TSXV:AZC.P - Post by User
Post by
golden_timeson Nov 26, 2013 2:34pm
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Post# 21943178
# Latest comments from CIBC WORLD MARKETS INC.
# Latest comments from CIBC WORLD MARKETS INC. | CIBC WORLD MARKETS INC. |
| Augusta Resource Corporation (AZC-TSX, C$1.16) - SO |
| Price Target C$5.00 |
| Tom Meyer, P.Eng, CFA |
| Rosemont Cu-Mo-Au/Ag Project Site Visit - Permits Pending |
- On Nov. 20, a local environmental group opposing the Rosemont project released a confusing statement with respect to the mine permitting process. We visited the site on Nov. 21 and conducted a detailed review of the project and mitigation plans. We believe the shares are oversold.
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- The final environmental impact statement is expected this week and the printed version of the draft Record of Decision from the US Forest Service is expected to be issued in mid-December. We expect final permits to allow construction to proceed to be issued in early 2014.
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- Our confidence in the outcome rests on the fact that there are many Cu mines operating in the area, AZC is utilizing the latest technology to mitigate impacts and the US permitting process is science-based. On Nov. 20, AZC announced a US$26MM increase to the Red Kite loan facility.
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- We reiterate our Sector Outperformer rating and 12- to 18-month price target of C$5.00 per share. Augusta shares trade at a P/NAV multiple of 0.19x vs. the peer average of 0.17x.
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Source: CIBC