GUY's Advanced-Stage Aurora

ADAM GRAF, Dahlman Rose & Co. (06/22/2010)
"We are initiated coverage on emerging miners evaluated by current value offered, leverage to underlying commodities and the cost of that leverage. With these attributes in mind, we are initiating coverage on Guyana Goldfields Inc. (BUY). . .Guyana offers investors exposure to its advanced-stage Aurora gold project in Guyana. We like Guyana and expect this high-grade project to move to construction and produce first gold by 2012. Guyana is the only English-speaking country in South America, has a democratically elected government and a long history of mining investment and gold production. The country has a moderate royalty and corporate tax rate, which we think makes it relatively stable. Management has been in Guyana a long time and has established relationships. The company has a deep roster of operational expertise and has completed significant engineering and has planned the infrastructure necessary to support mining operations. Mining and processing for the Aurora project appears to be quite conventional. Three years of baseline environmental work has been completed; submission of a full environmental and social study should be imminent. We believe that the Aurora project is quite advanced, and both building and operating permits could be received at any time. As milestones are reached and the Aurora asset is de-risked, we expect multiple expansion and positive share price performance. In addition, with continued success at Aranka, management could generate significant value."

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