Investec: 40% upside in gold mining stocks

Gold mining equities are poised to climb a further 30%-40% before they are fully valued, according to Investec Asset Management's Bradley George.

Speaking at Incisive Media's Senate Spring Investment Conference, held in Cape Town earlier this month, the manager of the £182m Investec Global Gold fund said the soaring rise in the price of the precious metal itself was not reflected in gold mining shares. George says: "We believe we have still got a way to go with around 30% to 40% upside. "The margins are bigger than ever, but despite this the market is not giving full credit to these companies. So we think there is an opportunity for investment in gold equities and see value in the companies generating free cashflow, rather than...