John Rubino, [ Follow John on his Substack [ Ссылка ] ], joins us to outline the potential for the higher #gold and #silver prices last few months to lead to upside surprises with the Q2 earnings reports in the PM mining stocks and #royalty companies. John highlights the $300 increased margin, compared to Q2 of 2023, that a royalty company like Sandstorm Gold (TSX: SSL) (NYSE: SAND) is forecasting and how significant that could be for cashflow generation. He is interested in seeing if the largest and most followed gold producer, Newmont Mining (TSX: NGT) (NYSE: NEM) can really prove to the markets that they are seeing margin expansion, with higher metals prices outpacing their rising costs. We also review that many of the higher-cost miners could actually see the largest percentage increase to their margins once the Q2 numbers come in.
This leads into a discussion on whether we’ll see more senior #producers generating good cashflows and potentially attracting new investment inflows, then start a more aggressive merger and acquisition cycle. He mentions that when we starting seeing multiple larger miners courting larger projects like New Found Gold (TSX.V: NFG) (NYSE: NFGC) or even solid low-cost single-asset producers like Silvercrest (TSX: SIL) (NYSE: SILV), that it will really get the M&A momentum going in the sector. John cautions against the potential for economic contraction later this year to potentially spill over into a pullback in the precious metals sector in sympathy, but entertains the converse thesis that the #preciousmetals could also diverge from the general equities in a more structural correction.
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Disclaimer: The content in this podcast is not intended to be financial advice. It is meant for educational and entertainment purposes only.
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