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@NewtonClosing comments in #Haywood report on $KNT discuss fact that strong economics from PEA provide scope for expanding development goals. Benefit of underground workings that will be used for current mining for future exploration -- that synergy! Some interesting comments on broader exploration potential, as well. Basically, that best way forward may be to pursue smaller high-grades itself and then pursue a JV with major to fund larger porphyry. Makes sense with PNG as land of big mines...
@NewtonGreat report there from #Haywood. My pleasure to give play-play on it here at CEO.CA. See the $KNT channel for more. Contact your Haywood rep for a copy of the report. And if you don't have one... Best to all.
@newstracker#Haywood#Research: Ikkuma Resources Corp. $IKM- In Line Q3; Cardium Light Oil Discovery Holds Encouraging Potential. Rating: Buy; Target: $1.25 (from $1.10); Risk: Very High. Event: Ikkuma (IKM) released its Q3/16 results and an ops update before market highlighted by a New Cardium light oil pool discovery.
Impact – Neutral Short-Term; Directionally Positive Mid-Term:
- Production of 5,866 boe/d (98% natural gas) was below Haywood's estimate and consensus of 6,300 boe/d due to ~1,000 boe/d of shut-in gas production due to economics and 3rd party curtailments. Cash flow of $2.6 MM ($0.03/sh) was in line with its estimate and consensus of $2.5 MM ($0.03/sh) supported predominantly by a hedging gain of $1.8 MM in Q3.
- While the headline rate is not strong, the New Cardium light oil pool discovery well is encouraging. IKM announced a new light oil discovery post completion of a short leg Hz (670m) Cardium oil well drilled in the Q1/16. In Oct, the well was completed with a 16 stage slick-water frac and during 28 days of production flow back witnessed daily fluid rates of 158-334 bbl/d. The proportion of frac water has decreased steadily and is currently ~40% of the total pumped fluid. Post load fluid clean up, mgmt. expects the well will pump at about 150 - 250 boe/d (~80% light oil). Speaking with mgmt. the well cost was ~$4 MM.
@newstrackerHudbay Minerals Inc. $HBM, HBM-N, $9.24
Rating: Buy; Target: $10.00 (from $8.25); Risk: Very High
Stefan Ioannou, PhD,
Sooner Than Expected Higher Grade Satellite Pampacancha Ore Feed at Constancia
Valuation: Haywood's valuation is based on a 6.0x multiple to 2017E cash flow per share (CFPS) of US$1.30 at US$2.25/lb of copper and US$1.00/lb respectively (vs peers at +6x CFPS). Our target also equates to a 9.4x enterprise value (EV)/2017E CFPS multiple (vs peers at ~10x).
Event: Hudbay recently tabled an updated National Instrument 43-101 compliant technical report for the Company’s 100% owned flagship Constancia mine in Peru.
Impact – Mixed (base metal sentiment prompts target increase):
- Constancia’s updated mine plan detailing open-pit production through 2035 includes ore feed from the higher grade Pampacancha deposit, which is now expected to be in production by mid-2018 (through early 2022), versus our previously modelled mine plan that had incremental higher grade production from the satellite deposit beginning in early 2019.
- Pampacancha's 43 Mt reserve grades 0.49% copper and 0.28 g/t gold, versus Constancia's 552 Mt reserve, which grades 0.29% copper and 0.04 g/t gold (as of June 30, 2016). Hence, the satellite deposit, located within ~5 km of the Constancia mill, stands to significantly augment the mine's medium-term head-grade profile.
Please contact your local Haywood representative for a full copy of the report.
@ManoloRadar flash from #Haywood report about $RNC : showing encouraging results at their Beta Hunt mine seemingly in line with annual production output targets of 60,000 oz. Higher than expected monthly average rates 2.65 g/t #gold also a plus. Multiple expansion as $RNC's Beta Hunt project comes online?
@Manolo$RNC target price $0.65 off 6x multiple to estimated cash flow using $1450 #gold price and $5.50 #nickel price. Analyst notes that $RNC currently trades at 2.7x cash flow, whereas peers are at 6x current cash flow and +8x 2017 estimates. Contact your #Haywood representative for a copy of the report.
