SHANDONG GOLD MINING CO LTD stock discussion
1787 Shandong Gold: Positioned for Bullion Price RallyRecommendation: Buy
Target Price: HK$20.50
Current Share Price: HK$18.10
Valuation: 2024F PE of 20x
Gold Output: Targeting no less than 47 tonnes in 2024
Shandong Gold, China’s largest domestic gold miner, is poised to benefit from the anticipated bullion price rally. The company has projected its gold mine output to reach at least 47 tonnes in 2024, up from 41.78 tonnes in 2023. Given its pure-gold exposure, Shandong Gold is one of the key beneficiaries of the ongoing rally in gold prices.
The company has demonstrated operational efficiency, making it a solid investment choice amid the current gold market dynamics. With upcoming Federal Reserve rate cuts and an expected decline in treasury yields, the weakening U.S. dollar is likely to lift metal prices denominated in dollars. This, in turn, boosts the appeal of non-yielding assets like gold, benefiting Shandong Gold.