PINL:VLTAF - Post by User
Post by
ALLEN4on May 30, 2011 9:09am
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Post# 18643257
Cannacord/ Burkina Faso
Cannacord/ Burkina Fasoregarding ORE, but indication of how analyst views situation in B.F.
Orezone Gold Corporation (ORE : TSX : SPECULATIVE BUY; new target $7.50, up from $7.25)/NC
The shares of Orezone have sold off in light of the recent disruptions in Burkina Faso. While the actions by the elite soldiers in Burkina Faso were a concern, calm appears to have returned to the country with resolutions in place to address the concerns that led to the unrest. We view this as a short-term issue that should not have a significant impact on the longer-term development of Orezone’s Bombore project. We have increased our peak gold price to US$1,600/oz Au (up from US$1,500/oz). We now estimate a peak gold price NAVPS (7.5%, US$1600/oz Au) of C$9.26, up from C$8.55. We value the shares of Orezone based on a 0.80x multiple (down from 0.85x) to our peak gold price estimate of NAVPS.