Alacer Gold’s second-quarter report beat Macquarie’s estimates on production, costs, and revenue (up 48%), but missed on net profit after tax (-13%) thanks to a – US$16.9m impairment.
Gold production outpaced the broker by 12%, but oxide production outpaced by 42%. Costs proved a 9% beat. Net debt fell sharply.
Earnings-per-share estimates rise roughly 2% for 2019 and 6% in 2020, before falling -3% to -8% in later years.
Target price rises to $6 from $5.80. Broker downgrades to Underperform from Outperform to reflect the recent share price rally.
Sector: Materials.
Target price is $6.00.Current Price is $6.24. Difference: ($0.24) – (brackets indicate current price is over target). If AQG meets the Macquarie target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
