NEM - Undervalued gold producers set for high output cash flow - BofA

A look at senior gold producers, alongside its Primer on the North American market, has a bullish BofA looking to production gains and free cash flow in the coming years. Valuations for the group are approaching multi-year lows, Bofa notes: Since 2011, Price has run about 1x to 2x net asset value, and it's currently undervalued at 1.21x NAV. Meanwhile, the four senior producers are "dominant globally in terms of market value, gold production, gold reserves and free cash flow." Its top senior producer pick is Newmont (NEM), for which it cites a number of attributes in addition to the sector's undervaluation (Newmont is trading at 1.24x NAV): Production is one, and Newmont expects net gold output to rise from 5.9M ounces in 2020 to 6.5M ounces in 2021, and up to 6.5M-7M ounces in 2024-2025. Meanwhile, costs are falling. Newmont sees all-in sustaining costs falling from $970/ounce in 2021

For further details see:

Undervalued gold producers set for high output, cash flow - BofA