10:56 AM EDT, 07/17/2024 (MT Newswires) -- National Bank has updated estimates across its precious metals universe ahead of Q2 2024 earnings and highlighted its conviction picks for the quarter, changes in targets and expected near-term catalysts.

The bank increased its second half 2024-2025 prices for gold and silver based on the spot rate as of July 3rd and increased its 2026-2028 price estimates to reflect the elevated trading ranges over the last six months. It has not made any changes to its LT gold price estimate of US$1,700/oz and LT silver price of US$21.00/oz since a Q1 preview.

Precious metal producers are expected to show higher free cash flow, and trending balance sheet improvements, in the second quarter on the back of a "material" quarter-on-quarter increase in gold and silver prices, National Bank of Canada said in a Tuesday note.

The bank said companies that could beat Bloomberg adjusted EPS consensus estimates include Agnico Eagle (AEM.TO), Dundee Precious Metals ( DPMLF ) , MAG Silver ( MAG ) and Lundin Gold ( LUGDF ) .

National Bank expects the adjusted EPS of Allied Gold ( AAUCF ) , Centerra (CG.TO), Endeavour Mining ( EDVMF ) and OceanaGold ( OCANF ) to be below consensus forecasts.

The bank said companies with target price changes of over 10% include ARIS (ARIS.TO), G Mining Ventures ( GMINF ) , Kinross (K.TO), Wesdome Gold (WDO.TO), Pan American Silver ( PAAS ) , Artemis Gold ( ARGTF ) , Dundee Precious Metals ( DPMLF ), New Gold ( NGD ) , Sandstorm (SSL.TO), OceanaGold ( OCANF ), K92 Mining ( KNTNF ) , Lundin Gold ( LUGDF ) and I-80 Gold ( IAUX ) .

National said a number of producers have guided to increasing production levels throughout the year, and thus, it also expects several companies to have higher production QoQ. The bank noted the Mexican peso continued to depreciate, providing a potential tailwind for operators in that region.

"With inflation remaining top of mind, we are looking for commentary on any inflationary pressures that could have a material impact on costs in 2H24 and beyond," the bank said in its second-quarter earnings preview of precious metal companies.