Andrew Mikitchook, an analyst from BMO Capital, maintained the Buy rating on New Found Gold (NFGC – Research Report). The associated price target was raised to C$10.00.
Andrew Mikitchook’s rating is based on a thorough evaluation of New Found Gold’s ongoing exploration successes and strategic advancements. During a site visit, he observed first-hand the strides made in the Iceberg project, which is part of the Queensway project, and the potential for efficient progression into future phases of exploration and development. The acquisition of the Kingsway property, with its extension of the Appleton Fault, has been pivotal, as it shows continuity in mineralization and exploration success for the company. This robust exploration framework is expected to be met with market enthusiasm, particularly for high-grade discoveries.
Additionally, the drilling progress at New Found Gold is noteworthy, with a significant portion of the 2024 drilling budget already completed and plans to increase drilling activity. The extension of known mineralization at deeper levels, particularly at the Keats zone, reinforces the exploration model and justifies the exploration expenditure. Andrew Mikitchook’s belief in the company’s capacity to discover and delineate high-grade, thick zones of mineralization is further supported by the impressive scale of drilling activity, which underscores the potential for significant value creation as the company moves towards development.