If youâre looking for exposure to the gold sector, then De Grey Mining Limited (ASX: DEG) shares could be the way to do it.
Thatâs the view of analysts at Bell Potter, which rate the ASX 200 gold share very highly.
Why buy this ASX 200 gold share?
De Grey Mining is a gold exploration and development company in one of the world’s strongest tier 1 mining jurisdictions.
It owns the Mallina Gold Project in the Pilbara region of Western Australia. The key discovery at the project has been the near surface Hemi discovery, which management believes is rapidly moving the company towards its goal of defining a tier 1 project with true district-scale potential.
Bell Potter appears to agree with this view and has put a speculative buy rating and $1.83 price target on its shares. Based on the current De Grey Mining share price of $1.37, this implies potential upside of 33% for this ASX 200 gold share over the next 12 months.
Bell Potter is bullish due to the significant potential of the Mallina Gold Project and its potential to be an acquisition target. It explained:
DEG is advancing its 100%-owned Mallina Gold Project (MGP) located 60km south of Port Hedland in WA. Mineral Resource for the MGP are 251Mt at 1.3g/t gold containing 10.6Moz of gold. Based on the PFS outcomes and our own modelling, we believe the MGP can support a large-scale, long life production asset with operational flexibility and robust margins in one of the worldâs top mining jurisdictions. We view the MGP as a rare opportunity that is attractive as both a foundation production asset for DEG or as a meaningful acquisition for any of the worldâs top gold production companies.
The post Broker tips 33% upside for this ASX 200 gold share appeared first on The Motley Fool Australia.
Should you invest $1,000 in De Grey Mining Limited right now?
Before you consider De Grey Mining Limited, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and De Grey Mining Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
See The 5 Stocks
*Returns as of February 1 2023
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- Here are the top 10 ASX 200 shares today
- Why De Grey, Elders, Maas, and Nuix shares are charging higher today
- 3 ASX mining shares on the move after quarterly updates
- Here are the top 10 ASX 200 shares today
- These are the best ASX mining shares to buy in 2023: experts
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/F3fwZMs
Stock Pick 