Daily Gold Daily Gold Update
Precious Metals and Minerals
Global Equity Research 12 June 2018 Market Highlights Spot Gold closed up $1.40 (0.11%) to $1,300/oz and is trading near $1,298/oz at present Carey MacRury, Analyst Spot Silver closed up $0.15 (0.89%) to $16.93/oz and is trading near $16.89/oz at present Canaccord Genuity Corp. (Canada) [email protected] S&P/TSX Global Gold index closed up 1.87 basis points (0.99%) to 191.06 1.416.867.6130 Total Gold ETF holdings decreased by 2.53 tonnes to 2,205.5 tonnes (from 2,208.1 tonnes)
Rahul Paul, Analyst Canaccord Genuity Corp. (Canada) Figure 1: Sr./Int. Historic P/NAV vs gold price [email protected] 1.416.869.7289 Sr./Int. Historical P/NAV (5% Fwd. Curve Gold) Eric Zaunscherb, Analyst 1.60 $2,000 Canaccord Genuity Corp. (Canada) [email protected] $1,900 1.416.869.7299 1.40 $1,800 Kevin MacKenzie, Analyst Canaccord Genuity Corp. (Canada) $1,700 [email protected] 1.20 $1,600 1.604.643.7357 Dalton Baretto, Analyst $1,500 Canaccord Genuity Corp. (Canada) 1.00 $1,400 [email protected] $1,300 P/NAV Average
1.416.869.7380 P/NAV Multiple Spot Gold Spot Gold (US$/oz) Tom Gallo, Associate Analyst 0.80 $1,200 Canaccord Genuity Corp. (Canada) [email protected] $1,100 1.416.869.3483 0.60 $1,000 Reg Spencer, Analyst Canaccord Genuity (Australia) Ltd. $900 [email protected] 0.40 $800 +61.2.9263.2701 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18
Tim McCormack, Analyst Senior P/NAV Multiple P/NAV Average Gold Price Canaccord Genuity (Australia) Ltd. [email protected] Source: FactSet, Bloomberg Finance L.P., Canaccord Genuity Estimates
+61.407.195.774 Patrick Chang, Analyst Figure 2: Market Summary Canaccord Genuity (Australia) Ltd. [email protected] Price Daily 2018 Price Daily 2018 6/11/2018 Change Return High Low Avg 6/11/2018 Change Return High Low Avg +61.862.162.004 Commodities North American Mining Indices Larry Hill, Associate Analyst Gold Spot (US$/oz) $1,300 0.1% -0.2% $1,359 $1,291 $1,323 TSX Global Gold 191 1.0% -2.3% 204 178 189 Canaccord Genuity (Australia) Ltd. Silver Spot (US$/oz) $16.93 0.9% -0.1% $17.56 $16.16 $16.67 TSX Global Mining 77 0.6% 6.6% 77 68 73 [email protected] Copper Spot (US$/lb) $3.26 -1.3% -1.3% $3.30 $2.97 $3.13 HUI 180 0.7% -6.3% 207 169 183 Platinum Spot (US$/oz) $904 0.1% -3.2% $1,029 $883 $947 GDX 23 0.8% -3.0% 25 21 23 +61.2.9263.2745 Palladium Spot (US$/oz) $1,029 1.1% -4.2% $1,112 $896 $1,006 GDXJ 33 0.7% -3.3% 36 31 33 Tim Huff, Analyst WTI Crude (US$/brl) $66.11 0.5% 9.3% $72.26 $59.20 $65.06 Canaccord Genuity Limited ETFs North American Equity Markets [email protected] Total Gold ETF (tonnes) 2,206 -0.1% 3.5% 2,239 2,119 2,182 TSX Composite 16,263 0.4% 0.3% 16,413 15,035 15,748 Total Silver ETF (tonnes) 16,484 0.8% 1.1% 16,897 16,026 16,392 TSX Venture 769 -0.8% -9.6% 925 762 817 44.20.7523.8375 Net Long Gold (000s) 107 n/a n/a 230 77 165 S&P 500 2,782 0.1% 4.1% 2,873 2,581 2,713 Des Kilalea, Analyst DJIA 25,322 0.0% 2.4% 26,617 23,533 24,855 Canaccord Genuity Limited Forex [email protected] US$/C$ $1.30 0.4% 3.3% $1.31 $1.23 $1.27 US$/BRL $3.71 0.0% 12.0% $3.91 $3.15 $3.39 GBP/US$ $1.34 -0.1% -0.9% $1.43 $1.32 $1.38 US$/CLP $633 0.5% 2.9% $638 $588 $609 44.20.7523.8358 EURO/US$ $1.18 0.1% -1.8% $1.25 $1.15 $1.22 US$/RAND $13 0.7% 6.5% $13 $12 $12 US$/JPY $110 0.4% -2.4% $113 $105 $109 US$/MXN $20.59 1.5% 4.7% $20.59 $18.01 $18.93 AUD/US$ $0.76 0.1% -2.6% $0.81 $0.75 $0.77 USDX (DXY) 93.58 0.0% 1.6% 94.83 88.59 91.02 Source: FactSet, Bloomberg Finance L.P., Canaccord Genuity Estimates
Canaccord Genuity is the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX) The recommendations and opinions expressed in this research report accurately reflect the research analyst’s personal, independent and objective views about any and all the companies and securities that are the subject of this report discussed herein. Canaccord Genuity Limited is authorized and regulated by the Financial Conduct Authority (FCA). Canaccord Genuity Corp. is registered and regulated by the Investment Industry Regulatory Organization of Canada (IIROC). Canaccord Genuity (Australia) Limited is authorized and regulated by ASIC. For the purposes of UK regulation, this is non-independent research and a marketing communication under the Market Abuse Regulation and the FCA Conduct of Business rules. For important information, please see the Important Disclosures beginning on page 12 of this document. Daily Gold Update Periodical
Figure 3: Recommendations and Targets
