Strategists at UBS expect the gold price to moderate to US$1600/oz by the end of 2022. The long-term real gold price estimate is lifted to US$1,500/oz from $US1,300/oz, due to rising production costs.
A Buy rating is retained for Newcrest Mining. The broker points out the company is embarking on a heavier reinvestment cycle, is more aggressive on M&A and has promised more growth than its global peers as have Evolution Mining and Northern Star Resources. The $27 target price is unchanged.
Sector: Materials.
Target price is $27.00.Current Price is $23.17. Difference: $3.83 – (brackets indicate current price is over target). If NCM meets the UBS target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
