Gold miner EVN’s revenue from copper (Cu) increased to 29% in FY24, an industrial metal MM is also a strong fan of in the medium term. However, this quality gold-Cu stock tends to track the precious metal when it comes to its short-term swings: since gold’s 8.5% pullback, EVN has corrected over 15% as the crowded “long gold” complacent positions were squeezed out. While we can see another $US150- 200 downside for gold, it would be surprising for EVN to continue to underperform after the initial knee-jerk move.
- We are keen buyers of EVN if/when gold spikes down another 5%, our best guess is EVN will be sub $7.40 – we don’t intend to be overly pedantic if this occurs.
MM is bullish on EVN medium term
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