Prices close date: 11-Jun-18 Total Price Mkt cap Target Dividend Share price performance Implied Company TickerAnalyst C$/sh (US$m) Rating (C$/sh) (US$/sh) Return 1 wk 1 mo 3 mo 6 mo 12 mo 2018 YTD ROYALTY Sandstorm Gold SSL CM $5.74 855 BUY $9.50 $0.00 66% -1% -6% -3% 3% 17% -9% Osisko Gold Royalties OR CM $12.65 1,537 BUY $20.00 $0.18 60% -4% -6% 0% -11% -25% -13% Wheaton Precious Metals WPM CM $28.73 9,801 BUY $40.50 $0.20 42% 2% 3% 14% 5% 6% 3% Franco-Nevada FNV CM $91.37 13,161 BUY $122.00 $0.91 35% 0% -3% 5% -7% -6% -9% Royal Gold RGLD CM US$91.35 5,966 BUY US$103.00 $0.96 14% 2% 1% 11% 9% 18% 11% AVERAGE 43% 0% -2% 5% 0% 2% -3% LARGE CAP Kinross K CM $4.75 4,598 BUY $10.00 $0.00 111% 3.71% 0% 4% -3% -18% -12% B2Gold BTO RP $3.50 2,734 BUY $7.00 $0.00 100% -0.28% -5% -6% 3% -4% -10% Detour Gold DGC RP $10.54 1,433 BUY $21.00 $0.00 99% 4.67% 1% -15% -18% -40% -29% New Gold NGD RP $2.76 1,249 BUY $4.50 $0.00 63% -4.83% -7% -11% -28% -33% -33% IAMGOLD IMG CM $7.60 2,737 BUY $11.50 $0.00 51% -5.00% -2% 16% 13% 11% 4% Yamana YRI CM $3.89 2,843 BUY $5.75 $0.02 48% 5.71% 4% 15% 22% 10% -1% Tahoe Resources THO CM $6.86 1,670 BUY $10.00 $0.00 46% 3.63% 9% 14% 22% -42% 14% Goldcorp G CM $18.48 12,313 BUY $25.00 $0.07 36% 3.18% 5% 11% 21% 2% 15% Newmont NEM CM $38.57 15,894 HOLD $46.00 $0.25 20% 0.84% -5% 2% 11% 12% 3% Agnico Eagle AEM CM $58.54 10,492 BUY $68.00 $0.33 17% 1.99% 2% 17% 7% -10% 1% Centerra Gold CG RP $7.06 1,599 HOLD $8.00 $0.00 13% 0.86% -3% 8% 0% -4% 10% Barrick ABX CM $17.17 15,421 HOLD $19.00 $0.11 11% 3.00% 0% 13% -2% -22% -6% Eldorado ELD CM $1.52 930 HOLD $1.40 $0.00 -8% 6.29% 25% 5% -4% -61% -16% AVERAGE 41% 2% 2% 6% 4% -15% -4% MID/SMALL CAP Argonaut Gold AR RP $2.28 313 BUY $5.75 $0.00 152% -2% -13% -4% 2% 15% -5% Roxgold ROXG RP $1.16 337 BUY $2.50 $0.00 116% -3% -8% 3% -3% -3% -17% Premier Gold PG EZ $2.58 465 BUY $5.00 $0.00 94% -6% -13% -17% -22% -13% -28% Atlantic Gold AGB RP $1.92 302 SPEC BUY $3.50 $0.00 82% -1% 2% 3% 30% 27% 25% Alamos Gold AGI RP $7.75 2,327 BUY $14.00 $0.00 81% 9% 15% 21% -1% -18% -5% SSR Mining SSRM RP $13.46 1,256 BUY $22.00 $0.00 63% 1% -3% 23% 32% 5% 22% Endeavour Mining EDV RP $23.58 2,179 BUY $38.50 $0.00 63% 2% 5% -3% 0% 6% -8% Torex Gold TXG RP $13.07 848 BUY $21.00 $0.00 61% 3% 3% 43% 4% -42% 10% Teranga Gold TGZ RP $5.41 447 BUY $8.50 $0.00 57% 0% 3% 38% 114% 62% 81% Pretium Resources PVG RP $9.80 755 SPEC BUY $15.00 $0.00 53% 7% 7% 10% -24% -20% -32% OceanaGold OGC RS $3.26 1,543 BUY $4.45 $0.00 37% 1% -4% -1% 9% -27% 1% Asanko Gold AKG RP $1.50 251 HOLD $1.50 $0.00 0% -6% -7% 39% 131% -28% 69% Klondex Mines KDX RP $3.15 405 HOLD $3.00 $0.00 -5% 3% -1% 73% 4% -27% -3% AVERAGE 66% 1% -1% 17% 21% -5% 8% COMMODITIES/INDICIES Gold US$/oz 1,300 0% -1% -2% 5% 3% 0% Silver US$/oz 16.93 3% 2% 2% 8% -2% 0% Copper US$/lb 3.26 2% 5% 4% 8% 23% -1% Note: The target price for Oceana Gold has been presented in Australian Dollars (not Canadian Dollars) CM = Carey MacRury RP = Rahul Paul, EZ = Eric Zaunscherb – employed by Canaccord Genuity Corp. RS = Reg Spencer – employed by Canaccord Genuity (Australia) Limited Source: FactSet, Canaccord Genuity estimates; R = Restricted
12 June 2018 2 Daily Gold Update Periodical
Figure 4: P/NAV
Prices close date: 11-Jun-18 NAV at 5% discount rate CG Forward Curve Current Fwd Curve Price Price Adj. NAV Adj. NAV NAV % Company C$/sh US$/sh US$/sh P/NAV US$/sh P/NAV change ROYALTY Royal Gold 118.60 91.35 57.51 1.59 57.88 1.58 1% Franco-Nevada 91.37 70.38 45.82 1.54 45.09 1.56 -2% Wheaton Precious Metals 28.73 22.13 14.78 1.50 14.54 1.52 -2% Osisko Gold Royalties 12.65 9.74 10.95 0.89 10.77 0.90 -2% Sandstorm Gold 5.74 4.42 5.71 0.77 5.57 0.79 -2% AVERAGE 1.26 1.27 -1% LARGE CAP Agnico Eagle 58.54 45.09 40.45 1.11 38.83 1.16 -4% Goldcorp 18.48 14.23 17.87 0.80 17.55 0.81 -2% Newmont 38.57 29.71 39.94 0.74 37.51 0.79 -6% Barrick 17.17 13.23 19.79 0.67 19.13 0.69 -3% B2Gold 3.50 2.70 4.60 0.59 4.33 0.62 -6% Tahoe Resources 6.86 5.28 8.90 0.59 8.75 0.60 -2% IAMGOLD 7.60 5.85 11.00 0.53 10.19 0.57 -7% Yamana 3.89 3.00 5.38 0.56 5.32 0.56 -1% Centerra Gold 7.06 5.44 10.17 0.53 10.11 0.54 -1% Kinross 4.75 3.66 7.75 0.47 7.23 0.51 -7% Eldorado 1.52 1.17 2.53 0.46 2.39 0.49 -6% New Gold 2.76 2.13 4.77 0.45 4.81 0.44 1% Detour Gold 10.54 8.12 23.80 0.34 22.99 0.35 -3% AVERAGE 0.60 0.63 -4% MID/SMALL CAP Klondex Mines 3.15 2.43 2.71 0.89 2.54 0.96 -7% OceanaGold 3.26 2.51 3.43 0.73 3.43 0.73 0% Endeavour Mining 23.58 18.16 28.14 0.65 26.48 0.69 -6% SSR Mining 13.46 10.37 16.31 0.64 15.90 0.65 -3% Alamos Gold 7.75 5.97 11.20 0.53 10.81 0.55 -4% Asanko Gold 1.50 1.16 2.26 0.51 2.10 0.55 -7% Atlantic Gold 1.92 1.48 2.95 0.50 2.86 0.52 -3% Premier Gold 2.58 1.99 3.88 0.51 3.88 0.51 0% Teranga Gold 5.41 4.17 9.48 0.44 8.82 0.47 -7% Leagold Mining Corp 2.65 2.04 4.76 0.43 4.34 0.47 -9% Roxgold 1.16 0.89 2.00 0.45 1.90 0.47 -5% Pretium Resources 9.80 7.55 16.86 0.45 16.31 0.46 -3% Torex Gold 13.07 10.07 24.34 0.41 23.44 0.43 -4% Argonaut Gold 2.28 1.76 5.72 0.31 5.37 0.33 -6% AVERAGE 0.53 0.56 -4% Source: FactSet, Canaccord Genuity estimates CG Forward Curve as of January 12, 2018
12 June 2018 3 Daily Gold Update Periodical
Figure 5: Earnings Figure 6: Cash Flow
