Berenberg Starts Randgold Resources Ltd. (GOLD) at Hold
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Berenberg initiates coverage on Randgold Resources Ltd. (NASDAQ: GOLD) with a Hold rating and GBp 7,190 PT.
Analyst Yuriy Vlasov commented, "We initiate coverage of Randgold Resources (Randgold) with a Hold recommendation and a 12-month price target of GBp7,190/share: Randgold is an Africa-based gold mining company with operational assets in Mali, DRC and Côte d’Ivoire. It produced 1.2moz of gold in 2015. The company holds 15.0moz of 2P reserves with an attractive grade of 3.6g/t. We highlight management’s prudent approach to capital allocation (it uses a $1,000/oz gold price for project evaluation) and successful track record of operations. However, Randgold’s rich valuation (2016-17 EV/EBITDA of 15.9-14.8x) is the main reason we initiate coverage with a Hold rating."
He added, "Operating in the heart of Africa, Randgold has established itself as a sizable gold producer, equipped with local expertise and knowledge. The company has a proven track record of discovering large high-grade deposits in Africa and turning them into effective operations. Randgold is known for its prudent approach to project evaluation, using a long-term gold price of $1,000/oz. This approach is shaped by its strategy."
Shares of Randgold Resources Ltd. closed at $104.20 yesterday.
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