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Duluth Metals, Candente Copper and Northern Dynasty Minerals were among companies picked by analysts last week for their upside potential.
The following resource companies were mentioned by analysts during the week of September 17 to 23. This information, to be used for the purpose of evaluating potential investments, was distilled from a daily list of analyst upgrades, downgrades and initiations compiled by Analyst Ratings Network.
Duluth Metals (TSX:DM) is developing the Twin Metals Minnesota project, an underground deposit of copper, nickel, cobalt, platinum–palladium, gold and silver, through a joint venture with Chile-based Antofagasta Minerals (LSE:ANTO). Duluth is now covered by analysts at CIBC, who set a “sector perform” rating and a C$1.80 price target on the stock. 38.5-percent upside. Duluth Metals closed at $1.30 on Monday.
Candente Copper (TSX:DNT) is exploring the Cañariaco Norte copper deposit in Northern Peru. A prefeasibility study completed in 2011 shows potential annual production of 262 million pounds of copper, 39,000 ounces of gold and 911,000 ounces of silver over a mine life of 22 years. A second mineralized copper porphyry, Cañariaco Sur, has been discovered adjacent to Cañariaco Norte. Candente is now covered by analysts at CIBC. They set a “sector perform” rating and a C$0.40 price target on the stock. 63.3-percent upside. Candente Copper closed at $0.26 on Monday.
Northern Dynasty Minerals (NYSE:NAK) had a 50-50 partnership with Anglo American (LSE:AAL) to develop the Pebble project in Alaska, estimated to be one of the largest deposits of copper and gold in the world. Last week, however, Anglo American announced it was pulling out of the project. Northern Dynasty said it will continue the process of permitting the mine. The company is now covered by analysts at CIBC. They set an “underperform” rating and a C$2.50 price target on the stock. 67.8-percent upside. Northern Dynasty closed at $1.36 on Monday.
B2Gold (TSX:BTO,NYSE:BTG) is a gold producer with two operating mines in Nicaragua and one in the Philippines. It projects gold production this year of between 360,000 and 380,000 ounces. B2Gold is now covered by analysts at Desjardins. They set a “buy” rating and a C$3.50 price target on the stock. 32.6-percent upside. B2Gold closed at $2.60 on Monday.
New Gold (NYSE:NGD,TSX:NGD) has four producing mines, including the New Afton mine in British Columbia, which opened in 2012. In July of this year, New Gold acquired 86 percent of Rainy River Resources (TSX:RR), whose main asset is the Rainy River gold project in Ontario. New Gold is now covered by analysts at Barclays Capital. They set an “equal weight” rating and a $8 price target on the stock. 28.8-percent upside. New Gold closed at $6.30 on Monday.
Yamana Gold (NYSE:AUY,TSX:YRI) has a portfolio of producing mines in Mexico, Chile, Argentina and Brazil. Yamana Gold is now covered by analysts at Goldman Sachs Group. They set a “buy” rating and a $13.50 price target on the stock. 19.2-percent upside. Yamana Gold closed at $10.37 on Monday.
Goldcorp (NYSE:GG,TSX:G) is the largest gold producer in the world by market capitalization. It has mines throughout Central and South America, Mexico and Canada, including the Red Lake mine in Ontario, Golcorp’s top producer at 507,000 ounces in 2012. Goldcorp is now covered by analysts at Goldman Sachs Group. They set a “buy” rating and a $34 price target on the stock. 24.5-percent upside. Goldcorp closed at $25.51 on Monday.
Rockwood Holdings (NYSE:ROC) is a US-based chemicals and materials group of companies, one of which is Rockwood Lithium. Rockwood Holdings was downgraded by analysts at Bank of America from a “buy” rating to a “neutral” rating. They now have a $73 price target on the stock. 7.4-percent upside. Rockwood Holdings closed at $66.16 on Monday.
Dril-Quip (NYSE:DRQ) is a manufacturer of offshore drilling and production equipment used by oil and gas companies. In 2012, Dril-Quip was awarded a four-year, $650-million contract by Petrobras (NYSE:PBR), a Brazilian oil and gas giant. Dril-Quip was upgraded by analysts at Zacks from a “neutral” rating to an “outperform” rating. They now have a $137 price target on the stock. 20.4-percent upside. Dril-Quip closed at $113.67 on Monday.
Resolute Energy (NYSE:REN) is an oil company with producing wells in Utah, Wyoming, Texas and North Dakota. Resolute Energy is now covered by analysts at Northland Capital Partners. They set an “outperform” rating and a $10.50 price target on the stock. 22.7-percent upside. Resolute Energy closed at $8.73 on Monday.
Securities Disclosure: I, Andrew Topf, hold stock in Goldcorp.
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