Sunday tips round-up: Essar Energy, Cluff Gold, Centamin Egypt

10th Apr 2011 12:50

Essar Energy floated in London last May with the express aim of growing rapidly to provide fuel and electricity primarily for the Indian market. There is no denying that India will need substantially more gas, electricity and fuel over the next few years and Essar is ideally placed to help meet demand. Most brokers believe the shares should rise to at least 550p this year and move a lot higher in the longer term. Buy and be patient, the Mail on Sunday says.Cluff Gold produced 20,000 ounces of gold from its Ivory Coast mine last year and was hoping to increase production this year and beyond. The country has been in turmoil, with President Laurent Gbagbo clinging to power after being beaten at the polls by Alassane Ouattara. But the flagship operation is in Sierra Leone, where the company believes it will be able to produce at least 150,000 ounces a year by the end of 2012, taking its total annual production, including Burkina Faso, to 220,000 ounces by early 2013. Mining is always risky, so investors should hedge their bets and sell half to three-quarters of their stock, says the Mail on Sunday.The Sunday Telegraph also looks at a miner operating in a risky area. Centamin Egypt's shares have been hit by turmoil in Egypt, as the company's only operation is a gold mine in the country. They are trading on a current-year earnings multiple of 14.1, falling to 9.7 next year. The company does not pay a dividend. The falls are overdone and the shares are a speculative buy, the newspaper says.Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.RG