Unlocking the Gold Mining Supercycle: Insights from Benzinga’s Virtual Conference

At the latest virtual conference hosted by Benzinga, three outstanding experts and industry professionals gathered to explore the prospects of a new “Supercycle” for prospectors.

They delved into crucial factors affecting the performance of gold mining stocks and discussed Fed interest rates, market valuations, geopolitics, ESG and technology innovation in the industry.

In the first part, Imaru Casanovaa gold and precious metals portfolio manager at VanEck, highlighted the potential bullish catalysts for prospectors and presented her key stock recommendations.


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Taylor McKenna, CFA and an analyst at Kopernik Global Investors, highlighted the value of gold mining stocks and discussed the application of AI technologies.

Lucas Normanco-founder and executive chairman American Gold Corp. (NYSE:USAU), provided insight into the exploration side of gold mining and the licensing cycle.

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VanEck sees attractive valuations in the gold mining industry

VanEck’s Casanova expressed optimism about prospects for prospectors, citing the end of the Fed’s tightening cycle as a potential bullish catalyst.

With strong global support in the current environment, prospectors are poised to show their influence with higher gold prices. Casanova highlighted the historically low multiples at which gold mining stocks currently trade, coupled with controlled balance sheet costs, make an attractive investment opportunity.

“When gold traded at these levels (around $1,970) in the past, stocks were in the VanEck Gold Miners ETF (NYSE:GDX) or VanEck Junior Gold Miners ETF (NYSE:GDXJ) index was trading 15-20% higher,” said Casanova.

With regard to the best stock recommendations, Casanova identified Endeavor Mining PLC (OTCPK: EDVMF), Alamos Gold Inc. (NYSE:AGI), and Agnico Eagle Mines Ltd (NYSE: AEM). She emphasized that VanEck’s current price forecast for gold is $2,075 an ounce over the next 12 months, providing a compelling case for diversification and growth in the gold mining industry.

Also Read: Agnico Eagle Mines Debt Review

Kopernik Global Investors is bullish on smaller miners

McKenna of Kopernik Global Investors expressed his strong belief in gold mining and pointed to the attractive valuations the industry offers. McKenna discussed the opportunity in smaller companies within the industry such as Seabridge Gold Inc. (NYSE:SA), International Tower Hill Mines Ltd. (NYSE:THM), and Western Copper and Gold Corp. (NYSE:WRN), which trade at even cheaper valuations than big miners, but carry higher risk.

One of the majors he highlighted is Barrick Gold Corp (NYSE:GOLD) offers attractive valuations as it shows an all-in sustainable cost (AISC) of $1,400 an ounce, giving the company significant potential if gold prices continue to rise.

McKenna also stressed the importance of scrutinizing management teams and incentives, sharing insights into how AI technologies, such as self-driving trucks for mining, are being used to increase productivity and reduce environmental impact.

US Gold Corp’s vision for the greenest mine in North America

Norman of U.S. Gold Corp. shed light on the cycle of gold mining exploration and licensing. He stressed that smaller companies involved in gold exploration often become investment vehicles for larger companies in the sector. Norman gave an overview of US Gold Corp.’s primary project, the CK Gold project, and its location just outside Cheyenne, Wyoming.

“Navigating the permitting process in North America can be challenging, with federal agencies creating bottlenecks,” said Norman.

Norman did emphasize the benefit of working with the state of Wyoming, which has mandated a more streamlined permit timeline.

Despite trading at a significant market discount due to perceived licensing issues, U.S. Gold Corp. 1.5 million ounces of reserves in the ground, and all-in conservation costs estimated at $800 per ounce.

Norman believed that the in-situ value of reserves in the ground should bring US Gold Corp’s market cap to around $300 million, while the company currently trades at a market cap of around $40 million. Norman emphasized how ESG became a hugely important factor in the company and he aimed to develop the greenest mine in North America.

Now Reading: US Gold Stock, Analyst Ratings, Price Targets, Predictions

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