CNMC: KGI initiated on the counter with a Buy and TP of $0.48.
- Cited CNMC is a severely undervalued gold producer with a proven track record.
- Lowest cost gold producer with rising profits, with average realised price of US$1,156/ozt in 1Q16, vs all‐in‐sustaining cost of US$474/ozt.
- KGI expects CNMC to pay dividends of at least 0.945¢, implying a yield of 3%.
- TP of $0.48 is based on a P/E valuation of 9.3x, which is still at a 61% discount to its junior gold mining peers.
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