U.S.-China trade tensions weighed on copper miners in 2018 as fears of a global economic slowdown overshadowed other fundamentals. Meanwhile gold producers struggled as bullion lost its safe-haven luster until late in the year.
What’s ahead in 2019? We asked four top executives from companies including Newmont Mining Corp. and Teck Resources Ltd. for their outlooks. From dealing with debt to dividends, to corporate-level acquisitions and asset sales, no one plans to stay still.
Gary Goldberg Newmont Mining
The Colorado-based miner intends to look at non-core assets that Barrick Gold Corp. may put up for sale after its merger: “If there’s something that’s attractive at the right value for us, we’d be interested.”
The gold market had become “numb’’ to macro drivers, including Brexit, but recent stock market volatility is attracting some generalist gold investors Fed policy could benefit gold if the U.S. dollar weakens in 2019If trade tensions trigger a U.S. recession, Goldberg thinks the dip will be relatively flat.
Junior companies are finding capital very tight, which presents opportunities for Newmont to buy into projectsThe industry has less distressed debt than in the recent past, but that could change if gold prices slide, especially below $1,050/ozThe entire industry shifting to “value over volume”