Good article in the AFR/SMH on gold stocks, AQQ not mentioned but will benefit from the same themes.
In Australia, the future is bright for local producers, Macquarie Wealth Management says. According to analysts for the investment bank, there's never been a better time to build a gold mine, with the price of gold at post-financial crisis highs in US dollar terms, and record highs in Australian dollar terms.
"With the completion of the major resource projects in the country's northwest, skills abound and contract rates for services have come back to earth," the analysts said in a note.
Of the local developers, Macquarie prefers Gold Road Resources and Dacian Gold. Both have an outperform rating and feature competitive costs, better or comparable mine lives and exploration potential. Most enticingly, these stocks are trading at a more attractive level than their peers.
"In our view, on a risk adjusted basis, both stocks are overly discounted and we see considerable upside as they progress along the path to production."
