If the markets don't show appreciation for a quarter that should be quite favorable for the gold miners, cashflow could just go to dividends instead of growth and M&A, said Joe Mazumdar, editor of Exploration Insights.
This week Mazumdar recorded an episode of Digging Deep with Kitco Correspondent Paul Harris at the Rule Symposium in Boca Raton, Florida.
The two noted the upcoming second quarter. It is important that the miners show they are containing costs, said Mazumdar. Margins need to grow, and the miners need to build cashflow. With gold hitting several all-time highs this year, profitability should be good, but will the markets care?
"If they're not getting any love, then [the money] is probably going into dividends," said Mazumdar.
The two also discussed developments in artificial intelligence and its impact upon the resource sector.