"Prepping for 'Brexit': Looking for value in global gold equities."
That was the recent title of a Canaccord Genuity presentation by Tony Lesiak, who leads Canaccord's mining research team.
The slide deck was a long one, coming in at 121 pages and in it Canaccord focused on where gold may go and what mining equities are worth a look. Lots in there to consider, to be sure.
And here are some key takeaways:
On gold, two main points
"The LT bull case scenarios: 1) Strong global growth, rising inflation and perception Fed is behind the curve (weakening)."
"Quantum shift higher for gold on currency debasement, market volatility, political and systemic risk (strengthening)."
On mining stocks in general
"Prefer golds over base metals, NA stocks over Australia on valuation. Prefer larger caps over mid and royalty names; Currency/oil tailwinds beneficiaries."
More specifically Lesiak's team highlights these buy-rated gold companies: Agnico Eagle (AEM-TSX, target: C$67.50), Perseus (PRU-ASX, target: A$1.05), Richmont (RIC-TSX, target: C$10.50) and Premier Gold (PG-TSX, target: C$4.50).
But also highlights some other equities of interest
In M&A, without going into detail in the presentation, Lesiak's team points to other possible M&A that could come.
"Sandstorm + AuRico Metals? IMG+K?"
They also highlight B2Gold (BTO-TSX) and Yamana (YRI-TSX) as mining equities with "strong torque to rising gold/silver."