Liberum raises upside case target price for Centamin on projected savings
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.