today's TD notes on NewcastleNewCastle Gold Inc. (NCA-V) C$0.92 Gerald Panneton Appointed as New CEO Daniel Earle Arun Lamba, CFA, (Associate)
Recommendation: SPEC BUY Risk: SPECULATIVE 12-Month Target Price: C$1.70
Event: NewCastle Gold announced this morning that Gerald Panneton, the founder and former President and CEO of Detour Gold, has been appointed President and CEO following the departure of David Adamson in July.
Impact: POSITIVE We have previously made the case that NewCastle resembles Detour Gold from its early days, with a modest resource offering strong growth potential in a good location that the market nevertheless views skeptically.
In 2007, Detour released its first resource of 4.8 Moz M&I and 3 Moz Inferred. Today the company boasts Reserves of 16.4 Moz and produces > 500 koz/yr. The Detour Lake mine very much followed the old mining adage of mines being built rather than found and we believe that a great deal of the credit for successfully overcoming the challenges against it belongs to Mr. Panneton and the team he assembled. We therefore regard the appointment as a significant positive in the evolution of the NewCastle story.