The 2024 financial results of gold mining companies are showing many prospects, with some businesses achieving record profit margins - according to Nicole Adshead-Bell, Director of Cupel Advisory (a company specializing in creating and realizing value in the fields of mineral exploration, development and exploitation).
When the profit margin is actually expanding, in the context of gold prices increasing faster than inflationary pressures, it will stimulate investor interest. It is these border investors that we need to attract," Adshead-Bell told Kitco.
profits for shareholders increase
Many companies are increasing benefits for shareholders through dividends and stock buybacks - Adshead-Bell said.
In addition, buying and selling - merging (M&A) activities in the gold and copper sectors are expected to continue. At some point, investors want to see growth, and the easiest way for a company to thrive is not through exploration but through the acquisition of a company or asset, Adshead-Bell said.
Currently, she believes that copper development enterprises are being undervalued. The average P/NAV (a measure of a company's market value vis-a-vis net asset value) of this group is only 0.35, reflecting that "the market does not properly assess the value of the assets these companies own."
Barrick Gold considers moving headquarters?
Barrick Gold - one of the world's largest gold and copper mining companies, headquartered in Toronto, Ontario, Canada - may move its headquarters from Canada to the US. This activity may be due to concerns related to cooperation with Chinese companies.
Adshead-Bell said that Canada's stance on cooperation with Chinese companies could be a strong interventions by the government and could affect capital in the mining industry. She also emphasized that Chinese enterprises are an important source of capital for this sector.
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