June 1, 2017

#Gold - At what implied gold price are #MiningStocks trading at

The largest gold stocks are trading currently on average at almost no premium (3%) to the gold bullion price. High premiums can still be found in Randgold (31%) and Agnico-Eagle Mines (22%) (see attachment 1+2), the darlings of the gold stocks.

 

Here is a comment and table from Scotiabank:


The "Implied Gold Price" and resulting calculated premium/discount, is the gold price that would be need for the respective stocks to be trading at 1.0x NAV3%.

 

The group of companies trading at a discount to bullion continues to grow – with ELD, ACA, YRI, IMG, G, GFI and AU all trading below the current spot price.

ELD=Eldorado Gold, ACA= Acadian Mining, YRI=Yamana Gold, IMG=IAMGold, G=Goldcorp, GFI=Gold Fields and AU=AngloGold.

 

 

Source: Scotiabank GBM Precious Metals Research

 

 

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