Record gold price sets the scene for a big Gold Forum Americas
Gold at a record, silver and copper on the rise
The gold price cracked a record high of more than US$2580 an ounce today, paving the way for an upbeat few days at the Gold Forum Americas.
Silver prices are also on the rise, surpassing US$30/oz, while copper is having a good month.
Interest in the sector is high. When the Denver Gold Group’s meeting system opened in late August, pending 1x1 meetings were 1.83 times higher than the previous record set in 2019.
Demand was so high on the first day that organisers had to rebalance the server loads and add more capacity.
More than 900 delegates are expected to converge on The Broadmoor in picturesque Colorado Springs from Sunday.
The event will kick off with the inaugural DGG Golf Tournament on Sunday and will be followed by the Argonaut Securities Welcome Reception at the Broadmoor Golf Club Championship Patio.
Formal proceedings kick off on Monday morning with investors set to hear from and meet with 151 participating companies.
Over lunch, delegates will hear from two keynote speakers, the first being Joseph Cavatoni, market strategist, North America and principal chief executive officer funds at the World Gold Council, who will look back over the trends in the gold market during the first half of 2024.
Cavatoni will be followed by Cupel Advisory Corp director Nikki Adshead-Bell, who will speak about navigating the world of mining equities.
Monday will wrap up with the VRIFY Reception on The Broadmoor’s Lakeside Terrace.
All eyes on Tuesday morning will be on the opening session with the large-cap miners due to speak.
AngloGold Ashanti, Gold Fields, Barrick Gold, Agnico Eagle Mines, Newmont and Zijin Mining will present back-to-back.
The majors will be followed by a keynote address from Rossport Investments managing member Dan McConvey who will reflect on his 30 years attending the Gold Forum Americas, including how the industry has changed and his lessons.
There are a further two keynote presenters over lunch on Wednesday.
Incrementum AG managing director, partner and fund manager Ronnie Stöferle will share his views on the gold price and why it remains cheap, while Sarmaya Partners president and chief investment officer Wasif Latif will present “A Ripe Opportunity to Reallocate Capital to the Tangibles Economy”, which he previewed last month.
Tuesday will conclude with the Gold Forum Americas 36th Anniversary Reception.
Meetings continue on Wednesday morning and a further 10 companies will present before the event closes at midday.
Stuart Tonkin, managing director of Northern Star Resources (ASX: NST) is expecting a buoyant mood.
“It'll be exciting times to see what people are doing with the cash they're generating. Are they reinvesting it in exploration? Are they returning it to shareholders or are they moving away from gold into other commodities?” he said late last month.
“It's going to be very interesting to see the themes that come out of the conference.”
The companies
The 151 participating companies have a combined market capitalization of US$437 billion.
The participants range from the world’s largest producer Newmont Corporation (NYSE: NEM) all the way down to the smallest participant, Gold Terra Resource Corp (TSX-V: YGT).
At the previous peak in 2011, 23 silver miners were worth US$66 billion, and 125 gold miners were valued at US$420 billion, or US$587 billion adjusted for inflation, indicating there is plenty of room left for precious metals companies to run.
There are 117 gold companies this year with a combined market cap of US$411.7 billion.
They include two companies to make the transition from developers to producers, Bellevue Gold (ASX: BGD) and G Mining Ventures Corp (TSX: GMIN), while several of last year’s names, including Newcrest Mining, have since been acquired.
The 17 silver companies have a collective market cap of US$17.3 billion, while the 12 copper participants are worth US$6.9 billion.
Given the weak market conditions for platinum group metals, there are only two companies at this year’s forum, with a combined market cap of US$490.7 million.
There is also one company each from the uranium, nickel and lithium sectors with a collective market cap of US$639.3 million.
The producers are worth US$345.6 billion, the royalty and streaming companies are valued at US$68.7 billion, followed by the developers (US$12.7 billion), the explorers (US$9.1 billion) and the sole bullion dealer A-Mark Precious Metals Inc (NASDAQ: AMRK) with a market cap of US$831.1 million.
As for primary countries, the Canadians, which have opened several new gold mines this year, are worth a combined US$140.1 billion, while the US companies are worth US$117.6 billion.
The world’s largest and second largest producing companies, China and Australia, are well-represented with market caps of US$53.7 billion and US$46.6 billion, respectively.
Companies with operations in South Africa, Mexico and Peru are also well-represented.