@ManoloThis morning's #Haywood report on Integra #ICG with news release on assay results from 19,310 m of drilling from its 2016 program on Triangle Deposit on the Lamaque Gold Project in Val-d'Or, Quebec. Some of the 54 drill holes revealed 12.33 g/t #gold over 2.10 metres in drill hole TM-16-169AM01, and 6.33 g/t #gold over 4.5 metres in drill hole TM-16-170W01M01.
@Manolo#Haywood also reporting about Japan gold #JG subsidiary SAMJ which has acquired 35 contiguous Prospecting Right applications covering area of approx 11,269 ha adjacent to the historic Sanru #gold mine (215,410 oz of gold at an average grade of 7.4 g/t and over 1.4 moz silver between 1925) in Northern Japan. #JG CEO John Proust happy to see extension to their already significant portfolio of high grade prospects.
@ManoloCatch a glimpse of #Haywood's report on Hudbay $hbm 's Constancia mine updated plan in #Peru with release of details on open-pit production through 2035 including ore feed from higher grade Pampacancha deposit: production expected by mid-2018. Massive news there with reserve grades of 0.49% #copper and 0.28 g/t #gold, versus Constancia's 552 Mt reserve with grades 0.29% copper and 0.04 g/t gold.
@newstrackerHaywood is positive on today's drilling results from Osisko $OSK. Haywood rates the company's risk very high and a recommendation as a Buy and has a price target of $4.00. #research#Haywood
@racker#Haywood#Research: Lundin Gold Inc. $LUG - Still Running on Schedule and Ticking the Boxes...Lundin Gold Signs Exploitation Agreement for Fruta Del Norte" That's Kerry Smith, MBA with a BUY, High Risk Rating and $8.75 target price on the Ecuadorian gold developer. Contact your Haywood rep for a copy of the $LUG report.
@newstrackerKerry Smith, MBA, of Haywood Securities has a price target of $20 for Richmont Mines $RIC and a buy recommendation with a medium-high risk rating. The company announced today that it received permits to increase processing to 1,100 tpd at its Island Gold Mine in Northern Ontario. #Haywood$RIC
@newstrackerDarrell Bishop, PEng, MBA of Haywood Securities in a recent email to clients assessed the impact of $BBI Blackbird Energy's fiscal Q1 2017 results, released on friday, as neutral. As of Monday close, the stock closed at 59 cents, up one cent on the day. He issued a buy rating with a price target of 90 cents but with a very high risk rating. It is one of Haywood's top nat gas picks. #Haywood#Research
@nlepanHaywood Securities in a note to clients today, commented on $OSK Osisko's high grade results from its Windfall property. Mick Carew of Haywood has a price target of $4 with a buy recommendation but with a very high risk rating. #research#haywood
@nlepanIn a note to clients today, Haywood analyst Kerry Smith has a buy recommendation for Alamos Gold on news that the company has received forestry permits for its Kirazli project in Turkey. Haywood has price target of $13 with a medium to high risk rating. This permit allows the company to move forward with development at Kirazli but the company still has to submit permits for its Agi Dagi project. $AGI#Haywood#Research
@nlepanIn a note to clients today, Darrell Bishop of Haywood Securities maintains its buy rating on Whitecap Resources $WCP and assesses today's news of the closing of $200 million in secured notes and operation updates as positive. Haywood has a target of $14 with a medium to high risk rating. $WCP is currently trading at $12.30. #Haywood#Research
@nlepanIn a note to clients today, Kerry Smith of Haywood Securities comments on $ELD Eldorado Gold's news today. Haywood maintains a buy rating with a price target of $8.75 and medium to high risk rating. The stock is currently trading at $4.77. The news today was the company missed its 2016 guidance by 9006 ounces (guidance was 495,000 ounces, actual production 485,994) due to slower than expected leach rates. The company's guidance for 2017 is 365,000 to 400,000 ounces of gold. Expansion at its Kisladag mine has been indefinitely deferred. However, the company is flush with cash as its balance sits at US$880 million due to the sale of its chinese assets. #haywood#gold#research
@nlepanIn a note to clients today, Haywood analyst Kerry Smith comments on Osisko's sale of shares in Labrador Iron Ore Royalty Corp. for proceeds of $113.4 million. This sale increases Osisko's cash balance to over $500 million. Haywood believes that Osisko's valuation could benefit from an acquisition, however the royalty business requires discipline and Osisko has demonstrated it being selective in its deals. Haywood has a buy rating with a $19 price target with a high risk rating. $OSK#mining#Haywood#research
