Medium-sized African gold miners are still a favourite theme for broker Liberum with Caledonia and Shanta as two of its top picks.
Caledonia Mining celebrated yet another quarterly production record in its third quarter and believes annual 2022 at the Blanket mine in Zimbabwe will be at the top end of its guidance range of 73-80,000 ounces.
Liberum thinks there is scope for the top end to be exceeded, but even if not it would mean it has outperformed many African peers but has its PE ratio around half the African gold miner average.
Add in the potential of Bilboes and it remains a buy with a target price of 1,319p, said the broker.
Shanta, meanwhile, has appeal even after the disappearance of bid Interest.
“We believe the current Shanta Gold share price barely reflects the value of its operating New Luika asset, let alone Singida and West Kenya,"
Liberum’s share price target for Shanta is 18.9p.
The broker also has a buy recommendation on Centamin with a target price of 119p.