Argonaut spreads the love among local goldies
Argonaut believes all of WA’s ASX-listed gold miners will reap the rewards of a new price peak for the precious metal, but the stockbroker has singled out Westgold Resources as the biggest winner of the surge.
In a note to clients Argonaut analysts Hayden Bairstow and Patrick Streater raised its share price predictions for gold producers in the State by between 3 per cent and 8 per cent, in light of the commodity’s spot price reaching a new record at $3270 per ounce.
Westgold’s price target was raised by 8 per cent to $2.70, three percentage points ahead of its nearest rival.
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By continuing you agree to our Terms and Privacy Policy.But while Mr Bairstow and Mr Streater said that Westgold offers the greatest valuation leverage to rising gold prices, the Wayne Bramwell-led miner is still not one of their hottest picks.
“Our key preferences remain Genesis Minerals, Ramelius Resources and Capricorn Metals, with all three stocks offering key near-term catalysts on production outlooks and project approvals,” they said.
The price target for Capricorn was bumped up by 3 per cent to $6.20, Genesis by 4 per cent to $2.50 and Ramelius by 5 per cent to $2.
Northern Star Resources is the pick of the bunch at the bigger end of town, according to the analysts.
The gold price reached surpassed its previous zenith on the back of growing speculation the United State Federal Reserve will cut interest rates in June as inflation cools off.
Ongoing conflicts between Israel and Palestine, as well as Russia and Ukraine, have created a backdrop of global instability that has also buoyed gold’s attractiveness as a safe haven investment.
