For investors in Centamin PLC (LSE:CEY, TSX:CEE, OTC:CELTF) there remains plenty of potential that has yet to be priced in, that’s according to analysts at Royal Bank of Canada (TSX:RY).
The Egyptian gold miner rated by the bank’s analyst as ‘outperform’ with a 140p price target, suggesting substantial upside to the current price of 84p.
In a note, RBC analyst Tyler Broda updated RBC’s model following first-quarter results, slightly reducing production expectations and earnings (EBITDA) to 439,000 ounces and US$329mln.
Broda retains its target and rating and highlighted that RBC continues to see a lot of unpriced optionality in Centamin.
“Despite current inflationary pressures, we continue to see a bright future for Sukari once the open pit finalises its accelerated stripping campaign and higher-grade resources are added to the underground model,” Broda said.
“In addition, we see a lot of unpriced optionality in the business, including a potential expansion to Sukari’s underground mine, potential discoveries from the new Egyptian bid-round and the development of the Doropo project.”