Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
Byron King, a precious metals analyst at Paradigm Press, recently shared his thoughts on the price of gold, as well as the stocks of gold miners, with Investing News Network, while reminding investors to focus on the risks of miners that own a single project.
As gold miners are about to release on second-quarter results, he said that some of the big names, including Barrick Gold (TSX:ABX), Newmont (TSX:NGT), Kinross Gold (TSX:K), and IAMGOLD (TSX:IMG), as the price of gold hit record highs in the second quarter, earnings results for these companies shouldn’t be bad.
The analyst believes that when other sectors generally suffering from poor earnings, if companies in the gold mining space see a significant rise in profits, it could attract some attention from Wall Street.
Analysts note that in 2024, the gold market could see big Wall Street money rebalancing some of its cash into hard assets, particularly gold (and) silver producers.
John Feneck, portfolio manager and consultant at Feneck Consulting, also noted that gold miners should share in the good second quarter results. He mentioned Newmont, Agnico Eagle Mines (TSX:AEM) and Barrick Gold Corporation, currently the three largest holdings in the VanEck Gold Miners ETF (ARCA:GDX).
Feneck says the difference between these three companies and other gold producers is that they are able to make very substantial profits on their costs versus the current gold price. While the broader U.S. and Canadian markets are still dominated by tech stocks, Feneck thinks that could start to change. Money managers who are focused on value will start to see these stocks in the broader gold space start to perform better, and with the progress gold stocks have made this year, this will attract Wall Street’s attention.
The opportunity, he added, is the need to see the broader market begin to pull back, which will create what is called a sector rotation into safer havens like Newmont or Agnico.
Feneck also shared a few small-cap resource stocks he’s watching, including First Nordic Metals (TSXV:FNM), NevGold (TSXV:NAU) and Guanajuato Silver (TSXV:GSVR).