Golden Certificate
Since several decades, savvy investors have often proffered the precious metal and mining industry as a viable investment solution in the quest to add more value to their portfolios. The real GDP growth is amongst the key drivers of this industry. This year, the IMF is anticipating a hike of about 2.7% in the global GDP rates with a lot of precariousness due to ongoing uncertainties catalyzed by supply disruptions, the war crisis and a rapid increase in inflation. This can have ramifications on Gold and Silver, as they account for the largest market shares in this industry.
The Gold Bullion encountered a strong bull-run in 2020 to increase by 27.9% from 2019 as a result of the pandemic and trade tensions. Since then, a consolidation phase has been observed and the projection of the prices for 2023 remains uncertain due to macro-economic factors. Similarly, silver prices witnessed a strong upward movement of 20.7% in 2021 but endured lots of choppiness throughout 2022 as prices dipped down to $17.95/ounce in August 2022 before rebounding to $23.95/ounce in December 2022 (+33.43%). Some analysts are anticipating that prices might increase by 25% during 2023 amidst the looming spectre of inflation and the gloomy financial conditions. We therefore highlight the following stocks as per below:
Agnico Eagle Mines Limited is a one of the largest gold mining companies in the world with full exposure to the price of gold as a result of its long-standing policy of no forward gold sales. During the five-year period from the end of 2016 through 2021, the company increased sales by a compound annual growth rate (CAGR) of 12.3%, from USD2.138 billion in 2015 to USD3.824 billion in 2021 and increased its adjusted EBITDA by a CAGR of 15.7%, from USD857 million (40.1% of sales) in 2016 to USD1.773 billion (46.4% of sales) in 2021. Following the merger with Kirkland Lake Gold (KL) on Feb. 8, 2022, normalized production hit a record 3.28 million ounces in 2022. They have a current project pipeline which is expected to drive a new phase of growth for the company as they are anticipating growing their payable gold production from approximately 1.74 million ounces in 2020 to approximately 2.15 million ounces in 2024. In Q4 2022 they posted their net income of $205.01 million, which is a significant increase compared to their income of $79.64 million in Q3 2022. Their revenue for the quarter ending 31 Dec 2022 was $1.385B, a 45.53% increase year-over-year. Bloomberg’s analyst are very bullish with a 95% Buy recommendation.
Barrick Gold is one of the world's major gold corporations. The company primarily produces and sells gold and copper, as well as engages in associated activities such as exploration and mine development. In 2023, Barrick's gold output is predicted to rise throughout the year, with the first quarter being the lowest, while copper production is expected to rise in the second half. Barrick Gold is on track to meet anticipated gold and copper targets. In the first quarter 2023, the average market price for gold was $1,890 per ounce, while the average market price for copper was $4.05 per pound. Barrick Gold reported sales of 11.01 billion US dollars in 2022. Barrick returned a record $1.6 billion to shareholders in 2022 through dividends and share buybacks and has launched a further $1 billion share buyback program for the next twelve months. Gold production in 2023 is expected to be in the range of 4.2 to 4.6 million ounces, which is unchanged from our projection for 2022 ($820 to $880 per ounce in 2023, compared to $862 per ounce in 2022). Bloomberg analyst recommends it with a Buy rating of 61.5%.
Wheaton Precious Metals is one of the largest precious metals streaming companies in the world. Through the first nine months of 2022, the company derived 49.5% of total revenue from gold, 44.0% from silver, 3.1% from palladium, and 3.4% from cobalt. In 2023, the company guides (at the mid-point) to 630,000 gold equivalent ounces (GEOs), comprised of 335,000 oz. of gold (vs. 286,805 oz. in 2022), 23,250 oz. of silver (vs. 23,997 oz. in 2022), and 23,500 gold equivalent ounces (GEOs) of palladium and cobalt (vs. 16,209 oz. in 2022). Analysts are anticipating a positive outlook for 2024 whereby organic growth can be the catalyst for momentum build up for the following five years. With strong growth expected from Constancia, Stillwater, Salobo, Voisey’s Bay, and Marmato mines, Wheaton Precious Metals should achieve annual production that will average 810,000 gold equivalent ounces (GEOs) for the five-year period ending in 2027. The firm’s business model offers investors leverage to commodity prices and exploration upside but with a much lower risk profile than a traditional mining company. Wheaton Precious Metals has consistently outperformed gold and silver, as well as other mining investments. The company has a high-quality stream portfolio and is the only streamer with more than 95% of revenue exposed to precious metals production. Bloomberg analyst recommends it with a Buy rating of 88.20%.
Capped Bonus Certificate | Product Snapshot
For informational purposes only. Not investment advice.
