We are on the good stuff here ... management & board team is seriously getting attention in the market.
Patersons just analysed the recent Coolgardie deal and come out with new detailed research note calling for 39c target. Will be uploaded for all to read soon I imagine.
Highlights here:
Primary Gold Limited (PGO) $0.13/sh
Recommendation: Speculative Buy
Analyst: Simon Tonkin Near Term Gold Opportunity Investment Highlights
Primary Gold Limited (PGO) has made the strategic acquisition of the Coolgardie Gold Project in Western Australia. The project offers a near-term development option with an existing 200,000oz resource base on an existing mining lease. PGO has commenced discussions with contract miners with plans to process ore through toll treatment facilities located in close proximity, commencing in 2017.
We see the Coolgardie project as having the potential to deliver a c.40kozpa gold operation generating $65m over 4 years with minimal start-up capital. Funds generated from the project could part-fund its larger scale Mt Bundy project in the Northern Territory, which represents a medium-term development option.
Overall, we are increasing our target price to $0.39/sh (from $0.26/sh) as we incorporate production from the Coolgardie Gold Project. We have also changed our valuation methodology for Mt Bundy from a peer analysis to discounted cashflow (DCF).
PGO Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
