Equity Resource Engineer | Gold maintains an upgrade cycle despite commodities rout
Energy Sector: Remains in the high risk category due to falling growth rates and historically low ROE at long term fair value multiples. We struggle to see clarity in the forecasts without supply side action from OPEC countries. Metals & Mining (Ex Gold): Remains in the high risk category due to declining commodity prices with large miners likely to see more downgrades than small miners into the reporting season. Large miners will not be able to maintain the yield outlook while small miners will attract short term traders betting against US Fed raising rates. The sliding ROE and above long term fair value multiples in both large and small miners continues to support further downgrades to growth in the medium to long term. Gold: Gold equities (i.e. EVN, NCM, NST and SAR) outlook remains robust with rising growth and ROE from a discount to long term fair value basis. The rising market risk and falling currency will favour Aussie gold miners. (VIEW LINK)
Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...