VTR: BUY https://www.proactiveinvestors.com/companies/news/39979/jennings-capital-believes-volta-resources-extremely-undervalued-with-best-leverage-to-gold-price-39979.html
The Jennings analyst also makes the case for an "extremely undervalued" company, with the capital markets firm's base case target price representing a 200% return from current price levels - the highest of its coverage universe.
He adds there are limited downside risks, as the value of non-core assets exceeds Volta's market cap, implying "you get Kiaka for free".
Jennings assigns a valuation of $78 million to Volta's non-core assets - which include the Gaoua copper-gold project, a joint venture with Nemont in Ghana, and other assets - higher than its current market cap of $71.5 million.
The analyst highlights the company's high leverage to gold price, being the highest in Jennings' coverage universe. Indeed, for a 10% gold price increase, Volta's target price rises by 34%, Hrushewsky calculates.