Bill Gross warns on gold momentum as regional bank stocks tumble
Investing.com - Goldman Sachs initiated coverage on Aura Minerals (NASDAQ:AUGO) with a Buy rating and a price target of $46.60, implying 26% upside potential from current levels. The stock has shown remarkable momentum, delivering over 225% returns year-to-date and 260% over the past year, with a current market capitalization of $3.08 billion.
The investment bank views Aura Minerals as offering investors exposure to gold, with Goldman Sachs’ Precious Metals team forecasting gold to reach $4,900 per ounce by the end of 2026.
Goldman Sachs highlighted Aura’s attractive free cash flow yield, projecting a 50% cumulative yield between 2026 and 2028, along with upside potential from continued production growth if licensed projects receive board approval.
The firm’s net asset value calculations for Aura’s Matupa and Era Dorada projects equal 43% of the company’s current market capitalization and could enable 51% gold production growth by 2028, though these projections are not included in Goldman Sachs’ base case.
Goldman Sachs also noted Aura’s diversified portfolio of five operating assets, potentially growing to eight, which limits asset-specific exposure in case of disruptions and increases geographic diversification. InvestingPro analysis suggests the stock is slightly undervalued at current levels, with 12 additional exclusive insights available to subscribers.
In other recent news, Aura Minerals has achieved commercial production at its Borborema gold mine in Brazil. The mine is operating above 80% of its design capacity, processing 4,500 tonnes per day, with gold recoveries consistently exceeding 90%. Since operations began, the mine has sold over 10,000 ounces of gold. In another development, Aura Minerals successfully closed its U.S. initial public offering, selling 8.1 million shares at $24.25 each. The shares are now trading on the Nasdaq Global Select Market. Furthermore, BofA Securities initiated coverage of Aura Minerals with a Buy rating, setting a price target of $40.00. This rating suggests a potential 25% increase in the company’s stock value according to BofA’s analysis. These developments highlight Aura Minerals’ ongoing activities and market presence.
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