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Peel Hunt initiates Centamin at 'hold'

By Michele Maatouk

Date: Friday 22 Mar 2019

Peel Hunt initiates Centamin at 'hold'

(Sharecast News) - Peel Hunt initiated coverage of gold miner Centamin at 'hold' with a 95p price target on Friday, saying it sees a production recovery at the Sukari mine starting in the second quarter, but with an increased year-over-year cost base.
"We think greater visibility is still needed on the medium-term Sukari production and cost profile to get investors back into the stock," it said.

"Our dividend yield forecast of 4.5% is one of the more attractive amongst the gold producers under coverage and we see potential upside to this forecast by 2020 based on surplus cash generation."

The broker also said it sees a good chance of Centamin's Doropo project in Cote d'Ivoire moving from exploration into development should preliminary economic assessment economics prove favourable.

"Ultimately, we see Centamin as fairly valued on a 2019 basis, with modest upside to our 2020 valuation. We remain cautious on the stock for now," it said.

At 1510 GMT, the shares were up 0.3% at 92.08p.


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