EARNINGS CASH FLOWS Prices close date: 11-Jun-18 Prices close date: 11-Jun-18 EPS Based On CG Forward Curve P/E CFPS Based On CG CG Forward Curve P/CF Price Price CG Forward Curve Price Price Forward Curve Company C$/sh US$/sh 2018E 2019E 2020E 2018E 2019E 2020E Company C$/sh US$/sh 2018E 2019E 2020E 2018E 2019E 2020E ROYALTY ROYALTY Wheaton Precious Metals 28.73 22.13 0.58 0.66 0.76 37.9 33.8 29.0 Sandstorm Gold 5.74 4.42 0.31 0.42 0.42 14.4 10.6 10.5 Franco-Nevada 91.37 70.38 1.20 1.38 1.56 58.6 51.1 45.2 Wheaton Precious Metals 28.73 22.13 1.17 1.25 1.40 19.0 17.6 15.8 Sandstorm Gold 5.74 4.42 0.10 0.16 0.16 46.3 27.8 27.8 Royal Gold 118.60 91.35 5.03 5.78 5.85 18.2 15.8 15.6 Osisko Gold Royalties 12.65 9.74 0.05 0.12 0.46 nm 83.4 21.1 Osisko Gold Royalties 12.65 9.74 0.48 0.55 1.18 20.2 17.7 8.3 Royal Gold 118.60 91.35 1.90 2.83 3.21 48.1 32.3 28.5 Franco-Nevada 91.37 70.38 2.72 3.19 3.62 25.8 22.0 19.5 AVERAGE 47.7 45.7 30.3 AVERAGE 19.5 16.8 13.9 LARGE CAP LARGE CAP IAMGOLD 7.60 5.85 0.13 0.23 0.30 44.3 25.6 19.4 Centerra Gold 7.06 5.44 0.90 1.27 1.88 6.1 4.3 2.9 Centerra Gold 7.06 5.44 0.42 0.76 1.17 13.1 7.2 4.7 Kinross 4.75 3.66 0.85 0.94 1.02 4.3 3.9 3.6 Detour Gold 10.54 8.12 0.65 0.84 1.12 12.5 9.7 7.2 New Gold 2.76 2.13 0.72 0.84 0.86 3.0 2.5 2.5 Barrick 17.17 13.23 0.72 0.77 0.86 18.4 17.2 15.5 Detour Gold 10.54 8.12 1.73 2.01 2.00 4.7 4.0 4.1 Tahoe Resources 6.86 5.28 0.12 0.53 0.55 45.3 10.0 9.7 Barrick 17.17 13.23 2.22 2.24 2.30 6.0 5.9 5.8 Newmont 38.57 29.71 1.52 1.91 2.08 19.5 15.5 14.3 Yamana 3.89 3.00 0.67 0.74 0.92 4.5 4.1 3.3 New Gold 2.76 2.13 0.08 0.14 0.16 27.4 15.6 13.1 Newmont 38.57 29.71 3.81 4.23 4.29 7.8 7.0 6.9 Goldcorp 18.48 14.23 0.33 0.72 0.81 42.8 19.9 17.6 Tahoe Resources 6.86 5.28 0.59 1.36 1.60 9.0 3.9 3.3 Agnico Eagle 58.54 45.09 0.73 1.20 1.43 61.4 37.6 31.5 IAMGOLD 7.60 5.85 0.73 0.91 1.05 8.1 6.4 5.6 B2Gold 3.50 2.70 0.17 0.22 0.32 16.2 12.4 8.5 Goldcorp 18.48 14.23 1.30 1.89 2.06 10.9 7.5 6.9 Kinross 4.75 3.66 0.20 0.27 0.25 18.6 13.4 14.8 B2Gold 3.50 2.70 0.48 0.53 0.65 5.6 5.1 4.1 Eldorado 1.52 1.17 (0.00) 0.05 0.05 nm 25.2 22.5 Agnico Eagle 58.54 45.09 3.04 3.81 4.43 14.8 11.8 10.2 Yamana 3.89 3.00 0.12 0.19 0.27 25.2 15.6 11.1 Eldorado 1.52 1.17 0.11 0.17 0.17 10.7 7.1 6.9 AVERAGE 28.7 17.3 14.6 AVERAGE 7.3 5.7 5.1 MID/SMALL CAP MID/SMALL CAP OceanaGold 3.26 2.51 0.22 0.32 0.38 11.5 7.8 6.6 Asanko Gold 1.50 1.16 0.59 0.37 0.77 2.0 3.2 1.5 Roxgold 1.16 0.89 0.07 0.14 0.10 12.7 6.2 8.6 Premier Gold 2.58 1.99 0.13 0.05 0.01 15.1 38.6 nm Teranga Gold 5.41 4.17 0.14 0.07 0.60 29.9 61.5 7.0 Teranga Gold 5.41 4.17 0.70 0.62 1.35 6.0 6.8 3.1 Argonaut Gold 2.28 1.76 0.13 0.28 0.44 13.0 6.2 4.0 OceanaGold 3.26 2.51 0.40 0.52 0.57 6.3 4.8 4.4 Premier Gold 2.58 1.99 0.07 0.02 0.02 29.4 nm nm Roxgold 1.16 0.89 0.15 0.24 0.20 5.8 3.8 4.4 Endeavour Mining 23.58 18.16 1.13 3.24 3.10 16.1 5.6 5.9 Argonaut Gold 2.28 1.76 0.47 0.55 0.72 3.8 3.2 2.4 SSR Mining 13.46 10.37 0.16 0.09 0.72 65.7 nm 14.4 Leagold Mining Corp 2.65 2.04 0.61 0.64 0.91 3.4 3.2 2.2 Asanko Gold 1.50 1.16 0.05 (0.06) 0.10 22.7 nm 11.7 Endeavour Mining 23.58 18.16 2.86 4.91 5.06 6.4 3.7 3.6 Alamos Gold 7.75 5.97 0.15 0.29 0.35 39.3 20.4 16.9 SSR Mining 13.46 10.37 0.97 1.31 1.88 10.7 7.9 5.5 Leagold Mining Corp 2.65 2.04 0.05 (0.06) 0.10 40.1 nm 20.7 Torex Gold 13.07 10.07 2.23 2.76 2.56 4.5 3.6 3.9 Pretium Resources 9.80 7.55 0.84 1.80 1.69 9.0 4.2 4.5 Klondex Mines 3.15 2.43 0.44 0.74 0.82 5.5 3.3 3.0 Atlantic Gold 1.92 1.48 0.29 0.35 0.31 5.2 4.3 4.7 Alamos Gold 7.75 5.97 0.61 0.80 0.86 9.7 7.4 7.0 Klondex Mines 3.15 2.43 0.03 0.01 0.01 95.3 nm nm Pretium Resources 9.80 7.55 1.20 2.02 1.94 6.3 3.7 3.9 Torex Gold 13.07 10.07 0.88 1.41 1.17 11.4 7.2 8.6 Atlantic Gold 1.92 1.48 0.35 0.40 0.36 4.2 3.7 4.1 AVERAGE 28.7 13.7 9.4 AVERAGE 6.40 6.93 3.78 Source: Company Reports, FactSet, Canaccord Genuity estimates Source: Company Reports, FactSet, Canaccord Genuity estimates
12 June 2018 4 Daily Gold Update Periodical
Figure 7: Free Cash Flow
Prices as at : 11-Jun-18 Mkt Cap FCF - CG Forward Curve Dividend FCF Yield 18-20 Company USD MM 2018E 2019E 2020E Yield 2018E 2019E 2020E Avg ROYALTY Osisko Gold Royalties 1,537 77 88 185 1.85% 5.0% 5.7% 12.1% 7.6% Royal Gold 5,966 323 368 375 1.05% 5.4% 6.2% 6.3% 6.0% Sandstorm Gold 855 48 67 (24) 0.00% 5.6% 7.9% 0.0% 4.5% Wheaton Precious Metals 9,801 120 547 610 0.90% 1.2% 5.6% 6.2% 4.3% Franco-Nevada 13,161 317 492 661 1.29% 2.4% 3.7% 5.0% 3.7% AVERAGE 1.3% 3.9% 5.8% 5.9% 5.2% LARGE CAP New Gold 1,249 102 305 364 0.00% 8.2% 24.4% 29.2% 20.6% Yamana 2,843 281 422 644 0.67% 9.9% 14.8% 22.7% 15.8% B2Gold 2,734 181 320 522 0.00% 6.6% 11.7% 19.1% 12.5% Tahoe Resources 1,670 (103) 212 399 2.17% 0.0% 12.7% 23.9% 12.2% Newmont 15,894 964 1,273 1,332 0.85% 6.1% 8.0% 8.4% 7.5% Barrick 15,421 945 1,066 1,179 0.81% 6.1% 6.9% 7.6% 6.9% Goldcorp 12,313 134 919 1,126 0.51% 1.1% 7.5% 9.1% 5.9% Detour Gold 1,433 (33) 119 134 0.00% 0.0% 8.3% 9.4% 5.9% Centerra Gold 1,599 (209) (250) 240 0.00% 0.0% 0.0% 15.0% 5.0% Agnico Eagle 10,492 (395) 225 572 0.73% 0.0% 2.1% 5.5% 2.5% Kinross 4,598 (43) 29 290 0.00% 0.0% 0.6% 6.3% 2.3% IAMGOLD 2,737 (44) 108 (230) 0.00% 0.0% 3.9% 0.0% 1.3% Eldorado 930 (192) (131) (274) 0.00% 0.0% 0.0% 0.0% 0.0% AVERAGE 1.0% 2.9% 7.8% 12.0% 7.6% MID/SMALL CAP Pretium Resources 755 167 306 298 0.00% 22.1% 40.5% 39.4% 34.0% Torex Gold 848 158 198 197 0.00% 18.6% 23.3% 23.2% 21.7% Leagold Mining Corp 479 51 33 167 0.00% 10.6% 6.8% 34.9% 17.4% Atlantic Gold 302 49 69 26 0.00% 16.1% 22.7% 8.6% 15.8% OceanaGold 1,543 89 235 308 0.00% 5.8% 15.2% 20.0% 13.7% Klondex Mines 405 13 58 86 0.00% 3.2% 14.2% 21.2% 12.9% Argonaut Gold 313 29 53 34 0.00% 9.4% 16.8% 11.0% 12.4% Roxgold 337 3 53 44 0.00% 0.9% 15.6% 13.2% 9.9% Endeavour Mining 2,179 (63) 216 362 0.00% 0.0% 9.9% 16.6% 8.8% Asanko Gold 251 27 (16) 31 0.00% 10.7% 0.0% 12.4% 7.7% Teranga Gold 447 (181) (32) 88 0.00% 0.0% 0.0% 19.8% 6.6% SSR Mining 1,256 1 76 144 0.00% 0.1% 6.1% 11.5% 5.9% Alamos Gold 2,327 56 (35) (72) 0.00% 2.4% 0.0% 0.0% 0.8% Premier Gold 465 (9) (39) (49) 0.00% 0.0% 0.0% 0.0% 0.0% AVERAGE 0.0% 7.1% 12.2% 16.6% 12.0% GROUP AVERAGE 0.3% 5.1% 9.7% 13.5% 9.4% Source: Company Reports, FactSet, Canaccord Genuity estimates
