Broker Roundup: GGG Resources, 4:14 pm by Jamie Ashcroft
The market is underestimating
Collins Stewart analyst Tim Dudley reckons that GGG Resources (LON:GGG) share price has further to go, as the Bullabulling gold project is set to expand.
?We view GGG Resources? current enterprise value/ resource metric of US$65 per ounce as substantially undervaluing the potential upside. On this basis, GGG trades on a 48 percent discount to local peers on US$125 an ounce and against a 70 percent discount global peers trading on US$213 an ounce.?
Dudley re-iterated a ?Buy? recommendation which target 45 pence a share, but he highlighted that his base case valuation is 49 pence.
?A major concern for GGG Resources was the limited support from the JV partner, Auzex, for plans to aggressively expand the drilling programme. However, both Auzex and GGG resources have today announced that an expanded programme of work has been submitted to the WA Department of Mines lifting the planned drilling to 194,000 metres over the coming year.? http://www.proactiveinvestors.co.uk/columns/broker-spotlight/5002/broker-roundup-essar-energy-resolution-hsbc-shell-northern-petroleum-gulfsands-petroleum-ggg-resources-horizonte-minerals-5002.html
Temu
AZX Price at posting:
64.7¢ Sentiment: None Disclosure: Not Held
