Market's view on Centamin PLC
Published on April 2024
- Centamin is projected to have a fair value of UK£2.27 based on a 2-Stage Free Cash Flow to Equity calculation, suggesting it is currently undervalued by 45% with the current share price at UK£1.26.
- Analysts have set a price target for Centamin at US$1.46, which is 36% below the estimated fair value.
- Discussions involve technical analysis of Centamin’s stock, identifying patterns like a “perfect double top” and speculations about forming a “double bottom”.
- Stock watcher highlighted the strong performance of gold, which has reached 2255, and expressed confidence in the stability and potential growth of Centamin, citing robust gold prices as supportive.
- Concerns were raised regarding possible manipulation of figures by Centamin, with allegations of lying about equipment breakdowns and tweaking production numbers to meet targets.
- Centamin’s Q1 2024 earnings call was noted, pointing towards consistent guidance with gold production targeted between 470,000 to 500,000 oz per annum, with significant capital expenditure planned for growth and sustaining projects.
- Some skepticism was expressed about the company’s reported issues and operational updates, with a stock watcher suspecting misinformation to lower stock prices for re-entry points.
- The financial outlook remains positive with expectations of substantial free cash flow due to rising gold prices, potentially bolstering investor confidence and share price consolidation.