3.1 Market Inefficiencies and Gaps

Despite generating billions of dollars annually, the gold mining value chain remains outdated, fragmented, and inaccessible to small producers. It is estimated that over 25 million people worldwide depend on artisanal or small-scale gold mining (ASGM), particularly in countries in Latin America, Africa, and Asia. However, more than 80% of this production operates without access to modern technologies, investment capital, or market integration.

Some of the main bottlenecks include:

• High operational expenses for this operation are due to the costs of equipment, chemical inputs, security systems, and skilled labor, making it impractical without significant scale or financial backing.

• Low productivity: Due to insufficient mechanization and processing technology, the gold extraction rate per ton of soil is significantly reduced. Many mines operate at less than 30% of the deposit's potential efficiency.

• Lack of infrastructure: Unstable electricity, absence of access roads, scarcity of laboratories or logistical structures result in bottlenecks that delay and increase the cost of the entire operation.

• Predatory Intermediaries: Without direct access to global buyers or regulated markets, small miners are compelled to sell their production at depreciated prices—often with discounts of up to 30% compared to international market value.

• Lack of transparency and traceability: The origin of gold is often unknown, making it difficult to certify and deterring institutional investors concerned with ESG (Environmental, Social, and Governance).

The result is a cruel paradox: areas rich in gold remain poor. The wealth lies in the soil, yet the value does not reach the communities, nor does it enter the global market efficiently and ethically.