Mexico precious metals miners poised for significant upside https://www.miningweekly.com/article/mexico-focused-precious-metals-miners-poised-for-significant-upside-2013-12-11
The other development company added to the analysts’ watch list was Torex Gold Resources, which was given a ‘speculative buy’ rating and a price target of C$1.90 a share.
Torex is an advanced development‐stage company whose flagship asset is the 100%‐owned Morelos gold project, in Guerrero, Mexico, comprised of El Limon‐Guajes and Media Luna.
Desjardins said that in its view, El Limon‐Guajes fell into a select group of large‐scale gold development assets not controlled by a major mining company.
The analysts expected El Limon‐Guajes to start production in the third quarter of 2016 and forecast average yearly output of 321 000 oz of gold at total cash costs of $590/oz over a 10.5‐year mine life. They expected that the company would have a cash requirement of $245-million to fund El Limon‐Guajes, assuming $250-million of project debt was available.
“In our opinion, the asset’s primary distinguishing feature is its above‐average grade profile (2.61 g/t gold average reserve grade) for an openpit development project. Clearly, the discovery of Media Luna was a significant development for the company. Based on our estimates, this deposit has both the scale and grade to develop into a profitable mine.”