Friday tips round-up: Premier Oil, Randgold Resources
Fri 23 Mar 2012
LONDON (SHARECAST) - Tempus in the Times wades into Premier Oil which will benefit from George Osborne’s 2012 budget, not least from new “decommissioning” allowances, expected to help companies that take down rigs once oil and gas has dried up.
With production at 60,000 barrels of oil per day rising (hopefully) to 100,000 by 2015 Tempus says Premier is a buy, but notes there are some concerns over where it will put all its excess cash.
In the Telegraph Questor wants you to put your money where his (Garry White’s) mouth is, in particular in to Randgold Resources. Randgold plummeted 14% yesterday after what appears to be a military coup in Mali, where the company’s main gold mines are.
However, Questor thinks Mali is actually more stable than the market gives it credit for, certainly stable enough to honour current mining licences. With Randgold now trading at 13.6 times 2012 earnings, Questor says buy on its current weakness.
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