other precious metals illustrate this philosophy perfectly. Often perceived as defensive or static assets, they have consistently preserved purchasing power and stabilized portfolio performance through multiple market cycles. Their strength lies not in immediacy, but in endurance.

Practicing “Rational Patience”
At APIS Asset Management, we advocate rational patience: accepting temporary volatility to capture the benefits of long-term valuation cycles. This discipline reflects our enduring commitment to stewardship and intergenerational continuity — the very essence of wealth preservation.

A Strategy, Not Inertia
Investing is not a sprint; it is a measured walk. And in that walk, patience is not inertia — it is strategy.

Gold Miners: Structural Discount or Historical Opportunity?

Introduction
While gold prices are trading near record highs, gold mining companies remain paradoxically undervalued. APIS Asset Management analyses the reasons behind this persistent discount and the opportunities it offers to long-term investors within a diversified wealth management allocation.

A Persistent Paradox
As gold reaches new highs, one question remains: why are gold miners still trading at such depressed valuations? Despite strengthened balance sheets, restored profitability, and disciplined capital allocation, the market continues to treat the sector with caution.

A Transformed Industry
Since the previous peak in 2011-2012, the industry has undergone a profound transformation.
Producers have reduced leverage, streamlined costs, and implemented strict shareholder-return policies. Yet valuation multiples — notably the Gold Miners Index vs Gold Spot ratio — remain 40-60% below their long-term average.

Perception Misaligned with Fundamentals
This discount seems driven more by perception than by fundamentals. The memory of past excesses and volatility has left investors wary, even though today’s miners generate robust cash flows and maintain solid margins, even at gold prices below current levels.

Consolidation and Financial Discipline as Catalysts
The ongoing consolidation within the sector serves as another powerful catalyst. Mergers and acquisitions are fostering efficiency, expanding resource bases, and meeting heightened sustainability requirements. Over the medium term, these dynamics should contribute to a rerating in valuations.

An Opportunity for Patient Investors
At APIS Asset Management, we view this discount as a compelling long-term opportunity for investors willing to accept short-term volatility in exchange for significant catch-up potential.
Within a wealth management framework, gold miners remain a tangible, real asset whose value stems from scarcity, operational discipline, and financial resilience.

APIS x Le Figaro

We are proud to share our recent feature in Le Figaro, highlighting Apis AM’s unique approach to asset management.

Gold: a growth opportunity in this dynamic and inflationary environment

Earlier this year, we anticipated that mounting geopolitical tensions, central bank gold accumulation, and market volatility would drive gold prices higher, with positive implications for gold mining stocks. With gold recently reaching a new high of $2,758 per ounce, our expectations have largely been validated, confirming the robust trend in the gold market and creating a favorable environment for mining stocks, which have started closing their long-standing valuation gap with gold itself.

The recent surge in gold prices strengthens the case for undervalued mining stocks, which continue to show profitability improvements as they catch up to gold’s higher prices. This trend points to sustained growth potential, especially as investor interest in mining equities grows alongside expectations of increasing M&A activity in the sector. Despite recent rallies, mining stocks on average remain 60% below their historical peaks, suggesting ample upside potential as the sector gains more traction with institutional investors.

Some high-beta mining stocks are showing promising growth due to their price sensitivity to gold’s movements, offering opportunities for enhanced returns. Companies like Newmont Corporation and Barrick Gold have shown resilience, and mid-tier mining stocks with historical beta could be excellent candidates to capture additional upside. Furthermore, silver mining stocks such as Pan American Silver, Fresnillo, and First Majestic Silver—recently added to our portfolio—offer compelling growth potential as silver prices often follow gold with greater volatility.

While the outlook remains positive, operational and regulatory challenges in the mining sector are worth noting. Rising exploration and operating costs, along with heightened regulatory constraints, have limited immediate valuation gains and are expected to continue presenting headwinds. Additionally, resource nationalization risks in regions such as in South Amarica and Africa, introduce geopolitical risks that require active management. While these risks should be closely monitored, they also reinforce the investment case for gold and silver as safe-haven assets.

At APIS AM, we recognize this environment as an opportunity to leverage our expertise in gold and silver mining equities. With continued geopolitical tensions, central bank buying activity, and favorable fundamentals for gold mining stocks, we see significant upside for well-positioned mining equities.

 While the initial market reaction to Trump’s re-election was extremely positive with a huge decrease of the volatility, and a positive trend on the market, we anticipate that inflationary pressures from his policies will support the longer-term case for gold. The Federal Reserve, as expected, lowered its interest rates by 25 basis points on Thursday, November 7, as part of its ongoing strategy to support the economy amid global uncertainties and to extend the current U.S. economic expansion.

However, in light of Trump’s economic policies, this rate-cutting trend could be reconsidered. While Trump has consistently advocated for low interest rates to boost economic growth, some of his policies—such as increased infrastructure spending and protectionist trade measures—could create inflationary pressures over time.