12 June 2018 5 Daily Gold Update Periodical
Figure 8: Production and Cash Costs
PRODUCTION CASH COST S AuEq Production Estimates (koz)* % c ha nge % non-pre c Co-Product Cash Costs Ave ra ge Compa ny 2018E 2019E 2020E 18-20E produc t ion 2018E 2019E 2020E 18-20E ROYALTY Wheaton Precious Metals 663 692 730 10% 0% $4.48 $4.62 $4.60 $4.56 Franco-Nevada 504 578 624 24% 0% $306 $317 $315 $312 Royal Gold 377 417 391 4% 5% $349 $320 $310 $326 Osisko Gold Royalties 82 92 110 34% 0% $921 $820 $687 $810 Sandstorm Gold 57 72 69 22% 0% $365 $319 $310 $331 TOTAL 1,684 1,851 1,924 19% AVG $485 $444 $445 $445 L ARGE CAP Newmont 5,178 5,122 5,072 -2% 6% $722 $717 $705 $715 Barrick 4,763 4,594 4,625 -3% 13% $559 $562 $585 $569 Goldcorp 2,803 3,108 3,330 19% 0% $687 $608 $643 $646 Kinross 2,527 2,537 2,590 2% 2% $728 $737 $723 $729 Agnico Eagle 1,638 1,817 2,052 25% 2% $638 $609 $642 $630 Yamana 1,410 1,564 1,614 14% 0% $686 $655 $646 $662 B2Gold 939 851 965 3% 0% $597 $555 $549 $567 IAMGOLD 878 941 1,030 17% 0% $777 $752 $773 $767 Centerra Gold 673 718 794 18% 0% $660 $507 $404 $524 Detour Gold 596 592 599 0% 0% $758 $709 $710 $726 New Gold 551 547 544 -1% 24% $661 $550 $592 $601 Tahoe Resources 512 799 823 61% 4% $758 $726 $721 $735 Eldorado 265 324 296 11% 0% $649 $533 $433 $538 TOTAL 22,734 23,516 24,333 13% AVG $683 $632 $647 $647 MID/SMALL CAP Endeavour Mining 695 859 923 33% 0% $744 $733 $600 $692 OceanaGold 510 605 619 21% 12% $707 $667 $660 $678 Alamos Gold 506 545 506 0% 0% $597 $555 $549 $567 Leagold Mining Corp 418 435 552 32% 0% $495 $463 $448 $469 Pretium Resources 369 441 464 26% 1% $694 $750 $744 $729 SSR Mining 336 371 423 26% 20% $591 $522 $564 $559 Torex Gold 335 374 332 -1% 1% $520 $506 $562 $529 Teranga Gold 232 207 312 35% 0% $731 $716 $609 $685 Asanko Gold 211 255 278 32% 0% $882 $875 $814 $857 Klondex Mines 206 201 203 -1% 8% $720 $584 $567 $624 Roxgold 128 162 139 8% 0% $765 $874 $682 $774 Premier Gold 105 112 180 71% 0% $803 $800 $733 $778 Atlantic Gold 86 87 87 1% 0% $746 $670 $621 $679 TOTAL 4,136 4,654 5,016 22% AVG $725 $705 $658 $697 OVERALL TOTAL Au 28,554 30,021 31,274 18% AVG $656 $624 $598 $624 * "Equivalent" production converted using CG Price Deck Source: Company Reports, FactSet, Canaccord Genuity estimates
12 June 2018 6 Daily Gold Update Periodical
Figure 9: Enterprise Value
Prices close date: 11-Jun-18 Price Price Enterprise Value CG EBITDA EV/EBITDA Company C$/sh US$/sh 2018E 2019E 2020E 2018E 2019E 2020E 2018E 2019E 2020E ROYALTY Sandstorm Gold 5.74 4.42 815 746 769 52 73 74 15.7 10.3 10.5 Osisko Gold Royalties 12.65 9.74 1,620 1,479 1,531 45 57 154 36.0 25.9 9.9 Royal Gold 118.60 91.35 6,040 5,758 5,455 375 443 438 16.1 13.0 12.4 Franco-Nevada 91.37 70.38 12,944 12,609 12,104 524 617 696 24.7 20.4 17.4 Wheaton Precious Metals 28.73 22.13 10,377 9,984 9,229 549 589 645 18.9 16.9 14.3 AVERAGE 22.3 17.3 12.9 LARGE CAP Eldorado 1.52 1.17 1,251 1,349 1,596 141 232 248 8.9 5.8 6.4 Tahoe Resources 6.86 5.28 1,647 1,456 1,052 245 493 561 6.7 3.0 1.9 Detour Gold 10.54 8.12 1,528 1,402 1,273 298 343 374 5.1 4.1 3.4 Centerra Gold 7.06 5.44 1,561 1,934 1,733 362 499 703 4.3 3.9 2.5 IAMGOLD 7.60 5.85 2,363 2,245 2,466 389 482 544 6.1 4.7 4.5 New Gold 2.76 2.13 1,884 1,581 1,229 460 546 546 4.1 2.9 2.3 B2Gold 3.50 2.70 2,958 2,567 2,014 626 657 803 4.7 3.9 2.5 Yamana 3.89 3.00 4,261 4,003 3,456 796 972 1,078 5.4 4.1 3.2 Agnico Eagle 58.54 45.09 11,869 11,774 11,308 920 1,169 1,347 12.9 10.1 8.4 Kinross 4.75 3.66 5,301 5,264 4,934 1,285 1,443 1,522 4.1 3.6 3.2 Goldcorp 18.48 14.23 14,687 14,072 13,122 1,808 2,526 2,721 8.1 5.6 4.8 Newmont 38.57 29.71 15,884 14,759 13,555 2,775 2,967 3,179 5.7 5.0 4.3 Barrick 17.17 13.23 18,759 17,729 16,596 3,492 3,587 3,656 5.4 4.9 4.5 AVERAGE 6.3 4.7 4.0 MID/SMALL CAP Atlantic Gold 1.92 1.48 342 239 231 76 85 86 4.5 2.8 2.7 Pretium Resources 9.80 7.55 1,574 1,257 957 239 404 401 6.6 3.1 2.4 Leagold Mining Corp 2.65 2.04 677 752 573 167 213 333 4.0 3.5 1.7 Argonaut Gold 2.28 1.76 268 208 169 93 121 164 2.9 1.7 1.0 Roxgold 1.16 0.89 315 260 219 68 104 87 4.6 2.5 2.5 Klondex Mines 3.15 2.43 382 318 226 108 136 149 3.5 2.3 1.5 Premier Gold 2.58 1.99 (84) (40) 14 23 8 7 (3.7) (5.0) 2.1 Torex Gold 13.07 10.07 1,001 798 591 237 313 277 4.2 2.6 2.1 Teranga Gold 5.41 4.17 541 571 473 103 92 183 5.2 6.2 2.6 Asanko Gold 1.50 1.16 155 152 134 134 83 174 1.2 1.8 0.8 SSR Mining 13.46 10.37 1,017 948 810 159 200 296 6.4 4.7 2.7 Alamos Gold 7.75 5.97 2,029 2,056 2,124 262 371 392 7.7 5.5 5.4 Endeavour Mining 23.58 18.16 2,415 2,197 1,808 356 638 746 6.8 3.4 2.4 OceanaGold 3.26 2.51 1,348 1,339 1,208 302 399 434 4.5 3.4 2.8 AVERAGE 4.2 2.8 2.3 Source: Company Reports, FactSet, Canaccord Genuity estimates
