National Bank Financial Initiates Coverage on True Gold Mining with an Outperform Rating - Video Research Alert on InvestmentPitch.com
Vancouver, British Columbia--(Newsfile Corp. - October 21, 2013) - National Bank Financial has initiated coverage on True Gold Mining (TSXV: TGM). Analyst Paolo Lostritto gives the company an outperform rating, and a12-month target of $0.50, a premium of 51% to the $0.33 price the day the report was issued.
InvestmentPitch.com has produced a "video research alert" about True Gold based on the National Bank Financial report. If this link is not enabled, please visit www.InvestmentPitch.com and enter "True Gold" in the search box.
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True Gold is focused on bringing its 100% owned Karma gold project in Burkina Faso into production. The Birimian greenstone belts are considered one of the most prospective gold mineralization belts in West Africa with total estimated gold production from the Birimian greenstone belt, in Burkina Faso itself, more than 1.1 million ounces per annum.
A feasibility study is scheduled for completion in the 4th quarter and entails development of an open-pit, heap-leach gold mine.
The preliminary economic assessment results for the Karma Project highlighted a 10 year mine life with development capital of approximately US$125 million.
Analyst Paolo Lostritto stated, "We believe the company offers a low capital intensive, relatively simple and scalable gold project, which should appeal to investors otherwise skeptical of the gold development space. Recent investments by strategic investors like Teck Resources Limited and Liberty Metals & Mining Holdings also provide a strong shareholder base with considerable knowledge in the mining sector and reinforce our positive thesis."
Apart from Karma, the company is also undertaking an exploration program on a property in east-central Burkina Faso, where initial results have been encouraging and have identified near-surface gold mineralization over a length of 17 kilometres.
With approximately $30 million in cash, the company is relatively well capitalized to complete the feasibility study at Karma and continue the two exploration programs. The company currently trades at $0.35, below the $0.50 target price, and with 264 million shares outstanding, the company is capitalized at $92.6 million.
For more information about National Bank Financial or to obtain a copy of their research report, contact your nearest National Bank Financial office. Their branches are listed on their website at www.nbfm.ca.
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Barry Morgan, CFO