Thus, while the Fed is currently following an accommodative stance, Trump’s policies could shift this dynamic, prompting a more restrictive monetary policy in response to rising inflationary pressures. Trump administration's economic agenda, with a focus on spending, deregulation, and protectionist policies, is likely to drive inflation, weakening potentially the dollar and further boosting demand for gold as a hedge.

In conclusion, the Trump effect—while likely to induce short-term fluctuations—will ultimately amplify the appeal of precious metals as safe-haven assets, potentially benefiting gold and silver mining stocks. With the sustained upward trend in gold prices and narrowing valuation gaps in mining equities, we see compelling growth opportunities for investors who can navigate this dynamic and inflationary environment.

Gold: The new diamond of mining stocks

APIS Asset Management sees a bright outlook for the gold market with resurgence in its value and a positive impact on mining stocks.

The renewed appeal of gold

In recent months, gold has regained some of its 'shine' to flirt with historic highs. Whilst gold is no longer an exchange currency nor the historical ‘Standard’ set by the US Federal Reserve, and since the Bretton Woods system has long been abandoned, some countries have begun to increase their reserves again. In today’s particular geopolitical, economic, and financial environment, non-aligned countries are increasingly detaching themselves from, if not outright showing defiance towards, the US dollar. More generally, gold acts as a security measure and a hedge against global economic volatility, providing strong backing for emerging currencies and a natural hedge against inflation.

Mining stocks and M&A activity

This resurgence in gold's value also has a significant impact on mining stocks. As it rises, mining companies often see their share prices increase reflecting the enhanced profitability and financial stability brought with higher gold prices. With inflation currently under control, the upside potential for mining stocks becomes more apparent. The historical lag between gold price increases and mining stock valuations is expected to finally narrow whilst the positive correlations should once again reach higher levels.  Whilst gold has recently reached historic highs (2’450 USD in May 2024), mining stocks are still, on average, 60% below their peak. This scenario presents a promising outlook for mining stocks.

This is evidenced by significant, large-scale M&A activity in the gold mining sector. They have occurred at the pace of approximately one transaction per year in the recent past. Examples include the Newmont acquisition of Newcrest in 2023, the Agnico-Eagle and Pan American Silver acquisition of Yamana Gold in 2022, the Newmont acquisition of Goldcorp in 2019 and the Barrick Gold merger with Randgold in 2018.

The strategic importance of gold

Smaller companies are not lagging either, with a significant number of consolidations as well, as exemplified by the activity of the first six months of 2024 which include the recent following acquisitions: Goldsource Mines by Mako Mining, Argonaut Gold by Alamos Gold, HighGold Mining by Contango ORE and Timberline Resources by McEwen Mining. Although mergers and acquisitions are theoretically value-creating, this has yet to be reflected in stock prices, leaving room for potential price appreciation. The divergence can be attributed to rising exploration and operational costs alongside environmental regulations and political considerations. Nonetheless, with inflation "under control" and regulations “under review”, the potential appreciation in mining stocks should become more evident.

The importance of gold in our economy is again becoming strategic, as the dominance of the USD seems to be weakening alongside other FIAT moneys. This emphasises the dynamic relationship between gold prices and the mining sector, including M&A trends.

At APIS, we welcome this opportunity and intend to leverage our expertise in managing our funds that invest in gold and silver mining equities. These funds are poised to benefit from, amongst others, current geopolitical tensions, gold acquisitions by central banks and Asian countries, the disparity between precious metal mining equities and rising gold prices, 20-year low gold mining stock valuations, producers increased margins and a historically lower than 1% global assets allocated to gold.

APIS Asset Management is a privately owned Luxembourg based UCITS and AIFM Management Company that has specialised in commodities funds over the last decade.

Link to the article published by Paperjam : https://en.paperjam.lu/article/gold-the-new-diamond-of-mining

Lien vers l’article publié par Paperjam : https://paperjam.lu/article/or-comme-nouveau-diamant-valeu

La mixité, un atout pour l’entreprise

Au Luxembourg, le nombre de femmes à des fonctions dirigeantes progresse lentement. Pour ces dernières, il est crucial de casser les croyances selon lesquelles il est impossible de concilier vies privée et professionnelle et de démystifier l’impact du temps partiel sur leur évolution au sein d’une entreprise. Une démarche que Sandra Lucente et Michèle Berger portent à bras le corps.

Si, dans les comités de direction, le nombre de femmes tend à augmenter, marquant ainsi une évolution positive, au sein des conseils d’administration, leur présence est encore sporadique.

«Le pourcentage de femmes à des postes importants au sein de comités reste faible. Une marge de progression est possible. Il serait toutefois erroné d’affirmer que seuls les hommes sont frileux à l’arrivée de collègues féminines à ces postes. Je suis convaincue que certaines femmes intègrent malgré elles la croyance selon laquelle il est impossible de conjuguer vie de famille et vie professionnelle et que, dès lors, il faut choisir», explique Sandra Lucente (CEO d’APIS ASSET MANAGEMENT).

Pour encourager cette présence féminine, un changement de mentalité doit s’opérer chez chacun(e).

