John Feneck, portfolio manager and consultant at Feneck Consulting, shared his latest thoughts on the gold price, saying that after the second quarter’s record-setting levels miners should be due to share good results.
“What’s different this time around for these three companies, and other gold producers, is that they’ve been able to clip a really nice margin on what their costs are vs. what the current price of gold is,” he said.
While the broad market remains focused on tech, Feneck believes that may start to change.
“I think value managers are going to start to see these stocks in the large-cap gold space start to do much better, and it’ll catch their attention later as the year progresses,” he explained, emphasizing that the shift won’t be immediate.
“Will it be an all-in kind of event? No. What we’re going to need to see in our view is the broad market start to pull back, and that will create what we call a sector rotation into some safer havens like a Newmont or an Agnico.”
Feneck also gave overviews of a variety of small-cap resource stocks he’s watching.
Watch the interview above for more from Feneck on the resource sector and the companies he’s eyeing.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Forum Energy Metals is a client of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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