Mining giant Randgold Resources' shares offered "a great buying opportunity" after falling on the back of its first-quarter results, Citigroup said as the miner was a quality stock with an attractive valuation.
After a 7% stock correction following a weak first quarter a day earlier, Citi declared Randgold one of the best quality gold companies across the globe, the broker's "preferred gold equity exposure" based on projected 5-10% annual free cash flow yield for 2018 to 2022, which leaves "meaningful room" to improve dividends.

Analysts said Randgold shares, with a 5.6% dividend yield, according to the broker's forecast, "looks attractive".

As recent revisions to Senegal's mining code made "no impact" on the firm, management had intimated at the previous day's results presentation, and similar changes in the Congo making a lower-than-expected $5-10m impact, Citi felt the group could still achieve its 2018 volume and cost guidance.

Citi reiterated a 'buy' rating on Randgold and a target price of £72 per share.

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