12 June 2018 7 Daily Gold Update Periodical
Exploration and Developers Figure 10: Recommendations and Targets
Prices close date: 11-Jun-18 Total Price Mkt cap Target Target Share price performance Implied 2018 Company Analyst (Local) (US$m) Rating Ccy (Local) Return 1 wk 1 mo 3 mo 6 mo 12 mo YTD
PRECIOUS METALS Osisko Mining Inc OSK-CA KM/TL $2.07 331 SPECULATIVE BUY C$ $7.00 238% -11% -25% -23% -39% -54% -39% Dalradian Resources Inc. DNA-CA TG $0.93 254 SPECULATIVE BUY C$ $3.00 223% -1% -11% -9% -26% -40% -30% Venturex Resources Limited VXR-AU TG $0.01 36 SPECULATIVE BUY A$ $0.04 215% 0% -13% -13% -13% 44% -24% Falco Resources Ltd. FPC-CA KM $0.56 81 SPECULATIVE BUY C$ $1.75 213% 0% -7% -36% -37% -48% -36% Barkerville Gold Mines Ltd. BGM-CA KM $0.52 176 SPECULATIVE BUY C$ $1.50 188% -5% -20% -17% -20% -41% -31% Auryn Resources Inc. AUG-CA KM $1.46 96 SPECULATIVE BUY C$ $3.75 157% -10% -14% -17% -18% -52% -29% Belo Sun Mining Corp. BSX-CA EZ $0.22 77 HOLD C$ $0.50 133% 2% -20% -33% -37% -64% -46% Emerald Resources NL EMR-AU PC $0.04 58 SPECULATIVE BUY A$ $0.08 122% -8% 3% -8% -20% -18% -10% Echo Resources Limited EAR-AU TM $0.26 97 SPECULATIVE BUY A$ $0.55 112% 0% 6% -21% -16% 37% -10% Seabridge Gold Inc SEA-CA TL $14.01 640 SPECULATIVE BUY C$ $29.00 107% -1% 0% 4% 8% -2% -2% Nighthawk Gold Corp. NHK-CA TG $0.49 71 SPECULATIVE BUY C$ $1.00 104% 2% -20% -21% -26% -46% -34% Orezone Gold Corporation ORE-CA EZ $0.80 129 SPECULATIVE BUY C$ $1.50 88% -1% 1% 0% 21% 5% 13% Northern Empire Resources Corp NM-CA TG $1.18 60 SPECULATIVE BUY C$ $2.00 69% 4% -14% -2% 31% 48% 26% Pure Gold Mining Inc. PGM-CA KM $0.65 118 SPECULATIVE BUY C$ $1.10 69% 2% 2% 20% 38% 5% 16% Marathon Gold Corporation MOZ-CA EZ $0.95 108 SPECULATIVE BUY C$ $1.60 68% 0% -9% 4% -5% -11% -17% MAG Silver Corp. MAG-CA KM $14.49 953 SPECULATIVE BUY C$ $21.00 45% -2% 2% 6% 4% -1% -7% Bear Creek Mining Corporation BCM-CA EZ $1.92 152 SPECULATIVE BUY C$ $2.75 43% 0% -7% -13% -7% 2% -5% Gold Road Resources Ltd GOR-AU PC $0.74 491 SPECULATIVE BUY A$ $1.05 43% -3% -5% -9% 7% 7% 5% Atacama Pacific Gold Corporation ATM-CA EZ $0.71 47 SPECULATIVE BUY C$ $1.00 41% -3% 18% 6% -1% -8% 1% Dacian Gold Ltd. DCN-AU TM $2.86 448 SPECULATIVE BUY A$ $3.90 36% 0% -5% -5% 14% 28% 2% OreCorp Ltd. ORR-AU RS $0.20 33 HOLD A$ $0.20 -2% -2% 0% -15% -9% 25% -25% Alexco Resource Corp. AXR-CA KM $1.79 140 R C$ R R 4% -5% -2% 7% -5% -10% Probe Metals, Inc. PRB-CA TG $1.22 88 R C$ R R 1% -8% -8% -10% -29% -19% AVERAGE 110% -1% -6% -9% -7% -10% -13%
OTHERS Vimy Resources Limited VMY-AU TM $0.12 36 SPECULATIVE BUY A$ $0.50 335% 12% 5% -21% -18% 5% -28% Paringa Resources Ltd. PNL-AU TM $0.23 74 SPECULATIVE BUY A$ $0.95 313% 5% -21% -25% -34% -37% -39% Firestone Diamonds plc FDI-GB DK/TH £0.06 42 SPECULATIVE BUY GBP £0.20 228% -3% -7% -16% -38% -78% -37% Kore Potash PLC Shs Chess Deposit Interests ReprKP2-AU 1 Sh TH/DK $0.13 79 SPECULATIVE BUY A$ $0.37 185% -4% -28% 30% -4% -13% 4% Ivanhoe Mines Ltd. Class A IVN-CA TL $3.35 2,039 BUY C$ $8.25 146% 2% 4% 5% -18% -22% -21% Lithium Power International Ltd. LPI-AU RS $0.32 64 SPECULATIVE BUY A$ $0.70 119% 8% 21% -15% -38% -29% -44% Tinka Resources Limited TK-CA KM $0.46 89 SPECULATIVE BUY C$ $1.00 117% 10% 2% -6% -26% -15% -37% Clean Teq Holdings Limited CLQ-AU LH $1.05 590 SPECULATIVE BUY A$ $2.10 101% 4% -9% -14% -17% 0% -30% Salt Lake Potash Limited SO4-AU TM $0.55 73 SPECULATIVE BUY A$ $1.10 100% -2% -5% 0% 12% 13% 5% Bacanora Lithium Plc BCN-GB TH £0.84 151 SPECULATIVE BUY GBP £1.65 96% -5% -7% -1% -9% 6% -21% Canadian Zinc Corp CZN-CA EZ $0.16 32 SPECULATIVE BUY C$ $0.30 94% 3% 29% 29% 7% -23% -6% Highfield Resources Limited HFR-AU TM $0.74 184 SPECULATIVE BUY A$ $1.30 77% -3% -10% -15% -21% -36% -28% Nemaska Lithium Inc. NMX-CA EZ $1.00 650 SPECULATIVE BUY C$ $1.70 70% -3% -24% -25% -54% -32% -57% Critical Elements Corporation CRE-CA EZ $0.91 105 SPECULATIVE BUY C$ $1.50 65% -1% -15% -20% -43% -46% -46% Red River Resources Limited RVR-AU LH $0.31 117 SPECULATIVE BUY A$ $0.50 60% 10% 18% -2% 23% 36% 4% Lithium Americas Corp. LAC-CA EZ $7.12 485 SPECULATIVE BUY C$ $11.00 54% 2% 2% -16% -41% -18% -36% Syrah Resources Limited SYR-AU RS $3.00 679 SPECULATIVE BUY A$ $4.20 40% -5% -7% -11% -26% -20% -33% eCobalt Solutions Inc. ECS-CA EZ $1.29 156 SPECULATIVE BUY C$ $1.80 40% -7% -6% -4% -8% -7% -34% Neo Lithium Corp. NLC-CA EZ $1.44 111 SPECULATIVE BUY C$ $2.00 39% 1% -1% -20% -29% 9% -37% Tawana Resources NL TAW-AU RS $0.42 178 SPECULATIVE BUY A$ $0.58 38% -2% -5% -8% 20% 62% -9% Kidman Resources Limited KDR-AU RS/LH $2.15 654 SPECULATIVE BUY A$ $2.40 12% -7% 0% 8% 46% 134% 14% Pilbara Minerals Limited PLS-AU LH/RS $0.89 1,175 SPECULATIVE BUY A$ $0.95 7% -2% -3% -1% -7% 55% -21% Altura Mining Limited AJM-AU RS $0.35 485 HOLD A$ $0.37 6% -4% -5% -7% -3% 59% -11% Mod Resources Limited MOD-AU LH/PC $0.45 79 SPECULATIVE BUY A$ $0.10 -78% -5% 2% -6% -10% -25% -12% AVERAGE 94% 0% -3% -7% -14% -1% -23% Source: Company Reports, Canaccord Genuity estimates DB = Dalton Baretto, EZ = Eric Zaunscherb, KM = Kevin MacKenzie TG = Tom Gallo – employed by Canaccord Genuity Corp; TH = Tim Huff, DS = Des Kilalea employed by Canaccord Genuity Limited RS = Reg Spencer, TM = Tim McCormack, PC = Patrick Chang, LH = Larry Hill – employed by Canaccord Genuity (Australia) Limited; Source: FactSet, Canaccord Genuity estimates; R = Restricted
