More Positive ResearchTORONTO, ONTARIO, Aug 8, 2007 (CCNMatthews via COMTEX) -- (CCN Mathews)
eResearch analysts, Nigel Heath, BBM, CFA, and Bob Weir, B.Sc., B.Comm., CFA, have written an Update Report on Western Goldfields Inc. (TSX:WGI)(OTCBB:WGDFF). Western Goldfields is a Canadian-based junior mining company engaged in precious metals (gold) production and mine development in southeast California, U.S.A.
In the Highlights of the report, the Analysts state:
- Western Goldfields expects to transition from development stage to production output in January 2008, three months ahead of schedule.
- Shareholders are poised to benefit from a possible re-evaluation of the shares as the Company moves towards becoming a gold producer, and a generator of positive free cash flow in 2008.
- The risk profile is lowered as the mine is fully permitted and development financing is in place.
- Since the Company's Mesquite Mine is one of only a few multi-million ounce gold reserves in the U.S.A. not controlled by a major producer, this could invite takeover overtures.
- Exploration upside could add to mineral resources/reserves and potentially extend mine life.
- Future Amex listing is expected to broaden the U.S. shareholder base.
- Low-grade Mesquite Mine requires large scale operations to maximize profitability.
- High-cost operation, in terms of dollars per ounce, increases sensitivity to gold prices.
- The Recommendation for the shares of Western Goldfields Inc. is maintained as a Speculative Buy, while the 12-month Target Price is raised to C$4.20 (US$4.00)
eResearch, which prepared this Press Release, is Canada's primary source for independent, quality, investment research, focused primarily on small- and mid-cap companies. Our research and analysis is of institutional quality, and has the potential of reaching millions of global investors through our extensive electronic distribution network. eResearch does not engage in retail or institutional sales, trading, or corporate finance activities, nor does it conduct investment banking or investor relations services for the companies covered. Our sole business is providing quality, unbiased research.