BTO, NRN, EDV, CEE
In the years I have been following B2Gold aka BTO, pretty well all of their many acquisitions have proven out. Today they announced they had completed the buyout of Sabina Silver & Gold aka SBB, and it will be interesting to see if they can continue the string of success with the purchase of this Nunavut gold mine to be. I expect so.
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FWIW, in the wake of this announcement, BMO issued a new analyst report resuming coverage of BTO. (They were involved in the takeover of SBB so had to drop coverage until the transaction was completed.) In the wake of the transaction and following an increase in their PM price deck, BMO is rating BTO as Outperform while raising their target from $7 to $7.50.
Northern Shield Resources aka NRN continue to poke around at various targets on their Root & Cellar prospect in Newfoundland, finding samples that include Au, Ag, and Cu, as well, for the first time because it hasn't been tested for up till now, the valuable rare metal tellurium (Te). If they ever do come up with enough mineralization to be minable, the Te will be a valuable byproduct.
They also announced that they have crews "ground-truthing the preliminary gold targets generated from the recently competed Induced Polarization geophysical survey and, an area where the interpreted copper porphyry-type mineralization may come nearer to surface." Finding that underlying porphyry close enough to surface is almost certainly where a potential mine could be developed.
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FWIW, Edison released a new report on West African gold producer Endeavour Gold aka EDV, highlighting the positive effects of a higher gold price. EDV has been trading well of late, but they point out that, based on their metrics, if EDV was valued equally to their peers it would be trading over $C51. You can access the report for free at this link. (Note if you want it in pdf form form you need to use the download button on the upper right.)
edisongroup.com
Centamin aka CEE released their Q results, and they were generally good. Gold production from their Sukari mine in Egypt came in around expectations at 105875 oz, while cash costs came in below expectations at $937/oz Au, this in spite of the extensive pre-stripping programme, which will pay off in lower future costs, not yet having been completed. In spite of these expenditures, their cash stash remained steady at $155M with no debt. They also reiterated previous guidance for 2023 for the production of 450-480k oz Au at a cash cost of $840-890/oz Au.
There will be good newsflow for the rest of the year, including the release of a PFBS for the Doropo project in Côte d'Ivoire in mid-year, ongoing exploration at Sukari, and the first exploration results from the recently awarded Eastern Desert prospects in Egypt. But the big news will be the release of the revised mine plan for Sukari during Q2, particularly regarding increasing production of high grade underground ore.
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FWIW, in the wake of this NR BMO issued a new analyst report that emphasized the word 'stable'. Accordingly, they kept CEE at Market Perform with a target of $C2.16.
FWIW, TD released a new analyst report changing their price deck for gold, raising the average 2023 gold price from $1850/oz to $1954/oz, and their 2024 price from $1850 to $2000/oz. They also opine that M&A will remain strong, and that B2Gold aka BTO remains their top puck among the gold producers. |
