From Nomura
A new era for gold producers
Initiating coverage of the Europeangold sector with a Bullish rating
In this Anchor Report, we undertake a detailed analysis of gold market supply/demand fundamentals. We conclude that the gold price should stay elevated with significant upside risks through 2015, translating into a new era for gold producers.
A cash build in the producers should drive growth, spur M&A and push dividends higher. This improving outlook has yet to be priced into gold equities, which are trading at historical lows in terms of valuation, offering an attractive entry point given current market instability. We see light at the end of the tunnel for gold equity investors. We initiate coverage of six European gold equities. Our top picks are Randgold Resources, African Barrick Gold and Avocet Mining.
Key analysis in this report includes:
*Proprietary scenario analysis on central bank demand for gold.
*A review of shifts in the aggregate global gold producer income statement and balance sheet.
*How this new era translates into stock-specific opportunities within the European gold sector
Nomura Initiaties Gold
