RE:RE:Wajacwajac wrote: Being knowledgeable about mining did not benefit you. You lost big money on nvo.
Meh, only $120k or so . Couch change.
Here you go feller.
Seeing “significant” upside for its flagship Windfall gold project in Quebec, Scotia Capital analyst Ovais Habib initiated coverage of Osisko Mining Inc. (
) with a “sector outperform” recommendation.
“Osisko maintains an active drilling and exploration program at Windfall with 10 active drill rigs, and we expect additional exploration results in the coming weeks and months,” he said. “We see potential for value accretion as the resource base expands through ongoing drilling and exploration, including at depth where the deposit remains open and where the company has been reporting additional high-grade intervals beneath the limits of the existing resource.”
Mr. Habib thinks high-grade, low-cost production in Canada makes Osisko “an attractive acquisition target” moving forward.
“We expect Osisko to produce more than 250,000 ounces of gold annually with production commencing in 2025 (conservatively, one year later than the PEA study),” he said. “All-in sustaining costs (AISC) are expected to remain stable at approximately US$717 per pound (LOM average), and it appears additional upside for expansion remains at depth where the deposit remains open. We believe this combination creates a suitable target for a major or mid-cap producer looking to augment its production profile with low-cost ounces.”
Believing its current share price “represents a good entry point to invest in a well-managed gold development company with significant potential for exploration and production upside,” he set a one-year target of $4.25. The average on the Street is $5.58.
“Using the spot gold price, Osisko is currently trading at 0.56 times P/NAV5%, compared with development peers that trade at an average of 0.53 times,” said Mr. Habib. “In our view, the company should trade at a premium to its peers given Windfall’s location in a tier-one jurisdiction and its high-grade, low forecast operating costs, and significant exploration upside. As Osisko continues to execute its exploration and development plans, we expect a commensurate upward share price rerating. We think the current market valuation of Osisko reflects a significantly discounted value for its current resources and reserves, and we believe there is considerable exploration upside, with additional near-term potential catalysts not currently being reflected.”
Bucco:)