On the same day Dundee comes out with this price target. I tend to agree with this. All the best.

Dundee has two new top Canadian stock picks

Darcy Keith

Dundee Securities has added two new names to its top picks list, those stocks it considers the most compelling investment opportunities in the sectors of energy, infrastructure and industrials, real estate and mining.

One new addition is in the mining sector: Fortuna Silver Mines Inc. The other, North American Energy Partners Inc., is in infrastructure.

Dundee has a $6.50 (Canadian) price target on Fortuna, a silver producer with two assets: the San Jose silver and gold mine in Oaxaca, Mexico, and the Caylloma primary silver and polymetallic mine in Arequipa, Peru. In early 2013, the company made a discovery at its San Jose mine that Dundee analysts believe could be a game changer. Called Trinidad North, Dundee analyst Chris Lichtenheldt believes the deposit will be able to deliver head grades to the project’s mill that are 50 per cent better than the average head grade during 2013.

The new discovery has an inferred resource containing 19.2 million ounces of silver-equivalent at a grade of 498 grams per tonne. This compares to the company’s reserve at San Jose of 35 million ounces of silver-equivalent at a grade of 300 grams per tonne. Once the blending of ore from Trinidad North begins - likely next year - there should be both improved production and unit cash costs, Mr. Lichtenheldt said.