Dan McConvey's Retrospective on Thirty Years Attending Gold Forum Americas
Summary of a presentation by Daniel McConvey at Gold Forum Americas 2024, reflecting on his career in the gold mining industry and discussing industry trends and insights. Video link included.
Well-known and respected analyst and fund manager Daniel McConvey was due to deliver a live presentation at Gold Forum Americas 2024 but decided not to travel after testing positive for COVID-19. This is a summary of the recorded version of his presentation. View the video here. (also embedded below).
Introduction:
Managing member of Rossport Investments.
Former member of the financial team at Barrick (1987-1994).
Reflection on colleagues who have passed away.
Thanks to the Denver Gold Group.
Historical Context:
Snapshot of 1994 Denver Gold Show (first attendance).
Review of the gold market from 1933 to 1986.
Discussion on the perfect storm for gold (1994-2002).
Disappointment with the Bre-X scandal and its consequences.
Gold Industry Overview:
Placer Dome's projects and acquisitions.
Impact of central bank gold sales and hedging on gold prices.
Market Dynamics:
Gold price trends and factors influencing them.
The Washington Agreement(s) (1999) and their impact on the gold market.
Enron's bankruptcy and its effect on derivatives and hedging.
Valuations and Performance:
Historical valuations of gold companies.
Comparison of gold stocks' performance compared with the S&P 500.
Current attractive valuations in the gold industry.
ESG and Sustainability:
Importance of ESG to the mining industry.
Positive contributions of mining companies to local communities.
Need for better environmental practices and smaller mine footprints.
Industry Impressions and Recommendations:
Impressions of the current monetary world and its impact on gold.
Recommendations to investors:
Look for experienced management teams.
Understand analysts' biases.
Be cautious when working on large mining projects in countries with limited experience with mining.
Consider the long-term sustainability of mining companies.
Notable Companies:
Saracen and Northern Star for their positive leadership and consolidation efforts.
B2Gold, Lundin Mining, G Mining Services, and Agnico Eagle for their strong DNA and long-term success.
Conclusion:
Appreciation for the industry and its potential for future success.