Rising silver and gold prices? Still not good enough, says mining analysts

By: Neils Christensen

(Kitco News) – A strong third-quarter performances within the gold mining sector should help to attract some investment attention, but more work needs to be done, according to one Canadian bank

In a report published late Wednesday, analysts at BMO Capital Markets said mining companies need more than just higher precious metals prices to attract investors; companies need to continue to show their commitment to creating value.

“We expect Q3 piqued some interest from generalist investors, but in our view it will take more than one quarter of positive momentum to make a trend. Returns to investors, whether through dividends or share repurchases, will increasingly come into focus,” the analysts said. “Let’s be clear, the investing landscape has evolved rapidly to the point where gold miners are now being compared with the broader materials sector. Investors need more than a rising gold and silver price to invest in the sector over a sustained period.”

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