Gold Miners Poised For Boom As Analyst Predicts 'Record Levels Of Free Cash Flow' Despite Price Dip: 'Golden Age Of Mining'

Despite the falling gold prices after the stock market rebound, the gold mining companies are poised for growth as this expert highlights “record levels of free cash flow” for these companies over the next two years.

What Happened: The Macro Strategist at Crescat Capital, Otavio Costa, has underscored the data for the two-year forward free cash flow estimate for gold mining companies, highlighting the possibility of strong fundamental growth.

According to a chart shared by him, the free cash flow estimates of these companies surpass the expectation of the gold price level by the Philadelphia Gold & Silver Exchange by 2027.

“Despite the recent pullback in gold, mining companies remain positioned to deliver record levels of free cash flow in the current environment,” he said in an X post.

This comes as the Gold Spot US Dollar fell 1.02% to hover around $3,145.09 per ounce during the publication of this piece. It was much lower than its recent record high of $3,500.33 per ounce.

“I've always found it compelling when prices of an asset decline even as fundamentals improve,” said Costa, adding that “Investors are gradually beginning to grasp the magnitude of what's unfolding, but in my view, we've already entered the Golden Age of Mining.”

See Also: Warren Buffett Shows How Patience Pays: 98% Of His $160 Billion Wealth Came After Turning 65, Thanks The Power Of ‘Compound Interest'

Why It Matters: Here’s a list of some gold mining stocks that investors could consider as experts peg a possibility of higher cash flows in the future.

Price Action: The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, ended higher on Wednesday. The SPY was up 0.13% to $587.59, while the QQQ advanced 0.60% to $518.68, according to Benzinga Pro data.

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