Peter has an SGC interview
"
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.
