Vaneck says....20 Sep 2025 10:14
Just in case it was missed:-
Extract from Vaneck publication 12th Sept.
Miners Find Their Mojo
After almost two decades of persistent de-rating, could gold equities finally be getting their mojo back? Our data seems to suggest that it could be the case. We have been tracking the relationship between gold bullion and gold equities (GDM) since 2001 (see chart below) and have identified six clear (strong) trends, indicating a significant and prolonged de-rating of the gold mining sector since 2007. A de-rating occurs when a trendline shifts to the right and/or downward. De-ratings in the past were the result of companies consistently disappointing investors. Examples include massively out-of-the-money hedge books in the 2000βs; over indebtedness and low returns on capital in the 2010βs; and missing production and cost targets in the early 2020βs. Now investors are seeing expanding margins, low debt, capital-allocation discipline, and companies doing what they said they would do this year. While it is too early to tell if a new valuation trend is forming, August data is encouraging and may signal the beginning of a new bull cycle for gold mining stocks. For reference, the bull-market trend of 2001-2007 would imply a GDM value of approximately 6,000 at todayβs spot gold price, compared to its present value of around 1,800. A return of those historical sector multiples may seem unrealistic and itβs not part of our outlook, but a significant re-rating of the sector is in the cards, in our view. Investors must keep in mind that past performance is not indicative of future results.