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 >
Merrill Lynch Initiates Coverage of ARZ
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MICHAEL JALONEN, Merrill Lynch
(12/21/2010)
"A Steady Junior Gold Producer Aurizon expects to produce between 140–150 Koz. gold at a cash cost of $535/oz. in 2010. Over the next two–three years, we expect company gold output to rise modestly to the 160–170 Koz. level due to the mining of higher-grade ores at Casa Berardi. Conversely, cash costs are forecast to decline to the $450–$475/oz. level. If the Joanna project is developed, we estimate annual gold output could increase to the 250 Koz. level starting in 2014. Aurizon is well financed with net cash of CAD$131 million as of Q310. Our analysis indicates that cash on hand and future operating cash flow should be adequate to fund organic growth (Joanna). However, outside financing may be required to pursue meaningful acquisitions. Initiated Coverage of Aurizon Mines Yesterday, Mike Parkin initiated coverage on Aurizon (ARZ) with a Neutral rating based on our forecast for flat gold output in the near term and being modestly overvalued on a relative valuation to the peer-producer group average. Our PO of CAD$8.00/sh (US$7.50/sh) is based on ARZ trading at 1.75x its estimated net asset value (NAV) of $5.09/sh. ARZ is a Canadian junior gold mining company with a sole producing asset, the Casa Berardi mine, located in Quebec." |
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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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