UPDATE 1-Genuity Capital starts 11 Canadian gold producers
Tue Sep 23, 2008 8:25am EDT
reuters.com
(Recasts, adds details)
Sept 23 (Reuters) - Genuity Capital initiated coverage of
11 Canadian gold producers, saying it expects gold equities to
have a 31 percent return over the next 12 months.
"Continued deleveraging and unwinding of the short
dollar/long commodities trade represent the strongest headwind
for gold over the near term," said analyst Tony Lesiak in a
note to clients.
Among senior gold producers, Lesiak said his top picks were
Barrick Gold Corp (ABX.TO: Quote, Profile, Research, Stock Buzz), the world's largest gold producer,
and Goldcorp (G.TO: Quote, Profile, Research, Stock Buzz), while Yamana Gold Inc (YRI.TO: Quote, Profile, Research, Stock Buzz), Northgate
Minerals Corp (NGX.TO: Quote, Profile, Research, Stock Buzz) and Iamgold Corp (IMG.TO: Quote, Profile, Research, Stock Buzz) were his top
picks among the intermediate gold producers.
"Gold's role as a safe haven against geo-political and
financial risk was recently displayed during the U.S. financial
crisis. Strong physical gold demand has also returned," said
Lesiak.
"The recent collapse in gold equity valuations has been
more severe than expected, given the historic leverage to gold,
with many producers now trading at historically low valuation
multiples," he said.
The following are the ratings and price targets by Genuity
on the Canadian Gold Stocks:
(figures
in C$)
Company Name Rating Price Target
Share Price*
Barrick Gold Corp (ABX.TO: Quote, Profile, Research, Stock Buzz) Buy 54.00
39.61
Goldcorp (G.TO: Quote, Profile, Research, Stock Buzz) Buy 48.00
37.89
Kinross Gold Corp (K.TO: Quote, Profile, Research, Stock Buzz) Buy 22.00
18.36
Agnico-Eagle Mines Ltd (AEM.TO: Quote, Profile, Research, Stock Buzz) Hold 75.00
68.32
Alamos Gold Inc (AGI.TO: Quote, Profile, Research, Stock Buzz) Hold 7.00
7.49
Eldorado Gold Corp Ltd (ELD.TO: Quote, Profile, Research, Stock Buzz) Hold 9.00
8.00
Gammon Gold Inc (GAM.TO: Quote, Profile, Research, Stock Buzz) Hold 9.50
9.10
Golden Star Resources Ltd (GSC.TO: Quote, Profile, Research, Stock Buzz) Hold 2.00
1.81
Iamgold Corp (IMG.TO: Quote, Profile, Research, Stock Buzz) Buy 9.50
6.35
Northgate Minerals Corp (NGX.TO: Quote, Profile, Research, Stock Buzz) Buy 2.75
1.67
Yamana Gold Inc (YRI.TO: Quote, Profile, Research, Stock Buzz) Buy 14.50
11.00
*(Closing price on Monday, Sept 22)
(Reporting by Arup Roychoudhury in Bangalore; Editing by
Amitha Rajan) (arup.roychoudhury@thomsonreuters.com; within
U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters
Messaging: arup.roychoudhury.reuters.com@reuters.net)) |
