RE:RE:Cannacord Recommends OREAs cibc report said "At spot prices, Orezone trades at 0.2x NPV5%, relative to the developer peer average of 0.8x. At current trading levels of ~C$0.69/share,"...
a catch up first of 4 times $0.69 just to get even with peer average is $2.76 per share...
cibc also noted "We derive our C$1.50 price target using a 0.8x NAVPS multiple and our
long-term gold price forecast of $1,400/oz. A multiple of 0.8x is applied, similar to developer peers, given the development-stage nature of the project, where the construction decision is now contingent on RAP Phase 1 completion and project financing."
I like this aisc... "$719/oz AISC, firmly in the top quartile of the cost curve"
calculating quickly... us$700/oz profit with gold at us$1400.
meaning with gold at us$1750 / oz the profit / oz would be us$700 + us$350 = us$1050 / oz...
50% more... ... cibc share price target of $1.50 + 50% =
$2.25 per share. on this gold price is expected to be much higher by the time the mining starts in 2020 above us$2000 / oz. at us$2000 / oz gold the profit per once would be us$700 (gold 1400) plus us$600 / once (gold 2000) = us$1300 / oz, another 30% above the $2.25 share target or about
$3.00. without including any of the existing and future new gold discoveries on the property. are the shareholders ok with a
takeover at $2.00 if done quickly? I suppose so.
good luck
Miner60 wrote: Canaccord has a $2.25 Speculative Buy on Orezone. Several institutions have called for a $2000 target on Gold, with Bank of America calling for $3,000.
Uranium wrote: I heard the canaccord is now recommending orezone. Does anyone have the bulletin? I'm unsure of what the target price is. I know that CIBC has a BUY rating with $1.50 target.