12 June 2018 8 Daily Gold Update Periodical
Exploration and Developers Figure 11: P/NAV
Sorted Prices close date: 11-Jun-18 Price Base Normalized (5%) Company Analyst (Local) NAVPS Disc. P/NAV NAVPS P/NAV
EXPLORATION Mod Resources Limited MOD-AU LH/PC $0.45 $0.10 10% 4.64x $0.11 4.17x OreCorp Ltd. ORR-AU RS $0.20 $0.20 NA 1.02x $0.20 1.00x Arizona Mining Inc. AZ-CA DB $4.19 $5.69 10% 0.74x $5.44 0.77x Nemaska Lithium Inc. NMX-CA EZ $1.00 $1.69 13% 0.59x $1.68 0.60x Pure Gold Mining Inc. PGM-CA KM $0.65 $0.87 7% 0.75x $1.32 0.49x Firestone Diamonds plc FDI-GB DK/TH £0.06 £0.13 NA 0.47x £0.13 0.46x eCobalt Solutions Inc. ECS-CA EZ $1.29 $1.80 11% 0.72x $2.85 0.45x Echo Resources Limited EAR-AU TM $0.26 $0.53 10% 0.49x $0.63 0.41x Clean Teq Holdings Limited CLQ-AU LH $1.05 $2.07 10% 0.51x $2.58 0.41x Emerald Resources NL EMR-AU PC $0.04 $0.08 10% 0.46x $0.10 0.37x Northern Empire Resources Corp NM-CA TG $1.18 $1.99 11% 0.59x $4.27 0.28x Neo Lithium Corp. NLC-CA EZ $1.44 $1.96 14% 0.74x $5.51 0.26x Osisko Mining Inc OSK-CA KM/TL $2.07 $6.75 7% 0.31x $7.97 0.26x Tinka Resources Limited TK-CA KM $0.46 $0.93 10% 0.50x $1.82 0.25x Highfield Resources Limited HFR-AU TM $0.74 $1.83 10% 0.40x $2.97 0.25x Canadian Zinc Corp CZN-CA EZ $0.16 $0.28 6% 0.55x $0.65 0.24x Falco Resources Ltd. FPC-CA KM $0.56 $1.77 7% 0.32x $2.44 0.23x Orezone Gold Corporation ORE-CA EZ $0.80 $1.47 7% 0.54x $3.56 0.22x Seabridge Gold Inc SEA-CA TL $14.01 $20.54 5% 0.68x $63.90 0.22x Bacanora Lithium Plc BCN-GB TH £0.84 £1.65 13% 0.51x £3.94 0.21x Dalradian Resources Inc. DNA-CA TG $0.93 $2.97 6% 0.31x $4.45 0.21x Marathon Gold Corporation MOZ-CA EZ $0.95 $1.56 10% 0.61x $4.65 0.20x Bear Creek Mining Corporation BCM-CA EZ $1.92 $2.63 7% 0.73x $9.43 0.20x Paringa Resources Ltd. PNL-AU TM $0.23 $0.95 10% 0.24x $1.30 0.18x Ivanhoe Mines Ltd. Class A IVN-CA TL $3.35 $8.02 10% 0.42x $20.67 0.16x Salt Lake Potash Limited SO4-AU TM $0.55 $2.88 6% 0.19x $3.42 0.16x Critical Elements Corporation CRE-CA EZ $0.91 $1.51 13% 0.60x $5.73 0.16x Lithium Power International Ltd. LPI-AU RS $0.32 $0.95 11% 0.34x $2.25 0.14x Nighthawk Gold Corp NHK-CA TG $0.49 $0.97 14% 0.51x $6.47 0.08x Atacama Pacific Gold Corporation ATM-CA EZ $0.71 $0.99 11% 0.72x $9.57 0.07x Vimy Resources Limited VMY-AU TM $0.12 $0.48 12% 0.24x $1.73 0.07x Kore Potash PLC Shs Chess Deposit Interests Repr 1 Sh KP2-AU TH/DK $0.13 $0.37 13% 0.35x $2.14 0.06x Auryn Resources Inc. AUG-CA KM $1.46 $3.73 NA 0.39x NA NA Belo Sun Mining Corp. BSX-CA EZ $0.22 $0.53 8% 0.41x $0.88 NA Probe Metals, Inc. PRB-CA TG $1.22 R 10% R R R EXPLORATION AVERAGE 0.64x 0.41x
DEVELOPMENT (PERMITTED & FUNDED) Altura Mining Limited AJM-AU RS $0.35 $0.38 10% 0.92x $0.35 1.00x MAG Silver Corp. MAG-CA KM $14.49 $20.88 6% 0.69x $23.01 0.63x Dacian Gold Ltd. DCN-AU TM $2.86 $3.92 10% 0.73x $4.75 0.60x Gold Road Resources Ltd GOR-AU PC $0.74 $1.06 8% 0.70x $1.26 0.58x Tawana Resources NL TAW-AU RS $0.42 $0.57 10% 0.74x $0.99 0.42x Syrah Resources Limited SYR-AU RS $3.00 $4.06 12% 0.74x $8.03 0.37x Lithium Americas Corp. LAC-CA EZ $7.12 $10.77 12% 0.66x $19.41 0.37x Barkerville Gold Mines Ltd. BGM-CA KM $0.52 $1.47 7% 0.35x $1.74 0.30x Kidman Resources Limited KDR-AU RS/LH $2.15 $2.40 10% 0.90x $20.67 0.10x Pilbara Minerals Limited PLS-AU LH/RS $0.89 $0.96 10% 0.92x NA NA Alexco Resource Corp. AXR-CA KM $1.79 R 6% R R R DEVELOPMENT AVERAGE 0.73x 0.49x Source: FactSet, Canaccord Genuity estimates Note: Base NAVPS reflects NAV on which valuations are based on, Normalized applies a 5% discount rate across all company valuations CG Forward Curve as of January 12, 2018
12 June 2018 9 Daily Gold Update Periodical
Figure 12: Gold:Silver Ratio Statistics % Time Ratio Spent: Time Period <55:1 55-60 60-65 65-70 70-75 >75:1 Average Max Min Last 2 Years 0.0% 0.0% 0.0% 22.3% 32.2% 45.5% 74.0 81.8 65.7 Last 5 Years 0.0% 3.0% 14.1% 18.4% 33.5% 31.0% 71.5 83.2 57.6 Last 10 Years 21.4% 8.0% 15.7% 17.0% 19.7% 18.2% 64.8 84.4 31.7 Last 15 Years 26.6% 13.7% 17.7% 13.2% 15.5% 13.3% 62.6 84.4 31.7 Last 20 years 24.3% 19.6% 17.3% 13.3% 14.3% 11.1% 62.2 84.4 31.7 Last 30 Years 17.7% 13.6% 12.9% 13.1% 19.6% 22.9% 66.7 99.7 31.7 Since 1970 44.0% 9.5% 8.8% 9.4% 13.9% 14.4% 56.4 99.7 14.0 Since 1950 60.3% 6.7% 6.2% 6.7% 9.8% 10.2% 50.0 99.7 14.0 Source: Bloomberg Finance L.P., Canaccord Genuity estimates
Figure 13: Gold:Silver Ratio Statistics Gold:Silver Ratio (10Y Trailing) 90.0
80.0
70.0
Current ratio: 76.8 60.0
50.0
40.0
30.0
20.0
Source: Bloomberg Finance L.P.
