Target Price (12-Month) $2.50
Target Return 69%
Changes
Old New
Recommendation Buy Unchanged
Target $2.50 Unchanged
Company Profile
Noront Resources Ltd. is a Canadian-listed
exploration company focused on the 100%-
owned McFauld’s Lake nickel-copperplatinum-
palladium (chromite, gold, and
vanadium) project in the James Bay
Lowlands of northern Ontario.
www.norontresources.com
Drilling Suggests Bulk-Tonnage Potential at
AT12 Target – Mineral Inventory Builds
•
Five of eight holes cut wide intervals of Cu-Ni-PGM mineralization.
Highlight hole #30 - 41.6 m at 0.8% Ni, 0.35% Cu, 0.4 g/t Pt & 1.3 g/t Pd
v. indicated res. grades of 1.96% Ni, 1.18% Cu, 1.12 g/t Pt & 3.91g/t Pd.
•
Results illustrate substantial exploration potential at McFaulds Lake.
Lower grade than Eagle’s Nest, 10 km to SW, but show potential for bulktonnage;
increases proj. mineral inventory & pot’l to attract major miner.
•
Ice airstrip embargo continues – threatens winter drilling.
Talks ongoing, but delay threatens ice-based drilling; off-ice drilling is
costlier, slower & later start date; exploration news flow back-end loaded.
•
Maintain Buy rating and $2.50 target price.
Target based on 0.80x mult. of our NAV
10%
est. of $3.08/sh. See potential
for NAV estimate of ~$4.50/sh at 5% producers’ discount rate.
Financial Summary
Shares, basic (mm) 163.6 52-Week Range $0.5 - $3.01
Shares, f.d. (mm) 173.5 Avg Weekly Volume 6,298,138
Shares, f.d., f.f. (mm) (1) 225.1 Fiscal Year End Jan-31
Market Cap (mm) $243.8 NAV/Share, f.d., f.f.(1) $3.08
Working Capital (mm) $36.1 P/NAV 0.5 x
Key Properties: Status: Eagle's Nest (LOM avg)
Eagle's Nest, Canada (100%) Annual Ni production - payable (000 lbs) 27,086
Polymetallic, Ni-Cu-PGM Annual Cu production - payable (000 lbs) 16,800
Total Cash Costs (US$/lb Ni, after credits) 0.80
Blackbird, Canada (100%) Estimated start date H1/2016
Chromite Pre-Feas for Eagle's Nest H2/10
Key Management: Strategic Shareholders:
Wes Hanson President and CEO Management (2%)
Joseph Hamilton Chairman
Paul Semple COO
Gregory Rieveley CFO
James Atkinson Director of Exploration
(1) Assumes positive development decision on Eagle's Nest and associated equity issue.
Source: WWCM Estimates, Company Reports
