Alex Ruus
Centerra Gold Inc
CG-T
PARTIAL BUY
May 28, 2024
It's good to be in gold now, and CG is one of the cheapest gold stocks. They've diversified their portfolio geographically, which is good, but this stock always bounces around.
They have a large, high-grade deposit but their geopolitical risk is very high. In recent years, they've been buying Canadian assets, till they now have a 55% NAV in Canada. Potential turnaround, but watch their balance sheet and generate free cash flow from their Canadian assets.
We have a nice little rounding bottom. It is going to run into resistance just under $8. It has gotten over its moving average at $6.15. It got back into its band, of the last few years, which is quite positive. It looks pretty good, although there are some better names.
He likes CG, because the stock has held up nicely; money is coming in. It isn't pulling back as much as its peers. He has a $9 target. They're executing well by fine management.
Likes their operations in the Kyrgyz Republic and northern Canada. They just reached an agreement in the former to extend their operation and give them cost certainty. They just started production in northern Canada. They're one of the fastest-growing producers in the world. They also mine copper, though he's less crazy about that.
He doesn't like gold, because it's too volatile. CG has good volume, but be careful if this falls below $11--at that point, sell. The overall trend is positive.
They have been trying to diversify their risk away from the Republic. The stock has done very well since gold prices moved up. There is lots of upside potential. Earnings forecasts suggests analysts are getting bullish as gold prices go up. Yield 0% (Analysts’ price target is $13.61)
This is all about free cash flow. He expects them to begin paying a dividend by June. It is trading at 3.9 times cash flow -- half their peer group. They expect a 37% growth in cash flow this year. Their all in cost to produce is $650 per ounce. Yield 0% (Analysts’ price target is $13.34)
He's leery of it. It's cheap on paper, but has ongoing political-social problems at one of their mines. Also, their BC mines have operational problems.
(A Top Pick Feb 07/20, Up 28%) Still on track for production. They will probably continue to do well. Still good upside for the company. The company trades at a discount due to its geographic location. Well-ranked by model.
Your Watchlist
Add stocks to watchlist to monitor them daily and get important alerts.
It's good to be in gold now, and CG is one of the cheapest gold stocks. They've diversified their portfolio geographically, which is good, but this stock always bounces around.