“We’re now seeing increasing expectations for copper and gold commodity prices to remain relatively flat,” Przybylowski said after a tour of investors in the United States and Canada. “Investors are increasingly confident that gold miners are managing cost inflation well and will generate strong free cash flows at current strong gold prices.”
Investors are moving into gold equities from bullion, and the gold price may increase while central banks increase purchases as the United States election approaches, the analyst said. Stockholders favour gold over copper partially because copper has fallen 12% to $4.32 per lb. since $4.93 per lb. on May 20, according to Mining.com.
Equity financing
The BMO analysis ties in with a larger view of mining equity capital raisings on the TSX and TSXV, which rose to C$6 billion in May. Those included Hudbay Minerals’ (TSX: HBM; NYSE: HBM) C$551 million, Iamgold’s (TSX: IMG; NYSE: IAG)…