«L’effet de levier doit être mené conjointement tant par la gent masculine que par la gent féminine. C’est aussi notre responsabilité de femme d’exprimer notre envie d’évoluer. Dans le secteur financier, nous constatons qu’un effet pyramidal persiste, où le nombre de femmes reste plus important à la base et diminue au sommet. La situation va changer pour davantage de mixité et de complémentarité, mais de manière progressive», commente Michèle Berger (Présidente du Conseil d’Administration d’APIS ASSET MANAGEMENT).

Mettre fin à cet effet de pyramide

Créée en 2016 (sous le nom de IW Partners), APIS ASSET MANAGEMENT est une jeune société de gestion pour les fonds UCITS et les fonds d’investissement alternatifs (AIF). Possédant initialement un unique produit sous gestion, un fonds maison investissant dans les mines de métaux précieux, APIS ASSET MANAGEMENT décide de changer de stratégie.

«Ce changement s’est accompagné d’une définition plus claire de nos valeurs: l’expertise, mais aussi une certaine fraîcheur dans les services proposés. À travers cette idée de fraîcheur, nous désirons nous libérer d’une manière désuète de penser les problèmes et de trouver des solutions», précise Sandra Lucente.

APIS ASSET MANAGEMENT a, dans ce contexte, repensé la composition de son conseil d’administration et de son comité de direction en mettant des femmes à la tête de ceux-ci.

«Il s’agit d’un double signal. Nous avons, d’une part, désiré apporter des perspectives différentes pensées par des femmes dans des fonctions stratégiques de la société pour introduire davantage de fraîcheur dans nos services. Nous souhaitions également montrer la place que la femme peut avoir au sein des secteurs professionnels et ses capacités à concilier différentes vies: privée et professionnelle.»

Mener plusieurs vies de front

À la tête du conseil d’administration, Michèle Berger a mené de front plusieurs vies: professionnelle, familiale et sociale.

«Durant plus de 26 ans, j’ai travaillé au sein d’un groupe bancaire et j’étais à la tête de la société de gestion. J’occupais les fonctions de CEO et d’administratrice déléguée, et faisais partie de plusieurs CA. Je me suis rapidement rendu compte que j’évoluais dans un environnement d’hommes. Durant 15 ans, j’étais la seule femme autour de la table des différents comités exécutifs.»

Cette dernière a donc dû convaincre ses collègues qu’elle était parfaitement capable de gérer plusieurs vies. Au fil des années, elle a heureusement observé une évolution des mentalités et une ouverture progressive à la mixité aussi dans les postes-clés.

«Le chemin reste toutefois encore long pour arriver à une parité.»

Aujourd’hui, elle est administratrice indépendante au sein d’APIS ASSET MANAGEMENT car elle souhaite transmettre sa passion aux entreprises et aux collaborateurs et aider ces derniers à grandir.

«J’ai eu l’opportunité de rejoindre l’entreprise, de participer à l’ambition business et d’accompagner Sandra et les autres membres du Comité de Direction. Pour moi, avoir une femme au sein de la direction et du management est un atout. La complémentarité et la mixité sont enrichissantes et inspirantes.»

Lorsqu’il s’agit de recruter de nouveaux profils, Sandra et Michèle mettent l’accent sur l’expérience et le professionnalisme plutôt que sur le genre.

«Nous voulons que nos employés puissent apporter, dès l’embauche, un travail de haute qualité. Recruter aussi bien des hommes que des femmes nous permet d’avoir des points de vue complémentaires», conclut Sandra Lucente.

Un véritable terrain d’échange entre professionnels

Le Paperjam + Delano Club accueille un nouveau membre: Apis Asset Management. Présentation en trois questions.

Pouvez-vous, en quelques mots, résumer l’activité de votre société?

Sandra Lucente. – «APIS ASSET MANAGEMENT est un Gestionnaire de Fonds d’Investissement Alternatifs et une société de gestion d’OPCVM. Jeune et dynamique, elle a pour ambition d’apporter aux professionnels du secteur de la gestion de Fonds d’investissement une expertise, une efficacité et des solutions taillées sur mesure. APIS AM offre une panoplie de services permettant à ses clients de se concentrer sur leur propre métier. En ce sens, APIS AM est au service de ses clients et de leur succès.

Vous venez de rejoindre le Paperjam + Delano Club. Quelles sont les raisons qui vous ont poussée à le faire?

«Rejoindre ce Club très connu au Luxembourg a de multiples avantages. Il permet de nous faire connaître, mais également de connaître les autres. En ce sens, il est un véritable terrain d’échange entre professionnels, et donc un endroit idéal pour des rencontres d’affaires. De plus, le Club et son journal nous permettent de rester informés sur les sociétés et le marché luxembourgeois de manière plus générale.

Qu’y recherchez-vous? Et que pensez-vous pouvoir proposer aux membres que vous allez y rencontrer?

«Nous y cherchons principalement un terrain de rencontre et d’échange, ainsi qu’une source d’information. APIS ASSET MANAGEMENT se veut un ‘one-stop shop’. Elle a donc recruté des employés ayant une longue expertise dans le secteur financier. Ils pourront très certainement apporter leur expérience et leur dynamisme.»