Americas Metals &Mining:Precious 2Q17preview Higherproduction despite some setbacks

Higher QoQ gold price and production expected

    In this note we outline our 2Q17estimates for Precious Metals companiesunder coverage forecasting aggregate EBITDA increasing 4% QoQ to $2.7bn,assisted by a 3% higher gold price. Although we expect production to haveimproved vs 1Q17, operational volatility increased, such as in Tanzania,Veladero and Lucky Friday. 2Q17sector Net Debt (ND) forecast at $10.3bn (-7% QoQ). We expect ND to annualized EBITDA to decrease to 0.9x. Wemaintain Buys on Newmont, Barrick, Wheaton Precious Metals and PanAmerican Silver.