Barring a gold price fall, Sabina now has the potential to re-rate its share price and finance the lower-capex Back River, which we believe a major will ultimately snap up.
Commodity investors are always looking for the next bull market but are understandably wary of jumping on the wagon too soon — especially given the pain of the last couple of years.
Supply for the year, however, is expected to increase by 9% to 7.91 million ounces, owing to the recovery in the country’s output following strikes in 2014, as well as increased platinum recycling.