April 18, 2019 / 10:47 AM / 6 months ago

BUZZ-Canadian precious metal miner: Misses, beats to drive shares in Q1

** National Bank of Canada believes misses and beats, rather than positive general business updates, will drive underperformance and outperformance of share prices in Q1

** Continues to model long-term (2023+) gold price at $1,350/oz based on a 15% premium to the weighted-average all in sustaining costs of the top 10 gold producers

** Upgrades OceanaGold Corp to “outperform” from “sector perform” on a valuation basis

** Oceana should have stronger H2, partly thanks to Haile gold mine ramping up, benefitting from newly installed fine grinding circuit and as replacement of the mining fleet with bigger and more efficient equipment should help lower unit mining costs and increase mine’s performance

** Says cautious on Oceana’s Q1 earnings results as flagship Haile could report a soft start to the year due to heavy rains into January

** 6 of 8 brokerages rate the stock “buy” or higher, 2 “hold”; their median PT is C$5.13

** Downgrades Yamana Gold to “sector perform” from “outperform”; cuts PT to C$3.75 from C$5.00

** Says Chapada copper-gold mine sale reduces financial leverage concerns, changes FCF profile, potentially raises M&A risk, moves Yamana into a pure precious metals play and improves co’s political risk profile

** 11 of 17 brokerages rate the stock “buy” or higher, 4 “hold” and 2 “sell”; their median PT is C$4.50 (Reporting by Arathy S Nair)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below