What #gold price are large cap gold stocks reflecting?


As can be seen from the Table below, Randgold Resources is trading at a 30% premium, which implies a gold price per ounce of US$ 1’635. On average the large capitalized group is trading at a premium of 5% or an implied gold price of US$ 1’321 per ounce.

 

This from SCOTIABANK:

 

– Gold Equities Continue to Lag the Underlying?…What Gold Price the Large Cap Gold Equities Reflecting?: Scotiabank Senior Precious Metals Analyst Tanya Jakusconek this morning noting that with the gold price continuing to march upwards post Fed (and post Trump’s healthcare failure), she thought she would highlight the valuation level in the group and her stock recommendations. As per the chart below, the group is currently trading at an overall premium to gold price of just 5%!

 

Premium/Discount to Gold Price – %

Source: Scotiabank GBM Precious Metals Research

 

Recall that the “Implied Gold Price” resulting the calculated premium/discount (in the chart above and table below) is the gold price that would be need for the respective stocks to be trading at 1.0x NAV3% using Tanya’s modeled estimates.

 

Source: Scotiabank GBM Precious Metals Research

 

from MasterMetals http://ift.tt/2nLbhrv

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s