This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Shares up after today’s Q2 production report showing Gold sales +17% YoY after production +22%. Potential for rebound after a tough start to 2018. Fears of a trade war support safehaven demand. Opened a new gold mine last month, ahead of schedule and under budget. Attractive 5% forward dividend yield
Risks to POLY shares include; a fall in gold prices; a stronger USD; very strong China data boosting risk appetite that reduces safehaven demand; poor results on Aug 20; US sanctions on Russian industry.
Consensus is Bullish with 53% of brokers saying Buy and 27% suggesting Hold, supported by 83% of analyst target prices suggesting upside from current levels to an average valuation of 844p, which is well beyond our target of revisiting late-March and late-April highs of 745p.
Next Event: First half Results, 20 Aug
Latest Broker 12-Month Consensus: 53% Buy, 27% Hold, 20% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 3.4 | 5.1 | -1.6 | -18.7 | -23.6 | -32.8 | 54.4 | 27.8 | 11.5 |
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Prepared by Michael van Dulken, Head of Research