FP says Walker bullish on Goldcorp, Agnico and B2Gold

2014-07-18 08:13 ET - In the News

See In the News (C-G) Goldcorp Inc (2)

The Financial Post reports in its Friday, July 18, edition that Goldcorp ($30.26), Agnico Eagle Mines ($44.85) and B2Gold ($3) have the potential to produce positive earnings surprises, says RBC Capital Markets analyst Stephen Walker. The Post's Jonathan Ratner writes in the Trading Desk column that Mr. Walker expects relatively stable second quarter results for most North American precious metals miners. He notes producers should deliver modestly stronger margins and financial results on average relative to its first quarter since the price of gold is relatively flat on a quarter-over-quarter basis and all-in sustaining costs are expected to decline slightly. Mr. Walker says: "Companies which can demonstrate improving sustaining and operating free cash flow as well as capital discipline should continue to attract favourable interest from investors. ... Those with deteriorating balance sheets and that lack capital discipline are likely to struggle to gain investor interest without an improved metal price environment. RBC highlighted Barrick Gold ($20.63) and Alamos Gold ($10.52) as companies that could produce negative earnings surprises.