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Cube Psytech Holdings Inc. T.P


Primary Symbol: P.CUUB

Cube Psytech intends to trade on the Canadian Security Exchange. There is no date set for the closing of their Initial Public Offering at this time.


P.CUUB - Post by User

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Post by scissors14on Jan 10, 2012 11:14am
211 Views
Post# 19386158

Fair Market Value...

Fair Market Value...

...is now 24 cents.  Still overpriced.  Disappointing outcome since last year's thwarted takeover. 

 

TD still likes it though: 

Primero Mining Corp.

(P-T) C$3.39

Operations Bouncing Back from Strike; Tax Ruling the Main

Focus

Event

Primero reported its Q3/11 results.

Impact

NEUTRAL

– The quarter was in line with expectations with gold and silver

production of 19,500 oz and 1.1m oz, respectively, albeit at slightly higher

cash costs of $641/oz Aueq. Operating earnings of
.06 were above our

estimate of
.03 and in line with consensus of
.06. The difference

compared with our estimate was due to lower than expected taxes.

Full-year guidance was maintained at 80,000-85,000 oz gold or (100,000-

110,000 oz Aueq) at by-product cash costs of $340-360/oz.

Improved results are expected in Q4, with grades expected to rebound from a decrease

in Q3. Gold and silver grades dipped to 3.35g/t and 195g/t, respectively, well

below reserve grades of 4.69g/t and 332g/t. This was the impetus behind the

guidance cut in September. The company is employing a program of closer

drill spacing for better grade control going forward. The company also noted

that it is hitting significantly higher grades in drilling below the Roberta and

Robertita veins, which are currently being mined and where grades have

fallen short of expectations.

Advanced tax ruling process to take 12-14 months.

The company expects a favourable outcome as per opinions from its professional advisors

who have pegged the chance of success at greater than 70%. As we have previously

discussed, we believe that a positive ruling would be a significant positive forthe stock;

but even with the tax burden, which is fully reflected in our NAV,we believe Primero

remains significantly undervalued. During the ruling process, the company will report

revenues and taxes based on realized silver prices. For consistency purposes we have done

the same, resulting in an increase in our Q4/11 and 2012 EPS and CFPS estimates.

We maintain a BUY recommendation and $6.00 target price.

 

 

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