Interim earnings were broadly in line with the broker's forecast and so it makes few changes to its numbers and retains its price target.
Exploration an the Challenger expansion suggest some upside for the company but the broker sees few immediate catalysts and so it retains its Hold rating.
UBS 01/03/2010 1 Buy $3.40 27.3%
While the result was in line, production estimated have been lowered and reserve downgrades flagged.
Target cut by 60c to $3.40 as a result.
However, UBS maintains a Buy recommendation on the stock as 1H10 is expected to be a low point for DOM, at least from a production perspective.
As such the cost profile is expected to come down to around $470/oz.
That said, UBS still feels DOM needs another asset to win back market interest.
DOM Price at posting:
$2.68 Sentiment: None Disclosure: Held
