Laurentian Bank coverage initiated with price target of $1.5
Believing its share price is well-supported by good underlying value, Laurentian Bank Securities analyst Barry Allan initiated coverage of Marathon Gold Corp. (MOZ-T) with a buy rating. The Valentine Lake project is an important new gold resource of the size and quality to justify mine development, he said. Compared to a peer group of other development-stage companies, Marathon Gold offers a good operating jurisdiction and usually good access to infrastructure, for a project at this stage of development. The management are a group of successful geologists who have the skill-sets to advance the project through to a feasibility study. Considerable up-side to the resource remains to be tested. Mr. Allan set a $1.50 target, which falls slightly below the average of $1.94. It is our expectation that resources at the Valentine Lake project have a good probability of expanding further with additional exploration drilling, he said. Hence, the PEA is likely understated both in terms of resource size and NPV, given the significant amount of up-front capital, which we think may be a bit high. Marathon Gold Corp0.84-0.28 (-25.00%) Past year