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Avion Gold Corp AVGCF



GREY:AVGCF - Post by User

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Comment by art27on Jun 02, 2010 2:38pm
434 Views
Post# 17151253

RE: RE: Here's newest (charts/tables/targets)

RE: RE: Here's newest (charts/tables/targets)here
https://www.stockhouse.com/Bullboards/MessageDetail.aspx?s=AVR&t=LIST&m=28238834&l=0&pd=0&r=0


Avion Gold Corporation | Eric Zaunscherb, CFA, 1.604.699.0829

AVR : TSX-V : C
.68 | C$204.9M | SpeculativeBuy , Target C$1.50 ?

•Exploration drives target increase to C$1.50 from C$1.30,SPECULATIVE BUY

rating maintained

Event

We have updated our Avion model to take intoaccount very positive exploration results,

recentland acquisitions, a C$28.8 million bought deal and adjustments toreflect the

quality of management guidance.

Impact – net positive

Successful exploration and prospective landexpansion are driving increased mine life in

ourmodel, which at the peak gold price of US$1,300/oz used in our valuationresults in a

significant increase in corporateNAVPS(7.5%) estimate to C$1.71 from C$1.27 previously.

This figure also includes an upward adjustment to estimatedcapital costs for underground

development. Our pricetarget increases to C$1.50 from C$1.30, reflecting the higher

NAVPS estimate, offset somewhat by the use of a 0.9x P/NAVmultiple, reduced from 1.0x

to reflect management’spoor guidance track record and sense of timing.

Valuation and action

We apply US$850/oz long-term price deck andUS$1,300/oz peak gold pricing scenarios to

our Ségalaand Tabakoto model. We estimate a corporate NAVPS(7.5%) of C
.87under

long-term pricing and C$1.71 under peakpricing. Applying a conservative 0.9x P/NAV

multiplegenerates supportive and peak (formal) price targets of C
.80 andC$1.50,

respectively. The 121% projected returncontinues to justify a SPECULATIVE BUY rating.

AvionGold remains one of the least expensive of the gold producers under ourcoverage,

offering excellent upside in resources and,consequently, gold production.

They are well positioned so naturally a glowingreport. The fix is in and we're going up. A poster,either ignorant,oblivious (or in on the market shenanigans) said yesterday, thatconspiracy theories are ridiculous. Yea, right that's why Wall Streetand Canadian equivalents are "affectionately" termed shylocks, andrightly so. The 1000 pt recent plunge was human orchestrated, the2008-09 crash was caused by the crooks and wheelers and dealers on bothsides of the political spectrum, instigated by the do-gooder BarneyFranks and Republican shrews, Fed Chief cronies and profit seekinginvestment bankers. Remember, if a buck is to be made, a brokerage cowill sniff it out and capitalize on it, usually at public's expense.Goldman under investigation as we speak, and that's the tip of theiceberg. BUT, for most of us, we need them as telephone bets are easierthan trips to Vegas or AC. (odds are the same).

Theyare well positioned so naturally a glowing report. The fix is in andwe're going up. A poster,either ignorant, oblivious (or in on the marketshenanigans) said yesterday, that conspiracy theories are ridiculous.Yea, right that's why Wall Street and Canadian equivalents are"affectionately" termed shylocks, and rightly so. The 1000 pt recentplunge was human orchestrated, the 2008-09 crash was caused by thecrooks and wheelers and dealers on both sides of the political spectrum,instigated by the do-gooder Barney Franks and Republican shrews, FedChief cronies and profit seeking investment bankers. Remember, if a buckis to be made, a brokerage co will sniff it out and capitalize on it,usually at public's expense. Goldman under investigation as we speak,and that's the tip of the iceberg. BUT, for most of us, we need them astelephone bets are easier than trips to Vegas or AC. (odds are thesame)
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