Citigroup: Mali Bad Short Term and Long Term

Citigroup has published a research report on Randgold Resources

noting that Mali is bad short term and long term. In the report, Citigroup writes, "In the longer term, we may have to assess whether the 1.7x P/NPV ratio which we use for our target price on Randgold is warranted. At the moment we only use 1.15x for Centamin (CEY.L; £0.78; 1), because of the Egyptian political situation at present. With both the Ivory Coast and Mali now potentially unstable, and with a key part of Randgold's future being in the DRC (albeit with a very good asset), we may have to review our key bull-point on Randgold, namely that its diversification across a number of African countries reduces its overall African risk." Citigroup maintains its Buy rating on Randgold, which closed yesterday $103.40.