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 >
GUY: Upcoming Catalysts Should Continue to Drive Shares
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HAYTHAM HODALY, Salman Partners Inc.
(01/08/2010)
"Upcoming catalysts should continue to drive the shares of Guyana Goldfields Over the recent months, the shares of Guyana Goldfields have shown significant strength. We believe that the potential upcoming catalysts should provide further fuel for the company's share price. The company remains on track for permitting to be completed on its flagship Aurora gold project near the end of the first quarter. We are also expecting a feasibility study to be completed on Aurora, and a subsequent positive construction decision on the project, near the middle of this year. Given the significant number of upcoming catalysts for the company, we have taken the opportunity to update our valuation. This includes the incorporation of our new long-term gold price of Cdn$800/oz (from US$700/oz previously). Based on this, our new net asset value for the company increases to Cdn$6.97 per share from Cdn$4.74 per share previously. As we value the company based on a take-out scenario, we continue to use a 1.3x multiple to Net Asset Value, to arrive at our new target price of Cdn$9.00 per share (rounded down from Cdn$9.05), up from Cdn$6.15 per share previously. We continue to expect that, as the company reaches certain development milestones at the Aurora project, including the permitting of the project, investors will be rewarded by an appreciating share price. Thus, we are maintaining our SPECULATIVE BUY rating on the shares of Guyana Goldfields." |
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