From Cannacord/Genuity - target $1.75
posted on
May 08, 2012 01:57PM
Creating shareholder wealth by advancing gold projects through the exploration and mine development cycle.
Prodigy Gold is an exploration and development company, focused on its 100%-owned Magino project, located in northwestern Ontario. Prodigy was formed with the merger of Kodiak Exploration and Golden Goose Resources, which closed in December 2010. Brian Maher is President and CEO.
• Prodigy Gold recently announced results from 11,182 metres of infill/resource definition diamond drilling completed at t
• We view Prodigy’s Magino property as an above average, bulk mineable Au project with solid economic potential in an el
• The 1,910-hectare Magino project includes the past-producing Magino mine, which produced 105,000 oz Au between 19
• Our 12-month C$1.75 per share target price is based on a 0.8x multiple to our Magino NPV (10%, US$1,750/oz peak Au pricing). Our total risk-adjusted NAV 10% is US$523.8 million. Our target price represents a P/NAV 10% of 0.36x. Based on NPV (5%, US$1,750/oz peak Au), we value the project 12 months out at US$896.4 million, which equates to 0.20x P/NAV 5%. We believe that PDG’s shares are undervalued and open to upside re-rating.
An analyst has visited Prodigy Gold Inc.’s material operations.