Gold miners trade at discount after selloff: Haywood

AI desk brief

Haywood says senior gold miners are trading at a steep valuation discount despite strong cash flow, with the group at 6.82x forward cash flow versus a five-year average of 8.83x, or 23% below normal. The firm views the recent selloff as consolidation within an ongoing precious-metals bull market, supported by central bank accumulation, de-dollarization and elevated global debt, while warning near-term volatility from high oil prices, inflation and the Fed outlook.

Spot gold was quoted at $4,022.74/oz in Toronto ahead of Wednesday’s Fed decision, after gaining 3.7% in Q3; Haywood expects the Fed to hold now but sees a December hike as possible if inflation stays elevated. The note also highlights M&A support for developers and names First Mining Gold, Thesis Gold & Silver and Troilus as top picks, with updated long-run assumptions of $4,000/oz gold in 2024/2027, rising to $4,250 in 2028 and $4,500 thereafter.