Battle North goes ahead with Bateman construction in Red LakMINING.COM
Battle North goes ahead with Bateman construction in Red Lake - MINING.COM
"Andrew Mikitchook of BMO Capital Markets notes that the 2021 spend guidance of C$59.1 million in capital and C$17.8 million in capitalized operating costs (for a total of C$80.9 million once C$4 million spent last year on construction is added) is “slightly higher than the year-2 estimates in the October 2020 feasibility net capex and operating costs totaling C$68.7 million as it appears construction is slightly accelerated to the original plan.” He sees Battle North as being fully financed for the restart and expects a re-valuation of the stock as the company delivers construction progress towards a restart. Mikitchook has an ‘outperform’ rating on Battle North with a C$4 target.
Ryan Hanley of Laurentian Bank Securities highlights the compelling valuation of the stock, which is trading at a discount to its peers. Hanley has a ‘buy’ rating for Battle North, also with a C$4 target price.
“We continue to believe that given its strong management team (which continues to meet ongoing project advancement targets on time and on budget), strong balance sheet (with construction now funded upon closing of the credit line in Q1 21), significant amount of existing infrastructure (thereby lowering construction and start-up risk), significant tax pools (thus making the company a takeout target), and very large regional exploration package (most of which has seen limited, if any, exploration work), that BNAU should trade at a premium to its peers.”