Valuation: Looking for a strong year The reported production and guidance suggest that our 2012 earnings forecast is too conservative (our model yields c US$500m in EBITDA, if we use the actuals), while the risk to 2013 earnings lies on the downside. We nevertheless believe it is premature to review our forecasts as the company seems to be overly conservative in its outlook. We therefore maintain our DCF-derived target price of US$6.8/GDR. Apart from the uncertainty surrounding the Buryatzoloto performance, low liquidity remains the major constraint for the stock, which trades at a considerable discount to peers.
Valuation: Catching up with peers Although disappointed by the muted share price reaction to news, we are positive about the company’s ability to deliver on its growth plans, which is a key element of its investment case. At 3.6x 2013e EV/EBITDA, the stock looks cheap relative to its peers, which are trading at a weighted average multiple of 6.5x. Despite the moderate downside risk to consensus, which appears to be already priced in, we believe the stock is past the trough and should be supported going forward by the positive earnings momentum driven by the expansion and operating turnaround. Our DCFderived valuation of NORD is US$6.8/share and based on an 11% WACC and a flat US$1,676/oz gold price. It implies 65% total return.
High River Files Technical Reports for Berezitovy and Burkina Faso Properties http://finance.yahoo.com/news/high-river-files-technical-reports-210032467.html Without HRG, Nord is a joke.
8 Apr '12
Optare tip guys
Ope ... Guys a good share tip here. Buy in now...very soon an update is to be released here at these prices is a bargain at 0.60! The news is due very soon we could be expecting to hit 3.6p 6p and 10p. These are official predictions here is the link markets.ft.com/research/Markets/Tearsheets/Forecasts?s=OPE:LSE last week we hit 0.95 without news so imagine once we do get the news! Please have a look. Worth a punt at these prices as news due anytime soon! Dyor though please
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