Weekly Reports | 10:30 AM
A summary of the highlights from Broker Call Extra updates throughout the week past.
Broker Rating Changes (Post Thursday Last Week)
Upgrade
DEVELOP GLOBAL LIMITED ((DVP)) Upgrade to Speculative Buy from Hold by Canaccord Genuity.B/H/S: 0/0/0
Commissioning at Woodlawn continues, with Develop Global reiterating it is on track to reach nameplate capacity of 850ktpa this quarter. Dec Q Revenue of $55.5m was in line with Canaccord Genuity and steady quarter on quarter.
During the quarter, Develop Global was awarded a five-year, $200m underground development contract to establish the Waihi North Gold Project owned by OceanaGold.
Management highlighted it was assessing and progressing a substantial volume of tenders, reflecting favourable market conditions. Target rises to $5.70 from $5.05, upgrade to Speculative Buy from Hold.
Downgrade
EMERALD RESOURCES NL ((EMR)) Downgrade to Hold from Buy by Canaccord Genuity.B/H/S: 0/0/0
Canaccord Genuity has downgraded Emerald Resources to Hold from Buy on valuation grounds while lifting its target to $7.35 from $7.10 following the full December quarter report.
Gold production of 25koz missed the broker’s estimate, although costs were better than expected, supported by record recoveries, while cash and bullion rose to $370m with the company remaining debt free and unhedged.
FY26 guidance of 105–120koz at AISC of US$966/oz was reiterated, though Canaccord notes delivery of the midpoint requires a step up to record quarterly production levels in the second half.
GREATLAND RESOURCES LIMITED ((GGP)) Downgrade to Underweight from Neutral by Jarden.B/H/S: 0/0/0
Jarden has downgraded Greatland Resources to Underweight from Neutral post the stock's re-rating while lifting its target to $5.50 from $5.20.
The broker argues the current share price implies a long term gold price of roughly US$4,600/oz, which it views as unsustainable for the high cost Telfer operation and the technically challenging Havieron development.
The analyst lifts FY26 earnings (EBITDA) by 12% as production expectations move above guidance to 321koz, but FY27 and FY28 forecasts are trimmed on higher mining costs as open pit ore increases.
From FY27, Telfer is expected to face rising AISC of around $3,300 per oz, which Jarden says will again highlight the asset’s structurally high cost base.
While the balance sheet remains strong with net cash of $948m, Jarden sees limited valuation support at current gold prices and re-iterates a preference for Capricorn Metals ((CMM)) and Bellevue Gold ((BGL)).
KINGSGATE CONSOLIDATED LIMITED ((KCN)) Downgrade to Hold from Buy by Moelis.B/H/S: 0/0/0
Kingsgate Consolidated's "relaunch" is now complete, Moelis notes. Production and costs were in line with forecasts in the second quarter buoyed by strong price momentum for both gold and silver.
The stock is now considered fairly valued and the broker observes the market has now "accepted" the business back into the "institutional equity playing field".
Buying the stock at current levels requires two things, Moelis asserts, of which there is little visibility; the gold price or the next development in the corporate strategy.
Rating is downgraded to Hold from Buy pending either a lower share price or a higher price target. Target is $6.50, increased slightly from $6.45.
The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE
If you already had your free trial, why not join as a paying subscriber? CLICK HERE