Centamin (DI) (CEY)

Sector:

Mining

Index:

FTSE 250

203.20p
   
  • Change Today:
    -16.20p
  • 52 Week High: 232.10
  • 52 Week Low: 94.44
  • Currency: UK Pounds
  • Shares Issued: 1,155.96m
  • Volume: 9,150,137
  • Market Cap: £2,348.90m
  • RiskGrade: 260

RBC raises Centamin to 'outperform', lowers Hochschild to 'sector perform'

By Iain Gilbert

Date: Thursday 25 Jun 2020

LONDON (ShareCast) - (Sharecast News) - Analysts at RBC Capital Markets upgraded gold miner Centamin to 'outperform' from 'sector perform' on Thursday, stating that a shift in management would likely lower the risk of a move into new projects in West Africa.
RBC thinks that with focus on getting the group's Sukari project back on track, there was now less near-term risk of Centamin looking to build something from its West African exploration portfolio.

"We continue to believe the options there may struggle to stack-up vs. Sukari. Similarly, we expect M&A (acquisitions) to be on the back burner for now, no bad thing given again we see few assets that fit with Sukari," said RBC.

"Whilst we don't expect Endeavour Mining to come back with another offer for CEY near term we do think ongoing consolidation in the global gold space (such as AlacerSSR) indicates a bidder for CEY may materialise in time. Sukari is now one of the few large gold assets outside the majors."

The analysts added that both Martin Horgan's appointment as chief executive and recent board additions were positive for Centamin and stated that, after "two years of operational disappointments", the team's renewed focus will primarily be on delivering on operational targets.

Whilst the Canadian bank, which also raised its target price on the group's shares from 180.0p to 210.0p, understood that the recent departure of a second chief operating officer could be read as "concerning", it actually said a streamlining of management structure could be "a positive".

RBC also took a fresh look at Hochschild Mining, lowering its from 'outperform' to 'sector perform' and dropping its target price on the firm from 220p to 210p.

The analysts said Hochschild had been on the receiving end of the largest negative impact from Covid-19 in Europe, the Middle East and Africa due to the complete closure of its portfolio for a time.

While RBC acknowledged that ramp-ups were "well underway", resource/mine life additions now appeared to be delayed, pushing back part of its investment thesis.

"We model production -16% from previous guidance and note reinstatement of this is still pending," said RBC.

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Centamin (DI) Market Data

Currency UK Pounds
Share Price 203.20p
Change Today -16.20p
% Change -7.38 %
52 Week High 232.10
52 Week Low 94.44
Volume 9,150,137
Shares Issued 1,155.96m
Market Cap £2,348.90m
RiskGrade 260

Centamin (DI) Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
36.01% below the market average36.01% below the market average36.01% below the market average36.01% below the market average36.01% below the market average
94.69% below the sector average94.69% below the sector average94.69% below the sector average94.69% below the sector average94.69% below the sector average
Price Trend
90.90% above the market average90.90% above the market average90.90% above the market average90.90% above the market average90.90% above the market average
60.33% above the sector average60.33% above the sector average60.33% above the sector average60.33% above the sector average60.33% above the sector average
Income
41.07% above the market average41.07% above the market average41.07% above the market average41.07% above the market average41.07% above the market average
30.43% below the sector average30.43% below the sector average30.43% below the sector average30.43% below the sector average30.43% below the sector average
Growth
59.56% below the market average59.56% below the market average59.56% below the market average59.56% below the market average59.56% below the market average
89.66% below the sector average89.66% below the sector average89.66% below the sector average89.66% below the sector average89.66% below the sector average

What The Brokers Say

Strong Buy 7
Buy 0
Neutral 3
Sell 0
Strong Sell 0
Total 10
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Centamin (DI) Dividends

  Latest Previous
  2nd Interim 1st Interim
Ex-Div 13-Aug-20 30-Apr-20
Paid 11-Sep-20 15-May-20
Amount 6.00¢ 6.00¢

Trades for 11-Aug-2020

Time Volume / Share Price
16:35 894,951 @ 203.20p
16:29 34 @ 203.80p
16:29 434 @ 203.80p
16:29 6 @ 203.80p
16:29 5,988 @ 203.60p

Centamin (DI) Key Personnel

CFO Ross Jerrard
CEO Martin Horgan

Top of Page