Since several decades, savvy investors have often proffered the precious metal and mining industry as a viable investment solution in the quest to add more value to their portfolios. The real GDP growth is amongst the key drivers of this industry. This year, the IMF is anticipating a hike of about 2.7% in the global GDP rates with a lot of precariousness due to ongoing uncertainties catalyzed by supply disruptions, the war crisis and a rapid increase in inflation. This can have ramifications on Gold and Silver, as they account for the largest market shares in this industry.
The Gold Bullion encountered a strong bull-run in 2020 to increase by 27.9% from 2019 as a result of the pandemic and trade tensions. Since then, a consolidation phase has been observed and the projection of the prices for 2023 remains uncertain due to macro-economic factors. Similarly, silver prices witnessed a strong upward movement of 20.7% in 2021 but endured lots of choppiness throughout 2022 as prices dipped down to $17.95/ounce in August 2022 before rebounding to $23.95/ounce in December 2022 (+33.43%). Some analysts are anticipating that prices might increase by 25% during 2023 amidst the looming spectre of inflation and the gloomy financial conditions. We therefore highlight the following stocks as per below:
Agnico Eagle Mines Limited is a one of the largest gold mining companies in the world with full exposure to the price of gold as a result of its long-standing policy of no forward gold sales. During the five-year period from the end of 2016 through 2021, the company increased sales by a compound annual growth rate (CAGR) of 12.3%, from USD2.138 billion in 2015 to USD3.824 billion in 2021 and increased its adjusted EBITDA by a CAGR of 15.7%, from USD857 million (40.1% of sales) in 2016 to USD1.773 billion (46.4% of sales) in 2021. Following the merger with Kirkland Lake Gold (KL) on Feb. 8, 2022, normalized production hit a record 3.28 million ounces in 2022. They have a current project pipeline which is expected to drive a new phase of growth for the company as they are anticipating growing their payable gold production from approximately 1.74 million ounces in 2020 to approximately 2.15 million ounces in 2024. In Q4 2022 they posted their net income of $205.01 million, which is a significant increase compared to their income of $79.64 million in Q3 2022. Their revenue for the quarter ending 31 Dec 2022 was $1.385B, a 45.53% increase year-over-year. Bloomberg’s analyst are very bullish with a 95% Buy recommendation.
Barrick Gold is one of the world's major gold corporations. The company primarily produces and sells gold and copper, as well as engages in associated activities such as exploration and mine development. In 2023, Barrick's gold output is predicted to rise throughout the year, with the first quarter being the lowest, while copper production is expected to rise in the second half. Barrick Gold is on track to meet anticipated gold and copper targets. In the first quarter 2023, the average market price for gold was $1,890 per ounce, while the average market price for copper was $4.05 per pound. Barrick Gold reported sales of 11.01 billion US dollars in 2022. Barrick returned a record $1.6 billion to shareholders in 2022 through dividends and share buybacks and has launched a further $1 billion share buyback program for the next twelve months. Gold production in 2023 is expected to be in the range of 4.2 to 4.6 million ounces, which is unchanged from our projection for 2022 ($820 to $880 per ounce in 2023, compared to $862 per ounce in 2022). Bloomberg analyst recommends it with a Buy rating of 61.5%.
Wheaton Precious Metals is one of the largest precious metals streaming companies in the world. Through the first nine months of 2022, the company derived 49.5% of total revenue from gold, 44.0% from silver, 3.1% from palladium, and 3.4% from cobalt. In 2023, the company guides (at the mid-point) to 630,000 gold equivalent ounces (GEOs), comprised of 335,000 oz. of gold (vs. 286,805 oz. in 2022), 23,250 oz. of silver (vs. 23,997 oz. in 2022), and 23,500 gold equivalent ounces (GEOs) of palladium and cobalt (vs. 16,209 oz. in 2022). Analysts are anticipating a positive outlook for 2024 whereby organic growth can be the catalyst for momentum build up for the following five years. With strong growth expected from Constancia, Stillwater, Salobo, Voisey’s Bay, and Marmato mines, Wheaton Precious Metals should achieve annual production that will average 810,000 gold equivalent ounces (GEOs) for the five-year period ending in 2027. The firm’s business model offers investors leverage to commodity prices and exploration upside but with a much lower risk profile than a traditional mining company. Wheaton Precious Metals has consistently outperformed gold and silver, as well as other mining investments. The company has a high-quality stream portfolio and is the only streamer with more than 95% of revenue exposed to precious metals production. Bloomberg analyst recommends it with a Buy rating of 88.20%.
Capped Bonus Certificate | Product Snapshot
For informational purposes only. Not investment advice.