RE: BERENBERG RAISES CENTAMIN5 May 2020 09:52
BUZZ – Metals & Mining: Looking for the right gold exposure – Berenberg
04-05-2020 10:28
* Berenberg says believes gold prices will remain supported at or around current levels for the remainder of the year, but expects plenty of volatility
* The price will eventually find a long-term level below spot (the broker remains at USD 1,350/oz), it adds
* The brokerage splits its gold coverage with equity exposure into three risk-dependent buckets
* Names Polymetal , Centamin and Endeavour Mining (all rated "buy") "something safe" as they benefit from both higher prices and weak oil prices and FX, and expects their valuations to remain at a premium to peers
* Berenberg has Hummingbird and Asanko (both rated "buy") in its second bucket, "something with leverage", as both are highly geared to the gold price
* Suggests Resolute ("buy") and Hochschild ("hold") as candidates for "a re-rate story" category
* The brokerage is more conservative on Hochschild, but says expects news of an operational restart at the company's mines to drive a share price rally