There has been very little recent newsflow from Randgold Resources (RRS), but that hasn't stopped a 50 per cent leap in the miner's share price since 23 June. The catalyst for this re-rating has been the onward march of the gold price and a flight to risk-off assets in the wake of the Brexit referendum, which has also prompted a surge in the share prices of the precious metals sector. As the largest gold miner in the FTSE 100, Randgold has been further supported by funds' allocation toward gold, continued ETF inflows and blanket upward revisions of price forecasts.
In setting its $3.34 EPS forecast for 2016, Goldman Sachs said Rangold had "the highest quality and lowest-cost operations among its peers". Those operations could receive a further boost this year with the completion of feasibility studies for brownfield expansion, easily funded by a likely hike in free cash flow.
