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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG

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To: architect* who wrote (39211)	11/13/2012 9:15:01 AM
From: Veteran98	1 Recommendation Read Replies (1) of 48092

BRD... don't have a link to the research report but here are their Morning Coffee comments.... Brigus Gold* (BRD : TSX : $0.94), Net Change: 0.03, % Change: 3.30%, Volume: 474,681 Reasons to get excited. Canaccord Genuity Precious Metals Analyst Steven Butler initiated bullish coverage on Brigus Gold, highlighting that the company is in the process of increasing production from its Black Fox mine and mill (in Ontario) which will be further expanded to accommodate the satellite Grey Fox deposits. Also noting that, long-term growth may come from developing the company's Goldfields project in Saskatchewan and exploration upside at both Black Fox and Grey Fox. Butler believes Brigus currently represents an attractive valuation, unrecognized growth potential and superior gold price leverage. On a NAV basis, the shares trade at a multiple of only 0.43x our 5%/diluted NAV @ spot gold versus the junior producer average of 0.71x. Butler believes that the expansion of underground mining capacity and the development of the Grey Fox deposits justify a likely mill expansion from 2,200 tpd to 3,500 tpd by mid-2015. The shares also offer superior NAV leverage to changes in the gold price – approximately 30% leverage for a 10% change in gold price. With the focus clearly on ramping production at Black Fox, Butler said the market has paid little attention to the company’s Goldfields project. However, management indicated that Goldfields is a core asset that it will focus on developing for potential production by 2017. Additionally, given Brigus' growth profile associated with Black Fox/Grey Fox and the Goldfields project, Butler thinks there is a reasonable optionality associated with Brigus Gold as a merger target

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