Despite hating gold mining sector, Citi OKs Goldcorp, Barrick, Newmont


Citigroup is bearish on the gold mining sector but it does prefer some miners to others, namely Buy-rated Goldcorp (GG -0.7%) and Barrick Gold (ABX +0.4%) as well as Neutral-rated Newmont Mining (NEM +0.8%).

Citi sees GG as one of the few large gold producers set to deliver meaningful low-cost production growth over the next several years, and management continues to expect positive free cash flow beginning in Q4 at $1,200/oz. gold; the firm thinks ABX is in a better position to manage free cash generation after divesting high-cost assets, focusing on cost reductions and dialing back major project spending; NEM expects to generate positive free cash flow in 2014 at $1,250/oz. gold and has done a good job managing costs and dialing back capex.

The firm slaps Sell ratings on Gold Fields (GFI -0.7%), Harmony Gold (HMY +1.1%) and Sibanye Gold (SBGL +1%).

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Comments (6)
  • bill h illify
    , contributor
    Comments (117) | Send Message
     
    ABX and NEM....eesh...good luck C...
    29 May 2014, 10:52 AM Reply Like
  • james.
    , contributor
    Comments (1314) | Send Message
     
    "bill h illify", you must remember to "Buy your straw hats in the winter!" ! NEM is up $0.48 today to $23.96 , making highs on the day as we speak ! The Citi recommendation to BUY NEM at 10:37 a.m. EDT today did drive NEM up above crucial resistance, thus yielding a BUY SIGNAL basis technical indicators such as Stochastics, etc.. May 27, 2014 was the Panic Bottom in Gold price, according to a number of indicators. So you are now missing the opportunity of a lifetime, as Gold price is now rising up on its 3rd Leg Super Cycle to all-time new highs of $2700 per oz circa July 2015. The Double-Bottom of $1186 per oz on Dec 2013 did conclude the classical 50% correction to the 2nd Leg Super Cycle. 12 Ukraine soldiers riding in a Helicopter to reinforce their position, including their top General , did perish today in east Ukraine, as a portable antiaircraft missile fired by Russian Separatist did shoot it down! May they rest in peace. May 29, 2014 at 9:48 a.m.
    29 May 2014, 12:52 PM Reply Like
  • penciltucky1
    , contributor
    Comments (10) | Send Message
     
    With ya James. These stocks have been over-battered if that's a word.
    29 May 2014, 01:48 PM Reply Like
  • 26175913
    , contributor
    Comments (15) | Send Message
     
    Maybe you know this but George Soros, hate him though I may, just took a 6,300,100 share position in Barrick Gold Corp and I'm guessing he's done his homework!
    29 May 2014, 03:27 PM Reply Like
  • WHN_fan
    , contributor
    Comments (118) | Send Message
     
    Inflation is here and it's only going to get worse. I don't care what the government says. Hard assets is where I"m investing. I've been buying gold, gold stocks and nickel. Been buying a little exploration company called Westhaven http://bit.ly/LBSYcN that's run by a Canadian Hall of Fame Mining Legend and just made a nickel discovery in Canada. Great people and great location. Also been buying gold GLD on the dips. Dollars not going to be around forever.
    31 May 2014, 12:50 AM Reply Like
  • Stock Market Mike
    , contributor
    Comments (3512) | Send Message
     
    Inflation? What are you talking about? There's only 2.3% inflation.

     

    Rent: +6.0% y/y
    Bacon: ~20% rise in ~6 months
    Beef: Same
    Chicken: Same
    Oil: > 10% rise in ~6 months
    etc.

     

    Don't be confused, though - your costs of living going up 10% this year are not inflation. Listen to the experts.

     

    -Mike
    3 Jun 2014, 02:55 PM Reply Like
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