Premier Gold Mines Limited (TSX: PG) – Initiating Coverage – Ramping Up Production at Two Gold Mines
Fundamental Research Corp has issued a report entitled “Premier Gold Mines Limited (TSX: PG) – Initiating Coverage – Ramping Up Production at Two Gold Mines ” and dated August 14, 2019. The full report is now at .
FRC Top Pick
Key Highlights
- Premier Gold Mines Limited (“Premier”, “company”) is advancing a portfolio of eight projects, including two operating mines, two advanced development stage projects, and four exploration stage projects. Among the eight projects, one is in Mexico, four are in Nevada, and three are in Ontario.
- The projects have a combined proved and probable reserves of 3 Moz, an additional measured and indicated resource of 3.5 Moz, and an inferred resource of 3.6 Moz.
- Of the two producing assets, one is the 100% owned Mercedes mine in Sonora, Mexico, that is expected to produce 75 Koz - 85 Koz in 2019, at a cash cost of $730 - $780 per oz gold. The other is the South Arturo mine in Nevada, which is 40% held by Premier and 60% by operator Barrick Gold (TSX: ABX). South Arturo, located just 5 km northwest from Barrick’s largest gold mine (Goldstrike), is expected to resume production this year.
- Premier is also aggressively advancing its two advanced stage assets – the Greenstone Gold Mines property in Ontario (50/50 joint venture between Premier and Centerra Gold / TSX: CG) that has a completed Feasibility Study (“FS”) on the Hardrock open-pit deposit, and the 100% owned Cove project in Nevada where Premier has completed a Preliminary Economic Assessment (“PEA”). Hardrock’s FS showed an After Tax – Net Present Value (“AT-NPV”) at 5% of C$709 million at $1,250 per oz gold, and Cove’s PEA showed an AT - NPV at 5% of $142 million at $1,250 per oz gold.
- Based on gold sales of 77 Koz and silver sales of 237,500 oz in 2019, we estimate 2019 revenues to be $108 million. Our 2020 revenue forecast is $122 million, which is based on gold sales of 87.5 Koz and silver sales of 250 Koz.
- Healthy balance sheet with $26 million in cash at the end of Q2-2019, with a relatively low debt to capital of 10%. As of March 31, 2019, the Greenstone Gold Mines property, and the McCoy-Cove property, had combined required earn-in obligations by Centerra and Barrick of approximately $82 million.
- We estimate the company’s shares are trading at $113 per oz reserves versus the gold producers’ average of $274 per oz.
Join us at the Extraordinary Future conference and get a glimpse into the future through innovation. Use the link below to enjoy 20% off admission, but you must register early to take advantage of this offer:
A look into cannabis legalization in Pennsylvania
Premier Gold Mines is a Canadian-based mineral exploration company, focused on exploring for and developing gold deposits within the Americas. Co. has a portfolio of advanced-stage gold exploration properties in Northwestern Ontario, Canada and a joint venture in Mexico.
Since 2003, Fundamental Research Corp has provided the highest institutional quality equity research coverage on over 250 small and micro cap public companies through our extensive distribution network. Since 2009, we have also issued over 80 reports on exempt market (private) securities. Our research is being used by some of the largest institutional investors in the world who access it through channels such as Reuters, Capital IQ, the Globe and Mail, and by subscription. Our goal from the beginning was to provide high quality research to a broad audience, while adhering to high ethical standards and a strong foundation of integrity. These principles are evident in everything we do.
Our firm was created when we noticed that all equity research is paid for in one way or another, traditionally through corporate finance relationships. In 2003, it came to light that many investors were not aware that the research they were reading had potential conflicts between research and corporate finance. This led to large fines being levied on some large U.S. investment banks.
However, on the debt side, research relied upon by investors, and produced by firms such as Moodys is paid for, directly by the issuer to the research provider. The model is also used by auditors who are paid to provide an independent opinion to investors.
That brings us to today. To ensure high quality, continuous, and thorough research coverage, we employ full time in house analysts and industry specialists (such as a geologist). Because our analysts are in house, they are readily available to respond to investor inquiries, calls from institutions, and speak to management. We have invested in institutional platforms, such as Reuters Knowledge and Capital IQ, so that our analysts have access to the same high caliber information as the largest money managers in the world.
To ensure ethical behavior throughout our firm, we have, and continue to adopt CFA Institute Standards.
Our analysts are sought after by the media and at conferences to give their opinion on the markets, current topics of interest such as the direction of commodity prices, and top stock picks.
In the end, we are first and foremost a premier research firm that markets its research. A truly solid research firm is one that has full time analysts, access to the same information as large institutional investors, is ranked and adopts ethical and professional standards. The hard work we have done to establish our research is paying off. We have ranked in the Top Ten in independent third party evaluations of our research, and have developed a reputation for producing high quality research.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.