WH Ireland analyst Tom Elder looked at Vatukoula Gold Mines (LON:VGM) and Goldplat (LON:GDP), both of which reported results yesterday.

Elder rates Vatukoula Gold as a ‘buy’ with a 4.46p target.

Yesterday, the company revealed that the Vatukoula mine in Fiji produced 21,107oz of gold making taking total FY2010 production to 59,658oz. The junior mining group continues to ramp up operations at the mine, towards its ultimate 100,000oz per annum target.

According to Tom Elder, the consistent rise in both underground and surfical ore production, coupled with the rising total gold output “augurs well for achievement” of the 100,000oz production target.

The analyst emphasised the positive economic backdrop, with high gold providing a “hedge against the debasement of many Western currencies”.

“As an un-hedged, profitable producer with a large and high quality resource base VGM is well placed to capitalise,” Elder commented.

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here