Figure 14: FOMC Rate Change Probabilities FOMC Rate Change Probabilities - 06/13/2018 Meeting Current -25 Bps NO SHIFT As Of (Date) 212.5 Bps 50 Bps As Of (Date) 212.5 Bps 50 Bps As Of (Date) 212.5 Bps 50 Bps 6/11/2018 63.51% 36.49% 6/10/2018 86.48% 13.52% 6/4/2018 83.88% 16.12% 5/11/2018 71.41% 28.59%
FOMC Probability Forward Rate Level Meeting of Move 1.375% 1.625% 1.875% 2.125% 2.375% 2.625% 2.875% 3.125% 6/13/2018 63.51% 63.51% 36.49% 8/1/2018 47.15% 25.05% 52.85% 22.10% 9/26/2018 58.19% 15.10% 41.81% 34.31% 8.78% 11/8/2018 69.51% 8.70% 30.49% 37.49% 19.60% 3.72% 12/19/2018 71.59% 7.87% 28.41% 36.82% 21.31% 5.24% 0.36% 1/30/2019 77.78% 5.50% 22.22% 34.29% 25.98% 10.08% 1.83% 0.11% Current Effective Rate: 1.625% Source: Bloomberg Finance L.P.
12 June 2018 10 Daily Gold Update Periodical
Figure 15: Gold ETF Holdings, COMEX Net-Longs and Gold Price
4,500 $1,800
$1,600 4,000
$1,400 3,500 $1,200
3,000 $1,000
2,500 $800 Gold Gold Price (US$/oz) $600
Cumulative Holdings (tonnes) 2,000 $400
1,500 $200
1,000 $0 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018
Gold ETF Holdings Comex Non-Com Net Long Gold Price
Source: Bloomberg Finance L.P.
Figure 16: Equity Short Interest (SI) Price Volume (M sh) SI Short Interest (M sh) Company Analyst C$/sh -1D 30D Avg (M sh) SI Ratio 1mo 3mo 6mo 12mo ROYALTY Osisko Gold Royalties OR CM $12.65 0.28 0.23 5.36 15.75 5.96 5.37 4.48 3.30 Sandstorm Gold SSL CM $5.74 0.21 0.19 1.58 7.99 1.35 1.29 0.70 1.54 Royal Gold RGLD CM US$91.35 0.33 0.38 2.12 6.38 2.25 2.52 2.42 2.41 Franco-Nevada FNV CM $91.37 0.45 0.40 2.09 5.65 2.27 3.06 4.38 3.52 Wheaton Precious Metals WPM CM $28.73 1.66 1.39 3.21 2.65 5.12 6.42 8.81 5.28 LARGE CAP Eldorado ELD CM $1.52 4.95 4.73 35.48 6.14 37.10 33.35 22.87 13.33 Tahoe Resources THO CM $6.86 1.49 2.11 11.33 5.14 10.44 8.20 7.86 7.42 B2Gold BTO RP $3.50 3.66 2.66 12.20 4.17 15.63 16.80 10.33 13.82 Agnico Eagle AEM CM $58.54 1.02 0.98 3.74 3.99 3.19 2.24 1.77 3.25 Goldcorp G CM $18.48 4.61 4.32 10.31 2.23 12.15 9.08 5.48 16.77 New Gold NGD RP $2.76 2.85 3.45 6.05 2.07 6.02 8.38 4.16 6.40 Barrick ABX CM $17.17 7.76 7.23 11.47 1.68 12.60 8.64 9.46 18.57 Centerra Gold CG RP $7.06 0.25 0.56 1.11 1.66 0.73 0.37 0.64 1.06 Newmont NEM CM $38.57 2.95 3.85 6.22 1.62 7.15 11.13 9.10 8.19 Detour Gold DGC RP $10.54 1.24 0.90 1.68 1.22 2.41 1.61 3.62 12.50 IAMGOLD IMG CM $7.60 2.01 3.21 3.31 1.05 5.69 6.32 5.42 12.37 Yamana YRI CM $3.89 10.32 7.62 4.61 0.62 7.12 9.07 28.55 23.85 MID/SMALL CAP Endeavour Mining EDV RP $23.58 0.28 0.25 2.97 12.13 2.83 2.73 1.16 0.75 Klondex Mines KDX RP $3.15 0.19 0.29 3.26 10.41 2.37 5.87 4.57 3.94 Pretium Resources PVG RP $9.80 0.61 0.36 3.68 9.49 2.94 3.07 4.64 4.49 Atlantic Gold AGB RP $1.92 0.05 0.22 1.70 5.98 1.49 1.64 1.35 0.01 Torex Gold TXG RP $13.07 0.67 0.25 1.39 5.78 1.30 1.06 0.79 1.07 Leagold Mining Corp LMC RP $2.65 0.15 0.21 0.83 5.28 0.09 0.81 0.25 0.00 OceanaGold OGC RS $3.26 0.81 1.59 6.00 3.78 7.20 9.33 8.97 10.25 Argonaut Gold AR RP $2.28 0.20 0.34 1.03 2.83 0.95 0.98 1.23 7.11 SSR Mining SSRM RP $13.46 0.14 0.17 0.51 2.69 0.67 0.59 1.09 2.11 Alamos Gold AGI RP $7.75 1.67 1.83 4.59 2.52 5.62 3.59 6.54 7.93 Premier Gold PG EZ $2.58 0.40 0.28 0.67 2.29 0.57 1.07 2.40 6.38 Teranga Gold TGZ RP $5.41 0.24 0.27 0.22 0.70 0.22 0.11 0.13 0.51 Roxgold ROXG RP $1.16 0.46 0.33 0.04 0.09 0.01 0.06 0.11 0.04 Source: FactSet
12 June 2018 11 Daily Gold Update Periodical
Appendix: Important Disclosures For the purposes of UK regulation Canaccord Genuity Limited produces non-independent research which is a marketing communication under the Financial Conduct Authority (FCA) Conduct of Business Rules and an investment recommendation under the Market Abuse Regulation and is not prepared in accordance with legal requirements designed to promote the independence of investment research, nor is it subject to any prohibition on dealing ahead of the dissemination of investment research. However, Canaccord Genuity Limited does have procedures in place to identify and manage conflicts of interest which may arise in the production of non-independent research, which include preventing dealing ahead and Information Barrier procedures. Further detail on Canaccord Genuity Limited’s conflict management policies can be accessed at the following website (provided as a hyperlink if this report is being read electronically): http://www.canaccordgenuity.com/en/cm/SiteInformation/Disclaimer/UK-Disclosures/.
