Deutsche Bank 12-Jun-13 Target $13.20 (was $15.70). The new...

Deutsche Bank 12-Jun-13

Target $13.20 (was $15.70). The new strategy is pretty much what the broker was expecting to see: a move to maximise free cash, reduce capex by $500m, cut corporate costs by 20% and exploration spend to $85m from $160m. The broker notes the company will also write-off between $5bn-$6bn with the FY13 result. No FY dividend is expected, nor is one for FY14.

The Hold call is maintained, the broker thinking the company will be able to maintain strong cashflow with this plan. The gold price is now crucial, with little room for comfort.

Hold