RBC Capital Markets said Wednesday that the first quarter represents a seasonally weak period for operating results of gold equities.
According to RBC, the market is expected to focus on forward-looking statements on the impact of higher gold and energy prices to costs, as well as emerging inflationary pressures.
"Although we expect no formal cost guidance revisions across our coverage, commentary on potential changes into mid-year updates could present surprise risk," RBC said.
RBC said Alamos (AGI.TO), Barrick Mining (ABX.TO), Eldorado Gold (ELD.TO), G Mining (GMIN.TO), SSR Mining (SSR.TO) and Wheaton Precious Metals (WPM.TO) have outlined materially softer first quarter.
RBC said companies with key upcoming deliverables into the first quarter include B2Gold (BTO.TO), Barrick, Alamos, Agnico Eagle (AEM.TO), Centerra (CG.TO), Franco Nevada (FNV.TO), Iamgold (IMG.TO), K92 (KNT.TO), Kinross (K.TO), Lundin Gold (LUG.TO), Orla Mining (OLA.TO), OR Royalties (OR.TO) and Wesdome (WDO.TO).
According to RBC, gold equity valuations at spot have expanded in recent weeks, but are still reasonably attractively valued.
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