Andrew Kaip, managing director of mining equity research at BMO Capital Markets, says the stark reality is that the precious metals sector is only part way through a down cycle and that structural issues will result in a fresh phase of consolidation. He adds that the small to intermediate producers will lead the consolidation charge. In this interview with The Gold Report, Kaip suggests some suitors and prime acquisition candidates.
The Gold Report: In late November, BMO Chief Economist Doug Porter warned that interest rates could move higher sooner rather than later in 2015. What’s your 2015 outlook for gold given that information?