“Gold Equities Closing the Gap on Bullion”
Analysts at Dundee Securities upgraded their outlook for the gold stocks sector on Monday and raised their price targets on a host of gold mining companies.
In its report, the firm wrote that “For the second consecutive quarter, we are bullish on the prospects for precious metals, and even more so for precious metals equities. We have highlighted in recent notes that there is a strong case to be made that the price of gold will approach and surpass the US$2,000/oz level, and that over the next six months the high quality names under coverage should push through their 52-week highs.”
(For more commentary from Dundee and its full list of price target changes, visit GoldAlert Pro at http://pro.goldalert.com )
The firm went on to say the following:
- “Barrick Gold (ABX) remains our Top Pick in gold equities at the moment. We believe Barrick has an exceptional asset base that offers stable production at competitive costs and is undervalued relative to its peers on a 2013E P/E and P/CF basis.”
- “We favour Goldcorp (GG) for its low-cost production base, seasoned management team and noteworthy growth profile.”
- “In the intermediate space, Agnico-Eagle Mines’ (AEM) operational performance year-to-date has been stellar. In turn, we expect the market will continue to reward the company for its production stability.”
- “In the small producer universe, we favour both Alamos Gold (AGI.TSX) and San Gold (SGR.TSX). We like Alamos for its reliable, low-cost operations and for the immediate production growth coming with Escondida. Its development projects in Turkey are expected to represent its next source of growth. San Gold, in our opinion, is an undervalued gold producer with throughput at its Rice Lake mine showing steady improvement.”
2012-10-22 13:55:24
Source: http://www.goldalert.com/2012/10/gold-equities-closing-the-gap-on-bullion/
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