RBC Capital Markets Hosts Annual Gold Conference with Sector's Leading Firms and Investors

 

LONDON, 13 November 2008 - RBC Capital Markets, the corporate and investment banking arm of Royal Bank of Canada (RY on TSX and NYSE), today held its annual Gold Conference in London.  The conference brought together senior executives from the industry's leading exploration, mining and production companies, together with institutional investors from across the world.

Speaking at the conference, Stephen D. Walker, Head of Global Mining Research, RBC Capital Markets said: "While we recently lowered our expectations for gold prices over the next few years, as the global economy slows, we remain very positive on the outlook for gold.   RBC Capital Markets' global mining research team sees the potential for gold to rally through $900 per ounce in the first half of 2009.  We believe that the gold market should begin to price in a recovery in the global economy, and with that recovery, an increase in inflation expectations, particularly given the enormous amount of monetary and fiscal stimulus being applied by central banks."

Leon Esterhuizen, Equity Analyst, RBC Capital Markets said: "The current financial crisis has delivered the perfect conditions for gold to rise over the next year or two.  Europe will converge with the US in terms of cutting rates, strengthening the case for an extended period of rock-bottom real rates.  Oil could play a key role, as recent efforts by producers to reduce output may leave oil prices higher than many expect.  If this is the case, inflation will most certainly be rising in an environment where rates are being cut. This is gold price heaven - declining real rates or even negative real rates will drive the gold price much higher."

Among the speakers sharing insights at RBC Capital Markets' Gold Conference was Alex Davidson, Executive Vice President of Exploration & Corporate Development at Barrick Gold Corporation who said: "Barrick is well-positioned in the current uncertain economic environment with the gold industry's highest rated balance sheet, a competitive cost structure and the industry's largest reserves and production.  We continue to be positive about the underlying fundamentals of the gold market and the prospects for Barrick in anticipation of production from three new mines over the next three years.  Buzwagi, Cortez Hills, and Pueblo Viejo remain on schedule and continue to track their respective capital budgets.  Collectively, these new mines are expected to produce almost two million ounces of gold over the first full five years of production at lower costs than Barrick's current portfolio of mines."

Also speaking was Mark Bristow, CEO of Randgold Resources Limited, who said: 'In these stressed times the gold mining space is the place to be, particularly if you can offer profitable growth and have a balance sheet you're able to deliver on. That's what strategic vision is all about."

Commenting on the impact of the company's growth strategy Tye Burt, President & CEO of Kinross Gold Corporation said: "Kinross is delivering on its strategy and commitments as our three major growth projects at Kupol, Paracatu and Buckhorn come into production, increasing total ounces produced while reducing costs, improving margins and strengthening cash flow per share.  With the majority of our spending for growth projects behind us, no exposure to falling base metal prices, and a strong balance sheet, Kinross is exceedingly well positioned to navigate the current difficult global economic environment."

Speaking on AngloGold Ashanti's new direction Mark Cutifani, CEO said: "Our aim is to become the most profitable company in the business, achieving returns on capital employed of at least 15% in the medium term."

Other speakers sharing insights at the conference were Goldcorp Inc, Franco-Nevada Corporation, Agnico-Eagle Mines, AngloGold Ashanti, Yamana Gold Corporation, Polyus Gold, Centerra Gold, Harmony Gold Mining Company Limited, Polymetal, Great Basin Gold Limited, European Goldfields Ltd, Simmer & Jack Mines Limited, Eldorado Gold Corporation, Gabriel Resources and Banro Corporation.

To access the RBC Capital Markets' Gold Conference webcast please click on http://www.wsw.com/webcast/rbc93/. The webcast will be available until 12 December 2008.

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 Notes to Editors

About RBC Mining & Metals

RBC Capital Markets is a leading adviser and financier to the global mining sector in the primary and secondary markets. Over 70 dedicated mining and metals professionals provide on-the-ground in-depth industry knowledge and execution capabilities (corporate finance, M&A, research, sales and trading) to the world's largest mining and metals companies. RBC has advised on 9 of the 25 largest mining and metals M&A transactions since 2000, representing US$95.3 billion in value, making RBC the leading M&A adviser in the sector.  RBC is also an important lender to the mining industry, with approximately US$8.5 billion of authorised credit in the industry.  RBC's equity research analysts cover more than 80% of the market capitalisation of the world's publicly traded mining stocks.  For more information, please visit www.rbccm.com.

 

About RBC
RBC (RY on TSX and NYSE) is Canada's largest bank as measured by assets and market capitalisation (market capitalisation of C$62 billion as at 12/9/08). RBC is the 5th largest financial institution in North America and ranks among the top 25 banks in the world (#13 as at 31/10/08). RBC has over 75,000 employees globally, serving more than 16 million personal, business, public sector and institutional clients through offices in 47 countries around the world. RBC has a solid liquidity position and is well positioned relative to its peers. RBC's Tier 1 capital ratio of 9.5% is among the highest globally and its senior debt ratings are among the highest  globally: Moody's Aaa (Stable); S&P AA- (Stable); Fitch AA (Stable). RBC was named "2007 Bank of the Year" in Canada by The Banker. RBC has been named the safest bank in Canada and 3rd safest in North America (Global Finance 1999-2007). For more information, please visit www.rbc.com.