DISCLOSUREAPPENDIXATTHEBACKOFTHISREPORTCONTAINSIMPORTANTDISCLOSURES,ANALYSTCERTIFICATIONS,LEGALENTITYDISCLOSUREANDTHESTATUSOFNON-USANALYSTS.USDisclosure:CreditSuissedoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethattheFirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.16April2019Americas/CanadaEquityResearchPreciousMetalsGoingforGoldAmongIntermediateProducersResearchAnalystsFahadTariq,CPA,CA4163524593fahad.tariq@credit-suisse.comMarkLlanes,CPA,CA4163524585mark.llanes@credit-suisse.comINITIATIONLaunchingCoverageofIntermediateGoldProducersAGI,EDV,CG,EGO,andNGD■InitiationsandStockCalls:Weinitiatecoverageof(1)AlamosGold,US$7.00targetprice(TP),Outperformrating;(2)EndeavourMining,C$32.00TP,Outperformrating;(3)CenterraGold,C$8.00TP,Neutralrating;(4)EldoradoGold,US$6.00TP,Neutralrating;and(5)NewGold,US$1.00TP,Neutralrating.Amongtheintermediategoldproducers(i.e.,lessthan1millionouncesannualproduction)inourcoverage,wearemostconstructiveonIAG,followedbyAUY,AGI,andEDV.■LookingattheCommodity,WeRemainPositiveonGoldPricesin2019OwingtoaNumberofMacroFactors:WecontinuetobelievegoldminerswilloperateagainstabackdropofhighergoldpricesYoYin2019,andwe(conservatively)estimateanaveragegoldpriceof~US$1,280/ozin2019.Goldisbeingsupportedbyongoinggeopoliticalissues(US-ChinatradewarandBrexit,amongothers),concernsaroundslowingglobaleconomicgrowthandrecessionfears,andamoredovishUSFederalReserve(noratehikesin2019).■BasisofEvaluation—Valuation,GrowthPotential,andTrackRecord:Consistentwithourbroadercoverage,webaseourevaluationoftheintermediateproducersmoreheavilyonvaluationandreserve/productiongrowthpotential.HavingastrongorganicgrowthprofilepreventstheneedforriskyandoftencostlyM&Ainourview.Weprefercompaniesthathaveagoodoperationaltrackrecord(meetingorexceedingannualguidance)andagoodtrackrecordofaddingreserves.Ourvaluationmethodologyisa50/5...
