Colossus Minerals Inc COLUF

Canaccord Showing the Love!

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From my broker:

Colossus Minerals Inc. | Nicholas Campbell, 1.604.643.7027

CSI : TSX : C$5.53 | C$455.1M | Speculative Buy , Target C$9.50

• Preliminary Environmental License Approved for Serra Pelada; maintaining

SPECULATIVE BUY rating and target of C$9.50

Event

Colossus announced that it has received approval of the Preliminary Environmental

License for its 75%-owned Serra Pelada gold-PGM project in Brazil.

Impact: Positive

Rumours of a COEMA approving the Preliminary Environmental License (PEL) for Serra

Pelada began circulating in Brazil several weeks ago, with a confirmation finally coming

yesterday. This approval paves the way for Colossus to receive a full mine permit for the

Serra Pelada project. With the environmental approval in hand, in order to receive a full

mine permit, the ministry of mines must also approve of the Brazilian preliminary

economic assessment (PEA) of the Serra Pelada project (Not Ni 43-101 compliant). If the

ministry of mines approves of the PEA, effectively the government would then issue a full

mine permit for the Serra Pelada project, allowing Colossus to begin major development

activities for the project.

Valuation

The approval of the PEL should begin to build momentum in the shares of CSI. With the

receipt of a full mine permit for Serra Pelada and as the company begins to advance the

project, we expect to see a revaluation in the shares of CSI as investors begin to view this

company as an emerging junior gold producer. We maintain our SPECULATIVE BUY

recommendation and target price of C$9.50 per share, based on a 1.0x multiple to our

peak gold price NAVPS (10%, US$1300/oz Au).

Next Catalyst

• Full Mine Permit for the Serra Pelada Project (

• Land Deal with Vale (

• Full Metallurgical Report (