Could these ASX 200 mining stocks be set to soar? Motley Fool3 Feb 2023 12:56
OK, before anyone says anything about Motley Fool...this is not about Motley Fool, but about who & what they quote, as follows...Also, this is Motley Fool Australia, which, IMHO, is far better than the UK version anyway.
Up first, we have Newcrest Mining Ltd (ASX: NCM).
The ASX 200 mining stock has a market cap of $20.7 billion and pays a trailing dividend yield of 1.8%, fully franked.
The Newcrest Mining share price is up 9.6% in 2023, currently trading at $22.63 per share.
In the December quarter, Newcrest produced 512,000 ounces of gold at an AISC of $1,082 per ounce. That compares to the current gold price of AU$2,709.
Newcrest was recently upgraded by Morgans to an add rating with a $25.70 price target. That’s 13.8% above the current price.
According to the analysts at Morgans:
We see a dependable production and earnings base from which NCM can ride recovering gold and copper prices. Trailing its smaller gold peers, we see an emerging value proposition on offer in NCM, which benefits from mine diversification, solid margins, and long-life reserves.
James Rutledge, portfolio manager of Perpetual’s Pure Value Fund, is also bullish on the ASX 200 mining stock.
Addressing Newcrest shares, Rutledge said (courtesy of The Australian Financial Review):
The performance of the stock will no doubt be dictated by the performance of the gold price, but we see further upside to the stock as the market starts to appreciate Newcrest’s increasing exposure to copper, as well as their potential growth opportunities.
Perpetual believes investors are underappreciating Newcrest’s growth projects.
“Over the remainder of FY23, the release of studies on several growth projects such as at Havieron and Brucejack should see the market start to price in this growth,” he said...
https://www.fool.com.au/2023/02/03/the-gold-price-is-near-9-month-highs-could-these-asx-200-mining-stocks-be-set-to-soar/
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