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Analyst Says Gold Co. Offering Superior Returns on the Path to Production
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Thesis Gold Inc. is focused on advancing the exploration, engineering, and metallurgical test work on the combined project to create a new, intermediate gold producer, according to a Leede Jones Gable research note.

Leede Jones Gable analyst Ron Stewart initiated coverage on Thesis Gold Inc. (TAU:V) with a Buy rating and a February 2025 price target of CA$2.30 per share, according to a research report published on May 9, 2024. The analyst believes that Thesis offers investors the opportunity for superior returns over the next few years as the company advances on the path to production.

"Thesis was formed through a business combination that brought together the multi-million-ounce Lawyers project and contiguous Ranch exploration project in north central BC," Stewart noted. "The company is focused on advancing the exploration, engineering, and metallurgical test work on the combined project to create a new, intermediate gold producer."

The current NI 43-101 mineral resource for Thesis Gold stands at 5.0 million gold-equivalent ounces (GEO), comprised of 4.0 million oz GEO of measured and indicated resources (82.0Mt at 1.11 grams per tonne gold (g/t Au), 31.9 g/t Ag) and 727K oz GEO of Inferred resources (12.4Mt at 1.48 g/t Au, 24.8 g/t Ag).

"Despite the significant resource already identified, we believe the 325km2 property offers excellent exploration potential for additional high-quality resources," Stewart commented.

The analyst highlighted that over 20 prospects and deposits on the Ranch property remain open for exploration and resource expansion, with high-grade mineralization open at depth beneath the AGB and Cliff deposits at Lawyers.

Thesis Gold is planning to incorporate underground mining at Lawyers and satellite feed from Ranch in an updated Preliminary Economic Assessment (PEA), expected by late summer.

"We expect a significant increase in the annual GEO production to average over 200K oz per year over a mine life of 10 to 15 years," Stewart stated.

The analyst pointed out that Thesis Gold is currently trading at a 65% discount to peers on an enterprise value to total resource ounce basis, with an estimated valuation of approximately US$20/oz, compared to a peer average of US$54.9/oz.

Stewart also highlighted the appointment of William (Bill) Lytle as Chairman in February, noting that "Mr. Lytle is a mining engineer with extensive construction and operating experience and is currently the Vice President & COO of B2Gold Corp (BTO.T, Not Rated), a highly successful intermediate international gold producer."

Leede Jones Gable's valuation of Thesis Gold is based on an adjusted Net Asset Value (NAV) per share, comprised of the estimated fully financed, after-tax discounted cash flow (DCF) plus the additional exploration value from the residual contained metal not included in the mine plan.

"Our estimated NAV at 5% includes a DCF of CA$871M and exploration value of CA$98M. We adjust the DCF by 50% to reflect the exploration stage of the project to arrive at an adjusted NAV of CA$436M, resulting in a target price of CA$2.30/share," Stewart explained.

The analyst identified several key catalysts for Thesis Gold, including additional metallurgical test results expected in the current quarter, an updated PEA by the end of the summer, and the announcement of the 2024 exploration program by the end of the quarter.

With a Buy rating and a target price of CA$2.30 per share, representing a potential return of 199% from the current price of CA$0.77, Leede Jones Gable sees significant upside potential for investors in Thesis Gold as the company advances its projects toward production.

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  1. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Leede Jones Gable, Thesis Gold Inc., May 9, 2024

Important Information and Legal Disclaimers Leede Jones Gable Inc. (LJG) is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). This document is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Data from various sources were used in the preparation of these documents; the information is believed but in no way warranted to be reliable, accurate and appropriate. All information is as of the date of publication and is subject to change without notice. Any opinions or recommendations expressed herein do not necessarily reflect those of LJG. LJG cannot accept any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may increase or decrease in value and you may lose money. LJG employees may buy and sell shares of the companies that are recommended for their own accounts and for the accounts of other clients. Disclosure codes are used in accordance with Policy 3600 of IIROC

Description of Disclosure Codes 1. LJG and its affiliates collectively beneficially own 1% or more of any class of equity securities of the company as of the end of the preceding month or the month prior to the preceding month if the report was issued prior to the 10th. 2. The analyst or any associate of the analyst responsible for the report or public comment hold shares or is short any of the company's securities directly or through derivatives. 3. LJG or a director or officer of LJG or any analyst provided services to the company for remuneration other than normal investment advisory or trade execution services within the preceding 12 months. 4. LJG provided investment banking services for the company during the 12 months preceding the publication of the research report. 5. LJG expects to receive or intends to seek compensation for investment banking services in the next three months. 6. The analyst preparing the report received compensation based upon LJG investment banking revenues for this issuer within the preceding 12 months. 7. The director, officer, employee, or research analyst is an officer, director or employee of the company, or serves in an advisory capacity to the company. 8. LJG acts as a market maker of the company. 9. The analyst has conducted a site visit and has viewed a major facility or operation of the issuer. 10. The company has paid for all, or a material portion, of the travel costs associated with the site visit by the analyst.

Dissemination All final research reports are disseminated to existing and potential institutional clients of Leede Jones Gable Inc. (LJG) in electronic form to intended recipients thorough e-mail and third-party aggregators. Research reports are posted to the LJG website and are accessible to customers who are entitled the firm’s research. Reproduction of this report in whole or in part without permission is prohibited.

Research Analyst Certification The Research Analyst(s) who prepare this report certify that their respective report accurately reflects his/her personal opinion and that no part of his/her compensation was, is, or will be directly or indirectly related to the specific recommendations or views as to the securities or companies. Leede Jones Gable Inc. (LJG) compensates its research analysts from a variety of sources and research analysts may or may not receive compensation based upon LJG investment banking revenue.

Canadian Disclosures This research has been approved by Leede Jones Gable Inc. (LJG), which accepts sole responsibility for this research and its dissemination in Canada. LJG is registered and regulated by the Investment Industry Regulatory Organization of Canada (IIROC) and is a Member of the Canadian Investor Protection Fund (CIPF). Canadian clients wishing to effect transactions in any designated investment discussed should do so through a LJG Registered Representative.

U.S. Disclosures This research report was prepared by Leede Jones Gable Inc. (LJG), a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. LJG is not registered as a broker-dealer in the United States and is not be subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. Any resulting transactions should be effected through a U.S. broker-dealer.

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