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Shaw and Partners upgrades coverage universe after gold prices rallies to over A$3,000/ounce

Recommendation

We recommend an overweight exposure to the gold sector with Ramelius Resources as our core holding.

1. Ramelius Resources (RMS-ASX, BUY, $2.00) - Costs are expected to materially decrease through the year as higher grade ore from the Penny mine is delivered whilst it continues to ramp-up. Ramelius are on track to make record margins.

2. Antipa Minerals (AZY-ASX, Buy, $0.06) – Antipa is targeting rapid, sizeable success at targets such as GEO-01, Tetris and Pacman. Antipa has also identified a new gold anomaly just 10km northeast of Newmont’s giant Telfer mine.

3. Black Cat Syndicate (BC8-ASX, BUY, $0.74) – Black Cat has three gold development projects in West Australia and a pathway to ~150kozpa of gold production. The funding package for the Paulsens restart project has been approved by shareholders and awaiting government approvals.

4. Matador Mining (MZZ-ASX, BUY, $0.19) – Company has changed the focus from brownfields exploration in the Central Zone to targeting high impact greenfield targets. B2Gold (BTO-TSE, C$5.6B market cap) has a 10.9% stake with a 5-year option to subscribe for a further 39.1m that would take B2Gold to 19.9%.

5. Saturn Metals (STN-ASX, BUY, $0.44) – a Preliminary Economic Assessment (PEA) for Apollo Hill outlines an initial 10.5-year mine life producing an average 122kozpa at an All-in-sustaining-cost of A$1,852/oz. The first phase of the project will involve a low-cost starter pit and pilot plant that could be producing gold by the end of CY24.