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Gold Miners Should Buy Now, Act Later, Adam Graf
Jul. 29, 2014 08:34AM PST
Precious Metals Investing
Mineweb wrote today that Cowen analyst Adam Graf wants gold miners to purchase juniors with high quality assets while they are still at a discount. Graf called the move a “buy now, act later” strategy that could help beef up development pipelines, according to Mineweb.
Mineweb wrote today that Cowen analyst Adam Graf wants gold miners to purchase juniors with high quality assets while they are still at a discount. Graf called the move a “buy now, act later” strategy that could help beef up development pipelines, according to Mineweb.
As quoted in the publication:
Of course many of the majors and intermediates have been focused on just the opposite strategy, with divestments of non-core and even core assets the name of the game over the passed couple years as miners deal with soaring costs, blown-out capex, declining precious metal prices, as well as ill-advised acquisitions. Graf, noting this trend, argued that it was nonetheless a chance to grab assets on the cheap – and build later.
Analyst Adam Graf stated:
We continue to believe the best strategy for seniors is to acquire targets today for heavily discounted prices to NAV; giving them the option to defer development according to growth needs and balance sheet health.
