‘Low cost and reliable’ Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) is a bargain among the Africa-focused gold diggers, according to Liberum.
The City broker repeated its ‘buy’ recommendation on the stock in the Zimbabwe-based operator alongside its 1,431p a share price target – a 70% premium to Monday’s close.
The update and commentary came in Liberum’s round-up on the African miners, which picked up the over-arching theme/fear of rising prices and their effect on all in sustaining costs (AISC).
At the moment, the three top-tier producers have left their guidance in this regard unchanged, it pointed out.
“Endeavour appears on track to achieve production and AISC guidance for the tenth consecutive year,” said Liberum.
“AngloGold cautioned that costs were trending towards the top end of guidance. For Gold Fields, by-product credits and weaker foreign exchange were offsetting higher-than-expected cost inflation.”
The broker’s other ‘buy’ recommendations are Centamin PLC (LSE:CEY, TSX:CEE, OTC:CELTF) with a price target of 121p and Shanta Gold Limited (AIM:SHG, OTC:SAAGF), which it values at 29p a share.