Capricorn Metals shares gain on Goldman Sachs upgrade
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The news: Capricorn Metals was the best performing ASX 200 company in early trading after Goldman Sachs upgraded its rating on the gold miner to 'buy'.
The numbers: Capricorn shares were up 3.6% to $8.34 at 11am AEDT, extending gains of more than 50% over the last 12 months.
Goldman Sachs reiterated its preference for gold mid-caps, continuing to see longer-term fundamental value in Newmont Corporation (-1.8%), Northern Star Resources (0.5%) and Evolution Mining (-1.6%).
The investment bank remained 'buy' rated on Gold Road Resources (3.4%) and Bellevue Gold (suspended) and 'sell' rated on Regis Resources (1%).
The context: Goldman Sachs analysts said Capricorn holds "increasingly compelling projects economics" and relative valuation compared to its peers.
They noted the miner's growth projects at Karlawinda and Mount Gibson in WA, both of which have "emerging underground optionality" and a strong funding position to execute.
On the wider sector, the analysts expect outperformance among gold stocks to continue throughout 2025, with rising gold prices and moderating unit cost pressures.
The source: Goldman Sachs research
