Precious Metals Update from BofA

Precious Metals Update from BofA

Postby dan_s » Thu Jan 14, 2021 10:12 am

BofA Equity Research is very bullish on North American metals companies

BofA Top Picks
> Top senior gold producer and overall pick: Newmont (Buy)
> Top streaming/royalty pick : Franco -Nevada (Buy)
> Top silver company: Wheaton Precious Metals (Buy)
> Top small cap precious metals company: Pan American Silver (Buy)
> Top small gold producer pick: SSR Mining (Buy)

Other Buy rated stocks: AEM, BTG, GOLD, KGC, KL & OR

If you'd like to see the full send me an email and I will forward it to you dmsteffens@comcast.net

BofA: "We consider 2021 to be the year for delivery for the North American precious metals sector . Driven by BofA forecasting for spot gold and silver prices to be +16% and +42% yoy and + 7% yoy aggregate gold output in 2021 (due largely to the industry overcoming Covid impacts in 2020), total sector free cash flow (FCF) is forecast to rise 34% yoy in 2021E. This FCF can be used to advance new projects, deleverage balance sheets, increase dividends and buy back stock. An added bonus is an expected surge in global gold M&A in 2021 as producers struggle to replace reserves mined . Based on our valuation analysis North American precious metal stocks are historically undervalued. For our Buy rated stocks, dividend growth is likely given significant cash
flow generation and strong balance sheets."


E3 Metals will be hosting a webinar for EPG on February 15. EPG members can register for the webinar from our Home Page.
Dan Steffens
Energy Prospectus Group
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Re: Precious Metals Update from BofA

Postby dan_s » Thu Jan 14, 2021 10:32 am

Energy stocks are set to open higher, with lower oil prices being offset by higher broader index futures. A number of analysts changed their stock recommendations across the sector.

Oil prices are just off near one-year highs, as traders consolidate recent gains. In OPEC’s January monthly report, it stated global oil demand will recover by 5.9 million bpd in 2021 after a decline of 9.8 million bpd in 2020. The forecast remains unchanged from the previous estimate. That means that the demand for oil should reach 95.9 million bpd this year after falling to 90 million bpd in the crisis year of 2020. OPEC expects demand in OECD countries to grow by 2.6 million bpd, but at the same time it will not reach the pre-crisis level, while developing countries will show an increase of 3.3 million bpd, the report said.

U.S. natural gas futures edged up on Thursday as LNG exports remain near record levels despite forecasts for milder weather and less heating demand over the next two weeks. Analysts said U.S. utilities likely pulled 128 bcf of gas from storage in the week ended January 8. That compares with a decrease of about 91 bcf in the same week last year and a five-year (2016-2020) average withdrawal of 161 bcf.
Dan Steffens
Energy Prospectus Group
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Posts: 24706
Joined: Fri Apr 23, 2010 8:22 am


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