Agreed 100%. So many resource investors think the only gains from exploration are in drill plays that may or may not find an economic deposit (sadly, the odds of most companies finding an economic deposit that matters and becomes a mine are not that good).

In contrast, when a producer makes a big discovery, it can be monetized in their mine plan, and as Jordan laid out, it can matter to the share price performance as it is digested by the marketplace. Think about how Newmarket Gold made the high-grade Swan Zone discovery at Fosterville, that then got Kirkland Lake to acquire the company (that then was acquired again by Agnico Eagle). Think about K92 and their Kora North discovery that changed the game and valuation of the company, from assets that Barrick discarded as non-core and “too small”. Think about the multiple discoveries that Wesdome made that spiked their valuation to a premium and that they could bring into their mine plan and monetize those exploration wins. Then there was Gold Corp when it made their high-grade discovery at depth at the Red Lake Mine, which really had a huge impact on that mine and their valuation back when Rob McEwen was at the helm. Look at how well Calibre Mining has done continuing to make discoveries on discarded B2Gold projects where they grew resources in Nicaragua by about 240% from where they were when they took over the project, along side of their mining. Look at how the high-grade gold and nickel discoveries that Karora Resource made turned that producer around, to the point where it is now being acquired by Westgold.

There are plenty of other examples one could list, but the point being, exploration wins inside of a producer, may not cause that immediate pop like a tiny drill play gets (that are often fleeting and typically reverse back down again as reality sets in); but if they actually matter, then they can transform the valuations of producers over time. In contrast to a small explorers perpetually raising money and then burning through it, further diluting shareholders as they hope to find something that matters,
companies with active mines are producing revenues and they actually have economic deposits that are greatly enhanced by new discoveries with the drill bit.

This is beauty of growth-oriented producers.

Among other things, inflation affects miners too. Energy, wages, etc.