Scotia iTrade analysis; Sector Outperform Premier Gold Mines Limited (
PG-T; C$3.15; SO
)
Q3/16 Production Beats Estimates with Higher Grades
OUR TAKE:
Premier Gold announced Q3/16 production results from the 40%-
owned South Arturo mine in Nevada (Barrick is 60% owner and operator). Total
Q3/16 production was 75.6koz Au, or 30.2koz Au (40%) attributable to Premier
Gold.
Production was ahead of our estimate of 18.9koz Au as a result of higher
processed grades from revised scheduling of ore through the roaster. Premier
also increased 2016 attributable production guidance to 100k to 110koz Au (vs.
~100koz Au previously),
including one quarter of production from the newly-acquired
Mercedes mine. We rate PG shares Sector Outperform with a $6.00 price target.
Full Report
Ovais Habib
| Analyst | 416-863-7141 | Scotia Capital Inc. - Canada
Eric Winmill
, MFin, CFA | Associate | 416-862-3738 | Scotia Capital Inc. - Canada
New
Old
Rating
SO
-
Risk Ranking
Speculative
-
1-Yr. Target
C$6.00
-
Adj EPS16E
$0.07
$0.10
Adj EPS17E
$0.05
$0.08
NAVPS
$5.29
$5.31