Analyst Certification Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research. Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons of Canaccord Genuity LLC and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. Sector Coverage Individuals identified as “Sector Coverage” cover a subject company’s industry in the identified jurisdiction, but are not authoring analysts of the report.
Investment Recommendation Date and time of first dissemination: June 12, 2018, 07:25 ET Date and time of production: June 12, 2018, 07:25 ET Compendium Report This report covers six or more subject companies and therefore is a compendium report and Canaccord Genuity and its affiliated companies hereby direct the reader to the specific disclosures related to the subject companies discussed in this report, which may be obtained at the following website (provided as a hyperlink if this report is being read electronically) http:// disclosures.canaccordgenuity.com/EN/Pages/default.aspx; or by sending a request to Canaccord Genuity Corp. Research, Attn: Disclosures, P.O. Box 10337 Pacific Centre, 2200-609 Granville Street, Vancouver, BC, Canada V7Y 1H2; or by sending a request by email to [email protected]. The reader may also obtain a copy of Canaccord Genuity’s policies and procedures regarding the dissemination of research by following the steps outlined above. Past performance In line with Article 44(4)(b), MiFID II Delegated Regulation, we disclose price performance for the preceding five years or the whole period for which the financial instrument has been offered or investment service provided where less than five years. Please note price history refers to actual past performance, and that past performance is not a reliable indicator of future price and/or performance.
Distribution of Ratings: Global Stock Ratings (as of 06/12/18) Rating Coverage Universe IB Clients # % % Buy 573 61.61% 42.06% Hold 229 24.62% 24.89% Sell 22 2.37% 18.18% Speculative Buy 106 11.40% 65.09% 930* 100.0% *Total includes stocks that are Under Review
Canaccord Genuity Ratings System BUY: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months.
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HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months. SELL: The stock is expected to generate negative risk-adjusted returns during the next 12 months. NOT RATED: Canaccord Genuity does not provide research coverage of the relevant issuer. “Risk-adjusted return” refers to the expected return in relation to the amount of risk associated with the designated investment or the relevant issuer. Risk Qualifier SPECULATIVE: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in the stock may result in material loss. 12-Month Recommendation History (as of date same as the Global Stock Ratings table) A list of all the recommendations on any issuer under coverage that was disseminated during the preceding 12-month period may be obtained at the following website (provided as a hyperlink if this report is being read electronically) http://disclosures- mar.canaccordgenuity.com/EN/Pages/default.aspx General Disclaimers See “Required Company-Specific Disclosures” above for any of the following disclosures required as to companies referred to in this report: manager or co-manager roles; 1% or other ownership; compensation for certain services; types of client relationships; research analyst conflicts; managed/co-managed public offerings in prior periods; directorships; market making in equity securities and related derivatives. 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receive it via third party vendors. Until such time as research is made available to Canaccord Genuity’s customers as described above, Authoring Analysts will not discuss the contents of their research with Sales and Trading or Investment Banking employees without prior compliance consent. For further information about the proprietary model(s) associated with the covered issuer(s) in this research report, clients should contact their local sales representative. Short-Term Trade Ideas Research Analysts may, from time to time, discuss “short-term trade ideas” in research reports. A short-term trade idea offers a near- term view on how a security may trade, based on market and trading events or catalysts, and the resulting trading opportunity that may be available. Any such trading strategies are distinct from and do not affect the analysts' fundamental equity rating for such stocks. A short-term trade idea may differ from the price targets and recommendations in our published research reports that reflect the research analyst's views of the longer-term (i.e. one-year or greater) prospects of the subject company, as a result of the differing time horizons, methodologies and/or other factors. It is possible, for example, that a subject company's common equity that is considered a long- term ‘Hold' or 'Sell' might present a short-term buying opportunity as a result of temporary selling pressure in the market or for other reasons described in the research report; conversely, a subject company's stock rated a long-term 'Buy' or “Speculative Buy’ could be considered susceptible to a downward price correction, or other factors may exist that lead the research analyst to suggest a sale over the short-term. Short-term trade ideas are not ratings, nor are they part of any ratings system, and the firm does not intend, and does not undertake any obligation, to maintain or update short-term trade ideas. Short-term trade ideas are not suitable for all investors and are not tailored to individual investor circumstances and objectives, and investors should make their own independent decisions regarding any securities or strategies discussed herein. Please contact your salesperson for more information regarding Canaccord Genuity’s research. For Canadian Residents: This research has been approved by Canaccord Genuity Corp., which accepts sole responsibility for this research and its dissemination in Canada. Canaccord Genuity Corp. is registered and regulated by the Investment Industry Regulatory Organization of Canada (IIROC) and is a Member of the Canadian Investor Protection Fund. 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CGWI is registered in Guernsey and is a wholly owned subsidiary of Canaccord Genuity Group Inc. For Australian Residents: This research is distributed in Australia by Canaccord Genuity Limited. Under ASIC Class Order (CO 03/1099), Canaccord Genuity Limited is exempt from the requirement to hold an Australian financial services licence for the provision of its financial services to you. Canaccord Genuity Limited is authorised and regulated by the Financial Conduct Authority under the laws of the United Kingdom which differ from Australian laws. This research is provided to you on the basis that you are a 'wholesale client' within the meaning of section
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761G of the Corporations Act 2001 (Cth). To the extent that this research contains any advice, this is limited to general advice only. Recipients should take into account their own personal circumstances before making an investment decision. Clients wishing to effect any transactions in any financial products discussed in this research should do so through a qualified representative of Canaccord Genuity (Australia) Limited AFS Licence No 234666. For Hong Kong Residents: This research is distributed in Hong Kong by Canaccord Genuity (Hong Kong) Limited which is licensed by the Securities and Futures Commission. This research is only intended for persons who fall within the definition of professional investor as defined in the Securities and Futures Ordinance. It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. Recipients of this report can contact Canaccord Genuity (Hong Kong) Limited. (Contact Tel: +852 3919 2561) in respect of any matters arising from, or in connection with, this research. Additional information is available on request. Copyright © Canaccord Genuity Corp. 2018 – Member IIROC/Canadian Investor Protection Fund Copyright © Canaccord Genuity Limited. 2018 – Member LSE, authorized and regulated by the Financial Conduct Authority. Copyright © Canaccord Genuity LLC 2018 – Member FINRA/SIPC Copyright © Canaccord Genuity (Australia) Limited. 2018 – Participant of ASX Group, Chi-x Australia and of the NSX. Authorized and regulated by ASIC. All rights reserved. All material presented in this document, unless specifically indicated otherwise, is under copyright to Canaccord Genuity Corp., Canaccord Genuity Limited, Canaccord Genuity LLC or Canaccord Genuity Group Inc. None of the material, nor its content, nor any copy of it, may be altered in any way, or transmitted to or distributed to any other party, without the prior express written permission of the entities listed above. None of the material, nor its content, nor any copy of it, may be altered in any way, reproduced, or distributed to any other party including by way of any form of social media, without the prior express written permission of the entities listed above.
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