Gold Equities Quietly Outperform as Fundamentals Strengthen

Authored by Schroders’ Metals Fund team, this report analyzes why gold equities remain attractive despite strong recent gains.

• Margins vs. Valuations: Producer cashflow margins are at record highs, yet equities trade at discounts to NAV, with EV/EBITDA multiples still near the bottom of five-year ranges.

• Balance Sheets: Companies are deleveraging rapidly, shifting from net debt to cash, supporting higher dividends and buybacks.

• Investor Flows: Western investors remain cautious; participation lags despite central bank and Asian demand driving the secular gold bull market.

What could renewed Western inflows mean for valuations ahead? Read the full report for deeper insights