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 >
MGI Initiates Coverage of CGC
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MARC PAIS, MGI Securities
(09/15/2010)
"We are initiating coverage of Capital Gold Corporation with a Buy rating and 12-month target price of $4.60/share, which represents a potential return of 22%. Capital Gold operates the El Chanate open-pit mine in Sonora, Mexico. We anticipate El Chanate will produce 70 Koz. during CY11 at a cash cost US$350/oz. For FY11 (July 31 year-end), we expect production of 67 Koz. at a cash cost of US$341/oz. We anticipate that a capital expenditure of $3M would allow for the expansion of El Chanate's plant capacity from 15K tpd to 18K tpd by Q311. This would result in an increase in production from 70 Koz. to 85 Koz. during FY12. The recently acquired Orion Project has the potential to add 50 Koz. AuEq per year by 2013 at a capital cost of $35M and a cash cost of US$350/oz. We view Capital Gold as a potential acquisition target for a mid-tier gold producer seeking to add significant resources (2.0Moz) and low-cost production (US$350/oz)." |
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