London - The UK’s biggest gold miners are oversold by investors fleeing the industry in the face of bullion’s slump to a five-year low, according to Investec.
While the stocks of Randgold Resources, Centamin and Acacia Mining have been pummeled by gold’s decline in the past week, their lack of debt makes them stronger than competitors, Investec said in a note to investors Wednesday.
“The UK-listed gold equities have been unnecessarily harshly treated in recent days,” it said.
“Unlike many of their global peers, Randgold, Centamin and Acacia Mining have no net debt and can thereby withstand a prolonged downturn.”
Randgold has fallen 7.5% in the past five days in London trading, Centamin 9.2% and Acacia 19%.
“Given the recent share price declines, we maintain our buy recommendations on Randgold and Centamin and upgrade Acacia Mining to buy,” Investec analysts wrote in the report.