Is there gold in them thar markets?

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From UBS:

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Australian gold equities are divided, premium for some, discount for others

We see Australian gold equities factoring in a gold price of US$1,147/oz, in line with spot. However, we see the sector split, with domestic & operationally diverse producers implying relatively higher gold prices and subsequently trading at a premium to NPV. This compares to companies with just single assets and/or located in foreign countries, that are trading at a discount to spot. We highlight EVN, which is domestic & operationally diverse and has an implied price of ~US$1,258/oz, 9% above spot and implying relatively fair value at ~1.1x NPV.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.