@nlepanIn a note to client's today, Haywood analyst Mick Carew noted that Cordoba Mineral's $CDB initial resource estimate (released last friday) for Alacran as a good start. Haywood notes that the initial resource is pit constrained in the inferred category and that copper-gold mineralization has been intercepted below the conceptual pit shell however insufficient drilling has been completed to include these zones in the current resource estimate. Haywood has not rated $CDB. #research#Haywood
@nlepanIn a note to clients today, Haywoood Analyst Darrell Bishop, PEng, MBA, is encouraged by early results from Parex Resources' $PXT Aguas Blancas gas project in the Llanos Basin in #Colombia and states that Haywood would be buyers on any potential weakness. Haywood has a buy rating with a price target of $24 with a medium to high risk rating. Parex is currently trading at $16.17 down 68 cents on ~500,000 shares, at time of writing. #Research#Haywood
@nlepanIn a note to clients today, Mick Carew of Haywood Securities rates Pilot Gold's $PLG news of more gold intersected at Goldstrike as positive. Haywood has a buy rating with a $1 price target with a very high risk rating. Haywood notes that these results support their observations from a recent site visit. $PLG is currently trading down 1 cent today to 50 cents on 35,000 shares. #Haywood#Research
@nlepanIn a note to clients today, Geordie Mark of Haywood Securities rated Asanko Gold's $AKG 4th quarter production results as positive. Asanko reported gold production of 57,178 oz and sales of 58,483 oz gold for revenues of US$70.1 million at an average gold price of US$1,199 per ounce. Haywood has a buy rating with a high risk rating and a price target of $6.50. Currently, Asanko is trading at $4.81 up 3 cents on 409,000 shares. #Haywood#Research#gold
@nlepanIn a note to clients today, Mick Carew of Haywood Securities rates NewCastle Gold $NCA as a buy with a $1.60 price target but with a high risk rating. NewCastle today published drill results from the company's project in California. $NCA is currently trading at 76 cents up 3 cents on 529,000 shares. #Haywood#Research
@nicholaslepanToday, Roxgold released its Q4/16 operating results and outlined 2017 guidance. For the quarter, the mine produced 29,688 ounces of gold and sold 34,271 ounces at an average price of US$1,207 per ounce. In a note to clients today, Haywood analyst Geordie Mark rated the impact of the news as neutral. Haywood has a price target of $2.10 with a buy rating recommendation with a high risk rating. $ROG is currently trading at $1.44 up 4 cents on the day, so far. #Haywood
@nicholaslepanToday, Richmont Mines released its Q4/16 production results and it came in near the top of their guidance. 104,050 ounces of gold at a cash cost of $908/oz, a 3% beat on production, and a 4% miss on costs. Production came in at the top end of Company guidance for the year of between 98,000 to 106,000 oz, and in the middle of cash cost guidance of $885 - $945/oz. In a note to clients today, Haywood Securities has a buy recommendation with medium-high risk rating and price target of $20. $RIC is currently trading at $10.41 up 31 cents (3.1%) on the day, so far. #Haywood
@nicholaslepanIn a note to clients today, Haywood Securities sees Atlantic Gold Corp. transforming into a gold producer with the first pour expected in 2017. Haywood has a buy a recommendation with high risk rating and a price target of $1.35. $AGB is currently trading at 93 cents down 4 cents on ~124,000 shares, so far today. #Haywood
@nicholaslepanIn a note to clients today, Haywood Securities sees near term volatility but fundamental support for oil and natural gas prices. OPEC and non-OPEC oil production cuts are the most important near term factor. Haywood sees WTI in the $50 to $60 bbl range in 2017 and increasing to $65/bbl in 2018. For natural gas prices, Haywood sees fundamentals supporting Henry Hub prices in the $3 to $3.50 range in 2017 and 2018. Contact your local Haywood representative for a full copy of the report. #oil#energy#naturalgas#haywood
@nicholaslepanIn a note to clients today, Haywood Securities analyst Geordie Mark writes that OceanGold Corp.'s $OGC news today of its first gold pour at Haile brings in US production which could foster corporate growth, a positive impact. Haywood has a price target of $6.50 with a buy recommendation and moderate risk rating. $OGC is currently trading at $4.23 up 23 cents on 4.28 million shares, so far today. #Haywood
