Any move towards a true, fair value for gold bullion would only be magnified in gold mining stocks, according to John Hathaway, senior portfolio manager of Sprott.
“If gold is not correctly priced for what has transpired and what lies ahead, gold mining stocks are even more inappropriately priced,” Hathaway said in a recent Sprott report.
Hathaway said that the gold mining sector is the only industry that stands to reap strong, positive earnings in 2020 and 2021.
“2020 free cash flow yields for large-cap producers range from 3%-7% and 6%-25% for intermediate producers based on conventional sell-side research. The stats are similar or better for 2021 based on spot gold prices,” the report


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