Ahead of the Gold Forum Americas conference, BMO released a primer on some of the key themes they believe investors and participants would be talking about. Since the conclusion of the conference, BMO has released another note on their conversations and findings from their presence at the conference.
The first thing BMO notes is that this sector needs a theme of some sort, which will help bring enthusiasm and help attract investors. They note that previous themes included growth, improved discipline, and rising dividends and capital returns. They note that any news around additional incremental dividend increases seems to have “diminishing returns,” and it’s almost the “price of admission” to be called a senior gold miner.
They believe that one way to bring investors back into the sector would actually be volatility in the spot price if inflation runs too hot for too long, devaluating of the U.S dollar. Or just a potential mega-wave of consolidation between names. They also believe there is larger importance on new explorations and processing technology to bring in the ESG crowd.
The other point made in this note is that presentations didn’t provide solid incremental news as there was a lackluster in-person attendance but a large virtual component. They write, “The presentations were a mix of presentations and fireside chats, both in-person, live virtual, or pre-recorded. This mix of formats did not lend itself well to meaningful new announcements.”
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.