Analysts at Liberum raised their upside case target price for shares of Centamin to reflect the saving that could accrue from its ‘in-house’ underground mining, solar generation and grid electricity.
That was despite their “conservative” assumption that inflation would erode half of the projected savings.
The annual savings were pegged at up to $60m or $133m/oz and had yet to be reflected in post-2022 guidance, they wrote in a research report sent to clients.
Nonetheless, the Egypt-focused gold miner’s unit costs were seen falling by $42/oz. as a result in 2023 and by $64/oz. from 2024 onwards.
In turn, their upside case net asset value-based target was bumped up from 102.0p to 121.0p.
At their current price, the shares were discounting a gold price of $1,525/oz..
Liberum also reiterated their ‘buy’ stance for the shares.