@nicholaslepanCardinal $CJ released its 2017 production and financial guidance, as well as detailing a proposed bolt on acquisition of light oil assets in the Mitsue region. In a note to client's today, Haywood assessed this news as positive. Darrell Bishop of Haywood has a buy rating with a price target of $13.50 with a medium to high risk rating. $CJ is currently trading at $9.13 down 6 cents on 583,000 shares. #Haywood#Energy
@nicholaslepanToday, Mountain Province Diamonds $MPVD announced in a press release today that there is a delay in expected commercial production at Gacho Kue to later Q1/17 and initial sales soft. In a note to clients, Geordie Mark of Haywood Securities has a buy recommendation, with a $10 price target and a high risk rating. $MPVD is currently trading at $5.99 down 31 cents on 1.59 million shares. #Haywood#diamonds
@nicholaslepanOceanaGold $OGC released Q4/16 production today of 102.4 koz of gold and 8.3 Mlb of copper. According to a note to clients, Haywood notes that production came in line with expectations as costs trend lower. Geordie Mark of Haywood has a buy rating with a moderate risk rating and price target of $5.75. So far today, $OGC us up 15.5 cents on 4.1 million shares to $4.585. #haywood
@nicholaslepanMick Carew, PhD of Haywood Securities recently completed a site visit to Calibre's $CXB Borosi concessions in #Nicaragua. The company is manged by the same team responsible for New Market Gold. A total of 2.4 million ounces has been defined over a number deposits within the > 840 km2 Borosi land package that comprises a number of mineralization styles, including low-intermediate sulphidation epithermal style, porphyry-style, and skarn style deposits. Calibre and its partners plan on conducting five drill programs in 2017; they will include fully funded exploration work at Siuna and Eastern Borosi, as well as at the Company’s 100% owned properties. Calibre is well funded with $5.4 million. Haywood has not rated the company yet. Please contact your local Haywood representative for a complete company of the report. #Haywood
@nicholaslepanAccording to Haywood $PNE PineCliff Energy, has some serious debt that they are dealing with, they did reduce 80% of it this year, and also weakening natural gas prices are a pressure. Haywood is maintaining their buy rating and a price target of $1.85 and is seeing some free cash flow returning to shareholders in 2017. #energy#naturalgas#haywood
@nicholaslepanToday, Lucara Diamond Corp. $LUC released its fourth quarter and annual financial results. The company reported revenue of $66 million and EBITDA of $32 million with operating cash flow of 5 cents per share US. The company has increased its annual dividend to 10 cents per share. Diamond production came in at 82.3 kct. In a note to clients today, Haywood notes three catalyst events in the future 1) Exploration results 2) Sale of Lesedi La rona and 4) updated Karowe resource. Haywood is maintaining their price target of $3.50 and its buy rating with a high risk rating. $LUC is trading up 1 cent today to $3.15 on 303,000 shares. Please contact your local Haywood representative for a complete copy of the report. #Haywood#diamonds@marketwired/lucara-full-year-results
@nicholaslepanHaywood goes to Finland! Haywood got a chance to visit Rupert Resources $RUP 100% owned Pahtavaara gold project in Northern Finland. The company is managed by the same team responsible for Kirkland Gold, and used a similar stategy as with Kirkland. Rupert acquired Pahtavaara for $2.5 million, which includes a $2 million, 1.5% royalty. The company is hoping they can expand the mine and explore brownfield areas. The plan is to start production of 35,000 ounces per year and develop a 5-year reserve, second exploration to hopefully increase resources to greater than 50,000, and third, broader exploration to bring resources up to 100,000 ounces. Haywood was impressed with the ease of access to the site and the available infrastructure. Haywood has not rated $RUP yet. The company shares remain unchanged so far today at $1.30 on 163,000 shares. Contact your local Haywood representative for a full copy of the report or go to Finland yourself and snoop around. #Haywood#Finland
@Newton#Haywood out with a report on $BGM news today. Note that this new permit for Bonanza Ledge operation is "considered a test case for future potential production at Cow and Island Mountains". Ore to be transported 110KM by road to mill, which is operational. Tailings facilities also ready to go. Analyst notes peer group trades at EV/Oz multiple of $70+ USD, which includes $ICG, $PGM, and $OSK. The Bonanza Ledge was actually mined back in 2015, so it is good to see things back on track there.
