(Sharecast News) - Analysts at Cannacord Genuity reiterated their 'buy' recommendation and 16.0p target price on shares of gold miner Petropavlovsk thid quarter sales and production data.
With nine-month gold sales up by 24% on the previous year's level a 351,400/oz. and own mine sales of 342,600/oz., the broker said that the company's forecast for full-year own mine sales of 450,000-500,000oz was "readily achievable".
However, "harder to determine, is the ramp-up of sales from third-party concentrates, particularly since these are likely to be batch-treated," analyst Nich Hatch said in a research report sent to clients.
Year-to-date and for the third quarter, Petropavlovsk had only produced 13,100/oz. of gold from third party concentrates, versus the 100,800/oz. that had penciled-in for the year.
"Overall, however, we see this as a significant additional revenue generator for the group. We will review our forecasts in light of today's release and positive recent revisions to CG's gold price deck."
12 Oct 2022 15:57