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Quality stocks with growth hold key to playing 2013 mining space - Numis

Last updated: 13:50 15 Jan 2013 GMT, First published: 14:50 15 Jan 2013 GMT

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City broker Numis suggests picking quality stocks with growth as a way to play the mining space in 2013 with Randgold Resources (LON:RRS) and First Quantum Minerals (LON:FQM) its podium picks.

In the junior gold market, Chaarat Gold (LON:CGH), focused on the Kyrgyz Republic, has the potential to have a great 2013  as it ties up financing needs and moves towards production, notes analyst Cailey Barker.

The broker has lowered its 2013 gold forecasts by 7% to $1,775 per ounce and says it expects a larger rise to come now in 2014.

Its base metals forecasts remain largely unchanged and it has upped its iron ore forecasts up by 25% and says it expects recovered prices to remain high.

"We say goodbye to a tough 2012 and look to 2013 to be a mixed but mildly more prosperous year," says Barker.

"Recent positive economic signals are promising but too early to prove sustainable and we remain cautious but slightly upbeat. We expect gold to remain buoyant but lack real momentum in the face of mixed macro-economic signals and a limited strong catalysts."

For 2013, he sees a market which remains "mining-sceptical", particularly in gold where issues of under-delivery and politics have played a part.

"We expect 2013 to be mixed, with some growth traction and recurring industry issues hogging the headlines. Stock selection will continue to be tough in our view."

It rates Randgold a 'buy' with a target price of £80 and First Quantum Minerals (LON:FQM) also a 'buy' at £16.

Meanwhile, Chaarat is rated 'buy' with a target of 35 pence.

Chaarat Gold makes strong progress with Tulkubash open-pit project in the...

Chaarat Gold Holdings Ltd (AIM:CGH) chief financial officer David Mackenzie joined Proactive's Stephen Gunnion with an overview of the company's operations in the Kyrgyz Republic, where it is advancing two significant projects on the same license: Tulkubash and Kyzyltash. Tulkubash, an...

on 23/1/24