Precious Metals Update from BofA
Posted: 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.
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.