Investors are becoming apathetic toward gold equities despite a historically strong gold price, analysts at Bank of America opined.
The comment comes just prior to the highly anticipated 35th annual Gold Forum Americas (GFA) that will be hosted by the Denver Gold Group from September 17th to 20th, 2023, in Colorado Springs, Colorado.
According to Bank of America analysts, five key themes that will dominate at the show include apathy towards gold equities, M&A, gold price direction, interest in copper and royalty and streaming investments.
Industry consolidation is a trending topic, driven by the need for reserve replacement and maintaining investor relevance, analysts noted.
There is also growing interest among gold producers in copper mining ventures, which analysts will examine in more detail at the show.
Royalty and streaming companies will also take center stage: flush with capital, these entities are on the lookout for lucrative investment opportunities.
Bank of America broke down some of the key challenges and focus areas for precious metal companies in their coverage group at GFA 2023:
Seniors
- Agnico Eagle Mines Ltd (TSX:AEM): After a robust first half of the year, the primary challenge is to surpass the 2023 production guidance.
- Barrick Gold Corp. (TSX:ABX, NYSE:GOLD): The focus is on delivering a strong second half of the year to meet the 2023 production guidance, and the company will also shed light on its views regarding potential mergers and acquisitions.
- Kinross Gold Corporation (TSX:K): Key areas of attention include the ramp-up of the Tasiast project, updates on the Great Bear project, and decisions regarding capital return.
- Newmont Mining Corporation of Canada Ltd (TSX:NGT): With the recent NCM acquisition, the company will elaborate on its portfolio streamlining efforts.
Mid-Tiers
- B2Gold Corp. (TSX:BTO): Progress and potential risks associated with the Goose Project will be in focus.
- Centerra Gold Inc. (TSX:CG): Addressing concerns related to the project pipeline and the challenge of extending the reserve life at Mt. Milligan to achieve 2023 guidance.
- Eldorado Gold Corp (TSX:ELD): The company will provide insights into the construction progress at Skouries.
- Endeavour Mining PLC (LSE:EDV, TSX:EDV, OTCQX:EDVMF): Eyes will be on the next updates related to the Tanda-Iguela discovery.
- IAMGOLD Corp (TSX:IMG): In the final stretch for the Côte Gold project, hitting timing and capex milestones will be crucial.
- Pan American Silver Corp. (TSX:PAA, NASDAQ:PAAS): The company will discuss its views on capital allocation, weighing options between strengthening the balance sheet, shareholder returns, and growth.
- SSR Mining: The focus will be on the company's views on mergers and acquisitions following two recent acquisitions and the demanding production targets for the latter half of 2023.
Intermediates
- Alamos Gold: Beyond the Island P3+ expansion and Lynn Lake, the company will shed light on its future plans.
- New Gold Inc. (TSX:NGD): Investors will gain insights into the company's longer-term strategy and vision.
Royalty/Streamers
- Franco-Nevada Corporation (TSX:FNV): With a growing liquidity position and smaller average deal sizes, investors will explore the potential for a larger dividend increase.
- Royal Gold, Inc. (TSX:RGL): The company will discuss its views on long-term growth and the impact of the Peñasquito strike risk.
- Triple Flag Precious Metals (TSX:TFPM): Investors will be eager to learn about opportunities for further consolidation and hints regarding the 2024 GEO sales outlook.
- Wheaton Precious Metals Corp (LSE:WPM, TSX:WPM, NYSE:WPM): The company faces the challenge of achieving long-term peer-leading growth while meeting 2023 guidance, especially in light of the Peñasquito strike.