Was not able to post that actual research report (it looked better visually than it does below) but did copy and paste it. For those of you have bought or are thinking of doing so, this looks like great news. Disclosure....I own this stock and hope it some day blows through this target price!
Rating: BUY
Sunridge Gold Corp. Target Price: $1.95 (SGC – TSXV) All figures in C$, unless otherwise noted High Grade Copper Better than Gold No Bottleneck for Sunridge Gold Corp. ("Sunridge") to Enter into Commercial Production in Three Years. With a feasibility study on Debarwa and a prefeasibility study on Emba Derho, Adi Nefas and Gupo Gold deposits to be completed in less than one year, Sunridge’s Asmara Project is expected to enter into the pre-development stage smoothly with strong financial support from local government and easy access to precious deep-water port facilities. Asmara Project’s Payback Period Could Be Only Two Years. With early shipments of high-grade ores (18% – 20% Copper ["Cu"]) and centralizing high-grade ores from four deposits, the company could shorten its previously projected payback period significantly (four years). Great Potential for Future Exploration Success. Existing identified resources at Asmara, including 1.3 billion pounds Cu, 2.5 billion pounds zinc ("Zn"), 1.2 million ounces gold ("Au") and 31.8 million ounces silver ("Ag"), could be just the tip of the iceberg based on Sunridge’s 850 square kilometres of exploration land in Eritrea and 60 square kilometres in Madagascar. Significant Upside Potential Toward Its Intrinsic Value. Based on our financial forecasting model with a 10% discount rate, Sunridge’s shares are currently trading at 0.43x NAV, a significant discount to other advanced-stage base metals developers. We initiate coverage on Sunridge with a BUY rating and a $1.95 target price, based on a 0.9x NAV multiple. Source: www.bigcharts.com R ecent Price: $0.94 52 Week Range: $0.34 – $1.58 Shares O/S basic (MM): 116.7 f.d. (MM): 154.4 Market Cap (MM): $109.7 Net Cash (Estimated) (MM): $22.0 Enterprise Value (MM): $87.7 Fiscal Year End: Aug. 31 Valuation (MM) Per Share Asmara $268 $1.73 Adjustments $67 $0.43 SGC NAV $335 $2.17 P/NAV 0.43x Commodities Long Term Copper (US$/lb) $2.50 Zinc (US$/lb) $0.95 Gold (US$/oz) $1,000 Silver (US$/oz) $18 Company Description: Sunridge Gold Corp. is engaged in the business of acquiring and exploring mineral properties. Its properties are primarily prospective for Cu, Zn, Au and Ag. The company operates in the mineral exploration sector within two geographic segments: the Asmara Project in Eritrea and the Besakoa Project in Madagascar. The company is focused on exploring three 100%-owned exploration licences located near Asmara in Eritrea, northeast Africa. The company holds three exploration licences in Eritrea that comprise the Asmara Project. The Asmara Project has a development area and an exploration area. The development area includes four existing deposits, the Emba Derho, the Adi Nefas, the Gupo Gold and the Debarwa deposits.
Jeff Wu, CFA Mining Analyst 604.697.2455 jwu@byroncapitalmarkets.com
