December 2019 I wrote an article : The times for mines has come
It was a good call !
But it remains far from the top !
As you can see on the following chart, mining companies are still lagging gold. Dividing the Barron’s mining index by the gold price is showing you how low mines are compared to gold.
You can see that from several sides to get the ratio higher
1 – Gold decreases more than mines (both fall)
2 – Mines increase more than gold (both increase)
3 – Gold falls and mines stay flat
4 -and so on
In fact, I still see mining companies overperforming gold in the futur, especially with the huge cash flows and profit generated recently.
Senior, mid-tier and Junior gold stocks are mostly (with some exceptions) still trading at a discount as measured by the gold price needed to make the company’s share price equal to 1.0x Scotia’s NAV.
A big number of M&A will to occur sooner or later. Companies are cash rich
I have identified a gold stock with a huge potential. If you want to know more about it you can contact me here : Contact
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You also can read all my english articles here : https://www.crottaz-finance.ch/blog/category/english/