Chris Mancini: Gold Has Been Slammed — for the Rest of 2018 it's a Call on the Dollar

TL;DR

Gold market analysts discuss recent developments and future prospects for gold, including the Ran Gold and Barrick deal, potential consolidation among smaller companies, activism in the gold mining sector, and the impact of the dollar on the gold price.

Transcript

I'm Charlotte McLeod with the investing news network and here today with me is Chris Mancini analyst at the Capelli gold fund thanks so much for joining me today yeah thanks Charlotte happy to be here we're here on the very last day of the Denver Gold Forum what are your takeaways from this conference how has the mood been about gold I think that t... Read More

Key Insights

• 🤝 The Ran Gold and Barrick deal signifies activity and potential value optimization in the gold sector.
• 🛩️ Smaller companies may consolidate to mitigate event risks in a stagnant gold price market.
• 🏅 Activism brings transparency and accountability, which can positively impact the gold mining industry.

Questions & Answers

Q: Is the Ran Gold and Barrick deal beneficial for Ran Gold?

The deal has potential benefits as Ran Gold is a high-quality company with low-cost operations and a dividend-paying ability. If Barrick can replicate Ran Gold's success, the combined company could generate significant free cash flow and leverage to gold prices.

Q: Can we expect more consolidation among smaller gold companies?

In a stagnant gold price market, the stock of single asset companies is vulnerable to negative forecasts. Therefore, it is plausible that smaller companies would consider consolidation to mitigate event risk and secure their stocks.

Q: What are the potential impacts of activism in the gold mining sector?

Activism brings more transparency and accountability to gold mining companies, which can be beneficial for the industry. By scrutinizing operations, companies can optimize their value and improve overall industry practices.

Q: What factors will determine the future gold price in 2018?

The direction of the US dollar will have a significant influence on the gold price. If the dollar continues to strengthen, gold prices may weaken further, as seen in recent months.

Summary & Key Takeaways

• The big announcement at the Denver Gold Forum was the Ran Gold and Barrick deal, signaling activity and potential value optimization in the sector.

• Smaller companies may consider consolidation to mitigate event risk in a flat to down gold price market.

• Activism in the gold mining sector, such as the Paulson & Co announcement, can bring more transparency and accountability.

• The future of the gold price will largely depend on the direction of the US dollar.