Opinions Jon Case
Atlantic Gold CorpAGB.VTOP PICKMar 05, 2018
Jon CaseStock price when the opinion was issued
As of Jul 23, 2019. Market Open.
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Jon Case
Dennis da Silva(A Top Pick September 15/17 Up 12%) The company was so cheap and was beginning new production with the mine done under a fixed contract, so it was very low risk. Now the next phase will be doubling production by exploiting satellite deposits.
Dennis da SilvaA great little underappreciated story. Nova Scotia. It took three years to build. It is dirt cheap. They have two other satellite deposits that can expand the project. They are going to explore them in order to discover resources to go on beyond 10 years. (Analysts’ target: $2.46).
Dennis da SilvaNew management has done a fantastic job of implementation. Where the rubber meets the road we’ll be seeing how the operations from that mine work over the next 2 quarters. If they break it in successfully, and maintain nameplate capacity, he expects the stock will re-rate higher. The next 2 quarters will tell the story.
Rick RuleA new producer in Canada. Unique and in Nova Scotia. They are opening their new mine, a Moose River consolidated mine project. It is going into production in October, and should be commercial by the end of the year. 85,000 ounces in 8.5 years. Sub-$600US an ounce production cost, so margins will be very robust. The ability to double from 2 satellite deposits, probably in 3 years, will more than double production. (Analysts’ price target of $2.17.)
Dennis da SilvaLikes the management team and the deposit. He was hoping the gold price would stay lower for longer so that they could have consolidated more gold districts. They did consolidate one gold district in Nova Scotia, and are midway through building a mine.
Rick Rule
They just built a gold mine in Nova Scotia. The cash cost came in below everyone’s expectations. It is one of the lowest cost mines out there. There is an expected 80k oz to 200k oz increase in production coming. (Analysts’ target: $2.46).