In March of this year CITI made the fundamental case for mining stocks in a compelling piece we covered here. Since then, miners as measured by the GDX have risen 23%
Gold Miners: Citi Makes The Fundamental Case
Housekeeping: This report is probably the best of the bunch here from a macro POV. They argue—and we write up— at the end of the day, it is time for Gold miners to begin to track gold price just like oil and copper producers do. We would add, stock portfolio managers like fundamentally-driven market analogs with a target.. especially when their MAG 7 stocks are cracking
In June, Citi flipped bearish on bullion but interestingly not on miners. This weekend the bank reasserted their Gold bullish stance, and in doing so made special note to update their mining opinion. In short; nothing has changed except the opportunity has potentially gotten bigger for disciplined miners (who hedge) due to spot prices.
Miners are a buy according to their analysis. Accordingly, we have updated their March analysis and broken it down for readers. With a special voice comment.
Enjoy
