Geomechanics.io

  • Free Tools
Sign UpLog In

Geomechanics.io

Geomechanics, Streamlined.

© 2026 Geomechanics.io. All rights reserved.

Geomechanics.io

CMRR-ioGEODB-ioHYDROGEO-ioQCDB-ioFree Tools & CalculatorsBlogLatest Industry News

Industries

MiningConstructionTunnelling

Company

Terms of UsePrivacy PolicyLinkedIn
    Projects

    Gold selloff and BofA outlook: valuation takeaways for mine project teams

    June 25, 2026|

    Reviewed by Tom Sullivan

    Gold selloff and BofA outlook: valuation takeaways for mine project teams

    First reported on MINING.com

    30 Second Briefing

    Gold’s drop below $4,000/oz., including a 2.5% fall on Wednesday, has led Bank of America to scale back its near-term target from a previously touted $6,000/oz. by next spring as markets price in a 70% chance of a US rate hike by September and an almost certain move in December. BofA still sees structural support from US fiscal deficits and de-dollarisation, citing a survey where nearly three-quarters of central banks expect lower dollar reserves within five years. Its P/NAV analysis shows gold miners discounting the metal at $3,354/oz. on average, with implied prices ranging from $2,416/oz. at Franco-Nevada to $4,395/oz. at Wheaton Precious Metals.

    Technical Brief

    • BofA’s P/NAV screen assumes an average in-situ gold value of $3,354/oz. across covered miners.
    • That implied $3,354/oz. valuation equates to a 19% discount to prevailing spot at note publication.
    • Sector dispersion is wide: Wheaton Precious Metals screens richest, with an implied $4,395/oz. gold price.
    • Franco-Nevada screens most conservative, with an implied long-term gold price of only $2,416/oz.
    • Central bank survey cited shows nearly 75% expecting “moderate or significantly lower” dollar reserve shares in 5 years.
    • Retail gold exposure is estimated at just 5.5% of combined equity and fixed-income holdings.
    • Market-implied Fed probabilities show ~70% odds of a September rate hike and near-certainty for December.

    Our Take

    Bank of America features repeatedly in our recent gold-price coverage, including the March 2026 spike above $5,400/oz on Middle East conflict, so its current call on upside for gold miners will be read against a backdrop of highly event‑driven price action rather than purely macro‑driven moves.

    The 19% implied discount to spot and the low 5.5% retail gold allocation suggest listed producers and royalty names such as Wheaton Precious Metals and Franco‑Nevada could see disproportionate equity re‑rating if even a small portion of generalist capital rotates into the sector over the next five years.

    Codelco’s three‑ to four‑month investment review window, flagged alongside gold commentary, underlines how copper supply decisions in Chile can lag rapid shifts in US rate expectations; this timing mismatch can keep copper‑linked equities more volatile than the underlying long‑term demand story captured in our broader copper coverage.

    Geotechnical Software for Modern Teams

    Centralise site data, logs, and lab results with GEODB-io, CMRR-io, and HYDROGEO-io.

    No credit card required.

    • Save and export unlimited calculations
    • Advanced data visualisation
    • Generate professional PDF reports
    • Cloud storage for all your projects

    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

    Related Articles

    PLS Pilgangoora 22-sorter TOMRA contract: process design notes for engineers
    Mining
    about 8 hours ago

    PLS Pilgangoora 22-sorter TOMRA contract: process design notes for engineers

    TOMRA Mining has secured a contract from Pilgangoora Operations Pty Ltd, a PLS Group subsidiary, to supply 22 sensor-based ore sorters for the P2000 Expansion Project at the Pilgangoora lithium operation in Western Australia. The installation is part of PLS’ pre-Final Investment Decision early works, signalling commitment to large-scale sorting ahead of full project sanction. For process engineers, the move points to increased reliance on front-end sensor-based separation to upgrade run-of-mine feed and manage lithia grade variability before downstream concentration.

    Macmahon’s 42‑month Telfer Gold Mine extension: planning notes for project teams
    Mining
    about 8 hours ago

    Macmahon’s 42‑month Telfer Gold Mine extension: planning notes for project teams

    Macmahon Contractors has secured a 42‑month extension to provide contract mining services at Greatland Resources’ Telfer Gold Mine in Western Australia, valued at A$485 million over the term. The deal locks in a multi‑year mining services pipeline at one of the state’s major gold operations, supporting continuity of fleet deployment, workforce planning and site-based maintenance. Contractors and suppliers can expect sustained demand for open-pit and underground support services, consumables and rebuilds tied to Telfer’s existing mine plan.

    Metso–Valmet Flowrox pump deal: slurry circuit implications for mine engineers
    Mining
    about 8 hours ago

    Metso–Valmet Flowrox pump deal: slurry circuit implications for mine engineers

    Metso has agreed to acquire Valmet’s Flowrox™ peristaltic hose pump and progressive cavity pump technologies, including associated spare parts and service capabilities, targeting abrasive and chemically aggressive slurry duties in mining and minerals processing. The deal adds positive displacement options alongside Metso’s existing slurry and submersible pump lines, enabling tighter process control in applications such as thickener underflow, filter feed and reagent dosing. For operators, the integration should simplify lifecycle support and parts standardisation across critical slurry handling circuits.

    Related Industries & Products

    Mining

    Geotechnical software solutions for mining operations including CMRR analysis, hydrogeological testing, and data management.

    CMRR-io

    Streamline coal mine roof stability assessments with our cloud-based CMRR software featuring automated calculations, multi-scenario analysis, and collaborative workflows.

    HYDROGEO-io

    Comprehensive hydrogeological testing platform for managing, analysing, and reporting on packer tests, lugeon values, and hydraulic conductivity assessments.

    GEODB-io

    Centralised geotechnical data management solution for storing, accessing, and analysing all your site investigation and material testing data.

    AllGeotechnicalInfrastructureHazardsEnvironmental