Ross Beaty: Case for Gold Strong as Ever, Price Should be Higher

TL;DR

Ross Beatty, Chairman of Equinox Gold, discusses the current state of the gold market and the company's growth prospects.

Transcript

i'm charlotte macleod with the investing news network and here today with me is ross beatty chairman of equinox gold thank you so much for being here online to talk with me today pleasure thank you charlotte yeah and of course it's great to have you here to catch up again i want to start off by talking with the gold price which is what we usually d... Read More

Key Insights

• 🙈 Despite personal disappointment in the gold price, Beatty sees it as resilient against various negative factors and believes it should be higher.
• 🏅 Beatty emphasizes the significant undervaluation of gold equities, including Equinox Gold, compared to the gold price, and expects a potential revaluation in the future.
• 🌱 Equinox Gold plans to achieve its production goal through a combination of expanding existing operations and making strategic acquisitions.

Questions & Answers

Q: Why do you believe the gold price should be higher than it currently is?

Beatty believes that factors like inflation and a weakening dollar should support a higher gold price. He sees no reason why gold should not continue to go higher in the long term.

Q: How does Beatty envision the end of the current situation, where the U.S. Federal Reserve has limited options to fix inflation?

Beatty admits that he doesn't know how it will end but expresses concerns about the current economic situation resembling an inverted pyramid that is bound to fall eventually. He suggests that gold will be a safe investment during periods of chaos and uncertainty.

Q: Why are gold equities undervalued despite strong growth prospects?

Beatty finds it peculiar that gold equities, including Equinox Gold, are trading at historically low multiples compared to the gold price. He believes that eventually, market forces will recognize the company's value and lead to a revaluation.

Q: How does Equinox Gold plan to achieve its goal of a million ounces of gold production per year?

Equinox Gold aims to expand its existing mines and develop new projects. The company currently has seven operating mines and will add an eighth mine next year. Beatty highlights the low-cost nature and strong technical team of these projects.

Summary & Key Takeaways

• Gold price is performing well despite some disappointment, with Beatty believing it should be even higher due to factors like inflation and a weakening dollar.

• Equinox Gold is experiencing a disconnect as gold equities are undervalued compared to the gold price, but Beatty remains optimistic about the company's growth potential.

• The company aims to reach a million ounces of gold production per year through a combination of expanding existing operations and making strategic acquisitions.