Insights

Are these ASX 200 gold miner shares buys?

Should you be buying these gold miners?
The post Are these ASX 200 gold miner shares buys? appeared first on The Motley Fool Australia. –

If you’re looking for exposure to the gold sector, then you may be looking at the shares listed below.

Following their recent quarterly updates, a leading broker has been running the rule over them to see if there’s an investment opportunity.

Here’s what it thinks about these ASX 200 gold miners:

Evolution Mining Ltd (ASX: EVN)

According to a note out of Goldman Sachs, its analysts have downgraded this gold miner’s shares to a sell rating with a $3.90 price target. This compares to the latest Evolution share price of $4.07.

Goldman wasn’t impressed with its quarterly update, noting that it fell short of expectations with production and its costs were higher.

The broker said: “We downgrade EVN to Sell, with the stock trading at a premium to other gold names across our coverage (1.1xNAV, 7.0xEBITDA) despite the underwhelming near-term outlook and a growth profile largely concentrated in two key projects.”

Newcrest Mining Ltd (ASX: NCM)

Goldman Sachs is much more positive on Newcrest and has put a buy rating and $35.00 price target on its shares. This compares to the current Newcrest share price of $26.18. This follows a quarterly update that was in line with the broker’s expectations.

Goldman said: “We continue to expect that updates on key projects over the remainder of 2021 will de-risk the company’s value-accretive project pipeline, and retain our Buy rating with NCM trading at 0.74xNAV.”

Northern Star Resources Ltd (ASX: NST)

The broker notes that Northern Star outperformed its expectations with both its production and costs in the June quarter. This led to the gold miner comfortably achieving its full year guidance. In light of this, its growth options, and attractive valuation, the broker thinks its shares are in the buy zone. Goldman has a buy rating and $13.10 price target on its shares. This compares to the latest Northern Star share price of $10.76.

It explained: “Growth capex was ~A$500mn higher in total over the next three years vs. our prior estimates, but is expected to deliver a production profile broadly in line with our prior forecasts, after accounting for the divestment of Kundana included in guidance. We retain our Buy rating, with NST trading at 0.82xNAV despite offering high-returning organic growth.”

The post Are these ASX 200 gold miner shares buys? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Northern Star right now?

Before you consider Northern Star, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Northern Star wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

5 things to watch on the ASX 200 on Friday

Newcrest (ASX:NCM) share price slides on quarterly update
Why the Northern Star (ASX:NST) share price is on watch today
Why the Evolution (ASX:EVN) share price is in a trading halt
5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!