Canaccord bullish on top gold miners, says problems already priced in


Canaccord Genuity believes top gold and silver miners have priced in the challenging environment and sees the group returning 22%, as it initiates coverage of Goldcorp (GG +4.2%), Tahoe Resources (TAHO +3.2%), IAMGOLD (IAG +5.9%), Silver Wheaton (SLW +3.8%) and Yamana Gold (AUY +2.3%) with Buy ratings.

The firm views GG as the quality leader in the group with a discount valuation and numerous potential re-rating catalysts.

In predicting ~40% upside in TAHO shares, the firm notes the miner is commissioning its best-in-class Escobal silver project and all indications point to a smooth ramp-up and positive risk re-rating.

Eldorado Gold (EGO), Agnico Eagle Mines (AEM), Kinross Gold (KGC) and Barrick Gold (ABX) are given Hold ratings.

ETFs: GDX, GDXJ, GLDX, PSAU, NUGT, DUST, GGGG, RING.

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Comments (2)
  • Guy Judkowski
    , contributor
    Comments (126) | Send Message
     
    aem and gg showed some decent cost controls this quarter

     

    it is also encouraging that oil prices are going down though i have to admit that i am not sure whether WTI or Brent crude is more relevant to monitor when tracking miner's energy costs (any thoughts?)
    24 Oct 2013, 05:00 PM Reply Like
  • UncleSam187
    , contributor
    Comments (231) | Send Message
     
    Yeah man. I was happy with GG.
    And AEM surprised me. My cost was 25, and sold at 30.25 intraday. Hopefully that wasn't a mistake.

     

    Not sure on oil costs, but it still seems expensive! I think the gold/oil ratio will rise because gold will go up rather than oil going down.
    25 Oct 2013, 12:39 AM Reply Like
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