The Gold Report
Notable Quotes
"ICG has closed a CA$2.5M flow-through placement." (12/24/15) Integra Gold Corp. - Thibaut Lepouttre, Caesars Report More >
"The exploration upside at MAG's Juanicipio project is substantial." (12/23/15) MAG Silver Corp. - Gwen Preston, Resource Maven More >
"AKG's management continues to deliver on its development milestones." (12/22/15) Asanko Gold Inc. - Nana Sangmuah, Clarus Securities More >
"We are initiating coverage on KDX with a Buy rating." (12/21/15) Klondex Mines Ltd. - Don Blyth, Paradigm Capital More >
"VIT's Eagle is a shovel-ready, fully permitted, prefinanced gold project." (12/17/15) Victoria Gold Corp. - Tom Hayes, Edison Investment Research More >
Apollo—A Rare Breed in the Junior Gold Space
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RICHARD GRAY, Cormark Securities
(06/25/2009)
"Apollo Gold is a junior gold producer that has recently commenced production at the Black Fox mine in northern Ontario. We estimate gold production will grow from 62,000 oz in 2009 to 136,000 oz by 2012, a 120% increase, as the Black Fox open pit ramps up to targeted levels and the underground mine begins contributing ore. Apollo Gold is a rare breed in the junior gold space as it has gold production at a mine located in a safe, mining-friendly jurisdiction that was financed with project debt. While the debt terms are onerous, it allowed for construction without significant near-term dilution. Throw in the exploration upside provided by the recent Grey Fox discovery and this company offers a unique combination of production and upside, all at a very attractive valuation (0.52x NAV and 2.1x 2010 CFPS). We are initiating coverage with a BUY recommendation and target price of C$1.00 (based on 1.0x NAV and 5.0x 2010 CFPS. Apollo offers an attractive level of return for a heightened level of risk given production is still ramping up at Black Fox and the cash balance is at a pivotal stage. We would recommend Apollo Gold for risk tolerant investors only." |
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Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.
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