Centamin (CEY.L) is a mid-cap gold mining company listed on the FTSE 250 that primarily operates from the Sukari gold mine in East Egypt but also has other prospective operations across North Africa. Their share price experienced strong growth from the onset of the global pandemic last March until around October last year as gold prices increased. After this, they saw a tumble as gold prices began to fall again due to vaccine programmes starting to be announced across the world.

Centamin stock is currently trading at less than half of its 52-week high, they have a strong balance sheet and at its current price offers a dividend yield of 7.9%. There is reason to believe that their stock price could see another spike as gold prices could increase, which may offer significant returns for any prospective investors. 

Gold prices tend to be dictated by patterns in economic uncertainty. When the pandemic hit prices went up. When vaccine programmes were announced prices went down. Now, in an attempt to stimulate economic growth, many major economies are employing expansionary monetary policies. With this, there comes a reasonable risk of increasing rates of inflation. When inflation rates are high, demand for gold tends to increase, as people may view it as a more stable asset than a currency.

Broker Consensus 18/02/21

Analysts who cover this security

BofA Global Research – James Bell
Jefferies – Alan Spence
RBC Capital Markets – Tyler Broda
Morgan Stanley
BMO Capital Markets – Raj Ray
Investec Bank (UK) Plc – Hunter Hillcoat
Goldman Sachs Research
UBS Equities
Panmure Gordon – Kieron Hodgson
Numis Securities
Peel Hunt – Tim Huff
Mirabaud Securities – Nikolas Toleris
Berenberg – Jonathan Guy
Cenkos Securities – William Dymott
CI Capital Holdings – Ahmed Soliman
Arqaam Capital – Rita Guindy