Morgans notes interest in the gold sector has returned on global inflation fears, with the Australian dollar gold price benefiting from a rise in the US price and a flat local currency. However, concerns over rising costs of production has left some investors cautious.
Newcrest Mining is the broker’s favourite among the big-caps with market-leading annual production and long-term plans to reduce costs towards US$500/oz.. The Add rating and $30.43 target price are maintained.
Sector: Materials.
Target price is $30.43.Current Price is $25.44. Difference: $4.99 – (brackets indicate current price is over target). If NCM meets the Morgans target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
