How much upside does MM see in the likes of EVN?
Hi Guys, Your recent call on gold is playing out. Well done! Just wondering how much more upside there is to stocks like EVN. Would you still be a buyer on Monday given the recent run up? Cheers, Nick
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Answer
Hi Nick,
Last month we saw gold correct $US75 and EVN continue to make fresh highs illustrating perfectly that there’s no hurry to fade this particular bull trend. Also, this is a company that less than a month ago downgraded production by around 8% as a result of weather-induced downtime. Costs were also revised higher by ~12% to $1,390/oz, largely as a result of reduced copper credits which offset much of the group’s cost calculations – as we often say stocks that can rally on bad news are bullish.
- We continue to target the $4.40 area, still 12-14% higher i.e. we are in no hurry to take profit, however clearly the risk/reward is not as positive as it once was.
