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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (225459)	3/7/2013 11:04:41 AM
From: Rocket Red	2 Recommendations Read Replies (1) \| Respond to of 313059

lyd hype to get them out as everything else is selling alot cheaper than lyd

To: NOW who wrote (225459)	3/7/2013 12:15:15 PM
From: Veteran98	1 Recommendation Read Replies (1) \| Respond to of 313059

LYD... Scotia's outlook..... Lydian International Ltd. (LYD-T C$1.56) Updated Resources; Moving Towards FS Leily Omoumi, MBA - (416) 945-4527 (Scotia Capital Inc. - Canada) leily.omoumi@scotiabank.com Michael Li - (416) 862-3910 (Scotia Capital Inc. - Canada) michael-h.li@scotiabank.com Div. (NTM) C$0.00 Div. (Curr.) C$0.00 Yield (Curr.) 0.0% Rating: Sector Outperform Target 1-Yr: C$4.00 ROR 1-Yr: 156.4% Risk Ranking: Speculative Valuation: 1.16x NAV Key Risks to Target: Multiple contraction, commodity prices, technical and operational risks, and geopolitical risks Event ¦ LYD announced a new resource estimate at Amulsar (Armenia). M&I resources increased slightly, while inferred resources increased meaningfully. Grades have improved for both M&I and inf. resources. Implications ¦ Based on a 0.4 g/t cut-off, M&I resources increased by 4% to 2.26 Moz, while grades increased by 16% to 1.14 g/t, relative to the Sept. 2012 estimates. Inferred resources grew by 56% to 1.64 Moz, while grades increased by 11% to 1.02 g/t. At a 0.35 g/t cut-off, M&I resources are 2.38Moz at 1.04 g/t and inferred resources are 1.73 g/t at 0.93 g/t. ¦ The new estimate will form the basis for an updated FS due before yearend. Recall Amulsar's last reserve statement contained 2.3 Moz at 0.80 g/t. Given the increase in grades, reserve grade may improve slightly. ¦ The updated estimate is based on ~20,000 metres of diamond and RC drilling as Lydian works towards completing an updated FS and better understanding the extend of its deposits. A gold price of $1,200/oz was used in this estimate (similar to Sept. 2012 estimate). ¦ We continue to like Lydian for the simplicity of the Amulsar heap leach project, the low initial capital of the project (~$300M), and below industry-average total cash costs (~$475/oz). Although this is a challenging environment for pre-producers, we continue to believe Amulsar is a stand-out project. Recommendation ¦ We rate LYD SO. We have made no modelling changes. Updated Feasibility Coming ¦ Lydian expects to release an updated feasibility study for the Amulsar project in Armenia before year-end. Our modelling assumptions are primarily based on the bankable feasibility study released in September 2012. ¦ The new resource estimate encompasses Tigranes, Artavasdes, Arshak, and Erato.