Gold mining giant Newmont’s $26 billion green-lit merger with Newcrest has investors talking about the broader sector.
While some told Street Talk they dumped their Newcrest shares ahead of the takeover, others noted that large-cap investors generally own one or two gold miners. That could benefit other gold miners as CDI-averse investors shake up their portfolios and migrate down the sub-index.
This week, UBS analyst Levi Spry published his musings on which miners investors should pick up.
He prefers Evolution Mining (PT $4.15) over Northern Star Resources (PT $2.20) of the large caps. In small-cap land, he likes the look of Gold Road Resources (PT $2.20), De Grey Mining (PT $1.55) and SSR Mining (PT $25.60).
Spry still has an eye on Newmont, noting that it’s flagged some non-core asset sales next year. This should kick off a flurry of M&A dealmaking in Western Australia as the company ditches assets that don’t fit its new merged look. However, as the Financial Review’s Brad Thompson writes, recent comments by Newmont boss Tom Palmer have challenged speculation that its ageing Telfer mine is headed for the auction block.
UBS reckons gold is poised to reach new heights as markets refocus on recession risks and growth concerns start to take over, forecasting “significant earnings upgrades” across its coverage.
Warren Buffett’s Berkshire Hathaway says it has sold its stakes in several blue-chip stocks including General Motors and Johnson & Johnson, according to the WSJ.Thai investor Central Group is set to take control of the company behind London upmarket department store Selfridges, the Financial Times reports.Germany’s professional football administrator is attempting to sell a stake in the league’s media rights worth as much as €1 billion to private equity investors, Bloomberg writes.
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The Sydney-headquartered Integrated Portfolio Solutions had $10.2 billion in funds under administration at the end of August and was used by more than 85 financial advisers. It hosted 4279 portfolios, with the average portfolio holding $2.38 million.