- Randgold Resources (GOLD +4.4%) has risen 7% since Citigroup upgraded shares to Buy on July 24, and the firm reiterates its Buy rating with a $73.96 price target, saying the miner's strong track record and balance sheet will help it outpace gold price concerns over the long term.
- GOLD's Q2 production rose 7% Q/Q to top the 300K oz. mark for the first time, while overall total cash costs of $684/oz. showed a 3% improvement; after re-assessing longer-term assumptions for the Kibali and Loulo mines as well as its valuation of exploration projects, Citi raises its long-term net present value to $56.89 from $55.68.
- Citi says key risks that could prevent the achievement of its new target price include gold price, currency risk and political risk stemming from of the company’s operation in African countries, where power supply remains an issue in some mines.