Harte Gold Corp. T.HRT

RE:RE:Macquarie Research comments on Harte Gold Corporation

[DOHxclamation]

Striking a target requires that one is able to somehow SEE the target and also has an understanding of ballistics.  This does include understanding the velocity of the projectile (in this case, a share of HRT is the projectile) as well as the range (distance) of the target (which in our case is the price, in Macquarie's case, 90 cents).  Obviously, our two marksmen require further training and/or experience before they'll be able to succeed at hitting the mark!  Call them up and see if they've been out to the range lately!

Analyst(s)
Michael Gray
[phone]
[e-mail]
David Medilek, CFA
[phone]
[e-mail]

8 May 2017
 

Harte Gold

New Gold Belt in Ontario, Canada,

+5moz upside

New emerging Canadian Producer & Exploration Play

We are initiating coverage of Harte Gold (HRT CN) with an Outperform recommendation and a C$0.90 target. HRT is emerging to become a new producer in 2018 with its 100% owned +400kozAu high grade +8g/t Sugar Zone underground mine development project, NW Ontario, Canada. We forecast ~40kozpa run-rate by YE18 at low cash costs of ~$450/oz & AISC of ~$700/oz with staged expansions to ~90kozAupa in 2023. Importantly, the Sugar Zone project has a large ~620sqkm consolidated land position covering a vastly unexplored series of greenstone belts – especially given the region hosts the +30moz Hemlo Gold belt and the +2moz Island Gold mine. We emphasize to investors that we take a very constructive valuation approach as to expansion upside to existing resources for our DCF – there is no certainty of such expansion drilling success. 

Macquarie Capital Markets Canada Ltd. 

Valuation C$ 0.97

12-month target C$ 0.90

 

Source: FactSet, Macquarie Research, May 2017 (all figures in CAD unless noted)