Goldman Sachs Australia (GSA) Zero Hedge, a widely read financial blog just posted this:
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Digging into the linked Goldman report reveals a list of 9 recommended Aussie gold stocks. One of the 9 is Teranga (TGZ) to which they give a buy rating based on their exploration potential. Further down in the report they say this about TGZ:
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Teranga ($2.05) remains a Buy on the back of our positive outlook for exploration potential proximal to the existing (and recently expanded) Sabodala processing plant. A recent lack of news flow around the exploration activities, and a lack of full exposure to the gold price (the hedge book is around 220koz at US$890/oz) could be key drivers of the poor share price performance.
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2012 Events:
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• 1Q12 financial result and (hopefully) management roadshow to Australia. We think continued exposure to shareholders here is necessary for support in the share price.
• 1H12: commissioning and start-up of expanded plant.
• Corporate activity around the Oromin JV, which is an existing resource within 5km of the Sabodala plant.
• What does MDL do with its 15% shareholding?
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I have noticed over the last few months that Goldman Sachs Canada has become a persistent buyer of Oromin shares.
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Link to the GSA report
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The Oromin tidbit is on page 7.