@NewtonOne of my first impressions from #Haywood report out today is how low equity financings in 2017 are versus 2016 & 2015. Still early days, but end of March is ~$10M cumulative, whereas last couple years are more like $20M. Striking graphic in the report on the topic. I had a sense that financings were lower from #Oreninc publications, but didn't realize it was that much lower! #index
@NewtonAlso very interesting to read about $AU in #Haywood report after interview with Mickey Fulp on $MAW recently. Aurion is prospect generator in Finland "Central Lapland Greenstone Belt". Like Abitibi, but without extensive development they say. Database with lots of rock assays and base of till samples over 350,000 hectares owned 100%. That is equivalent to 3,500 KM Sq. by my math, which is mind-boggling. Largest holding package I have heard of. Miles Thompson is an advisor. $12M cash, last financing at $1.57 for $8.7M, trading at $1.70 as of report. Market cap $105M. Report doesn't mention what sent shares from ~$0.50 to $1.80 in Feb 2017, but digging back through CEO.CA chat logs shows it was news of bonanza grade grab samples: @marketwired/aurion-discovers-new-bonanza-gold-zone-at-risti shoutout @LucTenHave for being in right place at right time there. Particularly this post: https://ceo.ca/au?4f30dd8ff3db looks like a bit of a rush there! #index
@Newton#Haywood report also covers $RUP, another #Finland story with $AU and $MAW. FTR $AEM has operating mine called Kittila there, 200K oz #gold annually with cash costs ~$700, 4.5M ounces reserves. Area is in play. $RUP is new to me -- rebooting old mine. Haywood report notes team led $KGI from 300K oz resource to 1.5M reserves and 150K oz production pa. Notes Rupert bought Finland property for $2.5M and aiming for 35K oz production in H2/17. That would be nice spin-up. Sounds like similar geology to others in area with gold in "fold limbs". Also interesting to note started as open pit but went underground in 2004 to help with permitting. ~$1M exploration work plus some amount on development, which I don't see. Non-brokered PP for $11M back in October with 15M shares at $0.65, currently trading ~$1.30. Market cap ~$125M with $10M cash. 125KM Sq. land package. #index
@NewtonGreat to pick up some info on $RUP and $AU from #Haywood Junior Exploration Q1/17 Report. Lots of info on a single page there. Good combination of straight facts with a bit of colour. I was impressed by $AU and $RUP -- both are cashed up and have highly successful people involved. Makes me all the more interested in #gold in #Finland.
@NewtonShoutout to $VTT in the #Haywood report, too. Mentions reinterpretation of Pegmont from "single lensed, lead-dominant" to "multi-lens, lead-zinc". Mentions recent metallurgical work that confirms separate concentrates. Also mentions drilling since 2014 focused on underground target at Zone 5 and open-pit target at Burke Hinge Zone -- great combination there. Work program includes new resource estimate to update 2014 estimate. My sense is that quiet times can be the most exciting : )
@NewtonThe #Haywood report includes $ANTL, Antler Gold in #Newfoundland! Optioned property from $ALS. Look at the terms "100% interest for 4.5M shares, 2% royalty, and $500K exploration expenditures in one year." Wow. I listened in to $ALS conference call a while back and they noted they were going to get aggressive with optioning out their projects. This looks like great example of that. Antler cashed up with $3.5M as of Feb 28. Last financing $1.65M from 6.6M shares at A$0.25. Market cap $17M. Note Altius has done prospecting in 2016 and Antler planning more prospecting in spring with core drilling in fall. One for #drillplays right around the corner!