Expert Analysis Wendell Zerb, Canaccord Genuity (1/6/12) "We are maintaining our Speculative Buy rating and 12-month target of $1.90 on Prodigy Gold Inc. . .we are adding the company to our Canaccord Genuity Focus List. . .sound project characteristics, including metallurgy, infrastructure, and the socio-political jurisdiction, all contribute to the future potential for Magino's development. . .the updated preliminary economic assessment for Magino validates a superior mine plan and project valuation. Based on our revised valuation and comparative analysis, we believe Prodigy's shares are undervalued and open to upside rerating."
Don Blyth, Paradigm Capital (1/4/12) "Prodigy Gold Inc. released an updated Preliminary Economic Assessment (PEA) at its 100%-owned Maginogold project in Ontario. . .the company has substantially increased current mineral resources at the Magino project to 3.5 Moz at 1.20 g/t. . .the Magino project appears to be very robust. . .Prodigy will now move into a full feasibility study, which is scheduled for completion during H212; further evaluation of options to reduce costs and increase production could enhance the overall project economics significantly. We expect the updated PEA to serve as a catalyst for the shares and potentially trigger M&A activity."
Jay Taylor, Gold, Energy & Tech Stocks (12/31/11) "Prodigy Gold Inc. just put out a preliminary economic assessment that calculates a net present value for the company's Magino project of $939M; with 237.7M shares outstanding, that suggests a potential share price of $3.96, compared to its current price of
.83. . .the upside potential from Prodigy's current share price, even at $1,200/oz gold, appears to be very substantial; so for obvious reasons, we are recommending purchase of these shares going forward."
Tara Hassan, National Bank Financial (12/30/11) "We are increasing our target price to reflect a much bigger Magino resource for Prodigy Gold Inc. . .the company has issued an updated preliminary economic assessment (PEA). . .with the update incorporating more than 190,000m of historic and updated drilling, the PEA benefits from consideration of an increased resource (up 55.2% to 3.9 Moz Au), expanded annual throughput (20 Ktpd vs. 15 Ktpd), decreased unit operating costs and reduced strip ratio. The proposed mine plan boosts average annual production to 240–250 Koz/year. . .we are increasing our target price to $1.20 (was $1.00); we reiterate our Outperform rating."
The Gold Report Interview with James West (12/28/11) "We hold Prodigy in the fund and I continue to follow it. That new resource certainly demonstrates the deposit is growing. It's still open in multiple directions. The company is aggressively developing it. . .Prodigy is absolutely one to hold because it's an excellent opportunity at a great price."
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