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Gold at $US1800 back on the table
Vesna Poljak
Broker Macquarie has canvassed the possibility of gold at $US1800 an ounce if it can consolidate above the $US1765 an ounce level, which is optimistic for Perseus Mining, one of the gold juniors it rates outperform .
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Perseus is expected to produce at the top-end of its guidance range in the second half, on the broker s estimates. Macquarie also favours Aurelia Metals and Bellevue Gold among the juniors.
From a macro perspective, Macquarie thinks the decline in bond yields and rally in gold is unlikely to be sustainable without a deterioration in economic data. Next week s FOMC meeting seems far too early for increased taper talk but the key question remains at what point does data prove sufficient for the market to start pricing tapering.
Momentum Builds For Emeco Holdings
This story features EMECO HOLDINGS LTD. For more info SHARE ANALYSIS: EHL
Momentum is building for Emeco Holdings which, having dealt with its debt levels, is now looking forward to new projects as it expands its mining services business
-Flat rental outlook for the second half
-Margin dilution likely from increased mining services
-Yet earnings growth to remain strong in the west
By Eva Brocklehurst
Momentum in mining is slowly resuming for Emeco Holdings ((EHL)), with the company expecting FY22 will deliver earnings growth from new projects and expansion of the Pit N Portal business into mining services versus rental.
31.31%
Operating earnings beat Macquarie s estimates in the first half. The strong western region was offset by softness in the east. The broker believes the company, overall, can deliver strong growth in FY22.
Growth should come from underground rental and new mining services projects commencing in FY22 and tendering levels, the broker notes, remain high. Outperform maintained along with the $1.30 target.
FORECAST
FY21 dividend of
11.10 cents.
FY22 dividend of
14.40 cents.