Post says Yamana upgraded on higher bullion prices
2010-01-21 09:28 ET - In the News
The Financial Post reports in its Thursday edition that new and improved forecasts for gold, silver and copper will bolster upside in Yamana Gold shares over the next year, says Dundee Securities analyst Ron Stewart.
The Post's David Pett, writing in Trading Desk, says Mr. Stewart upgraded Yamana to "buy" from "neutral," raising his price target on the miner 50 cents to $14.50. "We recommend investors consider YRI as a relatively stable and liquid precious metal equity based on the current outlook," the analyst said.
The update comes in the wake of Dundee's revised metals forecast that now anticipates gold bullion to average $1,200 per ounce in 2010 versus its previous estimate of $1,065 and $1,325 per ounce in 2011, up from $1,000 (all metal prices in U.S. dollars).
Silver prices are expected to hit $20 this year and $22 in 2011, up from prior forecasts of $17.50 and $16.50, while copper price expectations increased to $3.25 per pound from $3 in 2010 and to $3 from $2.75 in 2011. Mr. Stewart also raised his recommendation on Goldcorp Inc. to "buy" from "neutral."
He said, "Given the increase in our valuation and the recent dip in the share price, we now consider [Goldcorp] to be undervalued."
Globe says Yamana, others top ranking at Sentry Select
2010-01-19 09:32 ET - In the News
See In the News (C-IMG) Iamgold Corp
The Globe and Mail reports in its Tuesday, Jan. 19, edition that Sentry Select Precious Metals Growth manager Kevin MacLean sees opportunity in Iamgold and other gold miners.
The Globe's Shirley Won writes in the Number Cruncher column that Mr. MacLean invests in companies that have what he calls a "high wealth-creation yield."
He says, "These are companies that are adding to their reserves and resources at very meaningful rates relative to the size of the company, and have a high cash-flow yield." He shies away from miners during the construction phase because of concerns about things going wrong. Mr. MacLean sees gold rallying for the next few years.
He says the gold market does not need a weak U.S. dollar to rise because the supply of gold has been declining for a decade now.
"This is a commodity, which has had a persistently declining supply, and now the central banks have backed away from selling it. We are at the lowest level of supply in at least 15 years." Top holdings in Mr. MacLean's Sentry Select Precious Metals Growth fund are Iamgold, Yamana Gold, Jaguar Mining, Allied Nevada Gold, Alamos Gold and Aurizon Mines.
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