Last month, we attended two of the sector’s major conferences, both in Colorado: The Precious Metals Summit focused on explorers, developers, and emerging producers; and, the Gold Forum Americas showcased seven-eighths of the world’s publicly traded gold and silver companies when measured by production or reserves.
The mood at the Gold Forum Americas was quiet and reflective, perhaps not surprisingly, given the recent lack of investor appetite for gold equities and the resulting poor share price performance of many of the companies. However, the message continues to be upbeat: A focus on portfolio optimization, disciplined growth, cost control, and delivering against expectations.
At the Precious Metals Summit, one CEO commented that this market felt like the bottom of the bear market in 2015 when gold fell to USD 1,050 an ounce. However, the gold price is now in a bull market trend, with gold recently near record highs, and internal rates of return (IRR's) on many projects ranging between 20% to 50% or more. Talk about dislocation!
MVIS® Global Junior Gold Miners Index
10/11/2022-10/11/2023
Source: MarketVector IndexesTM. All values are rebased to 1,000. Data as of October 11, 2023.
About the Author:
Ima Casanova joined VanEck in 2011. Before VanEck, Ima was Managing Director and Senior Equity Research Analyst at McNicoll Lewis & Vlak and established the firm's metals and mining research department. Previously, she was an Equity Research Analyst at Barnard Jacobs Mellet USA and BMO Capital Markets and held positions as a Production Technologist, Offshore Wellsite Supervisor, and Petroleum Engineer for Shell Exploration and Production. Ima has both an MS and a BS (magna cum laude) in Mechanical Engineering from Case Western Reserve University.
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