North America gold sector attractive, but not compelling - Citi

Golconda Gold

29/08/2018 12:02

** Citigroup remains "neutral" on North America gold sector,
says while gold price risk is skewed to the upside, brokerage
still struggles to see compelling value
    ** Brokerage Calls Kestrel Gold  KGC.N , Goldcorp  GG.N  and
Barrick Gold  ABX.N  "turnaround stories"; Says GG is poised to
outperform the sector as it improves operations, execution on
projects
    ** Upgrades Barrick Gold to "neutral" from "sell," says
stock appears to be nearing a bottom and has potential to
outperform; Cuts PT by $1 to $12 on ABX, which still implies
upside of ~13 pct to stock's last close
    ** Citi also cuts PT on Agnico Eagle Mines  AEM.N  by $7 to
$38 vs median PT of $55, saying does not see upside at the
current valuation, which is at a premium to peers
    ** Adds, though Newmont Mining  NEM.N  is de-facto proxy on
gold sector for US investors, it does not expect strong
outperformance, cuts PT to $36 from $42 vs median PT of $44
    ** Spot gold  XAU=  was up 0.17 percent at $1,202.91 an
ounce; Citi expects prices to be ~8 pct higher by end of 2018
and 14 pct higher in 2019

 (Reporting by Amy Caren Daniel in Bengaluru)
 ((Reuters Messaging:
Amy.CarenDaniel.thomsonreuters.com@reuters.net))