Desjardins updateTranslated form LesAffaires.com (July 18) : Osisko (OSK, $ 2.10): It looks good for Windfall
Desjardins Capital Markets reiterates a (speculative) purchase recommendation.
The company has just unveiled the preliminary economic evaluation of its Windfall project, located 200 km northeast of Val-d'Or and 115 km from Lebel-sur-Quevillon.
Raj Ray says the project plans to mine 3,200 tonnes of ore per day over an eight-year horizon. The capital required for pre-development is CAD $ 397 million. The after-tax internal rate of return (IRR) is 33%, with an average gold price of US $ 1,300 per ounce and an exchange rate of US $ 0.78.
The analyst pointed out that the evaluation only postulates that 1.9 million of the 3.4 million estimated resources for the property are to be exploited, and that this estimate does not take into account the new high-grade discovery named Triple 8.
He believes that significant space remains to optimize the size of the project. Although execution risks are still present, Ray believes that the recent decline in the stock may be seen as an opportunity to buy.
The target is maintained at $ 4.50.