TSX:FNV - Post Discussion
Post by
retiredcf on Jul 19, 2022 9:20am
Scotia Capital
Expecting “mixed” second-quarter results from senior gold companies, Scotia Capital analyst Tanya Jakusconek predicts investor focus will be on costs, “particularly 2022 guidance, given the higher fuel price and other input costs in addition to capital costs updates on expansion/development projects.”
“Heading into reporting, given the inflationary environment, streamers are recommended given they are isolated from inflationary pressures,” she said in a note. “TFPM is recommended as it has pre-released Q2 revenue/sales and provided updated 2022 guidance. We are also comfortable recommending GOLD and AEM; GOLD has pre-released its Q2/22 operating estimates (including re-iterating 2022 guidance), hence we believe there is limited downside risk. AEM is expected to have a better Q2 over Q1 (our EPS are above consensus estimates) and we believe the Detour mine plan (to be released) will be in line with our expectation. We are cautious on NEM; although we are expecting a stronger operating quarter, we are below consensus on EPS and believe there is risk on cost guidance given various updates to come (has outperformed peers by 4 per cent).”
Ms. Jakusconek made these target adjustments:
- Franco-Nevada Corp. ( “sector perform”) to US$179 from US$180. Average: US$155.18.
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