FP says B2Gold, others could be in recovery mode now

2014-01-16 08:48 ET - In the News

The Financial Post reports in its Thursday, Jan. 16, edition that CIBC World Markets recommends buying Goldcorp, Yamana Gold, Agnico Eagle Mines, Eldorado Gold, Franco-Nevada, Silver Wheaton, B2Gold and Primero Mining. The Post's Jonathan Ratner writes in the Trading Desk column that CIBC says investors have priced in significant downside for the gold sector, while ignoring potential positives such as strong physical demand, further stabilization in gold ETFs and tighter supply levels. Gold prices declined 27 per cent in 2013, posting the first annual decline for the commodity in more than a decade. Analyst Alec Kodatsky says: "At present, sentiment has overshot to the downside, creating the potential for a 2014 recovery." CIBC says gold prices should significantly rise once rates stabilize, although higher interest rates in early 2014 may put pressure on gold. Mr. Kodatsky says, "We see some positive fundamental factors for gold that argue for higher future prices, namely: the ongoing strength in physical demand, the pronounced west-to-east flow of physical gold, and the likelihood that at current gold prices mine production, as well as scrap supply, are set to decline."