Galantas Gold* (GAL/GAL-TSX-V) - Reiterated BUY - Positive Judicial Review
A positive outcome to the Judicial Review of its planning permission should be shouted from the rooftops.Originally granted in July 2015, the company can now exploit the planning permission to develop the underground mine beneath its Cavanacaw open pit in Northern Ireland.
Our valuation and target price of 15.5 pence per share (p/share) comprises four components, 9.7p based on the pre- and post-tax Net Present Value for the funded underground mine at £800 per ounce, a very conservative 2.4p (25% of the NPV) for the near mine exploration potential, which could extend underground mine life and a 25% premium of the 12.1p/share total for what we call the “Dalradian premium†that the near presence of well-funded explorer Dalradian Resources (DALR/DNA-TSX) represents. For a number of mainly environmental reasons, Galantas will survive without Dalradian, but can Dalradian survive without Galantas? In addition, we add 0.4p/share for the exploration potential of land Galantas hold outside of the Mining Lease in Northern Ireland and the Republic of Ireland.
*Whitman Howard is Broker (AIM) and Financial Adviser to Galantas Gold
Galantas Gold is engaged in the exploration and development of mineral resource properties, principally in Europe.
Whitman Howard is an independent institutional stockbroking and investment banking business focused on servicing the needs of our corporate clients and institutional investor base.
The company began trading in 2011 with a team of highly experienced market professionals and the goal of building a leading capital markets business in an entrepreneurial environment.
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