Dundee Precious Metals: Far Too Cheap To Ignore

2025-02-16 02:29:44 ET

Summary

• Gold prices are surging due to deeper structural shifts, with central banks and Asian buyers driving demand, not just US ETFs.
• Despite rising gold prices, gold miners like Dundee Precious Metals remain undervalued, with strong cash flow and low costs.
• Dundee's production will decline short term but will rebound with the Coka Rakita project, almost doubling production by 2028.
• Dundee's current valuation is disconnected from its cash flow potential, making it a compelling investment with a 10% buyback yield, and a 4x EV / FCF multiple.

Gold prices continue setting new records. While mainstream media is focusing on short-term factors (such as large quantities of physical gold fleeing LME vaults for America on looming tariff fears), I believe the main drivers of the current gold bull market are far deeper. US Treasury secretary, Scott Bessent, has stated that a new monetary order is emerging , and that he wants to be part of its redesign. We don't know exactly what form the new system will take, but it is my conviction that a structural shift is in progress, and gold is going to play a central role....

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