New Placer Dome Gold Corp. NPDCF

Red Cloud report, May 4, 2021

[canuckgold]

From RED CLOUD May 4, 2021:
New Placer Dome Gold Corp. (TSXV:NGLD) New Kid on the Block in Nevada. Read our Report.
We are initiating coverage on New Placer Dome Gold Corp. with a BUY rating and target price of C$0.50/sh representing 213% upside from the current share price.
New Placer Dome is a relatively new Nevada-focused gold explorer with an option to earn a 79.99%-interest in its flagship Kinsley Mountain project. It also has an option to earn a 75%-interest in the Bolo project, a Carlin-type asset. Rounding out its portfolio, the company owns 100% of the early-stage Troy Canyon project that offers blue-sky potential and is located strategically near Bolo. With a portfolio of assets across the exploration spectrum and in a tier-one jurisdiction, we would expect positive drill results that deliver near-resource expansion and new discoveries to re-rate the stock.
Near-resource drilling to drive growth at Kinsley.
Kinsley hosts sediment-hosted, Carlin-type Au mineralization (both oxide and sulfide). Since acquiring the project in 2020, the company has enhanced its understanding of the structural and geological controls on mineralization. It conducted a successful 2020 drill program that intersected significant Au mineralization within or near the existing resource shells and made new discoveries. We believe New Placer Dome could continue to add ounces to the I&I resource of ~535k oz Au at Kinsley with additional drilling in 2021.
Maiden resource on the horizon at Bolo.
Bolo is a Carlin-type asset that hosts near-surface, oxide Au mineralization that could support a potential open pit operation. Based on management indications, Bolo is ripe for a maiden mineral resource in 2022. We currently estimate a mineral inventory of ~437k oz Au for the South Mine Fault and Uncle Sam zones at Bolo.
A tenacious explorer.
New Placer Dome has assembled a portfolio of high-quality Au assets in Nevada since incorporating in 2018 and has successfully put money into the ground to deliver results to the market. It is led by a capable management team (with a large ownership stake) and is backed by renowned technical advisors.
Valuation:
Potential for near resource expansion and new discoveries in Nevada; valuation backstopped by Kinsley mineral resource. Our price target of C$0.50 is based on 0.90x our NAVPS estimate of $0.53. We calculate our NAV using a sum-of-parts method consisting of an in-situ valuation for Kinsley, a probability-based valuation for Bolo and a credit for Troy Canyon. We note that New Placer Dome trades on an EV/oz AuEq basis at US$25/oz – a large discount to peers at US$32/oz.
Upcoming catalysts:
1) 2020 drill results from Bolo (Q2/21),
2) 2021 exploration plans (Q2/21) and
3) Maiden resource at Bolo (2022E).
Mining/exploration is inherently risky and New Placer Dome is subject to various geopolitical, technical, corporate, or financial risks.