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 >
Canaccord Increases Target on Copper Mountain
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WENDELL ZERB, B.SC., P. GEOL., Canaccord Genuity
(09/29/2009)
"We have reviewed our outlook for base metal prices. Our short- and longer-term view of the copper price has improved, with long-term prices increasing to US$2.00/lb from US$1.75/lb. In other news Copper Mountain recently completed an equity financing for gross proceeds of C$50 million. An improved metal price outlook has an overall positive impact on our valuation of Copper Mountain. We also note that financing risk related to Copper Mountain's Similco asset has improved dramatically with the consummation of the Copper Mountain and Mitsubishi MOU and the recently closed $50 million equity financing. Negative to our overall valuation is our stronger outlook for the Canadian dollar, which we have averaging 0.95 to the U.S. dollar in the next three years. We are optimistic that the Similco project is still on track for initial production in H2/11. Our total undiscounted NAV (10%) for CUM (75% interest in Similco) is now US$425.6 million. We are increasing our 12-month target price to C$3.00 (rounded) (was C$2.50), based on a 0.70x risk multiple to our 10% NPV for Similco. We are maintaining our SPECULATIVE BUY rating. Based on 3x our estimated attributable operating CFPS (average 2011–2013), Copper Mountain could command a value of C$3.54/share." |
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